Motley Fool Money - Investing After Cloud Outages & The End for Electric Vehicles?

Episode Date: October 24, 2025

We discuss how cloud outages may impact stocks beyond Amazon. Plus, GM’s great results may show how weak EV sales will be in the U.S. and the how Co-CEO roles have become so popular in tech. Travis Hoium, Lou Whiteman, and Jason Hall discuss: - Cloud outages - GM’s results and the EV future - The rise of the co-CEO - Apple’s iPhone growth Companies discussed: Apple (AAPL), Amazon (AMZN), Alphabet (GOOG, GOOGL), General Motors (GM), Tesla (TSLA), NVIDIA (NVDA), General Electric (GE), Walmart (WMT), Meta (META), Netflix (NFLX). Host: Travis Hoium Guests: Lou Whiteman, Jason Hall Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

AWS went down. GM reported a great quarter and Apple is back. Motley Fool Money starts now. That's why they call it money. The best thing. Cool global headquarters. This is Motley Fool Money. Welcome to Motley Fool Money. I am Travis Hoyam, joined today by Lou Whiteman and Jason Hall.

Let's start with the big topic of the week. That was AWS going down. This happened on Monday morning. It was down for a few hours. And it seemed like the world stopped, especially if you're trying to do some investment research or access your brokerage in some cases. One takeaway could be that Amazon showed just how much of the internet it runs. This could also force customers to consider, do you want to be multi-cloud? Do you want to diversify away from AWS? Jason, how are you

thinking about these big shutdowns and how it impacts companies you own? So I think it's a big deal, but it's just becoming more of the status quo. And the aggregate outages are really far fewer or from these cloud-based services versus when enterprises try to self-manage applications. But the difference is it's kind of become like a community event now. Instead of just now my company's email is broken, I have to call my customers and ask them if they've sent me an email to find out if something's going on. So maybe that's better, but it's just different. Lou, this is something that we deal with every once in a while.

But it's always shocking when Amazon and AWS are the one that's involved because it's such a big deal. there's so many companies that are built on AWS. Yeah, if you want the bullish take here, as we found out just how critical AWS is to everyone's infrastructure, just how big a market share they have. But, like, I don't think it's a big deal until it becomes a pattern. You know, even with CrowdStrike where you did see a stock reaction, and it's notable, Amazon stock didn't really react to this, but even with Crowds strike. Yeah, the shares were up, I believe. Yeah. Even during the outage. The recovery was pretty quick with the shares. Look, every one of these is different, but scarcity matters. There's only so many of these big cloud

things. I don't know if anyone can really say, well, this can't happen to us. It's also really hard to shift things. So I think, you know, which is kind of, you know, you don't want to change us. You have to. If this becomes a multiple occasion thing where, you know, Amazon just becomes unreliable, I think that's a different story. But for now, a one-off, I think we just a grin and bear it and it doesn't really affect the company's business. I think the last time the Amazon had a big outage like this was maybe 2016 or 2017. So that's a long time. But I did a little bit of research. And basically, about twice a year, we see one of these outages. But I don't think we really tend to remember them.

You remember back in 2020 and 2021, Fastly and Cloudflare both had outages. And millions, we're talking like basically half the internet was down around the world. and most people still, like, you look back down, we don't even remember they happen. So it's, again, they're going to happen, but to lose point, are they, you know, systematic from the same enterprises? Then there's a problem. I think it's just more of a symptom of how the world runs now. I want to get your stock takes in just a second, but I want to start with how companies

might be thinking about this. Because I look at, you know, there's basically three major cloud providers with Microsoft and Azure, Amazon and AWS, and then Google, Alphabet. GCP. Does this push more companies towards redundancy, multi-cloud? This is something we've been hearing about for a long time. I think that would be one of the bullish cases for the smallest one, which is Google. Ironically, I was trying to look back how often search goes down, because search is built on the same infrastructure that GCP is. It's not very often, and it's like an hour here or there. But could that be something, Jason, that is a little bit

