Motley Fool Money - Crypto Hangovers and Must-See Movies

Episode Date: November 16, 2018

Home Depot and Walmart report big earnings but fail to impress Wall Street. Nvidia nosedives on a crypto slowdown. And Eventbrite gets a chilly reception. Analysts Aaron Bush, Matt Argersinger, and Jason Moser discuss these stories and review Apple’s budding film career. Plus, corporate governance expert and film critic Nell Minow talks shareholder rights, Stan Lee, and must-see holiday movies. Thanks to LinkedIn for supporting The Motley Fool.  Go to https://www.linkedin.com/fool and get $50 off your first job post. Thanks Netsuite. Get the FREE guide, “Crushing the Five Barriers to Growth”, at NetSuite.Com/FOOL.     Learn more about your ad choices. Visit megaphone.fm/adchoices

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That's why they call it money. The best thing in life are free, but you can get them to the pie. From Fool Global Headquarters, this is Motley Fool Money. It's the Motley Full Money Radio Show. I'm Chris Hill. Joining me in studio this week, senior analyst Jason Moser, Matt Argusinger, and Aaron Bush. Good to see you, as always, gentlemen. Hey, hey, we've got the latest headlines from Wall Street,

The one and only Nell Minow is our guest, and as always, we're giving an inside look at the stocks on our radar. But we begin this week with retail. Walmart's third quarter revenue came in just shy of $125 billion. That was higher than expected. And, Maddie, online sales growth for Walmart, looking pretty good, too. This is, I think, a situation where you have to step back and put everything in context, because the numbers were great. Expectations beat the 3.4% U.S. comp's growth, great compared to certainly other

retailers we've seen. And 43% growth in e-commerce sales. Fantastic. The problem with Walmart is that if you look at the overall revenue growth of the company in the quarter, 1.4%. Not exactly inspiring, despite the growth that they're seeing online. And then you look at the share of its U.S. e-commerce. And this is according to e-marketer. They've got roughly 4% of total retail e-commerce sales now, and that's up from 3.3% last year. But do you know that Amazon share this year is 48% up from 43%. So I almost think, and I hate to say it, but as successful as Walmart has been with what it's doing with the stores, what it's doing online, it's in this perpetual game of catch-up now. And I think, and this kind of will speak to other companies we're going to talk to in the show, I think at this point in the economy with where we are with where the consumer is, the strongest in nine years, Walmart was trading for 22 times earnings coming into this.

It really had, I think, knock the ball out, the cover off the ball. The results were good. It just wasn't fantastic. So I think that's why there's kind of a tepid approach to the stock. Yeah, you look at the stock, Jason. It is actually down this week. Although Maddie touched on other retailers. Yes, Amazon is always looming out there. But when you look at Walmart compared to some of the other retailers that have reported

lately, if nothing else, Walmart appears to have at least a little bit of momentum going into the holiday quarter, whereas there are a lot of retailers that just don't. Yeah, well, I think that's also really, partly at least the benefit in being a general retailer, right? I mean, you have a little bit of something for everyone. And in Walmart's case, they have a lot of stuff for everyone. And when you look at those retailers that focus on a bit more of a specific market, I mean, let's look at something like Williams in Snowmo, for example. I mean, that good concept, good store, it's a bit more of a specific market.

And so they're going to be a little bit more beholden to not only maintaining those numbers, really keeping that specific market satisfied with new products. Difficult to maintain pricing there. Walmart, just a tremendous focus there. You know, I want to refer back to something I saw recently. A friend of our, Scott Hall, I saw on Twitter, Scott said recently, real pricing power is having the ability to lower prices in the face of your competitors. And I thought that was actually a very interesting way to look at it. I like that a lot, because you see something like Walmart, Amazon, they have the ability more or less to do that and really force their competitors hands, typically smaller competitors. So you got to really

give it to Walmart. That scale does help in the space a lot. Yeah, I think it's a good point because technology is deflationary. So if you can take advantage of that, then you have another source of pricing power. And for Walmart, they have to move online. And I know I've said this a couple times before, but part of what's really difficult is that they're not really getting new customers, really. They're just trying to retain the same customers by adding much more in cost through building their own online website and tons of acquisitions. So they're still in a tough place if they want to become a growth story again. But they've done a good job holding their own. Now, speaking of the holidays, I will say the one thing they have going for them this year

