Motley Fool Money - Intel’s Drop, Microsoft’s Record, MercadoLibre’s Future

Episode Date: July 24, 2020

Intel plunges on chip delays. Microsoft declines despite a record quarter. Twitter pops on strong user growth. Chipotle serves up strong digital growth but slips on closed restaurants. Coca-Cola’s CEO says the worst is over. Intuitive Surgical surprises. Boston Beer surges. Tesla slides. Disney delays Mulan indefinitely. And Slack goes to war with Microsoft. Analysts Andy Cross and Jason Moser discuss those stories and share two stocks on their radar:  Equinix and Qorvo. Plus, MercadoLibre’s Head of Investor Relations Federico Sandler talks online retail, online payments, and the future of the e-commerce giant. Learn more about your ad choices. Visit megaphone.fm/adchoices

Hi everyone, I'm Charlie Cox. Join us on Disney Plus as we talk with the cast and crew of Marvel Television's Daredevil Born Again. What haven't you gotten to do as Daredevil? Being the Avengers. Charlie and Vincent came to play. I get emotional when I think about it. One of the great finale of any episode we've ever done. We are going to play Truth or Daredevil.

What? Oh boy. Fantastic. You guys go hard. Daredevil Born Again official podcast Tuesdays and stream Season 2 of Marvel Television's Daredevil Born Again on Disney Plus. Everybody needs money. That's why they call it money. From Fool Global Headquarters, this is Motley Fool Money. It's the Motley Full Money Radio Show. I'm Chris Hill joining me this week, Andy Cross and Jason Mozer. Good to see you guys.

Hey, Chris. We've got the latest headlines from Wall Street, and as always, we've got a couple of stocks on our radar, but earnings season is heating up, so let's get right to it. We're going to start with Intel. Second quarter profits and revenue, both came in higher than expected. But that was completely overshadowed by Intel's guidance for the third quarter. Not only was it lower than Wall Street was expecting, but Intel announced delays to their next generation of chips aimed at competing with AMD. Shares of Intel down 15% on Friday, Jason. It's the biggest drop after earnings in nearly 20 years. Do you look at this and think that's an overreaction?

Or is Intel really behind the eight ball on this one? So, Chris, you know, I do a lot of digging into this space with the work I'm doing on 5G service. And my initial reaction is that, no, this is not an overreaction, actually. I mean, there's no denying the success that Intel has had to date. But, you know, management has noted this more than once that the business, they are in this, they're in the middle of this transition. Intel has always been a PC-based company.

They really weren't ever a mobile company, so to speak, right? They kind of miss that gold rush, so to speak. But it's going from a PC-based company to a data-centric company, and that's presenting its fair share of challenges. Now, I don't necessarily think that's the wrong decision. I mean, when you look at the role data plays in our lives, now, I mean, that makes sense. And data-centric revenue now accounts from about half of the company's overall revenue.

So that's cloud and network infrastructure, spending. I mean, that's driving essentially 70% of the revenue. But this delay in the 7 nanometer technology that's pushing their results out further, that was the news in the call that I think the market, I mean, I understand what the market's receiving that the way it is. I mean, this is a company trying to make a pivot, obviously some key technology in a very meaningful part of the business in its PC commercial PC business. Those results are getting pushed out. That's going to hold that's going to hold revenue growth back. Clearly, it's going to hold revenue. It's going to hold earnings growth back.

I mean, this is a big business, really good at bringing them, the things down the bottom line. Obviously, an R&D machine, 2.2% dividend yield, lots of things to like about it. But, you know, they really have to kind of prove themselves here. The burden of proof is on them at this point. Yeah, yeah, Chris, the stock has actually looked over the last few years. It's actually done okay.

You had the little dividend in, beating the NASDAQ. Over the last 10 years, though, has not. It has really trailed the wider NASDAQ tech markets. So, you know, $255 billion market cap. Jason said a little bit of a yield, nice little grow, not that expensive. You know, probably going to be an okay holding for those who are looking for more stability in their portfolio. They're not really going after the rocket ship growth. Like I said, the stock's done pretty well.