bullish for some of these other clouds, or is it just, you know what, this is the cost of doing business? I think it's mostly the cost of doing business. The bigger bullish reality is just the pure demand. We still haven't seen everything shift to the cloud. And then you factor in AI and as more companies are going to be adding AI into their enterprise to these different applications, there's just a massive tailwind still for the cloud to continue to grow. Oracle is a good example. Obviously, it's tied a lot more to AI than cloud. But how many people forgot that Oracle existed? until about six months ago, and now everybody knows that Oracle is one of the growing cloud companies. I think areas where there's probably a lot of opportunity, or like the sales forces,

where they're niche companies that do a thing that are also big cloud companies, where companies they do want to diversify their cloud, and that's ways that they can do it. Honestly, redundancy to me, it's one of those things that sounds better on the PowerPoint than it does in real world. Say you were a multi-cloud operation, and that meant yesterday, half of, or earlier in the week, half of your systems didn't work instead of all of your systems didn't work. Does that really make you more productive? If you're a single cloud, you can at least blame it on Amazon. Right, right, right. And if anything, it might make it harder to unwind if some things work and some things don't. I think, yeah, like Jason said, there's a ton of demand here.

There's just, if I'm an IT person, I'm probably more focused on pricing and using these companies against each other to get better pricing, then I am just trying to say, well, I need a third, a third, a third, just to make sure only some of my systems go down if AWS goes down. Jason, let's talk about how companies and stocks respond. So we're investors. Is this the kind of thing where you should maybe rethink your thesis behind Amazon and AWS? Or is this something we're going to completely forget about? Because I just go back through, you know, I've been doing this for a long time. And there are these terrible, seemingly terrible events that happen in the moment. And then you suddenly look back in companies like Netflix and the Quickster debacle, just kind of fade into

history. Is that what's going to happen with outages like this? Yeah, I think, and this is one that we're going to look back and we're going to have forgotten about it, you know, even probably a year from now. You look like the crowd strike outage back in 2024. Beyond a few examples of customers that were out for weeks. Most of the customers were back and up and running by that afternoon, and things were back to business as normal. But what I like to look at is, is there, does it create a competitive opportunity? Because they really are the biggest player. AWS is the biggest player, but there's two other really big players and a bunch of other smaller players, maybe that are more niche. So there's already a lot of competition here.

I think it's the ones that become so dominant that maybe they lose their edge where it creates risk, and I don't think we see that for a company like AWS. In a way, this is maybe thesis confirming how important AWS as a business and how profitable it is. So two thoughts here. For one, I think, you know, I think if anything, there's a bullish argument out of this, as we said before, the world is reliant on these clouds. That's good news for the cloud providers. I think it's also bullish for all the security and support companies that make them work. So I think as an investor, if anything, you lean into this, the real question for me is, and guys, I don't know, the answer here. It feels like this is important enough that it needs to be regulated. But I don't

even know how that would work. You could regulate on price, but that's not going to solve anything. I don't know how you kind of do a regulatory scheme to try to force redundancies or to avoid accidents, because accidents are very hard. Doesn't the market, can at least partially take care of that? I mean, is it? No, we just said. I don't think it's going to on the one-off. I think the market, to a certain extent, already has. I think there's a lot of redundancy that is built in. And this was just a really rare, weird one-off where this was a system that hadn't been fully restarted in something like three years. And it got through some of their built-in kind of self-checks. These things are the exception. I think if we start trying to regulate around the exception,

everything gets more expensive and innovation gets slowed down. I think you're right. And what I worry about is, as these things make the news, the urge to regulate comes in, and that might be kind of the pushback to the bull case on this. So the takeaway here is we need to do a hard, hard reset of these servers every once in a while. Not during business hours, though. Not during business hours. Yeah, let's have these overnight. So tell me when it's not business hours for AWS. That's true. That's true.

