Motley Fool Money - Are You $avvy?

Episode Date: April 9, 2021

The stock market hits a new high. JPMorgan Chase CEO Jamie Dimon expresses bullishness about the economic recovery and concern about the future. Constellation Brands serves up strong growth. Amazon gains ground in digital advertising and announces plans to open its first grocery stores on the East Coast. Okta shares soar on optimism from the company’s investor day. FuboTV shares rise after the securing exclusive rights to World Cup ’22 qualifying matches. Twitter explores an acquisition of audio-based social network Clubhouse. And AppHarvest makes a big buy in artificial intelligence. Motley Fool analysts Emily Flippen and Jason Moser discuss those stories and share two stocks on their radar, Sprout Social and Ciena. Plus, award-winning director Robin Hauser talks about $avvy, a new documentary about women taking control of their financial futures. Looking to be more savvy with your investments?  Get 50% off Stock Advisor by going to http://RadarStocks.fool.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

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On Friday, both the S&P 500 and the Dow Jones Industrial Average hit new all-time highs. Earlier in the week, no less in authority than J.P. Morgan Chase's chairman and CEO, Jamie Diamond, said he is bullish on the U.S. economy over the next few years. This was in Diamond's annual letter to shareholders. Jason, a lot of people get nervous when the market hits all-time highs. Jamie Diamond is not one of them. Where do you want to start? I mean, I guess there are a few different ways we could look at this.

I mean, the letter that Mr. Diamond wrote very extensive. I mean, it was a long read for sure. But, I mean, I think there were a lot of good thoughts in there. And with the market at all-time highs, I mean, I generally actually agree with his bullishness. And I think there are a few things that are really impacting this. So first and foremost, I mean, it's worth considering, at least, that the opportunities, the growth opportunities, that technology is opening up for us now versus what has. been available to us historically. I mean, we're in the middle of industry 4.0, right?

I mean, all of this technology that's come about over the last couple of decades, we're now seeing the potential of all of that technology being unleashed, right? Computers are connected. They're communicating with one another. They're running factories. We've got cyberphysical systems doing things that we never thought were possible. Internet of things. There's just so much potential there with technology. So while the future is always is uncertain, there is some certainty in the fact that technology is making things possible. We never could have imagined. And we still can't even fully grasp yet. So it's understandable that investors are excited about that and want to be a part of it. Secondly, I think that,

like Jamie Diamond said, we have excess savings, new stimulus savings, huge deficit spending, more QE, new potential infrastructure bills, successful vaccine and euphoria around the end of the pandemic. I mean, I think all of this put together, it's hard to imagine. imagine the U.S. economy not booming from that, right? That is just an amalgamation with a lot of good things that should continue to benefit the economy. So I understand that perspective as well. And then one more thing, just to keep in mind, too, it is interesting to note. According to FINRA, investors had borrowed $814 billion against their portfolios by the end of February of this year. So that's essentially that's margin. That's that margin debt that we talk about

for investors. That was up 49% from a year ago. It's at a record high. It's the fastest annual increase since 2007. Before that, the last time borrowings had grown so quickly, that was during the dot-com bubble of 1999. So like we say with margin, to me, margin, I don't need margin to me, it's not inherently good or bad, but it does amplify things, both on the way up and on the way down. Clearly, margin is something that's in play for investors these days. It seems like it's making the good times a little bit better right now, and that could be a contributing factor as well. But I think there are a lot of reasons for that bullishness that I would subscribe to. So for me, and I think that what we try to tell our listeners, our members, this is why we adopt

that philosophy of always being invested, right? Because over the long haul, these are the types of opportunities that really come into play here. We want to be a part of this. Emily, what do you think? I think it was really interesting just how much time Diamond spent building up what a robust rebound the economy is going to experience while also having such a negative tone. I'm honestly impressed by his ability to both make me really sad but also really optimistic at the same time. It was like this weird paradox where we are expected to have some spending increases, right? This quantitative easing. It could help the economy into 2023. And then also this underlying level

of, well, we're just kind of dysfunctional right now, too. Like, the growth could be even greater if we weren't so dysfunctional, not on just a political level, but on an economic level as well. Constellation brands wrapped up their fiscal year in style. Fourth quarter profits came in higher than expected for the beer, wine, and spirits company. Despite the good results, shares of Constellation brands down 5% this week. Emily, is this because of guidance?

