Motley Fool Money - Nvidia, Target & The Mailbag

Episode Date: May 24, 2024

AI continues to float Nvidia’s boat, and it's helping an unlikely old school name in tech. (00:21) Jason Moser and Bill Mann discuss: - Nvidia’s blowout quarter and upcoming stock split. - Why buy-now-pay-later is going to start looking more like the credit card industry, and what Jamie Dimon has to say about the state of JP Morgan.  - Earnings updates from retailers Target, Autozone, and Lowe’s. (19:11) We dip into the mailbag to answer some questions about a red-hot legacy tech stock, how to handle a growing position, and how to break into the investing biz. (32:27) Jason and Bill break down two stocks on their radar, Sonos and Boston Beer, and a few recipes on their radar too. Stocks discussed: NVDA, AFRM, JPM, TGT, AZO, LOW Host: Dylan Lewis Guests: Jason Moser, Bill Mann Engineers: Dan Boyd Learn more about your ad choices. Visit megaphone.fm/adchoices

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The year of NVIDIA continues, and we dig into the mailbag. This week's Motleyful Money Radio show starts now. That's why they call it money. The global headquarters. This is Motleyful Money Radio Show. It's the Motleyful Money Radio Show. I'm Dylan Lewis. Joining me over the Airwaves, Motleyful senior analysts, Bill Mann and Jason Moser.

Fellas, great to have you both here. Hey, hey, good to see you, Dylan. We've got answers to your mailbag questions, the lowdown on targets, continued woes, and of course, stocks and maybe something else on our radar this week. But we're going to start with Nvidia. This is perhaps the most anticipated release of earnings season, perhaps the most anticipated earnings release all year, Jason. Fresh results from the chipmaker out this week.

Expectations were high, results even higher. What jumped out to you in the results? Yeah, well, I mean, wash, rinse, repeat, right? Things continue to look very, very good for Nvidia. And it appears that that's going to continue here, at least for the next several quarters. The results, as you said, very impressive. Revenue of $26 billion. It was up 262% from a year ago and beyond their outlook, even, their internal outlook,

of $24 billion in revenue. Now, with Invidian, we talk about this a lot. The crux of this business really is the data center side, right? And to put that in the context of the $26 billion in revenue, Data Center represented $22.6 billion dollars of that, right? Up 427 percent from a year ago. So if you see what the stock is doing and you wonder why all of that enthusiasm, well, when you're a company and you chalk up those types of top-line growth numbers, I mean, that's going to do it because the other three core parts of the business in automotive and

pro visualization and gaming. I mean, they're there, right? Gaming is in the billions, at least. You know, the other, these other drivers of the business, they're performing well, but it's the data center business that really has investors excited. And given the investment that companies large and small are going to need to continue to make as we build out this AI infrastructure and we learn more about how companies are able to benefit from this AI investment, it feels like Nvidia is right there where they need to be. Shares were up on the report. Not too surprising. Market really liked the earnings and revenue numbers, but I think the market was also paying attention to some of the other announcements

we got, Bill. We have a 10-for-one stock split. We also have Nvidia increasing their dividend. What do you make of that? I make nothing of the stock split. I know investors like them. It's a nothing burger. invidia has added $1 trillion to its market cap this year. It is now trading larger than the entire German stock market is larger than Tesla and Amazon combined. And really interestingly, there are some statements that the Jensen Wong made today, and he's talked about this before in the past, about the chapters of the AI factory story, where we're in the training and inference component chapter.

we're going to move into enterprise and then heavy industry and then sovereign artificial intelligence. This is an area where Invidia believes it's going to be able to play and lead for a long time. So he was laying out a path for a long period of consistent growth in this market. I want to push back a little bit on the stocks flip take there, Bill, because the conspiratorial part of my brain says, Jason, we were checking in on the Dow last week. This is a conversation that we had. And I have to imagine, InVIDIA looks at an $1,000 share price and says, there's no way we're getting into the Dow with a share price that high, given that it's price-weighted. But maybe, maybe with a stock split, we could see ourselves getting included there at some point. How many additional

chips do they sell doing that? That's my question. It could have been the ulterior motive. I mean, you know, we say it all the time. It's the same-sized pizza, just cut into more slices. Yeah, I mean, it's not something that really creates much more in a way of value. Though, interestingly, there is data out there that shows that the share splits like this, where it changes the nominal price meaningfully, there is data out there that shows in the near term over the course of the following year plus. Those shares do tend to outperform interesting data. I don't make much of it because we tend to look through a longer lens.