is the fact that this is the first holiday season we go into without Toys or Us around. So in terms of toys, games, and things like that, I think Walmart should see a big boost. And remember, Target said they were going to make some pretty big investments in square footage to help soak up a little bit of that space that Toys R Us is leaving behind. Home Depot's third quarter report looked great, and the company raised guidance for the full fiscal year. And somehow, Jason, shares of Home Depot were falling this week. You're telling me the market wasn't rational, Chris?

I mean, come on. I mean, yeah, let's remember voting versus weighing, right? So we always have to keep that in mind. But I think it was a very impressive quarterf home depot. On a number of fronts, we were talking about comps growth there in Home Depot's comps growth in the 5% range. Very impressive. I would encourage investors to not get sucked into the quarterly narrative of concerns over perhaps a slowing home improvement market or a slowing housing market. Focus on the bigger picture data that really, I think, sums it all up.

And we're talking about the fact, for example, that by 2020, 554% of U.S. homes will be greater than 40 years old versus 51 percent in 2016. We all know that aging home base means that they're going to need to be improved upon, and that's Home Depot's specialty. We talk about online sales, online sales growth with Home Depot is up 28%. They've been able to pass along some product inflation of the consumer, which is nice. Comp average ticket grew 3.5%. They did have a little bit of help from some tough weather a year ago. But to me, I mean, while I think concerns regarding the economy in the near term are fair. I think to assign those concerns to Home Depot's business over the longer haul are, of course, a bit short-sighted.

And I'll just say, hearing what Jason said about Home Depot, thinking again about Walmart, I don't know if you guys feel this, but I feel like there is an underlying attitude right now in the stock market about the economy and whether or not where we are in terms of, hey, are things actually going to get, could things get better from here? Could corporate earnings get better. I mean, the economy is about as good as it can get. If these companies aren't really putting out fantastic numbers, is it worrisome? They're underlying trends in the market. I don't know. I feel like we're getting to that sentiment. I feel like we're getting to that point where

now it's kind of like, okay, what's your next act? Because if you can't wow me, maybe we got to reset this thing a little bit. Yeah, I definitely feel that. And part of it is Walmart just because of how big that company is. And it was, excuse it was a good, it wasn't a great quarter, but it was a very good quarter. Jason, I guess I'm more skeptical than you. I looked at Home Depot's quarter. Everything was up. Everything was up.

You can get super granular on their quarter, average ticket, overall transactions. I'm dumbfounded that that stock was down this week. More skeptical on the business or the actual forecast for the market in general? On the wisdom of the market in the short term. I think in the short run, that probably is spot on. Again, we go back to voting versus weighing, right? Which one do you want? What do you use in order to approach investing?

I would use Apple as another great example of a company where right now the market is fairly voting that there are some questions as to whether they can pivot to being a compelling service business. I think the market fairly is questioning whether Home Depot is not going to witness perhaps some harder times here in the near term. And they very well may, but it's still the same strong business with a tremendous market opportunity in front. So I think if you're looking at it through the context of five years or even longer, I mean,

I think this is a compelling business. businesses and the market's selling it. I think investors with a longer time horizon, they need to be looking at this one. Another rough week for Invidia. Third quarter revenue came in lower than expected. NVIDia also lowered guidance for the fourth quarter and shares down close to 20% on Friday. And Aaron, NVIDIA had a bad October and things are looking worse now. Yeah, this was a really terrible quarter. A lot of the headlines are blaming cryptocurrency, which is a big deal a year ago for them.