Like, we're not going to drink as much alcohol over the next 12 months as we did during the pandemic? Well, I don't know about anybody else, but I know that's not an issue when it comes to me. So I don't think that's what investors are particularly worried about. I think what investors are missing is remembering back to just a few months ago, when you look down at the main demographic for Constellation Brands, which is Hispanic Americans and how they were impacted because of the weather in key areas like Texas last quarter. So, I think investors saw depletion numbers as it applies to their beer brands, kind of lower than expected, while also not remembering that there were a lot of actually weather-related

phenomena that decreased their period over the last quarter for which they could expect to be selling through to their key demographics, especially for their Modelo brand. So I think that might have gotten investors a little bit caught up. But what I think was really interesting was just what a shining star beer was for this quarter. brands has been in the process of pulling down on its wine business in particular. But even with their pretty robust spirits offering, management spent virtually the entire call talking about beer, and the expected double-digit growth they're having in many of their key brands, in particular, Modelo and as well, Corona, their Corona-Hart-Seltzer brands. These are some product

innovations that we haven't seen from the likes of Constellation brands for quite a while. So when you see double-digit level depletions coming out of some of these new, innovations, I think that is probably what investors should be focused on, as opposed to just some weather-related pulldowns we experienced over the past quarter. Yeah, for all of the success we've seen, Emily, with various alcohol companies pushing forward with Seltzer brands, it seems like Constellation was a little late to the game with that, but Bill Nillins has been CEO for two years. It seems like the ship has been steadied under his leadership. What's really interesting is while you're right that they were

slow to the uptake for things like hard seltzer. They had 90% depletion growth in Corona Hard Seltzer and it's the second fastest moving hard seltzer brand in the United States right now. So despite them being slow to the uptake, they've actually managed to lever a lot of the attention that the Corona brand has and apply it to the hard seltzer business to be one of the best hard seltzer selling brands in the US right now. They're launching a second variety pack and that could be a real tailwind heading into 2021. According to a new report from research firm e-marketer, marketer, the digital advertising landscape is shifting. Google and Facebook are still the dominant players, but Amazon's ad revenue in 2020 was more than 50% higher than the previous year,

and their market share has increased to more than 10% of the overall market. The marketer expects that number to steadily grow over the next three years, too, Jason. Yeah, I mean, I would agree with that. I mean, it makes sense to me at least, and I think for investors, you look at this from the perspective that even a little piece of a really big pie can still be a lot. I think that's what we're seeing over the Amazon. Digital ads spend may not be a part of the thesis, but it doesn't hurt the cause. If you look at the numbers, Amazon's US ad revenue close to $16 billion last year, I mean, that's maybe 4% of their overall business, right?

I mean, that's really not all that terribly meaningful, but it grew 53% from a year ago. And that, to me, it makes sense. I mean, I think when you look at ad business along with e-commerce and you couple those together, I mean, to me, it seems like it would be a lot easier to develop an ad business around a mature e-commerce business and the other way around, right? And so, I mean, I'd argue that Google and Facebook's efforts to penetrate commerce have been marginal at best. And I honestly don't think that's going to change meaningfully at all. And part of that is just because beyond Amazon, there's so many other companies,

that just do it way, way better. It's not like Facebook and Google haven't tried. They have. It's just not really anything that's sticking for them. So I think that's encouraging for Amazon and that they're continuing to build this out. I think one thing, too, in regard to Amazon's ad business, they have that Google and Facebook and other social platforms, for example, don't have, Amazon's not really, they don't have to worry about the political risk so much, right? I mean, it's not, they're not advertising for entertainment or for social. They're advertising for commerce, and so they don't face that same kind of political risk, I think, that other companies like Facebook and Google might face.

So to me, while it may not be a big part of the thesis for Amazon, it certainly doesn't hurt the cause, and it's nice to see them continuing to gain share. I think that ought to continue. Well, and it's not like Amazon doesn't have other potential regulatory problems with the United States government. It very well might, but I think that's the... That's not a point to be glossed over, that they're making their money not by providing platforms for different social groups.

They're just trying to get people to buy stuff. Yeah, that's true. And I mean, there is an entertainment aspect to it, right? I mean, there is Fire TV. Those devices are becoming more prevalent in folks living rooms, and they are selling advertising via Fire TV. They're getting more into the podcast and music world as well. So there is that entertainment angle.