But, yeah, I mean, I think inclusion in the Dow is certainly something up there for consideration. I think that one thing to keep an eye on with Nvidia, and this is important because it's two stories here, right? It's the success of Nvidia's business, but then it's also very much dependent on the success of its customers. And they're starting to demonstrate some ROI there. The customers are actually starting to be able to contextualize ROI on what they're spending with Nvidia. And they called it out on the call here. They noted that for every $1 spent on Nvidia AI infrastructure, cloud performance, providers have an opportunity to earn $5 in GPU instant hosting revenue over the course of the next

four years. Now, I want to make sure I reiterate opportunity, right? That point was made, opportunity. It doesn't mean it's guaranteed. But when you start to at least put some numbers around it and understand the ROI that customers can gain from spending their money within VIA, it makes it a little bit of an easier leap for those customers to make. And obviously, that would bode very well for Viti's business. Read the stock splits, Jason. Correlation is not causation. I'll fully agree. Fully agree.

This week, we also saw updates in the landscape of Buy Now, Pay Later, the Consumer Financial Protection Bureau, putting out guidance for companies like Klarna, Affirm, and PayPal, that their customers will experience the same protections as credit card users. Jason, some people in the industry have been wondering if this would happen. What does it mean for the industry that it is? Well, I think in simplest terms, it's a good thing for the industry in that it's a sign that perhaps the industry is at least maturing. It has to this point, I think, been a bit of a wild west of an offering. And there haven't been a lot of guidelines or hasn't been a lot of structure. There's really not a lot of understanding still. I mean, even today, it's really unclear how many buy now, pay later providers do or don't comply with things like refund and dispute requirements. It's good news in the sense that this really helps codify what's been more or less a Wild West offering at this point. It's worth remembering, though, this is still debt, right? I mean, it's essentially spending with a credit card just in a

different form, and it's important for consumers to remember. This isn't some silver bullet. This isn't some, you know, alternative offering that makes it so much easier. You're still spending via debt, and that's somebody keep in mind. Bill, Jason mentioned refunds. We also, I think, have provisions like they must investigate merchant disputes, must provide bills with fee disclosures. When I hear some of these requirements, I hear more cost for the industry. Is that one safe way to look at it? Maybe. It's important to note that one of the things that's also happening is that a lot of the buy-now, pay-later platforms don't report loans, and these are loans, to the credit agencies,

which means that we don't even know what the full health of a bunch of American and households are by virtue of not knowing what that level of debt is in the same way that we do credit card debt. So when you hear regulatory changes that are going to cause these companies to have to report fully, I think that that's a really important thing. And it will be good news for the good actors in the space. All right. Let's stick with finance for our final story, this segment. We have JP Morgan's annual meeting this week, giving us some fresh thoughts from Jamie Diamond. Bill, we look to Jamie Diamond for thoughts on the market. We got some pretty direct thoughts from Diamond about his own stock this year.

We sure did. And so Jamie Diamond has been asked forever how long he's going to stay in the seat at J.P. Morgan. And he's always kind of said five years. Well, he said this time, maybe less than five years. And so, you know, the question that becomes, who's going to follow a legend like Jamie Diamond? But he also has been asked about, share buybacks and other forms of finance at J.P. Morgan. And currently, the shares are trading it about two times book. And he believes, and I'm not sure that I fully agree with him, that when you do a shareback, you are providing money to exiting shareholders as opposed to existing shareholders. And I think he was kind of trying to temper enthusiasm just a little bit, because obviously everyone

would love to a share buyback. It seems like something. that you would like to do. But he is first and foremost a steward of capital at J.P. Morgan. And he's saying, we have plenty of better places to put our capital into than our own stock at current prices. Bill, I'm going to ask you for some reckless speculation here. Diamond is 68. He's a far cry from Buffett's 93. But you mentioned succession. Is there anybody even on your radar for a Diamond successor? It's a great question. And they've kept it pretty close to close to the vest, but there have been some, you know, a reshuffle that's placed people like Tony Roerbaugh very high into the mix. I think that's probably where he may be going.