Had a nice rebound this year. So, you know, just more of a steady business. But clearly there's some concerns about some of the growth angles. Shares of Microsoft flat this week, despite fourth quarter revenue coming in north of $38 billion. Great way to wrap up the fiscal year, Andy. The Cloud Division continues to deliver. And Microsoft's Gaming Division had a really great quarter. Yeah, those are really the highlights, Chris.

You look at the big winners on gaming with Xbox and their cloud, the Arsura business, growing 47%. That's actually a little bit of a deceleration, though, of the last few quarters and over last year. I think there's some concerns in there. The stock sold off after the earnings this week. But like you said, revenue is up 13%, $38 billion. That was much higher than management guidance at $36.8 billion. Operating income up 8%, as they continue to kind of manage with some of their costs. Part of that cost is they're closing those 80 stores. We talked about before on the show. That's a $450 million hit with part of that coming in the second quarter. So the segments, when you kind of break through the quarter of the segments, Chris, it's really interesting with productivity and business processing up 6%. LinkedIn, up 10%, dynamics and cloud, up 13%. Their Dynamics 365 business, which is like CRM and planning tools, was up 38%. And like you said, really, their intelligent cloud, the Azure business continues to show more and more growth, really benefiting from the work from home, remote workplace with teams and the like for Microsoft. And that's driving most of their growth,

along with the gaming, which was just gigantic. I think it was up 65%. Their Xbox sales were up 65% for the quarter. Yeah, and Teams got a little added bonus publicity this week when Slack filed a lawsuit in the EU. I guess Slack is now admitting that Microsoft Teams is actually a competitor. Yeah, sure is. I mean, I think they've been pretty much on that train for the past,

really since I went public maybe a year ago with Stewart Butterfield kind of being a little bit cheeky with some of the competitive with teams, but concerns around antitrust there from their perspective that is tied, so teams are so closely tied into the office business. Reminds me a little bit of what we saw with the antitrust fights in the late 90s and early 2000s. At that time, it was the browser wars tied into the dominance of Windows OEM. So, yeah, that's something we'll have to watch, but it's probably, it's more impactful

for Slack than Microsoft. The war with Microsoft, the one kind of weakness we saw was continued on the advertising front, their advertising business was down 18%. And that's a trend that they expect to continue this year. I wonder what the management team at Zoom thinks about this Slack legal filing. Like, you know, Zoom and Slack obviously different businesses, but certainly dealing with the same competitive forces from a company like Microsoft. And yet it really does seem like Zoom has been able to gain a lot of traction through this pandemic,

whereas Slack, they're having to do a little bit more convincing, perhaps, as to why they're a more compelling solution, I guess. It's interesting. And in the retort Microsoft had for Slack, it was that they lack a very robust video conferencing tool like Teams is. By the way, teams now can show 49 users at one time. It used to not be able to do that. I think that's what Zoom can do. So they clearly are going into the space for the remote work space, also with schools. And it's not just companies, it's with organizations and schools.

is an important market for Microsoft. And Slack doing that video, it's not for lack of trying. They certainly did try it for whatever reason. They just failed at it. Last week, we led the show with Twitter being hacked. This week was better, though. Shares of Twitter up, thanks to a second quarter report featuring a nice jump in daily active users.