They have to at least keep that political-type risk at the back of their mind. But again, it's not the nature of their business. It's not really the primary driver of the business. Amazon's looking to shake up another industry, only this time it's an industry that Amazon's already competing in. Details coming up after the break. Stay right here. You're listening to Motley Full Money.

Welcome back to Motley Full Money. Chris Hill here with Jason Moser and Emily Flipping. Later in the show, we're going to get to the stocks on our radar. But if you're looking for even more stock ideas and recommendations, check out our flagship service stock advisor. You get recommendations from Tom and David Gardner. You get their best buys now and a lot more. Just go to radarstocks.fool.com and you'll get 50% off just for being one of the dozens of listeners. Again, that's radarstocks.fool.com.

Octa, the Identity Security Company, held an investor day on Wednesday. And I don't know what management told investors, Emily, but in just two days, the stock is. up nearly 10%. What happened? I think expectations were low for OCTA heading into their investor day. For years now, Octa's growth has slowed. And while they've been dominant in identity management, I think people were skeptical of their ability to continue to fuel growth in the future. And OCTA actually had this big acquisition that they announced last month that was also weighing on the mind of investors. So heading into this investor day, I think people were not expecting very much in terms of guidance. So, what OCTA came out with, which included a lot of interesting product

launches, was more than what was expected. They spent a majority of their investor day talking about new platform services, things that would expand OCTA's total addressable market, in particular movement into identity governance and privileged access management. These are cloud-based services that can exist as upsells to OCTA's existing identity management customers. But where I think I still have the biggest questions as an investor, and I think I still have the biggest questions as an investor, And it's something that they didn't spend a ton of time talking about that I wish they would is this acquisition of off the zero. They spent nearly $7 billion in all stock or are planning to acquire off zero, which is a competitor to Octa and a single sign-on markets.

And the only difference, the only thing they're really acquiring here is a different go-to-market strategy. So whether or not that's worth the hefty price tag, I think is still yet to be seen. Amazon is already in the grocery industry because it's the parent company of Whole Foods. But this week, the company confirmed it plans to open new grocery store concepts on the East Coast later this year. Jason, Amazon's being pretty cagey with details, but if you connect the dots on what we know so far, I think it seems reasonable to assume that these stores are going to have name brand products. They're going to have some high tech things that will enable Amazon Prime members. to shop more quickly. You may ask the question why they continue to pursue this grocery strategy

or even if they are necessarily certain how they want to pursue this grocery strategy. I certainly understand why they're doing it, though. I mean, the total sales generated by grocery stores in the United States in 2020 were $760 billion U.S. dollars. I mean, like, that's a lot, a lot of money, right? A big market opportunity here, just domestically alone, you look at it. at peer-play grocers like Kroger, for example, they brought in 132 billion dollars in revenue over the last year. So this is a big market opportunity, and they're trying to figure out exactly how to pursue it. They're trying a few different things. Yeah, the Whole Foods acquisition is probably what's at the forefront of most investors' minds these days. We're trying to figure

out exactly, was that really the right thing to do? What does the Amazon Fresh have that a Whole Foods doesn't have? And one thing I think, and this is really something that I think, we continue to talk about is brand risk with a variety of companies. And maybe there still is a little bit of a brand risk with Whole Foods. I don't know. I mean, that whole paycheck identity that it earned so long ago, I mean, that doesn't just leave consumers' minds. I think there's always a bit of an association there. So maybe that's something that the Amazon Fresh concept has that can sort of counter that Whole Foods brand risk if it does exist. There is the crossover consumer to consider as well. A lot of folks like to be able to get their organic

produce and their peanut butter crunch at the same place, Chris, right? I mean, I'm one of those guys, right? I'm a crossover consumer. I think a lot of folks out there are. And so maybe this Amazon Fresh concept can cater to that as well. Obviously, testing and learning on the tech side as well. And listen, if you're still bitter about the Whole Foods acquisition, I think, what? They paid $13, $14 billion for it in 2000. 2017. Well, our earlier story, that ad business that seems so meaningless to Amazon's business, $15 billion plus dollars in annual revenue there, there. That paid for the whole Whole Foods acquisition right there. Their ad business, found money. They just bought Whole Foods for