So, you know, we will see. He's not saying I'm leaving soon or even in five years. He's just saying that it is closer than, you know, that he's at his end than he has at his beginning. And at 68 years of age, the actuarial tables would suggest that he's probably right about that. Borrowing a line from Buffett there, Bill. I love it. All right, coming up after the break, we've got a rundown on retail earnings with updates from Target, Lowe's, and AutoZone. Stay right here. You're listening to Motleyful Money. 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 to whatever comes your way.

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your vehicle for the roads ahead. The Range Rover event is on now. Explore enhance offers at rangerover.com. Welcome back to Motleyful Money. I'm Dylan Lewis, joined here on air by Bill Mann and Jason Moser. A big week for retail earnings. We have updates from Target, lows and AutoZone. Jason, let's start with Target. The woes continue. Shares down 7% after earnings this week, showing that revenue is down 3% year over year. And to borrow a phrase from CEO, Brian Cornell, continued soft trends in discretionary categories showing up and hitting results. When are things going to get better for Target, Jason? Yeah, I think this was a noteworthy quarter, particularly when you consider Walmart's results, which just came right before.

Kind of a tale of two cities there, right? I mean, we see Walmart seeming to really benefit from this consumer that's a bit more trepidation among the consumer, but Target obviously still dealing with some issues there. Comp sales down 3.7%. That was the fourth straight core of declines there. Total sales down 3.2%. They had traffic and transactions, both down 1.9%. So those are the things you don't want to see, right?

You want to see the opposite, particularly in regard to the traffic and the traffic. tickets. It was noted in the call that business trends do continue to normalize a little bit, right? That pattern where consumers now are the remixing their spending a little bit more back in the services and entertainment outside of the homes after not having done that over the last several years, and that is absolutely impacting targets business here. Now, I mean, there is somewhat of a silver lining. I mean, they did know the call that U.S. consumer continues to exhibit what they call a high degree of resilience in the face of multiple challenges. We did see inventory levels continued downward, 7% there, so that means they're moving stuff off the shelves and growth margin,

expanding thanks to cost controls and less discounting. But, you know, I mean, I think about Target, in particularly when we think about grocery, and that's an area where I feel like they really need to pick it up here, because it's around a fifth to a quarter of targets overall business. Whereas with something like a Walmart, you're talking about more along the lines of half of its business and not more. So there's a big opportunity, particularly in the face of a cost-sensitive consumer, but it does look like they're making some progress, and that's encouraging. On the note of grocery, we also had news this week that Target will be cutting prices on 5,000, what they call everyday items in their stores, which do include a lot of grocery

items, clearly taking aim at Walmart. I want to believe that it'll work, Bill, but I feel like Target has been that friend that said they'll be there in 15 minutes for like the last hour and a half. This report was a disaster for them because there's something that's not even really being reflected in the minus 3% comp. And that is a minus 3% real dollar comp. We have been in a world where I don't know if you guys know of this, but everything is much more expensive this year than it was last year.

I have noticed that. So for them to have reported a negative comp, they haven't even caught up with inflation. With inflation built in, that is a minus six or seven percent comp. This is a disaster for Target. And as Jason pointed out, Walmart had an entirely different experience. So, yeah, they've got a lot to do. I think this is the friend who has not been particularly dependable as of late. And I'm not sure that price cutting is what's going to get them there.

