Motley Fool Money - September Retail, Big Banks, Consumer Tech Events

Episode Date: October 15, 2021

What do surprisingly good retail sales in September indicate for holiday shopping? Will Google’s new Pixel phone be a hit? Which major retailer could be the next to drop tobacco products? Are we in for a record-setting Halloween? Maria Gallagher and Jason Moser answer those questions, analyze the latest from Domino’s Pizza, Virgin Galactic, Shopify, Microsoft, Oracle, Restaurant Brands International, and share two stocks on their radar: Zillow Group and Marvell Technology. Learn more about your ad choices. Visit megaphone.fm/adchoices

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Retail sales in the month of September rose 0.7%, which may not sound like a lot, but that was nearly a full percentage point higher than what economists were expecting. Maria, still a lot of X factors out there in the economy, but this was a really nice surprise. Yeah, this was a great surprise. It's due to a couple things. So we are actually in the highest inflation environment in the U.S. in about 30 years. So you see a lot of goods in short supply with supply chain constraints in full effect for goods people want to purchase, such as electronics and cars. However, retail sales are still increasing

faster than inflation. So sales are at 14% compared to a 5.4% increase in the consumer price index. So it's still really strong consumption numbers out of the U.S. And so I think it's going to be really interesting to see how early holiday season shopping starts this year because they're telling us to start now due to these supply chain constraints. So I wonder how many people are going to take them up on it or what November and December is going to look like in the next in the next couple months. Yeah. Jason, you think about sort of the factors Maria just highlighted, combined with some of the back-to-school shopping season. Again, great to see, particularly since the expectation

was for a slight drop. Yeah. I mean, I think she keyed in, certainly on the shopping early. People are shopping early earlier than usual. And I mean, we've seen Amazon already starting their Black Friday sales, Target doing something similar. I mean, this is just going to continue. throughout the rest of the year. I think it's one thing I was thinking about, too. It's also worth remembering. There are more ways to spend now, right? I mean, you've got high deposit balances, but I mean, look at the traction that Buy Now Pay later is gaining over this last year. I mean, it's giving consumers another way to pay, which I think that is stoking some demand there. So it's nice to see likely some pull forward

here for early holiday season shopping. But if supply chain issues can resolve themselves, Maybe it's a bit more sustainable. So I think something I'm going to keep an eye on, certainly Goldman Sachs recently cut their U.S. GDP growth forecast for 2022 from 4.4% to 4%. And they were citing just basic macro concerns, questions regarding policy decisions in DC and supply chain issues. So if we see those problems resolve themselves, these numbers could certainly be a little bit more sustainable.

Speaking of Goldman Sachs, earning season kicked off this week with the big banks going first. J.P. Morgan Chase, Bank of America, Goldman Sachs, Wells Fargo, all out with third quarter reports. Jason, I'm not going to ask you to go through each one individually, but let's start here. In your opinion, who looked the best this week? Well, if I'm looking at Bank of America, Wells, J.P. Morgan and Goldman, I mean, they all perform well, but I think I'd actually give Bank of America the win there. Just the numbers, generally speaking, revenue up 12 percent. Net interest, income was up 10 percent. That was thanks in part to a really healthy boost in deposits.

It's just talking about those deposit numbers. Well, Bank of America grew deposits 15%. Record investment banking, that income, $1.2 billion. And they were able to release $1.1 billion in reserves. And they continue to really just kill it on the digital platform. They've 41 million customers actively using their digital platform. And I'm one of them. And I can tell you, just from a customer's perspective, they really have nailed it on the digital banking front.

So, a lot of things to like about what Bank of America is doing. J.P. Morgan Chase is by far the biggest of the big banks with Jamie Diamond at the helm. Any takeaways from either their report or their earnings call? Yeah, I think, so you listen to Jamie Diamond talk about these supply chain issues, and he said on the call, he doesn't think we'll be talking about this stuff in a year. So he really does view it as just a temporary sort of bump in the road, and frankly, he thinks we're focusing on it a little bit too much. He sees it as dampening a fairly good economy, not reversing a fairly good economy.