Let's move on to earnings. And for disclosure for everybody, we're recording a little bit early this week because the Motley Fool has a big event called Fool Fest later in the week. So we're recording on Tuesday. We don't have numbers from Tesla yet. but we did get numbers from GM this morning. GM's an interesting one because nobody seems to like GM in the investment community, yet they're a growing company in electric vehicles. They reported 8% volume growth, so they are seeing some growth, despite some challenges that they have with some of their engines and some of the more expensive vehicles.

But Lou, what did you take away from this quarter? Because this seemed to be about as good as it gets for GM. It's as good as it gets, sure. And I think, you know, some of this, who knows how much of it is, you know, just trying to get ahead of things. But look, one real take, and we already knew this going in, is that the EV momentum is dead. And that GM told us that $1.6 billion charge related to underused or unused EV capacity, they're going to assemble about one third of the EVs this year that they once forecast they would, Travis. It's easy to blame the tax credit expiring, but the point is we needed the tax. credit, you know, that demand has not materialized absent stimulus the way we had hoped. That's not to say it's dead, but it is, I think it's just the state of play right now.

And it's both, it's good for GM because they have all those ice vehicles, but this is a high cap-ex, low-margin industry. The cost of switching out and changing plans on the fly is in the billions. It's a risk to lean into old-fashioned ice vehicles, but I think it's the right move. I think the things that we talk about, like range anxiety and some of those things are maybe not really stated the right way. I think this is just a great big change management reality for the auto industry, which is already a tough, cyclical, brutal, largely zero-sum industry.

Change management, the bottom line is like, if you want people to change, the incentives to make that change have to vastly outweigh all of the perceived negatives. since we know those for EVs, right? They cost more for the range that we get. It takes longer to charge. People don't know where to go plug them in versus going to a gas station. All of those things are realities for the industry. We're past the early adopter stage. So what GM's doing, Travis, is the smart thing for GM to do, to lean in where it can make the most money right now and have that money ready when the time comes for the change and be willing to be as nimble as it can for. for a big company in a really tough industry.

The other reality is the vehicles that sell the most and make the most money are massive vehicles, and those make the least sense to put massive, massive batteries in them. You make them much more expensive. You make them much heavier. So, you know, if you're looking at making a Tahoe or a suburban, which is really where GM is making its money, that's a really hard transition to EVs. If you're making a small car much, much easier. But GM doesn't really care about small cars these days in the U.S.

best anyways. Lou, I wanted to touch on their recurring revenue, Supercrues. They still talk about OnStar. Can we get rid of the OnStar brand? That would be, I want to lobby for that. But $2 billion in revenue, $5 billion in deferred revenue, so revenue that they'll be earning over time. That seems to be a growth business. This was always the story with Tesla, right? That sure, we're going to sell cars, but where we're really going to make money is as basically more of a SaaS company in that recurring revenue model, but GM's actually building it, and I think that's a little bit surprising for people who don't follow this all that closely. Yeah, $2 billion today. They're still saying $20 to $25 billion by 2030, so they see this as a huge growth opportunity. I think they're

doing it the right way. I think the wrong way, and some automakers have played with this, is to begin charging us for things that we've gotten for free. Yeah, BMW got in trouble of that for that with the heated seats. Right, right. Or if you want to use your air conditioner, or pay a buck. You know, that's not going to work. But if they can succeed in building some of these driver assist and tools that we actually want to use, not that hotspot in your car, which, come on, with what they're charging for that, that didn't work. But that is the way about it. I'm a little skeptical about that target within five years, but it's certainly an opportunity. Well, when we come back, we're going to talk about the new trend about moving to co-CEOs, something we're seeing more and more in tech.

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Welcome back to Motley full money. We're seeing a trend of two people sharing the CEO role, co-CEO's. Netflix has been doing this for years, but Spotify announced this recently after Daniel X stepped down. This used to be seen as a negative and people sharing power at the top of companies, you kind of go directionless. But, Lou, this is something that seems to have kind of worked, especially in technology. You're seeing different roles amongst different people. Netflix, you have somebody who's in charge of technology and others in charge of content. That seems to kind of make sense. Is this the new future of leadership in corporate America, the co-CEO? So I should say I'm old. And every fiber of my being wants to hate this.