And Jason, I feel like we say this every time Twitter has a surprisingly good quarter. They need to prove they can do this two, three, four quarters in a row. Yeah, Chris, you know that gif of Larry David from Carb Your Enthusiasm where he's just kind of sitting there. He's like, I don't know, maybe so, maybe not. He's sort of deliberating in his own mind. I mean, to me, that's what Twitter is to me at this point. I feel like it's that invest where I see the good, I see the bad. It's just, I don't really know what fully to make of it at this point. I mean, the biggest question to me remains, and it's a shame that it still does for as long as they've been public. What is next? They need to do something to take this network to the next level, because right

now they just are not doing it. Monetizable daily active users grew 34 percent to 186 million. That's terrific. That's six consecutive quarters of very robust double-digit growth there, but yet revenue fell 19 percent. Now, I mean, we understand why revenue fell. Clearly, it's a challenge to ad market, but companies out there are still growing. I mean, snap recorded revenue growth for the quarter. So to me, it just keeps feeling like they're just not doing anything to take the business to the next level. And, you know, I told you a while back. I mean, I cut ties with the investment. I mean, you know, just because that was what I was seeing. And I don't know that we saw anything in this quarter that leads me to believe they're on the cusp of anything new.

I mean, there were rumors of subscription and whatnot. But that word was mentioned three times in the call, right? There's no plan there. It's just a seedling of an idea. So still, you know, a good quarter, still big questions to answer. Shares of Intuitive Surgical hitting an all-time high this week after second quarter profits more than doubled the expectations of Wall Street analysts. You tell me, Andy, is this a sign that the worst is over for Intuitive Surgical and the path is clear? Or was this kind of a situation where, look, accurate forecasting is tougher than ever because of the pandemic. Yeah, I think a little bit of both. So intuitive surgical makes the DaVinci robotic surgery

systems minimally invasive for urology, thoracic, and gynecology, among other things. Sales down 22% instrument and accessory sales down 20%. That's about a little more than half their sales and system sales down 24%. Da Vinci procedures were down 19%, Chris. So there are a lot of talk in the release and the call, and they talked about this for the year, really, about just as hospital centers and surgical procedures that are not required have fallen off and there are a lot more focus, obviously going into fighting the COVID-19 pandemic and treating that disease. We're just not doing nearly as many surgeries as they used to. So that has really impacted overall for the year for intuitive surgical. But we are

starting to see a little bit of that slowdown. Across the world, they're starting to see different geographies improve faster than what we have seen in the U.S. So I think investors are saying, wow, this is the leader in this space. Minimally invasive robotic surgery is going to be the growth. It is going to be the way that surgeries are performed around the world. When you look out the next five, ten years, Da Vinci and Intuitive Searchville and their innovations continue to lead the space.

So as this situation really starts to normalize over, hopefully over the the next year or two, the procedures will come back and DaVinci will be the leader in that space. On last week's show, the stock on Andy's radar was Boston Beer. This week, that stock was up 25%. What happened? We'll tell you next. So stay right here.

You're listening to Motley Fool Money. Welcome back to Motley Full Money. Chris Hill here with Andy Cross and Jason Moser. Shares of Boston beer up 25% after second quarter profits and revenue came in much higher than expected. Andy Cross, how much Sam Adams are people drinking during this pandemic? Actually, Chris, not very much Sam Adams. It's maybe of the company, but it's really truly Celsius and twisted tea with a little bit of dogfish that are driving the bulk of volumes. As you said, it's a really impressive quarter compared to, I think, what we were expecting.

It was much higher than what I was expecting. Sales up 42 percent. Neck income more than doubled. Depletion, which is the sales from just charles. Shoe readers, two retailers, was up 46% for the quarter. Chris, shipments just of their alcohol, Sam Adams shipments were up 40%. So earnings per share really had a monster quarter, hard seltzer, twisted tea, and a little bit of dogfish, which they acquired a few years ago coming online. You just look at what Boston beer is doing. They've really trying to manage their cost structure. taking care of their employees at the brewery is a big focus. But clearly that brand, the Twisted Tea, Trulieseltzer brands,

I think Jim Koch, who founded, owns more than 20% of the stock, had mentioned that Truly Seltzer is one of the only Seltzer brands that was not introduced this year that is taking market share. Incidentally, Chris, they all start taking a little bit of market share. It seems, from the wine and spirits category of anywhere. So, for those of us who like our spirits, Julie Seltz are taking a little bit of share. Very impressive quarter. And the guidance that they had, which they withdrew, they kind of brought it back on the earnings per share growth, but also on the depletions growth for 35%.