it. And that ought to take a little bit of the pressure off, right? Absolutely. Shares of Fubo TV up more than 15 percent on Friday. The Sports Streaming Service won the rights to some qualifying matches for the Men's World Cup in 2022. Emily, you and I were talking before the show started. Getting the rights to these matches, it seemed like a good move. It seemed like a win. I wasn't expecting it to be a win to the tune of the stock being up 15%. I'm not sure if this deal alone justifies today's stock rise, but I think the stock rise itself is indicative of expectations for what Fubo could become. Before this deal, Fubo is a smaller player, and to an extent it still is a smaller player today,

but they've proven that we're a new entrant, we're a smaller player, but we're competitive enough that we can get exclusive rights to 70 qualifying matches for the 2022 World Cup. That's critical to delivering on Fubo's value proposition because they've constantly angled themselves as a streaming service provider that sports first. So this is a critical win. those 70 qualifying matches themselves, right? That probably doesn't justify a 15% bump in the stock price. But what it means for Fubo in the future, I could make a compelling argument that this changes the game, that FUBO is no longer going to be a smaller player, but going to be critical, right, for what it means to be a sports watcher in the future.

And that's especially critical because right now Fubo generates a majority of their revenue from inside the United States. the majority of their 500,000 paying subscribers are from the United States. The fact that they're able to get some World Cup matches where the majority of watchers are outside of the United States could also mean a lot for their ability to expand internationally. So it was definitely a good thing. If I had to predict, I would not have guessed that the stock had moved so aggressively today.

But as I thought about it more, it started to make more sense. Well, and it could be one of those things that gets a lot of people to kick the tires on Fubu. Fubo TV as a service and maybe they get sucked in and they say, well, I'm just going to do this for the qualifying matches, but then if they enjoy it enough, if they check out the other offerings, then they've got a whole lot of new customers. And Fubo has a really interesting way of monetizing those customers. It's an expensive service to buy the lowest cost service for subscribers are around $65 a month.

So if you're paying for Fubo, you're a big sports fan. All right. Emily Flip and Jason Moser. We will see you later in the show. A new documentary about money poses the question, just how savvy are you? Award-winning filmmaker Robin Hauser is next, so stay right here. You're listening to Motley Fool Money. Welcome back to Motley Fool Money. I'm Chris Hill. At some point in their lives, the overwhelming majority of women will be solely responsible for their finances. Yet, a growing number of women leave their financial decisions up to their spouse.

This topic is at the heart of Savvy, a new documentary from award-winning filmmaker Robin Hauser. She profiles a number of women in the film, including a group who became friends over their shared love of tennis and turned that into their own investment club in the 1980s. When she talked with my colleague Patricia Bages, Hauser explained how crucial the bond of friendship was in building their confidence as investors. That seems important because number one is a different generation, right? And it's a group of women that have been together for over 50 years now.

Yeah, that's right. Some of them have been together for 50 years. And this idea that they became empowered through learning about the stock market. Back in the 80s, it was not very common for women to be involved in the stock market and for women to be investors. And so through this bond of this investment club, they learned about stocks. They learned about how to research and how to invest. And it was a lot more difficult back then than it is now, just doing it, say, on Robin Hood

or on some quick app, right? But I think the most important thing that these women learned through that was the self-confidence that they gained. It was really empowering for them to know about this, to make their own money, to not be intimidated by the stock market, and to be able to sort of hold their head high. if they were at a cocktail party and the men were talking about that or what have you. Definitely. I think one of my favorite parts, too, in the interview is when they talk about going to the

shareholder meetings and they ask them if they know where they're, where they are, if they're supposed to be there and like, we just walked right in. We knew where we were supposed to be. I loved that. Yeah, they're like, sorry, this is only for shareholders. And they said, well, we're shareholders. Yeah, exactly. I always loved them.

They were great. So when you were planning the narrative arc of this film and you wanted to show the different types of women that had different parts of their financial lives that they were working on. You have a woman who struggles with credit card debt, a woman who struggles with student loans, a woman who was struggling with understanding where the state of their finances were when her husband passed away. How did you decide what moments in someone's financial life you wanted to cover in your film? We started looking in just stories and what are the typical situations where people do, not just women, right, but where people get into trouble with money.