I think that there is something else deeper, very, very wrong at target that can't be blamed on either the resiliency or non-resiliency of the consumer. Seeing consumer trends show up a little bit in results from AutoZone this week, shares down 5% on their earnings results. Bill, what did you see in the report? You know, one of the things I love about AutoZone is the fact that every time you look at their reports, and this goes to the exact opposite of what Jamie Diamond has said, this is a cannibal company. And Charlie Mung, is the one that called them this. He once said, pay very close attention to cannibals. These are

companies that are eating themselves by buying back their own stock. And AutoZone's share count is dramatically lower than it was three, five, ten years ago. In this last quarter, they repurchased almost $750 million in stock, and they have another $1.4 billion outstanding. So, this is a company that even if the results are lower, every share. share of stock that you own becomes a more and more concentrated component of the ownership of the overall business. Digging into some of the results quickly, Bill, quarterly net sales for the auto company rose 4%. Street was expecting numbers to be a little bit higher. Doesn't sound like you're too discouraged by the results you saw. No. I mean, I think that you see with the

auto industry that there is a trend that goes between our people tending to hold on to their cars, and you can measure it by the average age of rolling stock that has come down a little bit. That is a very much a cyclical. So AutoZone's results may have been a little light, but ultimately, they were fine, and this is as steady as she goes business. All right, bringing us home in our retail roundup, pun intended, we're going to look at numbers from lows. Jason, revenue and earnings down year over year, but ahead of expectations.

Love that we have Lowe's numbers here because we can stack them against the results from Home Depot's numbers last week. What'd you see? Yeah, well, I see two very similar stories. I mean, they absolutely rhyme. And that's not terribly surprising. They're very similar businesses. I think I'd give Home Depot, maybe the edge here this earning season, but not by much. Comp sales down for Lowe's over down 4.1% from a year ago. And they did note, I mean, continue consumer pressure, especially on things like DIY big ticket items, right? Discretionary spending. It's just something that consumers putting off for now. But still, they brought home earnings per share of $3.6. You know, we were talking about Target

and then that transactions and ticket data. Same principle applies here. We want to see those numbers in the positive and growing. Unfortunately, we saw transactions down 3.1% with ticket down 1%. And that that just puts pressure on margins, an unneeded pressure on margins. But it's exciting to see that they have, I've rolled out their DIY loyalty program. Milo's rewards, very excited about that and the potential it can bring. Maintaining guidance for the full year. And I think just an interesting side note here with this company, I don't know if you realize. A share count is down 24.2% over the last five years. Total return to share since then about 145% well outpacing the market. So maybe this is a case of share repurchases gone well. You know, here I thought we were doing a retail roundup. Turns out we were just doing a buyback bulletin. I see Bill pumping his fist. That seems to be the theme of our first two segments today. Absolutely love it. Bill, Jason, stay right where you are. Got a couple questions for you in our next

segment from our listeners. Listeners, you stay here too. You're listening to Motleyful Money. Welcome back to Motleyful Money. I'm Dylan Lewis with Motleyful analysts, Bill Mann and Jason Moser. Listeners, you asked, we're answering. We're dipping into the mailbag ahead of the holiday weekend pulling questions we got from listeners via podcasts at full.com or sent to us on Twitter at Motley Fool Money. Our first one I'm going to fire over to you, Bill, comes from Martin via Twitter, and he asks, I never hear you cover or talk about Dell, which has been on a tear, would be interested to hear what's happening with it. Thanks. And Bill, this is a question that I think is probably brought on by some pretty stellar performance in recent history for Dell.

Dell has been a rocket. And you're right, Martin, that we don't talk about Dell very much. And part of it has to be, it has to be said. So Dell went private in a leverage buyout in 2013, but came back onto the public markets in, I don't want to call it a sneaky way, but kind of in a super complex transaction when they bought out the tracking stock for a company called VMware. And so suddenly Dell Technologies was back on the market. And I can't really claim that, too, many of us here at the Motley Fool has paid too much of attention to it in the interim, which is a shame because I think we are moving now into what may be a great upgrade cycle in the PC market because so many PCs, the installed base of PCs, do not have chipsets that are sufficiently fast or powerful enough to operate in an environment in which artificial intelligence and AI processes are going to be more and more of, you know, what is demanded upon them. So I think that what is being talked about here, Jensen Wong is actually called out Dell by name is that what we are about to see is a massive upgrade and recycling in the computer space. And I think that's probably

where Dell is caught such a bid as it has, and it is up 200 percent over the last year. lifting a lot of boats. Jason, I want to put this one over to you just as a follow-up. When you hear a major trend or major wave pushing some companies forward that you didn't quite expect, what's your process for processing that? Yeah, I mean, we talk about this often, right? And AI has been sort of the term de jour over these last several quarters. And it brings all of these companies out from the woodwork. I mean, all of a sudden, everything becomes an AI play from actual AI companies to quick-serve restaurants and everywhere in between. And Dell's an interesting case study because we kind of knew this company so long ago is one