So it looks really impressive from Boston beer. Digital sales for Chipotle rose more than 200% in the second quarter. But shares falling a little bit this week, Jason. That's an amazing number, but it still was. enough to make up for the fact that restaurants are closed. Yeah, I mean, just a handful of their stores are still closed, which is good for them. I mean, I think all things considered, I thought this was a really impressive quarter. I mean, I think we're going to look back five years from now and we're going to see a

Chipotle that is a lot bigger, even more mobile, and quite possibly Chris has even better Koso than they do today, which I know it feels like there's only room for them to go up in that regard. So maybe they make some investments on that front and really surprise us. But I think at the end of the day, it's still a good stock to own. I mean, you look at some of these numbers, like revenue, revenue is only down close to 5%. I mean, there's $1.4 billion still. I mean, comps down close to 10% that's understandable, given everything that's going on in the market. But they are back up almost fully operational. They're investing a lot in those Chipotle lanes. So I think that as time goes on, they're going to ultimately,

ultimately make it easier for the consumer to get their product, which is what a lot of successful e-commerce companies have done, obviously. So I mean, I think that when you focus on making sure that you can get your product to your consumer in virtually any way possible, making it easy, and you have good food, then people tend to come back. I mean, they're really investing a lot in delivery. And honestly, when you look at it, they're still talking about doubling the store base. And getting to that point with average unit volumes of $2.5 million per year.

If you do the math there, you're talking about $12.5 to $13 billion in sales annually for this company, which is more than double what it's doing now. Now, I'm not saying they'll fully get there, but I'm saying they've got a reasonable shot of getting close. And if you believe that that is the case, then you can certainly still see room for this stock to perform well in the coming years. Shares of Tesla down a bit this week, despite the fact that the company reported a profit for the fourth quarter in a row. Andy, what's your headline for Tesla this week? Yeah, some of the news on the production side are we kind of knew because they had given a little bit of an update. A couple big kind of strategic pieces of news.

They announced that they're going to build the next gigafactory in outside Austin, near Austin. It'll be on 2,000 acres, Chris, and employed more than 5,000 people will be an ecological paradise, as Elon Musk calls it. People will be able to visit that area. And I don't think necessarily inside the factory, although who knows around that area. It'll be for the cyber truck and the semi. Model 3 and Model Y for the eastern United States, and then California will continue to do Model S&X, and then Model 3 and Y for the Western U.S.

So obviously a lot of excitement from the Tesla side to be able to invest in that business. It actually was a pretty good quarter when you look at the numbers. They still get a lot of that money from the regulatory credits, and that helped their profitability. So there's some concerns on watching about what that growth may look like, but the stock has done just phenomenally. I think it's up more than 500 percent of the past.

year and a lot of excitement around Tesla and the innovations and the investments they're making to continue that growth projection going forward. And Musk maintain and they're going to hit that delivery goal by the end of the year. Yeah, it's still the goal. They shut down the California factory for a good chunk of the quarter. So it's even all that much more impressive. I think they may have been a little bit cagey on that 500,000 target, but still going there and given the results recently, you can't put it past them.

Coca-Cola's second quarter report featured the biggest. drop in revenue in 25 years, but shares a big red actually up this week on comments from CEO James Quincy. Jason, he says the worst is in the rearview mirror. What do you think? Well, that's the hope. I mean, whether that actually is the case or not remains to be seen, I don't think we're going to get quite back to the same level of economic shutdown that we had before. So maybe he's right there. This has been a bad stock donor the last five years, I certainly understand why. It's got 400 master brands, less than 50% of those are a global, regional, and the local brands that are actually responsible for 98% of the company's total revenue. They rely on some serious brand power there. And what's made them so successful just beyond the massive distribution network, their core product, it's starting to turn against them, even just a little bit. Unit case, volume down, marketing. There's going to be some more marketing spent here in the back half of the year. So that could certainly weigh down results if they do. run and do some headwinds. I'm not fully compelled by this business. I get it. I understand it,