Credit card debt, high interest credit cards, that was an obvious. And the story about Yonelli Espinall, who first generation American, she's obviously very bright, she's on a full ride scholarship at an Ivy League college, and she walks out of class one day and there's a big bank with a tent set up giving away free pizza, free shirts, free credit, you know, and they're like, just sign here for a credit card. And she's like, yeah, you don't know the background. I come from. My parents don't even have credit cards. And they said, no, no, go ahead and sign up. But nobody ever taught her how a credit card works. Nobody ever, you know, and she did everything she

was asked to do. It said, just pay here, pay the minimum amount. And she figured as long as she paid the minimum amount, she'd be fine. And she ended up with over $20,000 in credit card debt as a college student. And, you know, whose fault is that? I mean, she doesn't blame anybody else. She recognizes that she probably should have learned a little bit more about it. But it's so easy. It seems like free money and it's so tempting. And the system doesn't teach you. Their schools don't teach you about that. The bank certainly didn't go beyond, you know,

they didn't say you have to read the small print, right? So that was an important story to tell. And then Caitlin Boston talks about how her parents who, you know, weren't, were educated but didn't have high degrees. We're so excited about sending her to college and then to grad school. because they had this very, very bright adopted daughter, they, as she says, out of financial sort of illiteracy, I signed up for some of these really, really expensive private student loans. And Caitlin ended up with $22,000 in student loan debt, took her years to pay it off.

But her story was inspiring because she did pay it off. And so did Yinelli, right? Both of these women have beautiful story arcs because they paid it off. They became empowered. and they're now doing whatever they can to advance what they learned, you know, to help share these stories with other women so that they can learn. That's awesome. One maybe misconception people might have about the film is that it only applies to women,

which anybody who watches this film can gain plenty of financial knowledge from it. What do you think is a way that somebody who is having a hard time having these financial conversations with maybe a parent or a spouse can do that in a way where a topic, it can be so sensitive. There's some sensitive topics you cover in the film with like suicide and financially abusive relationships. Do you have tips for anybody who wants to have that conversation with people in their lives to get that going? Yeah, Tanya Rapley, who's in the film and talks about financial abuse, said the other day, it's about tact, timing, and tone. And I really, I want to borrow that from her because I think that's absolutely right. When you're talking to

about your partner, about money. It has to be the right time. You have to approach it sort of gingerly. And it's really about what you say, right? But it's about saying, hey, look, I want to learn about our finances. I need to know how much do we have saved. How much do we put away into savings? How much do you make? Here's how much I make. Do you have any debt? I mean, these are such important questions to anybody that's thinking about getting into a serious relationship with anyone else. And like you said, this is regardless of gender, right? Even in same-sex relationships, women tend to abdicate financial decisions. 41% of them do, which is fascinating because each one of us really needs to be aware of our money situation. And if you happen to be married to somebody who

works in the financial market and or the financial industry, and they are clearly the one who's more savvy about it, that's okay, but it doesn't mean you can stick your head in the sand. It's, It means you have somebody that you can learn from. You have to know how to be financially independent because, as, you know, Chanel Reynolds story shows us, you could be happy one day, happily married, living maybe on the edge, a little financial fragility, but everything is good until it's not. And, you know, when her husband got into a serious bike accident, she had to learn the hard way that she didn't, you know, they hadn't executed their wills.

They didn't, she didn't know where the mortgage was. She didn't know about what type of insurance they had. So these are just important things that we all need to be part of. And, you know, then there's financial abuse. And it doesn't matter how much money you make or don't make people that are part of, you know, financial abuse. It crosses all sorts of socioeconomic boundaries. And I think that in order to, you know, not let yourself be subject to financial abuse, it's hugely important to be financially independent. So that if you do need to get out of a bad, you know, situation you can. Definitely. One of my favorite parts, probably my favorite subtle part of your

film is when you have Aaron who is getting divorced, talking with the financial planner who specializes in divorce, going through all the things that she doesn't have her name on their shared business, that she's not really sure what her living expenses are. And then you immediately juxtapose it with Caitlin and Apollo, who are laughing on the couch, happy, but admit to the struggles that they have in these conversations about money, where he even relays this time when he would say she's naggy. And she's like, I'm not naggy because I'm knowledgeable and I'm helping you. And I think that was such a clever thing because you're watching Aaron and you feel really bad for her and you hope that's not you. And you're like, what does it look like successfully?