But really, the bigger story is that management just screwed up. So a year ago, people were buying their GPS left and right, you know, trying to get in on the crypto mining craze. Predictably, that demand went away, but retailers had raised prices, and they were very slow to bring prices back down. And those same chips that people were buying for crypto mining are also what is used for gaming PCs. And gamers were not buying those chips at higher prices. So it just turns out that they weren't selling the same number of chips, the same. rate. But for whatever reason, management thought it was okay to continue manufacturing lots of new chips. And so it turns out that people were asking questions about inventory the past

couple quarters. And management keeps on saying, it's fine, this is good. But looking now, you see, okay, inventory is built up 70% over the past nine months. And essentially, they're not going to be manufacturing many new of these gaming chips at all. And next quarter, they're actually guiding for a revenue decline, which two quarters to go, they're growing 40%. And for that to turn from that positive to negative, people didn't see this coming. So the stock market has this right by slamming it. So when I mentioned that October was bad for NVIDIA, it was bad for other chip makers too, Western digital micron technology, that sort of thing. But it sounds like you're being

pretty specific about this group of management. Yeah, I mean, they just messed up on inventory. And this is a very much. This is a management team that has done a phenomenal job over the past few years of tapping into sources of demand, like riding tons of tailwind. So I expect that the tailwinds are still there and that they'll get through this, but it makes the near-term impact on the business very rough. So from your perspective, you don't think that this, you think this is more of a short-term inventory mismanagement versus they're seeing weaker end demand in any of their markets?

It's mainly that. But I do think that there still is a little bit of question. of, okay, going through all this, what type of growth rates will we see on the other side? And so I do think there is concern there. I have some concern there. But the tailwinds themselves aren't going away. You got to remember, too, though, when it comes to building up oversupply in regard to inventory, again, in the near term, you have to question how that plays out on pricing, too, because if they had to start liquidating some of that inventory, now I think that

NVIDIA has got a pretty strong hand when it comes to technology and what they're producing, But it's still potentially, I mean, they could have to resort to some pricing to move that stuff, which plays out on that bottom line. It's a tradition unlike any other. Coming up, we'll give you a sneak preview. Stay right here. You're listening to Motley Full Money. Quick shout-out to LinkedIn.

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So if you're not using LinkedIn already for your hiring needs, you're missing out. Go to LinkedIn.com slash fool and get $50 off your first job post. That's LinkedIn.com slash fool. Terms and conditions apply. Welcome back to Motley Fool Money. Chris Hill here in studio with Jason Moser, Matt Argusinger, and Aaron Bush. The wildfires in California are being fell. on Wall Street, as shares of PG&E have been all over the place lately. Shares of California's

largest utility have been falling this week until Friday, Maddie, when the shares rebounded more than 30 percent. What is going on here? Right. I don't think we... Have we ever talked about PG&E on this show? I don't think we have. Well, yeah, it is actually the country's largest utility company. It's California's largest utility company. Over 16 million people use PG&E in some form of fashion to get energy. So this is obviously a really tragic story. story of what's happening in California, this devastating wildfires, and we know we've seen all the property damage and, of course, the loss of life. The problem with PG&E is that it's pretty

much, it's a good chance that electrical equipment failure on their part has caused at least one of the fires, if not more of the fires. And so if you think about the damage that we've already seen, the loss of life, the people are already suing PG&E. And so the, the, the, the, the people are already suing PG&E. And so the liabilities here could run well into the billions. And the problem is they're already liable for about $1.7, $1.8 billion in damages from last year's fires in California that they were found to be liable for. So it's really bad news for the company. And coming into Friday, actually, the stock was down 40% in just a week to a 15-year low.

It's bouncing back on Friday, though, because the California's Public Utilities Commission, President has said that allowing the state's largest utility company go bankrupt is probably not a good idea. And maybe that could be so. Certainly bankruptcy of that size for a company that's so influential touches so many lives in California would probably be a problem. It might prevent the company from fixing a lot of the damage that's being caused. And so it's really a tough story.

It's evolving as we see. But there's no question that this is a company that's going to have billions and billions of dollars worth of liabilities. now and into the future, and speculating on whether or not they can actually get through it is probably not a great idea. Eventbrite issued its first report as a public company. Eventbride is the event and ticketing platform. You tell me, Jason, how'd they do?