but it certainly seems like it's a different day. And soda just doesn't hold the same status. It is interesting to see, though, when you compare Coca-Cola and Boston Beer, you know, we don't have live sporting events. I mean, we're starting to get it, but we can't go to them. That appears not to have really hurt Boston beer over the last quarter. It's still hurting Coca-Cola. Well, yeah, and I mean, there's, you know, that false sense of security and happiness that you get from drinking more and more of Boston beer's products versus something like a Coca-Cola. So that probably has something to do with it. But, yeah, I mean, again, Boston beer, great example. Their core product in Samuel Adams has started to turn against them.

The success of that business really has been primarily due to what they've been able to do in Seltzer in expanding the portfolio. So always good to remember. All right. Andy Cross, Jason Moser. Guys, we'll see you later in the show. One of the best performing stocks over the last five years is Mikado Libre. Up next, we will go inside the company with one of their executives. Stay right here.

You're listening to Motley Full Money. BAAWR you and beer run. Welcome back to Motley Full Money. I'm Chris Hill. From time to time on this show, you've heard us talk about Macado Libre, the e-commerce business based in Latin America. It's nearly a $50 billion company, and over the past five years, the stock is up more than 600%. Earlier this month, Motley Fool co-founder David Gardner and Motley Fool contributor Danny Venna

got the chance to talk with Maccada Libre's head of investor relations, Federico Sandler. They discussed Maccada Libre's total addressable market, how the company is dealing with co-business, COVID-19 and Federico started with an overview of the business. Mercado Libre is the largest e-commerce and payments ecosystem in Latin America. The way for the audience to think about it, it would be equivalent to what eBay, PayPal, Amazon, and Square put together are in the region. So we've started as a more like Craiglist dash eBay-ish type of flavor. But over time, not only we've evolved to more professional sellers on our marketplace,

although most of what we sell is not owned by us. And then we have a payments ecosystem where not only we process payments online for merchants away from our marketplace, just like PayPal does online off of eBay, but also we have begun to venture in processing payments in the physical world where we've seen a void, a significant void, I would say,

in terms of the services that banks offer. So it's not only about payments, but we've identified opportunities around essentially generating financial inclusion and digitalizing cash. So two very big opportunities that are highly synergistic among themselves. That's wonderful. And Federico, since I love superheroes and superhero origin stories, I love hearing where things came from. Can you tell the story a little bit of Marcos Galbarin and how he started the company and just a little bit of his background? Yeah. So Marcos, who is a founder along with a few other co-founders, move to Stats, to where

to Stanford to do his MBA, he usually used to work at a large oil company in Argentina, the largest national oil company doing trading of oil futures. And when he went to Stanford to do his MBA, he realized how much eBay was growing at the time. And he decided to do, as part of his business plan, try to replicate, if you will, you know, an e-commerce business that looked like PayPal with a few other flavors. So the logistics piece was already in the cards and the payments piece was already in the cards. And interestingly enough, when he started to do, when he did a survey around his students asking him what were their thoughts about building a commerce business in Latin America, they all thought he was crazy that would never work because of the payments,

because of the logistics, because of the trust. But interestingly enough, he actually met, I believe it was Mr. John Mews, who is a very prominent finance person in the in the US and essentially he came to one of the classes and he basically offered himself to take him to the airport and he purposely took the long road so he could actually pitch him on Mercado Libre and on the way to the airport is that he sort of got his essentially the seed financing for the business which then in turn opened other doors for for other investors in the early days before we went public but after Stanford Marcos moved to Argentina he met other people in Stanford, who are actually in the company today, like Stelio Tolda, who manages our Brazilian