And you show what it looks like successfully. And I think that's such a powerful moment, both through your storytelling it, but just as viewers to see, it's not perfect. It's bickery. Sometimes. times, but that's what it could be like when it's equally shared. Yeah, and I'm glad you, you appreciated that because it is a delicate balance, and it was really important to show, I really want to show divorce scene, and I feel for women going through divorce. I've been there, so I know what that's like. And I think what's interesting is that, and Christel says this. She says, you know, divorce lawyers are really good at what they do, most of them, of course, but they're not financial experts.

And so, you know, there's something odd about the fact that women and men are supposed to come out of divorce equal in terms of division of resources and finances. And yet five years down the line, you know, the man is suddenly, you know, way up here and the woman stays down like this. And that's a problem. So going through some of the mistakes that women typically make, believing that all assets are, you. be cool. Well, we know they're not, right? Or keeping the house and thinking that's a fair trade for, you know, cash. I mean, again, it's not because a house has a mortgage usually and a house has expenses and a house has property taxes. So these are just things that women need to be aware of. And what happens in divorce is women just want it to be over. They just want it to be done.

And they leave really important things and really important financial aspects on the table. documentary along with focusing obviously on divorce and marriage. We talk a lot about millennials and you have Ms. Dow Jones, who is an internet personality that helps millennials understand more of their finances. And one statistics that I think is mentioned pretty early on is that 54% of millennial women leave financial decisions to their spouse, which is up from the generation beforehand. I'm curious your thoughts on why that may be. This is a generation that entered the job market from like 2008 to 2010, which is one of the worst times to join, and now maybe he's getting a second wave with the pandemic. Do you have any thoughts on why

that number is trending up for them? So this is the million dollar question, right? You know, why is it that millennials, millennial women above any other generation tend to, you know, have their head in the sand when it comes to finances? They're the ones that tend to abdicate financial decisions to somebody else in their life. And usually that's not a financial advisor, right? That's their husbands or their partners. And why is that, you know, is that the Cinderella effect? Is it the fact that women, when it comes down to it, just want to be taken care of? Is it biological in that way? Is it because of the stereotypes in our society that suggest that women aren't good at math? It's a quandary. It's really a quandary. And for those of us that

really thought, okay, I get it. My grandmother used to do this. My mom used to do this. I mean, after all, it was, what, 1970s when a woman could get a credit card on her own or open a bank account on her own. So maybe, you know, this is getting better with my kids, with my generation, or with younger. It's not necessarily getting better. And is it because in the division of labor in a household, women predominantly are the, you know, primary caretakers of children, do the volunteer hours for the schools because, you know, we're so busy and we just leave that to the men. And the other side of this that I think is interesting is that what type of pressure does that put on men? So if society is suggesting that it's, you know, finance as a male territory,

let's be real, they don't innately know more about the stock market than we do, right? Of course they don't. But if pressure in society is saying to them, this is what you're going to need to take care of when you get married, then that puts an enormous amount. amount of pressure on them. And, you know, as a few different financial advisors have told me, well, they're better at faking it till they make it, you know, than we are maybe. But they're not more innately savvy at all. Sally Crockett talks about how the stock market is made by men for men. And she talks about how that wasn't intentionally to leave women out, right? Nobody ever said, let's keep the women out of this. But because there were no women there to design it at the time,

they didn't think their women weren't top of mind. And so all these warlike analogies, you know, they're crashing it and they with a boom and all of these just really hardcore, you know, type of lingo that goes along with the stock market, plus all the acronyms, it sidelines women. It marginalizes women, and it's intimidating. And I think when you get to a certain age as a woman and you are well-educated, you're almost ashamed that you don't know more about the stock market or more about about how your 401 is being invested, right?

So we need to change that, especially because in the next few years, there's going to be the greatest transfer of wealth, and that transfer of wealth is into the hands of women. And women need to become savvy about money. Savvy is making its premiere at the Santa Barbara International Film Festival. You can find more information on their website. Up next, Emily Flippen and Jason Moser return with a couple of stocks on their radar. Stay right here. You're listening to Motley Fool Money. Mind like it knows what's best.