So I think this is a pretty compelling investment idea, actually, for a few different reasons, one of which is the large and growing market opportunity in ticketing and event management. And just in gross ticket fees alone in the top 12 markets that Eventbrite pursues, they're responsible. I mean, that market is responsible for $3.2 billion in gross ticket fees. To put that in context, Eventbrights, trailing 12-month revenue is less than $300 million. So, plenty of opportunity there to try to capture. I actually broke my personal rule with Eventbrite recently and actually buying shares myself. Normally, when it comes to new IPOs, I like to see a few quarters to understand better what the business is about,

and leadership sort of generally how they're doing things. Kevin Hartz, who is one of the guys behind this company, and his wife is the CEO, very familiar with Kevin Hartz, through what he did with Zoom. And you remember Zoom, Chris, of course. So, for me, there was a lot of familiarity already there. And when I look at this business, the metrics that matter are headed in the right direction, paid tickets, which is how they make most of their money, grew by 32.2%. And they have a noteworthy relationship with Square, who's going to control their payments infrastructure starting in 2019. So a lot of smart people involved with this business. I'm very, very interested to see how they play out.

Yeah, I really like the focus that Eventbrite has with more middle-sized events, so they're not really tackling the big events like Live Nation or just small gatherings. But that's a massive market around the world. And right now, their market cap is still only about $2 billion. So it's encouraging to see those metrics go in the right direction. And talking about this before taping, another neat thing about this business, the low cost for customer acquisition. It's a pretty organic acquisition there.

And essentially, 95% of the people that use the platform, sign up for it to either use it to buy a ticket or some small event that they're managing. And so they do a good job of keeping of those customers coming back for more. That's an attractive part of the business, I think. Apple has signed a multi-year agreement with A24, the movie studio, behind such Oscar-winning films as Moonlight and Ex Machina. Aaron, I could be wrong, but this feels like this is just the first of several moves like this that Apple is going to make, given their cash.

I think you're right. So I think there are two important things to understand about this. One, this is just a way to strengthen Apple's ecosystem. I guess we'll figure out, as time rolls on, how exactly movies will fit into it. I bet it will tie into Apple Music and just maybe like a broader entertainment service suite and fit into that strategy. But I think this is just them flexing their muscle, because this isn't something that Spotify can do. Pandora definitely can't. So if they're trying to build a solution to be differentiated from those guys, I think this is a good step in that direction.

And then second, they're not looking to make money on this. So streaming music is a bad business. Plugging this into that will also be a bad business. And A24 itself isn't really known for big blockbuster hits, but what they'll get out of it probably is acclaimed movies with good marketing abilities tied into that. So they won't make money probably off of this, but through the marketing and building up their brand. People will stick with the Apple ecosystem more. That's okay, because I've heard Apple has other ways of making money.

To that point, everybody who's griping about the fact they're not going to be offering up units sold going forward, they are going to start offering up the cost that comes into the revenues and that service side of the business, which I think is going to be fascinating, number one, because they make that money a lot of different ways. But we'll get more clarity, like Aaron was saying, is about how far this can take them in regard to the marketing and whatnot. Next week is Thanksgiving, so an early happy Thanksgiving to the dozens of listeners. And of course, because it's Thanksgiving, next week, a tradition unlike any other, it's our annual Thanksgiving show, which long-time listeners know is the only show that actually has a sound effect.

We blow our entire sound effects budget on this one show for year. By budget, you mean exactly how much? It's not large. But Thanksgiving, definitely in the news, add this to the list. of things that millennials are ruining. Because apparently, Bloomberg reporting that, you know what's on the rise? Smaller turkeys. Apparently, millennials are not looking for the big behemoth turkeys. So, sort of the smaller birds weighing as little as six pounds. Sales of those up nearly 10 percent. You know what? I attribute this to meal package companies, okay, because

most of these millennials apparently don't know how to cook, I guess. So then what do you do with all that leftover turkey? They don't even want to have a leftover turkey. They just want to have something, they'll finish right there at the dinner table. I mean, I didn't know a turkey could be as small as six pounds. Isn't that like a Cornish game? Yeah, I was going to say that doesn't seem right. Let's go to our man behind the glass, Steve Broido. Steve, in terms of food, what are you looking forward to most at Thanksgiving? Stuffing. So the... I'm 100% stuffing guy. Yeah. Wait, so you go through and you're not even getting turkey or anything? Of course I'm getting turkey, but I'm really looking forward to the stuffing. I wonder what millennials think about

stuffing, Eric? I'll eat anything. Oh, there we go. There we go. You've seen Aaron Eap before. He's not picky. Oh, no. All right, Jason Mozer, Matt Argusinger, Aaron Bush, guys. We'll see you a little bit later in the show. Coming up, we will talk shareholder rights and the movie business with the one and only,