business and is our chief operating officer. And we started to expand into Latin America very quickly. And then as we continue to make seed financing rounds, we ended up actually with an offer from eBay, which we did not take. And then we ended up going public in 2007. And then the rest is history. It's really a remarkable story, starting literally from a garage, which we can actually see the building from our offices where Mercado Libre was founded. And, you know, when I think in part about the story, your own background, Marcos's background, I think about Argentina. Argentina does not strike me from my position here in the United States as the best economy

that you could be operating out of. It seems as if it's a country that has a lot of problems with public debt and foreign debt. It doesn't look like a shining example of capitalism to me. and yet you have managed being based in Argentina. You have managed to expand throughout the continent and weather some political strife here and there. Federico, what is it like to run the company from Argentina?

What are your views on your country and the rest of the continent? Yeah. So I think first of all, I think operating in the region like ours, we believe is a competitive advantage and a differentiating factor. Latin America is not only diverse from a geographical standpoint, but there are nuances that are inerrant to the region. Each country has its own sets of regulations, integrations with banks, logistical challenges, obviously dealing with crisis.

We went through the tech bubble, the financial crisis, the Argentinian crisis, the Brazilian crisis, and now COVID. And I think that because we have seasoned management with experience in the region, A, and B, because we have a business that is, for the most part, pretty flexible in terms of our cost structure, we can adapt, we're agile. We have been able to very successfully weather many of the storms. I would even argue that because we had to actually build all the rails on payments and on logistics, we probably didn't grow as much as other players did like in Asia.

but I think now that we've actually built the rails and have the user experience where we need it to be, we believe now it's a time that we're going to start to grow very, very fast. And COVID just has accelerated this. But I think one of the reasons why we've been more successful than most is because we have CISN management, because we are responsible allocators of capital, and because I think operating in land America is unique and not for everyone.

Federico, you know, one of the things that comes to mind, based on what you were saying, is can you talk a little bit about how Mercado Libre's management approached this COVID-19 pandemic? Obviously, this is an unprecedented time in world history, and very many businesses are finding this extremely challenging. So can you talk a little bit about Mercado Libre's approach to dealing with this pandemic? Yeah. So I think, first of all, we're very fortunate to be in an industry and business that really we haven't had to change our overall strategy. So the two major goals for our CEO is to win e-commerce and to become the fintech leader. Unfortunately, because of the crisis that hasn't really changed, there's been some changes on category focus, perhaps. But really, the underarching investment thesis about retail penetration and underbanked on bank is still there. But specifically to COVID, I think, A, we moved very fast to guarantee business continuity of a managed network, given that we have government relations team across the region, and we have been deemed an essential business in most of the regions that we operate. So in spite of the lockdowns, we were well prepared

in the sense that not only we have a logistics network, but because we actually moved quickly with governments, we were actually allowed to operate. And the genesis of this was also because we're fortunate to have a board member that sits in Asia, who not only let us know that we should be moving from a government standpoint, but we've also strengthened significantly all our security protocols within our distribution centers. So taking temperature at entry and exit, organizing separate groups for picking and packing.

And when we see at the level of infections in Mercado Libre, it's actually quite low. And that's because of the processes that we have in place. Also, I want to highlight that in this sense, I think COVID caught us at a perfect time, given the investments we have done in logistics over the past three years. So unlike what happened to Amazon, we really did not have to put any restrictions on categories to be stored in our distribution centers.

And then, like I briefly mentioned, I think the other thing that has happened more shorter term is some of the organizational focus has been on certain categories like consumer package goods, given the pent-up demand of the category. And though it's still single digits of our gross merchandise volume, which would be the equivalent of the sales of a retailer, we're a commission-based business. So we make a percentage of the gross merchandise volume. But CPG is still single digits of gross merchandise volume, but growing triple digits. So I think that's some of the learnings and how we've moved a little bit, the business as a consequence of the pandemic. So each of us, we're in different country. Well, Danny and I are in different coasts. We're in different countries.