As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. Welcome back to Motley Full Money. Chris Hill here once again with Emily Flippen and Jason Moser. I mentioned before the break, you can find more information on the documentary on the Santa Barbara International Film Festival website. Even better, you can go to the films website, which is savvyfilm.com. Just make sure you put in a hyphen between savvy and film. So, savvy dash film.com. Two quick stories before we get to rate our stocks. Last year, Clubhouse launched. It's a social media app that hosts live audio conversations. Reports this

week, Emily, that Twitter looked into buying Clubhouse for $4 billion, but things appear to be on hold. Which outcome should Twitter shareholders be rooting for? If I was a Twitter shareholder, I would not want them to spend $4 billion buying Clubhouse, not only because they're building out their own voice platform called Spaces, but also because I just hate it. Am I the only one who feels this way about Clubhouse? But it feels like a special form of torture, having to be invited to a conversation with people who perceive themselves to be experts on topics.

I mean, it sounds like absolutely no fun to me. Given the choice, I'm going to the dentist 10 times out of 10, Emily. I'm right there with you. This week, indoor farming company, App Harvest, bought Route AI, a robotic startup in a deal worth $60 million. That's not a big price tag, Jason, but shares of App Harvest fell on the news. Do you like this deal? It's a big price tag when you don't make any money, Chris. An App Harvest really doesn't make any money yet. I think they're guiding for something in the neighborhood of $20 to $30 billion in revenue this year. but it's a SPAC that just came public and they are very, very new to the game. I love the looks I get when folks ask me for intriguing 5G ideas, and I tell them about app harvest,

but it is about agtech. Agtech is a thing, bringing conventional agricultural techniques together with modern-day technology, and that's what this deal is. Route A.I supplies machine vision systems that can determine when fruits and vegetables are ripe and ready, if there's overcrowding or harvest issues, monitor these controlled, environmental agricultural facilities. So to me, this is right in line with what Ab Harvest does. It also presents them with some optionality going forward and perhaps being able to license that technology out to other markets beyond just their core fruits and vegetables offerings.

All right. Let's get to the stocks on our radar. Our man behind the glass, Dan Boyd, is going to hit you with a question. Emily Flipping, you're up first. What are you looking at this week? So, my radar stock for this week is a business called Sprout Social. The ticker is SPT and their social media management tool that provides a one-stop shop for companies and individuals to manage their social media presences. So this lets them do things like schedule tweets or manage their engagement, but they also provide analytics, reputation management, and public relations services as well. Dan, question about Sprout Social? Absolutely. Chris, at the risk of sounding too much like Ron Gross, This sounds like the most millennial company ever, and I am a millennial.

I will not lie, Dan. I am aware of this company because back when I was in college, I did an internship at a think tank that used a competitor that was free called Hootsweet. And I spent a majority of my very millennial internship managing tweets. And while it may not be the most fun investment for somebody who isn't active on social media, I can say from firsthand experience, the demand is very much. Very high. Jason Moser, what are you looking at this week? Yeah, I've been digging more into a company called Cien.

Ticker is C-I-E-N, and Sienna provides hardware, software, and services that enable to transport, the routing, the switching, the aggregation, delivery of video and data and voice traffic all across the internet and communications networks. If you look at the drivers there in things like mobile and over-the-top streaming, cloud-based services, IOT 5G, edge computing. I mean, these are all drivers for CNA's business. So, there are some tailwinds developing. They have a very broad customer base with communication service providers like Verizon and

AT&T, among others, like cable and multi-service operators, enterprises, governments, research customers. But it's an interesting business. It's fiscally fit. Gross margin hovers in the 45% range. They have around $330 million net cash on the balance sheet. Nice cash flow. rich business. So yeah, yeah, it's one I'm digging into. Dan, question about Sienna. Yeah, sure. Jason,

this is an almost $9 billion company, and I've never heard of it. What's going on? Why have I never heard of Sienna? Well, I mean, in today's world, Dan, $9 billion is chump change, right? That's a new small cat. That's why you've never heard of it. What do you want to add to your watch list, Dan? I'll tell you what. I'm just not sold on the idea of social media management. Maybe it's that I'm not millennial enough these days. So I'm going to have to go with the unsung hero, Sienna. Love it. Emily Flipp and Jason Moser. Thanks so much for being here. Thank you. Thanks, Chris. That's going to do it for this week's edition of Motley Fool Money. The show is mixed by Dan Boy. Our producer is Matt Greer. I'm Chris Hill. Thanks for listening. We'll see you next week.