Okay? I want the Harry Truman buck stops here. I want some. somebody who is. You want someone to blame. Right. That said, you know, CEO has become this strange catch-all title that means different things at different companies. It is just too big of a job for one person. Every good company has responsibility sharing, you know, whether or not they label it like

that or not. So in a sense, this is sort of just relabeling. The CEO job is really, one person can't do it. There's not enough hours in a day. people, it's the rare exception if you are good at everything the CEO requires. So you should lean into strength. I do note that, you know, like Spotify, Netflix, you still have a founder who is sort of a North Star. And maybe that helps make this work. You know, the founders still involved. That's dangerous. We saw with Starbucks. We saw with Disney that having someone kind of in the

boardroom kind of meddling isn't good. But maybe the solution is, is that to have a North Star, to have a board that's actively engaged and pointing in the right direction and then break down the CEO role among people doing what they're good at. I don't think it's always the case, but it does seem like we've seen maybe a little bit better succession planning from the companies that have co-CEOs, not always. I mean, for every KKR, right, you've got Joseph Bay and Scott, not all of their co-CEOs. And since 2017, they were co-presidents before they became co-CEOs. Joseph Bay built their Asia-Pacific business. Scott Nautau has had a lot to do with finance and leading the company public. And they replaced co-CEOs that were there before them. So a company like

that, it works really well. Then you've got like Boston Omaha, right? Their co-CEo structure obviously was not functional. You say what you want about their business model, maybe being the real problem there. But it doesn't always work. But I think when it does work, maybe it works really, really well. I think the Spotify example is really interesting because listen to a interview with Daniel Eck recently and the current co-CEOs, the new co-CEOs and actually all share in office and have for years. And so it, Jason, it does seem like that building this relationship, this partnership at the top of the company, it is kind of like being co-founders of a company. you know, maybe you're going to take the head PR role and do the interviews, but I'm going to do,

you know, tech stuff in the background because that's not your expertise. So maybe that is why it makes sense in some, or why it's successful in some of these instances where they kind of know exactly what the deal is and there isn't this, you know, GE power structure. That's the one that I always go back because there was three people there when Jack Welch left, you know, vying for that role. One of them won. ended up being pretty terrible CEOs, but they all kind of, you know, the other two left, because they were like, if I'm not going to get this job, I'm going to go somewhere else. Yeah, but I think that's the key really does get back a lot to what Lou was talking about, is the complexity, particularly of modern businesses that do a lot more things. Look at Oracle,

for example, they've, over various years going back over a decade, they've had it. And the new Oracle, you know, one of their co-CEOs basically built their cloud business, which is very different from like the legacy of Oracle. So sometimes it really does make sense, but I think you're right. Travis, it gets back to culture. The companies that have the right culture is where it really, really matters the most that they can leverage and they can lean into this sort of thing. Lou? So leaning into my grumpy old man from the top, it all works when times go well. The interesting thing is, say Spotify has a terrible, I don't know, tech meltdown or a terrible quarter or Oracle things, all these investments didn't pay off. Then is it two people,

collaboration, maybe with the board saying, here's what we're going from here, or is it whispers in the Wall Street Journal? It was the other person's fault. This all works so well when things are going well. I am curious if things go south, if it looks so good then. The successful ones we're talking about, Lou, are also companies that have gone from founder to co-CEO. What happens? What's the succession plan after that? I mean, look, I think having the founder around helps a lot, you know, because that is sort of the adult in the room or the referee. But yeah, when the founder goes away, even if the two CEOs are there, if you lose a referee, does that change the power?