And I especially feel like I'm far from Latin America right now. Maybe it's because I'm hold down in my own room and I've been here for quite a while. So this is a question, Federico, about just overall adoption of e-commerce in Latin America. It's something I don't feel equipped to judge because I'm not there. I don't know what it's like. I don't know the differences between Buenos Aires and Mexico City. I don't know the different countries and what the states of adoption are. So could you give us a sense of the overall total addressable market that you see and where you are in the journey?

Okay, so let me break down where we are, first of, first the addressable markets separate for payments and commerce, and then I'll tackle around what we're doing in that respect. But so directly from Mercado diomedo, Mercado Pago, we look at a region according to the World Bank that has approximately 640 million people, of which roughly 362 million and growing our internet users, and roughly 250 million and our online buyers. During 2019, we had about 40 million unique users. buyers. So 20 years out, we're not even close to what the addressable market could possibly be, not only in terms of people engaging with our platform, but when you look at the purchase frequency of Melly, relative to some of our American counterparties, let alone the Asian ones, there's about 10 purchases per user per year on Melly. I think that's like three or four X in the US, and that is like almost seven or eight X in Asia. So on the commerce business, I would say even 20 years out, it's still early days. And I think we are incredibly a

about the opportunity ahead of us. On Paolo, I think, is the same population, but what we see is that roughly half of the population is either unbanked or underbanked, and there's like approximately 80% of smartphone penetration. So there's more people with this than bank accounts, so we can actually arm them with our payment services and the phone and begin to bank them.

But the other important data point is that when you look at the percent or the amount of transactions transactions that occur in Latin America with paper money. It's still about three quarters. So we see a huge opportunity there to move some of those transactions that today occur in cash more into our digital mobile wallet and our payments ecosystem. Really well broken down. Thank you very much.

It is interesting just to think about the different states and stages of e-commerce. And it seems like it kind of goes from east to west. The east has adopted it massively and used it. Most of all, those of us in North America feel as if we're, you know, keeping up. And then we look at South America and we see that there's still so much opportunity for growth and penetration. Definitely. And I think, look, what's happened, and it's interesting to comment a little bit, I think we believe that we're going to overcome this period of health crisis, being more mature and stronger as a company, understanding better the benefits of buying online, but also from different angles, from the depth

assortment, A, but also from the health and safety and convenience of buying online. But just to throw a few numbers, but I think if you look at, and that's probably a good indication of what lies ahead, but if we look at the period from, for example, February 24th to May 5th, the amount of new consumers who enter our platform grew exponentially. There were 5 million in that period alone. That's a 45% growth year over year. And it's quite an expressive data point. if I told you that in 2019, we had for the full year, about 40 million users in our platform,

okay? We have a presentation that we actually facilitate an IR website that has a whole bunch of insights. But the other important thing, I think it's important to highlight in this point, is that our expectation is that these new entrants, both the buyers and the sellers, will, for the most part, have satisfactory experiences when using our technology. And so even, you know, e-commerce being today 6% roughly, probably higher as a result of the pandemic, when we look at e-commerce where penetration will be, even after physical retail opens, we don't think it's going to receive too much from the incremental

penetration that we've seen in some countries as high as 16%. Physical retail will happen again, but I don't think e-commerce will regress too much. And I think the focus of our organization in that sense is making sure that to you as a buyer, you are getting the best possible user experience because that is the best guarantee that when you try to move back offline, you will leave some of your purchases online because you got it fast, because you got it cheap, and because it's free shipping for you. Up next, Andy Cross and Jason Moser are back with a couple of stocks on their radar. Stay right here.