Nell Minow. Stay right here. You're listening to Motley Full Money. Welcome back to Motley Full Money. I'm Chris Hill. We've got proxy battles and we've got Hollywood making its final push for award season. So, of course, we turn to our favorite expert in corporate governance, who just happens to be a film critic, and that's Nell Minow, who joins me now from Washington, D.C.

Nell, thanks for being here. Thank you. I'm always happy to be on. So, Washington, D.C., very much in the headlines this week, mainly because the new Congress folk have come to town and they're getting organized. But it turns out the SEC has been busy this week. You and I are, we're taping this on Thursday when the SEC is holding a day-long roundtable to discuss proxy voting. This is one of those things that sounds quite boring, but I'm also assuming that this has a big impact for individual investors like you and me.

It has a big impact for anybody, whether you buy and sell stocks on your own or whether you have a retirement plan or whether you just have a job. It has a huge impact. And what's happening here, just to show you what a huge impact it has, is that the Koch brothers and the NASCAR brothers and the national. National Association of Manufacturers have put $6 million into a fake K-street-created astroturf dark money group called the Main Street investors. You can always be sure that these groups are about the opposite of what their name is. So they call themselves the Main Street investors, even though it's completely corporate funded, and they pretend to be on the side of investors.

And their one sole and only purpose was to get this hearing going, because they want to cut back on the rights of shareholders to vote on people. proxy issues. You know, it's a big shell game for them. When they try to avoid regulation, they say, let the shareholders decide. But when the shareholders start voting against them, and we're getting 40, 50, 60 percent votes on some of these shareholders, then all of a sudden they want the government to step in. Is this happening because it's easier in this day and age for investors to get organized? It's easier to have access to information and also rally like-minded shareholders around certain interests.

I wish that was true. The fact is that almost all shareholder proposals are either filed by large institutional investors like the New York City Pension Fund, which is, I think, the number one in terms of proposal filed, and four people, four individuals. Now, everybody out there listening to this can file a shareholder proposal. You only need $2,000 worth of the stock, and I wish more people would, but the fact is only four people file most of the proposals. The important part, though, is not how much stock they have and how many proposals they file. The important part is the level of support they get. They

file proposals that a lot of people are happy to support. They may not be willing to go out and buy a stamp and look up the rules and file a proposal themselves, but they are very happy to support a proposal for, say, annual election of directors looking at climate change. If 78% of boards of directors say that they've never once discussed climate change, and a shareholder proposal comes up saying maybe you should discuss it. I think a lot of shareholders would support that. So you've been there all day. What is your main takeaway so far on this process and where it goes from here? I'm really holding my breath. There was a bipartisan piece of legislation introduced this week, clearly in connection with this hearing, to limit the rights of proxy advisors, I think it's

very ill-advised, possibly unconstitutional. You don't want to see the government trying to stop somebody from publishing something, which is what proxy advisors do. But it shows you that there's just an enormous amount. They read full-page ads in the Wall Street Journal and the Washington Post placed by these groups. You can tell they really are pulling out all the stops to try to make it harder for shareholders to provide any kind of feedback to managers. And I will say that the testimony today has been heartening in a lot of ways because certainly the Chamber of Commerce, the Business Roundtable are there using words like zombie investor and robo voting, but there are actual investors there, both individual and institutional investors, showing them that their data is

completely wrong. Earlier this month, since we're talking about shareholder activism, Evelyn Davis passed away at the age of 89. She was an advocate for shareholder rights. someone that probably most investors are not familiar with, but I get the sense that you crossed paths with Evelyn Davis once or twice. The very first time I ever met her, I went to an annual meeting, and when I walked in, she was arguing with the staff because she didn't want to have to walk over to the microphone. She wanted it to be right by her chair where she was sitting,