thing. And it comes back to the market is sort of that thing, but a little bit different. It seems like they do a lot of different things these days. And I will say, I don't follow the company very closely, so I don't know the particulars of it. But what I do know is when I see something like this, I want to make sure that connecting the dots makes sense, right? Is this a company that is leading the way or really helping to develop this space, like in AI, for example, or is it a company that's riding the coattails more or less? And I can't really say for certain what classification Dell falls into at this point. It feels more kind of like they're beneficiary, maybe that they're riding the coattails.

I don't know for sure, but that's certainly one way to look at it. All right. If you're a longtime Dell shareholder, you may. in a position similar to Jonathan, who gave us our second question for this week's mailbag. Jonathan writes in, Hello, fools. I have a few investments in my retirement portfolio that have grown to significant percentages, such as Amazon to just under 10%. I like Amazon, and I'm only 34, so I don't necessarily want to sell it, but the performance

does impact my portfolio quite a bit. I see two options. Sell a little bit and redistribute the gains, or two, lower the percentage over time as I contribute to other positions. What do you think? Jason, I want to put this one over to you first. It makes sense. We see some of those big winning portfolio positions get bigger and bigger. It starts to get into that sleep number territory for us. Well, yeah, and I think it's certainly different, depending on the company, right? If Amazon's becoming a bigger part of your portfolio, that's a little bit different than saying it's something like a Kava. Nothing against Kava. There's plenty of opportunity there. I love their food,

but they're two obviously very different companies with very different risk profiles. In Amazon, there's a little bit more stability there. I think we could argue than perhaps something like a comma at this point. So it's worth thinking about the company first and foremost. But then, yeah, I mean, you have to start sort of assessing your comfort zone there. And I think what he said, it was 10%, I think, at this point now. That's not outrageous. I mean, for some folks, they may feel uncomfortable at that level.

But, you know, I look at some of the guidance that we'll offer in, a couple of the services that I work on today, we sort of break it down between higher risk, medium risk, and lower risk. And we would say with those lower risk positions, you might have 5 to 6 percent in your portfolio. For the middle, maybe it's 3 to 4. And for the high, it's going to be 1 to 2. Now, those positions hopefully grow over time and become a bigger part of your portfolio. But it is, it's up to that individual to figure out what their line is. And I do like the other point that he made, particularly at that age, at 34, you have to think of it from the perspective. Ideally, you'll be contributing a lot of money to this account in the coming

years. And just investing in other ideas is going to diversify you and bring that weighting down over time. So if you like the company, if it's running and it's done well, and you know you have a lot of time and a lot of money that you're going to be investing over the course of the next several years, you may not need to worry about trimming that position right now. Maybe you give it a little bit more time to run and kind of find out where your line is ultimately. Bill, what's your take on this one? Many professional investors would suggest that their position sizing skill is more important than their skill at picking securities. I'm not sure what that says about that industry. I really don't agree with that at all, but your position sizing, we're talking about a Cadillac problem here. You

have a position that has become a very large portion of your portfolio. I salute you for that. of the things that you need to keep in mind is that the larger, your largest position size is the higher the risk of your being wrong is to you. Now, it sounds to me like you've got plenty of time, you've got plenty of earnings power in front of you. So I would not suggest that you would reduce unless it is the kind of situation where you think if you turned out to have been wrong, that it would have been too much for you to handle. If you're a listener like Jonathan, one thing I'll throw out there. If you're thinking about selling those positions down to redistribute some of the gains,

just being mindful of your holding period and whether you're looking at long-term or short-term gains. If you're looking at short-term gains, you might want to delay that just so that you have a lower tax burden when the bill comes around. All right, Jens, our final question comes in from Catherine. She is a fresh grad looking to do exactly what you guys are doing. Catherine wrote into us at podcast at fool.com, Hey, fools, I'm a 2024 graduate, still figuring out what's next, but I want to get into the finance and investment industry. What tips do you have for applying for investment research jobs and ways to get noticed while applying? Jason, I want to kick this one over to you first. Boy, there are a lot of different ways you could go with this one. And I come from a background where this was not my first profession. I had worked in the golf. business and banking and insurance. I worked for the State Department's a little bit of history