It'll be interesting to see if this becomes more common in corporate America, but it does seem to be a direction a lot of companies are going. When we come back, we are going to do stock market jeopardy. You're listening to Motley Fool Money. If you're early in your career and looking for insight, inspiration, and honest advice, listen to the Capital Ideas podcast. hear from Capital Group professionals about leaning into the differences that make you unique, making decisions that last, and what it means to lead with purpose.

The Capital Ideas Podcast from Capital Group, available wherever you listen, published by Capital Client Group, Inc. Welcome back to Motley Fool Money. Today we're going to play a little game that I like to call Stock Market Jeopardy. I have four categories, and we have three questions under each category, 100, 200, and 300 points. We're going to go snake style, guys. Jason is going to start first, and you either get the question right or wrong, so you can't jump in afterwards, even if you know the answer, and steal the points. So maybe a little different than Jeopardy, but hopefully this will be a fun little game here. Jason, you are going to go first.

First, the four topics are the market, IPOs, founders, and fun facts. This is obviously about investing. So where do you want to start? What topic and what number do you want to go with? Let's go with fun facts for you pick the number, I guess. Let's start with 100. Okay, let's do that. What is the biggest electric vehicle manufacturer globally through the first three quarters of 2025?

Neo. What is Neo? I believe the answer is BYD. It's BYD. It's absolutely BYD. Yeah, 1.6 million vehicles. to 1.2 million at Tesla. So I just think it's interesting how we're in the U.S. here.

We don't talk about these Chinese manufacturers. That's right. They are dominating the EV space right now. Well, BYD is dominating it because they're making EVs for less than 10 grand. Yeah, and this number is their fully electric vehicles. It does not include, I did not include the hybrid. It's right. The hybrid number as well.

So it will be very interesting to see what happens with China and that manufacturing, because they could potentially take over the market, especially in places like Europe, unless they put, you know, huge tariffs like we have in the U.S. That's why a lot of these vehicles aren't making it here to the U.S. Lou, you are up next. Where do you want to go? The market IPOs, founders are fun facts. Go bigger, go home. The market for 300, Alex.

Travis. How many companies today are worth over $1 trillion? Seven? You are close, and you may have been right a few. months ago, but the number is 11 right now. Oh, wow. Okay. Yeah, you have Tesla jumping up in there. I believe Oracle is close. But yeah, a trillion dollars is the new. What's the new baseline. Yeah, I remember, you know, growing up, it was a million dollars, was a lot of money. That's, that's a million times a million. All right, Lou, we're going to go snake order. So you get another

crack at it here. Where do you want to go? We'll do, uh, fun facts for 200. When did not? When did Netflix launch its streaming service. I will, I'll give you a, I'll give you a three month plus or minus here. Oh, you want month? Not just year? Not just year. That's a little too easy. Not for me.

Maybe I should give you a six month plus or minus. The end of 2026, December, November, 26. You get it right. It is January, 2007. I assume you meant 2006, not 2026. Oh, yeah, yeah, yeah. I'm looking into the future. Sorry.

All right, Jason, you are up next. All right. What are the topics left? We still have 300 under fun facts. Let's do that. All right. Renewable energy and nuclear energy accounted for what percentage of U.S. electricity supply. Of course, this is coming from the EIA, so the data is very old.

This is from 2023, but it should directionally be correct today. And this is up here wheelhouse. So you should get pretty close here. Nuclear plus renewables as an electricity supply. Oh, wow. This is actually a little harder for me because the percentage that's nuclear, I can't remember off the top of my head. I'm going to say 35%.

I'll give you this one. It's 40%. I was in plus or minus 5%. They're almost exactly 2020. Yeah, because it's amazing how much renewables has grown. Exactly. Yes. All right.

You get the next one. We have the market IPOs and founders. Let's go with IPOs. Do you want 100, 200 or 300? Let's go big. Let's go 300. How much did Walmart raise in its IPO in 1970? How much money did they raise?