So we'll have to see how his sentiments change or remain the same there as the year goes on. I think, generally speaking, for banks, the bottom line, it remains a very strong environment for investment banking. Still a somewhat challenging time on the lending side, though, between these high deposit balances and low interest rates. So that's getting ready to change. And that's good, because banks are going to have to start weaning themselves off that credit reserves release crutch that they've been benefiting from over the last several quarters. It feels like Jamie Diamond sees some light at the end of the tunnel there, certainly, in regard to the supply chain stuff. So hopefully that will come to fruition.

Domino's third quarter profits came in higher than expected. But for the first time since 2011, same store sales in the U.S. were negative. Shares of Domino's down a bit this week, Maria. Impressive streak, but it has come to an end. Yes, U.S. same store sales were down about 1.9%. Still, over two years, it's up about 15%. Like you said, it beat expectations on earnings and had a strong international growth as well. And it had a continuation of really healthy growth within their store opening. So they opened 323 stores in the quarter, 45 in the U.S. and 278 internationally. What I think is actually really interesting about this story, though, is a lot of the reasoning behind this decline that CEO Richard Allison said was a

shortage of workers and a decrease in spending due to stimulus checks. So he said that they are actually in the toughest staffing environment they've seen in a really long time. So some stores have had to cut their hours. They're working on increasing wages, increasing investment in technology. And I think that that's a trend we're going to see more and more with these businesses that mainly employ hourly low-wage workers, that they're really needing to step up their wages and their benefits to encourage workers to go back. And so I'm going to be intrigued to see in this upcoming earnings season how many other similar companies talk about those constraints in terms of staffing. You mentioned the store openings that they're doing.

And I think if you're, look, if you're a longtime Domino's shareholder, you've done quite well. And yeah, as I said, the same store sales, gross streak is over. But one of the many things that Domino's does well is picking new locations, like their track record in terms of new locations that they then have to close is really impressive. I'm wondering if they gave any color about the next few months, just because I look at this report, and I think, you know, Halloween is in a couple of weeks. And for all the talk of Super Bowl Sunday, Halloween is a really huge day for pizza.

Yeah, so he talked a little bit about trying to get more of those staffers back in that they are seeing, you know, a better staffing environment in the next couple of months. They have some new oven baked dips that are out, including a baked apple dip. So I think they're trying to lean into the fall festivities. And so they were trying to show positivity moving forward and not trying to really temper expectations moving forward. I think they were saying, you know, it was a blip and we're trying to get back to growth soon. And they now have over 18,000 stores at the end of September. So like you said, they're really good at opening stores and good locations.

And they don't close them that often. So I think it's a little bit of a blip, but hopefully not too big. One tech giant is leaving China and one space stock is losing altitude. Details after the break, so stay right here. You're listening to Motley Full Money. Welcome back to Motley Full Money. Chris Hill here with Maria Gallagher and Jason Moser. Chairs of Virgin Galactic fell 15% on Friday after the company said it would delay its

commercial space service to the end of 2022. Virgin Galactic says that it is taking more time to improve its space vehicles, which Maria, I have to believe future customers appreciate. But the fact of the matter is, at this moment, moment, Virgin Galactic is losing the space race. Yeah, so they pushed it back about a month. Initially, they said quarter three, 2020, now they're guiding for quarter four, 2020.