behind there. And actually, that served me very well. It differentiated me a little bit as I came into the fool and got the interview. I had a little bit of a different work history to fall back on there and talk about, which I think is a good thing. And so we hear David Gardner say all the time lead a more interesting life. I mean, it sounds very simple. It's probably a little bit more difficult at times to do in practice, but I do think it's something to keep in mind. The more stuff you have to talk about that, about like that, the more experience you have, I think it just builds a bit of a broader worldview, a little bit more of a helpful worldview, and makes you stand out. I'm going through this right now, talking about this kind of stuff with my older daughter.

She just finished her freshman year. She's an international business major and talking about what she might do after. And I think one key thing, And we utilize this here at The Fool a lot throughout the years was seek internships. Even if you've graduated, internships are a surefire way to get your foot in the door with a company. Learn the inner workings of not only the company, but the industry in which they focus. And companies, internships are typically fairly self-serving. I mean, yeah, it's need to be able to go work at that. But that company has ulterior.

They're looking for talent, right? We've hired a lot of talent from our internship program here at The Fool through the years. And so I think that's somebody to keep in mind as well. Be flexible, right? Don't insist, right? Be flexible. And listen, even if you're having trouble getting started, I think we live in a day and age, consider just starting something on your own as a first step. Sell yourself, right? You could go out there and start a substack or something like that and build out sort of your own investing chops that way and create a little bit of a brand on your own. It's a bit of a living and breathing resume that can help you develop and sort of show people what you're capable of.

On that last point, Jason, that was exactly my experience getting a job at the Fool, was coming out of school, was a finance and journalism student undergrad, wasn't really sure what I was qualified to do, but had worked in the industry capital F finance with some co-op jobs. realized I really didn't like it and wound up writing about the industry on the side, writing about stocks on the side, and then use that as my portfolio for applying to jobs. And the feedback I got interviewing the full was, you're already doing the work. You're already clearly interested in this. And this is something that we think you're going to step into and be able to contribute

immediately. Bill, I know that you also have some college students in your life. What's your advice maybe for them, but then also for Catherine, who wrote into us? Catherine, I would like to harken the great financial analyst jelly roll who said, I want to tell you that the windshield is bigger than the rearview mirror for a reason. You have an advantage that Jason and I did not have in that you are in an environment in which you are very comfortable reaching out to people through social media, through any period, through a bunch of different channels through LinkedIn, did not exist when Jason and I were coming up. I would recommend highly that you do so, that you

ask people to have conversations with you who are doing things that you would like to do, and some of them will answer. And then really, really importantly, have a pitch that is just no more than two minutes long of your best thinking in investing. And you will do fine. All right, that's a wrap on our mailbag segment. But listeners, we always love hearing from you, whether you catch us on the radio or in your podcast feeds. You can shoot us a note at Podcasts at Fool.com. You can reach us on Twitter at Motley Fool Money, or you can leave us a voicemail on our hotline and get your voice on the show. Our number is 703-254-1445. That's 703-254-14-5. Up next, we've got some stocks and some other things on our radar this Memorial Day weekend.

Stay right here. You're listening to Motley Fool Money. As always, people on the program may have interests in the stocks they talk about, and the Motley Fool may have formal recommendations for or against. So don't buy or sell anything based solely on what you hear. I'm Dylan Lewis, joined again by Bill Mann and Jason Moser. We're going to have radar stocks coming up in a second, but we always love a story that hits at the intersection of business and food. And boy, do we have one this week.

Bill, Red Lobster announcing bankruptcy and closing locations are the endless shrimp to blame. If you didn't think that you needed a story about endless shrimp and capital stacks, this is a great story for you. So Red Lobster is actually owned by a company called Thai Union, and Thai Union is their shrimp provider. Now, if Red Lobster has been in decline for a bunch of years, and they owe a lot of money to creditors. So what is one way that the equity holder can get ahead of the creditors? Well, for one, you could require them to do endless shrimp all the time if you are a shrimp merchant.