$15 million. $1, probably half that. Probably, I don't, ew, that, that's, let's go $1, 1970? Yeah. 1970. Lou, do you have a guess? I'd go under his guess. It might be like a six-figure amount.

I mean, it might, well, no, it's more than that. Yeah, yeah, I have $7.5 million. Luz, lose really close here. It is $5 million. Oh, wow. Really low. I'll be generous and give you some points there, because I would have been way off on that one. Money was still worth something in 19.

70, Travis. Yeah. That's true. The stock's done pretty well since then, too. Well, Walmart was just a department store back then, too. It wasn't what we think of, even close. Yeah, they didn't have the super centers. Right, right, right.

No groceries, just stuff. All right, Lou, you are up. We haven't done founders for 100. Let's hit founders. Okay, this one, this one you should get. Who founded General Electric? Founded General Electric? Thomas Edison, right? There you go.

You are correct. I thought that was a phone on. If you didn't know that General Electric, you know, a name that we know today, but that was Thomas Edison, Ventro of the Lightbulb. That was his business. And then Nicola Tesla was Westinghouse. Yeah. So companies that are still around one successful, at least until the end of the, you know, 2005 or so. Completely un-weckinized from what they were.

Yeah. Yeah. But Westinghouse went through. has gone through crazy transition. I mean, that was a business that, you know, I remember reading built to last, and that was one of the comparisons was GE was successful, and Westinghouse kind of wasn't in the same way. I'm contractually obligated right now, Travis, to mention the current owner of Westinghouse, which is Brookfield. That's, that's right. Yeah, 51% owner. All right, Lou, you have one more.

All right. Markets for, what do we have left? You have one in 200. 200. What was the most valuable company on January 1st, 2000? I'm asking this because I want to test whether you listen to previous Motley Full Money episodes. I mean, you know me with my ego, only if I'm on. 2000.

So write up. Yep. Dot com bubble. End of the dot com bubble. Microsoft. I have an answer too here. I think it was Cisco. It was General Electric.

Was it GE? Okay. Okay. Yeah. Okay. All right. Jason, you are up. We have one left on markets, two IPOs, and two founders.

Let's do, let's do founders. You want 200 or 300. Oh, we've got to go big here. Okay. How many original founders did Facebook have? Five. Oh, you got it. Can you name more than two of them?

Yeah. Well, I mean, two of them are twins, so that's easy. So you got the twins. You've got Zuckerberg. The other names are looting me right now. The twins, not founders. They were in the movie. Were they not?

I thought they were considered. the Winklevosses. The Winkle bosses wanted to be twins, or wanted to be founders. But that's right. They weren't. Yeah. So you have Zuckerberg, Eduardo Sabarin, Dustin Moskowitz, Andrew McCollum, and Chris Hughes.

A couple of those who have gone to do some interesting things in the academic world, too. Moscovitz still involved in Asana, although he stepped down as CEO. Yeah. But good job. I would not have remembered that there was five. I think it's Jason again. Yeah, let's go IPOs. What are the...

We got one and two hundred. Let's go 100. When did Google IPO? And as a bonus, what was the stock price for Google shares at the IPO? This is one that I remember. So that's why I'm adding the price here. And it looks like Lou might remember the number two. Man, was it 2006?

No. I'm not going to, I'm not even going to give you close enough. August 18th, 2005. Okay. Okay, what was the share price number? Oh, I have no idea. I'd just be guessing. Lou?

That's not 85. $85. I don't know why I remember that. It was one of those weird facts in history that I remember Google's IPO being $85 a share. All right, Lou, you're up. All right. What's left? IPO is for 200.

You have 200 for IPOs. 200. IPO for 200. Let's do it. When did Nvidia IPO? Oh. Wow. I'll give you a plus or minus three months, so a six-month window here.

Once again, it was right around the crash. The fall of 98, you want a month, October 98. It's close. Is it? Yeah, I'll give you that. That's three months. It's January, January 99. Okay.