and she wanted the CEO to move it himself. So, yes, she had the CEO down, squatting down, to unplug the microphone and drag it over to her chair. And that was what she liked to do. So she was a real combination. On the one hand, she was very smart. She could read a financial statement. She heard the issues that she raised about CEO pay,

the quality and independence of board members, political contributions. Those are all still issues that we care about very much today. And she was way ahead of most people on those issues. On the other hand, her tactics were rather flamboyant. She sometimes showed up at an annual meeting in a bathing suit or hot pants. and she would interrupt one of her Cheryl proposals to ask out one of the board members on a date every so often. I'm just jotting down a note the next time I go to an annual meeting, I should wear hot pants or a bathing suit. You know, it's interesting because I've read some stuff about Evelyn Davis this week,

and as you indicated, it points out some of her tactics. She's clearly a colorful person, a flamboyant person. But, you know, in her defense, she was doing this at a time when it was probably easier for companies. to ignore individual shareholders, and it was harder to get attention. That's absolutely true. And the same thing with John and Lewis Gilbert, who kind of invented shareholder activism, and every shareholder on the planet should take time at least once a year to send a mental thank you to John and Lewis Gilbert because it wasn't for them.

Shareholders would have no right to ask questions at the annual meeting, no right to do shareholder proposals. They really did all of that. They started going to annual meetings in the 1920s before the stock market crash, and they would just be ushered out of the meeting. And after the crash, when the SEC came into being, they were instrumental in making sure that shareholders had some kind of rights. Let's move on to Hollywood. And earlier this week, domestic box office hit the $10 billion mark.

And this is the fastest it's ever done that. You know, doing that in less than 10 and a half months is a record. And I know that movie ticket prices are always sort of ticking up bit by bit. But it really does seem like a lot of movies over the summer. into the fall, sort of outperformed expectations. Is the box office business a little healthier than maybe we give it credit for? It's healthier overseas. You know, if you look at those numbers, you will see that the U.S. is not making much of a difference.

It's that we're selling more and more and more tickets overseas. This summer, I saw four movies in a row that were co-productions with China. And you can always tell that not only because of the opening credit, But you can tell that because there is no wit in the dialogue. There's no puns. There's no cultural references that might not travel overseas. What they are are a lot of special effects, a lot of fight scenes, a lot of explosions, and a lot of people getting punched.

And those movies have done very, very well. Movies like Skyscraper and The Meg. We saw Stanley pass away this week, 95 years old, best known for creating Marvel superheroes like Spider-Man and the Incredible Hulk. And all this outpouring of support and tribute from Hollywood was wonderful. I couldn't help but sort of look at Stanley, not just as a fan of movies and sort of his creative output, but also the business output, that if you took all of the movies that Stan Lee was either the creator of the main character or a producer of the film, more than $30 billion.

dollars worth of movies. I mean, it's really incredible the legacy that Stan Lee has left. That's right. And I thought you were going to say you were thinking about him as a brand expert because nobody has ever done better in creating a brand than he did. I mean, he gets, he gets maybe an A-minus as a creative talent, but he gets an A-plus, plus, plus-plus, plus-plus, as creating a brand. And when you think that there was a time when the comic book industry was on its deathbed, and they'd started turning it around and started making movies, and it was really only when Marvel started making its own movies, because when other studios were making Marvel movies, they were horrible, that it took off.

And now superheroes are the most popular single genre in movies, what spies were in the 1960s and 70s. And Stanley gets a lot of credit for that, not just for coming up with the idea of Thor and the Fantastic Four and Spider-Man and all of the other ones, Iron Man, but also figuring out how to sell it. So this is the time of year when we see some movies coming out. Yes, there are family movies coming out over the next six weeks, but there are also those films that are sort of aiming for a best picture nomination,

that sort of thing. What should people who are looking for more adult-themed movies, and by that I mean not animated, what should we be on the look? out for? I think that one of the best movies of the year is opening up this week. It's called Green Book, and it's based on the true story of a very sophisticated, very elegant black musician in 1962 who went on a tour of the Deep South before the Civil Rights Act. And the Green Book was the tour guide for black Americans. The slogan was Vacation Without Aggravation, and it was a list of hotels and restaurants where black people would not be harassed.