You're listening to Motley Fool Money. As always, people on the program in the supermarket. As always, people on the program may have interest in the stocks they talk about in the Motley Fool may have formal recommendations for or against, so don't buy yourself stocks based solely on what you're here. Welcome back to Motley Fool Money. Chris Hill here once again with Andy Cross and Jason Moser. Guys, one more news item before we get to radar stocks. This week, Disney announced major changes to its movie release calendar. Planned sequels for the Avatar and Star Wars franchises have been pushed back a full year. And the release of the live-action version of

Mulan, which had been slated for August 21st, has been delayed indefinitely. Andy, I'll just start with you. It's really starting to get bad for the movie theaters. Yeah, Netflix touched a little bit on this. And they said it's just been slow to kind of come back on board with the production side. Concerns there now with COVID cases kind of ramping back up again. I think some concerns long term about what that might mean for the production of, continued production of movies and entertainment.

This was pretty massive. I mean, they changed a lot of different schedules. Moulin has had a lot of problems, I think, over the past a couple years with production release schedules. So, you know, just more evidence of the challenges with these big budget releases that these companies are so concerned about. Yeah, and Jason, obviously Disney had planned to release Hamilton into theaters in the fall of 2021 and just decided, you know what?

We're just going to put that up on Disney Plus. I actually don't think they can do that. with every movie they have. I mean, they really need to figure out a way to get some of these big action movies on the big screen. They may be. I mean, I do agree with you. I mean, in certain cases, that is a more enjoyable experience. I mean, I think you just have to kind of look at the conditions on the ground and try to ascertain how much of that do we go back to.

That we could certainly debate. One thing I don't think you can debate is it's a, it's a, it's a real. really great time for Disney to have that Disney Plus platform now. That really saves them from a lot of hemming and hauling that they might be undertaking or otherwise. So, I mean, it could be worse. I'm sure management probably remembers that at the conclusion of every meeting. Let's get to the stocks on our radar. Our man, Dan Boyd, is going to hit you with a question. Andy Cross, you're up first. What are you looking at this week? Dan, I'm looking at Equinix, a real estate investment trust that operates more than 200 data centers around the world for,

I think, more than 3,000 customers coming off its second best first quarter of all time, where peak traffic was up 44%. So this is a company that provides these big data centers. Companies rely on them to move network traffic, internet traffic around. Of course, has we been spending more and more time connected to our devices and all of Internet of things, internet traffic more and more important. It's $65 billion market. Stocks are very well. little 1.4% yield, generates 1.3 billions in funds from operation, cash flow for the company, 25% of revenues. Stocks up very nicely, so I'm looking for a little bit of a pullback before I go shopping on Equinix. Dan, question about Equinix? Not so much of a question, Chris, merely an observation.

I think I have the hardest job on this radio show because I have to attempt to make jokes out of Equinix. As a radar stuff. You could ask an actual investing question if you wanted. Yeah, well, not right now. Jason Moser, what are you looking at this week? Oh, man. Okay, well, we've talked a lot about alcohol on the show. So not to be mistaken or confused with Jose Cuervo. My company is Corvo, Dan, Corvo, ticker QRVO. And Corvo is a market leader in radio frequency solutions and semiconductor technologies. So in simplest terms, it's a chip company. But as we roll out into 5G, Corvo is a company that is focused in particular on this ultra-wideband product, which is basically responsible for sending lots of data over short areas with low power. So a big opportunity for them there.

It has a lot of great properties that make it a, you know, a preferable technology. And so Corvo is, you know, feeling a lot of tailwinds from benefits of 5G and a neat business. Really, really digging into this one. Dan, question about Corvo? Yeah. So, you know, Jason mentioned Jose Cuervo at the top of this. And Corvo with a Q here, and I believe the ticker is QRVO, that's quite the name. Jason, do you think that they could have come up with something better?

You know, I guess they could have, but it really is memorable. And, you know, it's like Chris and I were talking about Taylor Brands and their ticker, T-L-R-D, just makes you think like, what in the world? Why weren't they going for something just like suit? S-U-I-T. I think Corvo struck gold here, man. It's a memorable name. What do you want to add your watch list, Dan?

I'm going to go with the Equinix just because I think the name's better. All right. Guys, thanks for being here. We're out of time. Thanks for listening. We'll see you next week.