As a bonus, what was the offer price and what would one stock of India be worth today? Oh, Lord, I don't know. Geez, $10 a share. That was a thing back then. So maybe. That's close too. Really? That's how they used to do it.

After splits, it'd be like quarters. I think it was, was it $12? $12 a share. And today it would be worth $100,000. I don't know. One $12 share at IPO would be worth $85,000. So just a crazy return for InVedia. All right, Lou, you are up.

So what? I got market or founders? Give me founders. Who were Tesla's founders for 200? It was not Elon Musk, and I don't care what he said. One was Martin. Martin Eberhard and I don't know the name of the other one, but I'm not going to accept Elon Musk. Yes, the other one is Mark Tarpening, but Elon Musk was not a founder.

So that's a fun fact for history, if you weren't familiar, that Martin Eberhardt was really, I think, the one who was really credited with starting Tesla. All right, Jason, your final question is, what is the biggest company by market cap? and as a bonus, what is the market cap? This is just for 100. Today. Today. Yep. Did Invidia jump back to the lead? 3.8 trillion? Nvidia is correct. 4.4 trillion dollars.

So our winner today shows you how long it's been since I looked at Nvidia's market cap. Yeah. But they're way up there. So 700 points for Jason. Congratulations. You are the winner. I'm surprised you're both positive. So that's good market knowledge. for both of you. I'm going to go back and argue that 2000 market cap one, but we'll do that next week. Anyway. When we come back, we are going to get two stocks on our radar.

You're listening to Motley Fool Money. All the games people play now. Every night, every day now. Never meaning what they say now. The old adage goes, it isn't what you say. It's how you say it, because to truly make an impact, you need to set an example and take the lead. You have to adapt.

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The Range Rover event is on now. Explore Enhance offers atrangerover.com. As always, people on the program may have interest in the stocks they talk about. The Motley Fool may have four more recommendations for or against, so don't buy or sell stocks based solely on what you hear. All personal finance content follows the Motley Fool's editorial standards and is not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our show notes. Apple was one of the companies in the news this week. Shares surged after the company, or at least an analytics firm told us that the iPhone 17 is outselling the iPhone 16.

So, Lou, is this something that, are we back in a big upgrade cycle for Apple? Apple, are they going to be back to growth? Netflix is another company that reported earnings this week, and the shares were down initially. The results weren't great, but what did you see from the Quarterlyu? Yeah, so to be clear, they did miss on earnings, and they missed pretty bad on the headline number, but a lot of that was it was a $600 million settlement of a Brazilian tax dispute. They had mentioned this as a risk, but they hadn't included it in their guidance. So I think most of the miss was that it's not like an ongoing problem.

problem. Bigger picture, look, the percentage of time we're spending watching Netflix versus other TV continues to go up. 8.6% in the most recent quarter from 7.5% a year ago. Stranger Things is coming up. Knives out. They have other franchise that's coming up. I don't think the sky's falling here. This is also a company that's entering a little bit more mature phase. So growth is going to decelerate, but at 53 times earnings, it's an expensive stock, so it's understandable that the market is expecting a lot from Netflix. right now. Absolutely. It's hard to know what to make out of this. And I'll be honest, I'm surprised the market moved the way it did, because as you say, this is one Chinese data analytics firm,

not to say it isn't true, but I think we'll see, right? This is just one report. Also, it's worth noting that while they talked about U.S. and China's sales collectively up about 14% over the iPhone 16, they said sales were up 50% in China. So China's doing a lot of the heavy lifting there. You know, that's good because Apple has struggled in China, but it doesn't necessarily speak to broad strength. Guys, my hot take here is that we don't have a super cycle. The iPhone has become the same as the dishwasher or whatever appliance in your kitchen. You replace them when they break and you don't replace them before. I don't think the 17 changed that and I'm not going to buy a super cycle until I see more proof. I think what's more important to see from Apple is really figuring out what role artificial intelligence is going to play. in its ecosystem, the realities that we're all using AI more now than we did a year ago.