And his driver was this Italian guy from New York who'd never been out of the city, and the two of them go on this journey together. And there are so many ways this movie could have gone wrong. There are so many ways it could have been insensitive or cheesy. And who expected this from director Peter Farrelly, better known for there's something about Mary and other raunchy comedies. But you know what? It is just lovely.

It is a wonderful film with Maharshala Ali and Vigo Mortensen, who packed on about 40 extra pounds for the role. It's really, really well done. Another one that you mentioned family movies, and of course this is the time of year for family movies, and I think that the new Mary Poppins movie is going to be just great also. Really? Because I don't have a huge sentimental attachment to Mary Poppins,

but I don't know. I just sort of have my fingers crossed on that one. And no disrespect to Lynn Manuel Miranda, who's brilliant. But it just, I saw they're coming out with the new Mary Poppins movie, and I thought, boy, kind of like you said about Green Book. There are a lot of ways Green Book could have gone badly. I feel like there are a lot of ways you could do damage to the legacy of Mary Poppins. Well, I think that's true. And God knows, Disney doesn't always knock it out of the park.

They just released Nutcracker in the Four Realms, and it was lousy. Beautiful to look at, but really an incredibly stupid movie. But I am a Mary Poppins fan. I do love the first movie. I also read all four of the books. I know there's a lot of good stuff in there. And everything I've seen makes me think that this is really going to be very special. We've had a couple of movies that have already come out that are Oscar contenders, including a star is born.

I think Lady Gaga is a front runner right now, both for Best Song and Best Performance. Black Klansman, terrific movie from Spike Lee, starring John David Washington, who I'm only going to say this one. Stenzhen's son, no one will ever have to identify him as that ever again, because he is going to be a big star on his own. And so I think, you know, we've already seen a lot of good stuff, but there's more coming. Before I let you go, we've got Thanksgiving next week. Happy Thanksgiving in advance to you and your family. Certainly, NFL football is very much a staple when it comes to Thanksgiving Day. but if you have any advice for people who maybe aren't looking for football and are just looking for a movie that the whole family can enjoy, whether it's something that's coming out now or something that has sort of slipped through the cracks over the past few years,

what would you recommend? Well, there's a really good one coming out next week. It's the sequel to Reck It Ralph. It's called Ralph Breaks the Internet, and it's wonderful for the whole family. A lot of stuff there that is for the grown-ups, a lot of stuff there for the kids, and probably the funniest single scene I've seen all year. Really? Yeah.

Now I have to go see it. You can follow Nell Minow on Twitter, get her thoughts on corporate governance, movies, and a whole lot more. Nell, happy Thanksgiving. Always a pleasure. Thank you. Coming up, we're going to dip into the full mailbag and give you a few stocks on our radar. This is Motley Fool Money.

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obstacles that are holding you back. And NetSuite's offering it for free. You can save time and money by managing sales, finance, accounting, orders, and HR instantly right from your desk or phone. So what are you waiting for? Get the free guide. It's free. It's called crushing the five barriers to growth. And you can get it by going to netsuite.com slash fool. As always, people on the program may have interested in the stocks they talk about on 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 Fool Money, Chris Hill here in studio, once again with Jason Moser, Aaron Bush, and Matt Argusinger. We're hiring here at the Motley Fool. Yes,

not just here at Fool HQ, but also for our office in Colorado. So, you know, if you do marketing, if you do tech, if you do any number of things, check out our job site, which is just careers.fool.com. That's careers.com. Our email address is radio at fool.com. Question from Isaac Mellon, who writes, the recent market volatility has created a good problem for me. Several stocks on my watch list have dropped significantly. The problem I have is little cash on the sidelines to take advantage at the moment. I want to make a purchase of one of these stocks to add to my IRA. I'm 24 years old, so I have a long timeline. What is the best way to separate the wheat from the chaff? And he includes five stocks on his watch list, which are down anywhere from 10 to 10.