So intrafish.com is telling me that right now, Thai Union, who's the owner, is being investigated for dumping shrimp into red lobster and pushing red lobster into. bankruptcy. It's an unbelievable story. I cannot wait to see more details come out. Bet you didn't think you were getting intrafish.com on the Motley Fool Money Show, did you? No. No. The industry leader in all your fishing needs. All right, let's get over to stocks on our radar. You guys bring the stocks. Our man behind the glass, Dan Boyd, is going to hit you with a question. Jason, you're up first. What are you looking at this week? Sure. A little Memorial Day twist here. Let's take a look, take a closer look at Boston

beer. A ticker is S-A-M. This is the company that's known for brands like Sam Adams, Twisted Tea, Truly Hard Seltzer, Angry Orchard, even Dogfish Head Beer. They've got a new CEO and Michael Spillane, although Jim Cook still owns about 20% of the company and controls all the voting interest. That hasn't changed. If you look at the company's most recent earnings report, I mean, this has been a company that's been witnessing some pressures lately. Depletions were flat. Shipments were up modestly. Net revenue up just about 4%. They did see a little margin expansion there, but they ended the first quarter with $205 million in cash in no debt. And the stock now trading it around 30 times full-year earnings estimates, you know, this is always a stock that's demanded a bit of a premium.

It feels like maybe that shine has worn off a little bit. It's starting to make me wonder if there's not an opportunity here. Dan, a question about Boston beer, ticker S-A-M. At all those properties you mentioned, Jason, What's your favorite? Honestly, Dan, I think I'm going to have to go basic here. I love the Sam Adams Summer Ale. That's just a good refreshing one.

And for a Memorial Day hoist, it's a good recommendation. Just in time for summer season. All right, Bill, what do you have on your radar this week? The one on my radar screen is Sonos, which is an audio company. They make speakers, et cetera. Last week, they rolled out a new app, and it has been widely panned, particularly for coming up with a new clunky UI that has taken out functionality for vision-impaired people, they are getting a huge amount of flack. Now, their response was, hey, an app is never

finished. And so they are going to be putting out new fixes and functionality for the app. I don't think it's a coincidence that the stock has dropped about 10% since this new app came out, though. So they have some work to do to repair some damage. Dan, a question about Sonos, ticker S-O-N-O. Yeah, Bill, I mean, there's always the question of what are you doing, bringing this crap stock to the table here. I don't have to ask that one. So, all right, you got the Sonos.

You're out at the pool party, Bill. What are you bump in the speaker and the Bluetooth speaker there? Man, I've been going heavy into Chris Stapleton lately and a band called Monophonic, which is one of my favorite, favorite new bands. Dan, I'm going to put this watch list decision to you a little differently this week. You can have a party without music or you can have a party without drinks. Which one are you taking? What? Is it a party? You can always sing to yourself, Dan. No, that's a good point. Oh, man, I don't know. I have a toddler. So we do parties that don't feature alcohol. You know, because that's a thing now, though I don't like them very much.

It sounds like Bolsonos and Sam could be on your radar. I believe that we just heard synapses blow in. Yeah, no, my mind is broken now. I can't. That's such a hard decision. All right. Since it is Memorial Day weekend, we've got a special little bonus radar segment. we're going to do a little bit of radar recipes. Jason, what's something that listeners can keep in mind this grilling season?

Well, I am all for the ribs, the burgers, the pulled pork, right? Get all that stuff going. But if you're looking to change it up a little bit, you've got a grill, you know, something I really enjoy making a good carne asada. And you side that up with some elotes, right? The Mexican street corn. It's a nice little twist on a Memorial Day cookout where I think people are kind of used to the same. old same old. Bill, what about you? Peaches are now ripe. To go along with that carneasada and the alote, I recommend a peach salad that is peaches, a little bit of prosciutto, a little arugula, a little pepper, and a little mozzarella. Mixed together. Delightful. Love it. Appreciate your radar stocks and recipes.

Appreciate Dan weighing in and mixing today's show. That's going to do it for this week's Motleyful Money Radio Show. I'm Dylan Lewis. We'll be back. next week.