That's just going to continue because it's a change management thing where it's just simple and easy, and it's just going to become more. I think as time passes, Apple is at risk of losing the next generation of users, maybe forever. The Waldgarden ecosystem that Apple's built has been incredible as a way to derive a larger and larger share of profits from the way people use their smartphones. But that moat might actually be the wall that keeps new users out of the Apple ecosystem. Would that be bullish for Google then, Alphabet? Maybe. I mean, I think probably. Probably so. I think maybe even Microsoft to some degree,

depending on what happens. But I do think we're just going to see maybe more of the share of the profits for how people use their smartphones get spread across more companies. I think it's probably what when we look back five years from now, that's probably what we see. It will be interesting to see if they can get back to a little bit of growth and then what role services play in that? Because they're obviously leaning into that this week. They signed F1 to a massive deal. Now, those of us who want to watch F1 are going to have to pay up for Apple TV. So something that, you know, they're pushing into other areas, but a lot of them are just kind of add-ons to the iPhone.

We like to end the show with stocks on our radar along with some questions from our producer Dan Boyd. Jason, you are up first. What's on your radar? So, Tandas Trace Bay, if I can murder it with my Spanish pronunciation, it's BBB Foods, which is a hard discount grocer in Mexico, has about 3,000 stores. I think they can probably 5x that store count pretty easily. You look at the growth rates, and it's incredible. Revenue was up over 30% last quarter in their second quarter, and about half of that is comps, generates positive EBITDA, decent margins,

I think it's the perfect like blocking and tackling business. That's trading for a reasonable valuation. And Dan, if you're listening, buddy, I know you are. We're so caught up in the tech movement and AI today as investors. Markets like Mexico that I think over the next few decades are going to be massive sources of economic growth are where investors should be looking for opportunity. And I think BBB Foods is one of those stocks. Dan, what do you think about BBB Foods?

Hey, Jason, all good points there. you've almost convinced me, but I do have a question for you. Do you go to any of the discount grocery stores here in the States? So, Aldi, I think, is a good example to a certain degree. And this is basically a blocking and tackling business. So I think Alty, Trader Joe's, to some degree, they're a little more upscale, but those models are very, very popular in the U.S. I do like Trader Joe's. They've got great snacks. All right, Lou, what's on your radar this week? All right, Dan, we talked earlier about Thomas Edison's company. Unfortunately, you know, GE hasn't gone as well since Thomas Edison left the CEO role. And for years, many of us rambled on about

the quality of the assets hidden away in the train wreck that has become GE. Now, thanks to a three-way split, those assets are free from all the baggage. Sure enough, they are performing. GE Aerospace, the massive aircraft engine business. They posted earnings this week, beaten, raised, up their guidance. The story here is the aftermarket. spare parts. Airlines can't fly if the engines don't work. And it turns out that's a pretty good competitive position to be in. I'm not going to channel Ron Gross here and say it's firing all cylinders because, as we all know, turbine engines don't have cylinders. But GE Aerospace Stock is up 55% over the past year. I think the momentum can continue into 2026.

Dan, that's the nerdiest joke that I've heard in a long time. But Dan, what do you think about GE. You know, I do love a radar stock pitch that involves the word train wreck. That's always, that's always going to at least get my attention. Yeah, GE, I guess airplane's got to have engines, right? Like, they got to go. It's the best way to do it. Yeah. All right. All right, Dan, what's going on your watch list? Food or airplane engines? I don't know. I feel like if we're talking long term here, I mean, airplane, air travel isn't going anywhere. But if we're talking more short term, I think that we're going to see an uptick in discount grocery stores if people have a little less money to spend. So I'll go BBD today. Congratulations, Jason Hall.

It wins the radar stocks today for Lou Whiteman, Jason Hall, our production leader, Dan Boyd, and the entire Motley Fool team. I'm Travis Hoyum. Thanks for listening to Motley Fool Money. We'll see you here tomorrow.