upwards of 25%, you know, as you said, Jason, that's a good problem to have. But let's just kick this around for a minute. What is a good way when you're in this situation to say, all right, I've got some money. I really only have money for one purchase. How do I, do you just go with, well, this is the one that's down the most? In reading his question, I must admit, this first thing I went to is the It's Always Sunny in Philadelphia episode where they're actually arguing about what is better, being the wheat or the chaff. But with all of the of that said, because I'm still not sure, actually. I'd lean more towards the one that you don't

own yet, if possible. I think if you have a watch list of stocks and you whittle it down on five stocks that you really like, perhaps consider the one that you don't own for the sake of diversity. Now, if you own them all, I think you have to kind of go with, hey, if I'm going to ask you the question, which one of these businesses do you like the most? Probably one's going to come to mind, and that might be the one you want to lean towards as well, but also be very aware of the businesses that run in cycles versus the ones that don't. And I'll use energy as an example here. I think the businesses that run in cycles, you just need to be more aware of where we are in the cycle and where that cycle could go.

Yeah. I would just add that sometimes some of the best, especially growth-oriented companies, tend to get hit the most, just when the market is volatile. So that is where I tend to look. And a lot of times they rebound the hardest, too. Let's get to the stocks on our radar and our man behind the glass. Steve Birdo is going to hit you with a question. Jason Moser, you're up first. What are you looking at this week? Yeah, we talked about Home Depot this week. I'm looking at Lowe, Tickr LOWW next week with earnings. Looking back to August, the stock has certainly pulled back a little bit since then, since they've announced some store closures, clarified a bit more on strategy with new CEO, Marvin Ellison. I do like this market in general. I think the home improvement market is a tremendous one that should continue to, overreact.

time, just get better. And I do think that Marvin Ellison has a lot of good ideas and has the opportunity to take this business in a good direction. The pullback in shares here over the last few months is a bit more compelling, I think, today. Steve, question about Lowe's. Does one business have a competitive advantage over the other? Yeah, I think generally speaking, we look to Home Depot as the leader in the space. The store base is very similar, right? They both have the same number of stores, essentially. But Home Depot has just been better when it comes to customer service when it comes to serving the pro side of the business as well as the do-it-yourselfers. And I think that's really where Marvin Ellison is trying to take this

business in Lowe's getting better on the customer service side, making sure they have what you want. Aaron Bush, what are you looking at this week? I'm looking at Take 2 Interactive, ticker TTWO. They just two weeks ago, so had the biggest entertainment launch of all time. Red Dead Redemption 2 made over $750 million in 3,000. three days. And the stock is down over 20% from its highs. And so, I mean, take two, I mean, they're turning into a video game giant with tons of successes. Red Dead isn't the only thing that they have. A few years ago, people were saying Grand Theft Auto is the only thing they had.

So between more games, higher margins, more occurring revenues, lots of catalysts. The timing feels pretty compelling. Steve, question about Take Two? So I'm playing Red Dead Red Dead Redemption 2 right now. Is there too much story in this thing? It's like a movie. It's taking forever. I just skip all these scenes. It's crazy town. I mean, I think that's a good thing. I think what they want is for people to get soaked into the world so that when Red Dead online comes out in a month or so, that people will want to stick with it and pay them more money. Steve, are you a good cowboy or a bad cowboy? I'm pretty bad right now. Maddie, what are you looking at? I'm glad Aaron said Take-2 interactive. I am glad Isaac,

who wrote us the email, had Activision Blizzard on his list because my stocks on my radar were going to be the video game stocks. So Activision Blizzard, ticker ATV, electronic arts, EA. Aaron had Take 2 at TTWO, and also Ubisoft, which is on the pink sheets at UBSFY. Depending on which stock you look at, these things are down 20 to 30 percent, yet, and I'm sure Aaron agrees, these are companies with tremendous tailwinds. It's an industry I love, and I can't believe they're down as much as they are. If you don't own any video games, this is a great chance to do so. Steve? I think I'm going with Take 2. I'm just having so much fun riding around by my horse.

I'm having a grand old time. All right, Jason Moser, Aaron Bush, Matt Argusinger. Guys, thanks for being here this week. Thanks, Chris. Thank you. That's going to do it for this edition of Motley Full Money. Our engineer, Steve Broider, our producer's Matt Greer. I'm Chris Hill.

Thanks for listening. We'll see you next week.