I mean, I agree that if there's any group that I want to be prioritizing my safety, it would be planes and large vehicles. And so I think that that's not going to hurt their customers too much. But I will say that when they did launch Unity 2020, their first. space flight with a full crew. They got about 19 million views via a live stream and third-party broadcast. So people are still intrigued by this concept. People are still interested. I think people are still going to watch it. Even if full-flight buyouts, they start at about $450,000. So the amount of customers they have is still a pretty narrow window. But they have actually really

retained their prepaid customers. So not many people are dropping out due to these delays and they're reopening commercial pre-booking for flight. So I'm curious to see how many people are people are going to sign up now that it seems a lot more possible. I feel like the past couple years, it's been this thing that might happen sometime soon. And even just pushing it back a month, I do still think that by the end of 2022, this does seem like a real viable possibility. So I'd be interested to see, you know, how many people sign up now that pre-booking is opening again. It will be interesting to see once we get to actual operations and therefore actual results for Virgin Galactic. Because unfortunately for them, you know, this happens just a couple of days after William

Shatner goes up in, you know, Blue Origin and comes back and, you know, they get all of the attention. And so I understand the drop in this stock because Virgin Galactic has not yet earned the benefit of the doubt. Yeah, but I mean, I do, I will say, I don't know if you saw what William Chattner said when he came back down. He was a real, he really raved about the flight. which I think I was someone who kind of made fun of it a little bit and was like, it's just taking an airplane a little bit higher than most people take an airplane.

I wasn't too impressed by it. But he was so enthusiastic that I think it would make people who maybe weren't sure about it, make them more willing to go. And so maybe that they go on Virgin Galactic, maybe they go Blue Origin. But I do think he could be a good spokesperson for it. Shopify is teaming up with Microsoft and Oracle to help merchants streamline their business operations. Jason, do I have this right? Shopify gets to invest further in their merchant businesses, Microsoft and Oracle, get the chance to grow their cloud operations as they can compete with

AWS? That's how this looks. And if that's the case, this seems like a win for everyone involved. Yeah. I mean, I think you said it exactly. I mean, it is a win-win. I mean, I like this from a number of angles. I think for a business like Shopify, I mean, I'd love to see companies like Shopify and even Square to an extent, working on building the tools for merchants, particularly in regard to e-commerce. The numbers obviously are impressive when it comes to e-commerce, but I think when you consider Shopify, it's really impressive, to be honest. I mean, in 2020, Shopify held 8.6% of the U.S. retail e-commerce market. Now, that was second only to Amazon, and they're 39%. So I think it shows you.

you a couple of things there and that Shopify maintains an impressive presence already in our U.S. e-commerce market. They've picked up a lot of share very quickly. And when you look at where Amazon is today, I think that really just demonstrates the opportunity that's still out in front for Shopify. So when you see them doing things like this, you look at the tools that they continue to build shop, pay integrations on Facebook and Google properties. As e-commerce continues, it shift to mobile. This mobile shopping, I mean, this experience is just going to have to it better and better. And I think really that is going to be one of the benefits of this tie-up, integrating these types of solutions with big partners like Microsoft and Oracle. It eliminates,

I think, a layer of complexity. And again, it is a win for both of them as well, in that they are getting a little bit more to the forefront in a market that historically is centered around AWS. Yeah, I get that Shopify, when you look at it on the surface, is not the cheapest stock in the world. But among other things, not that Shopify needed validation, but to strike a partnership like this with legacy tech giants like Oracle and Microsoft, it really seems like the runway is still there for the business and then therefore the stock. Yeah, and I'm glad you said something about the valuation, because it is very easy to

look at Shopify just on the surface and say, wow, I mean, this is a $175 billion company now, you know, go on something like $4 billion in revenue. I mean, there is some sort of a disconnect there, it would seem. But I think you go back to looking at that market opportunity. That's why we focus on those large and growing market opportunities, right? Because they represent just so much. I mean, it is just so much opportunity for them to capture. And so, yes, the market is pulling a lot of that forward.

But I mean, when you see companies that really do dominate, and help shape the spaces, their respective spaces. I mean, we've seen this play out with companies like Amazon before. I mean, it just, you sit there all along the way saying it's too expensive. And then at some point, 10 years down the road, you look back and you're kicking yourself because you never bought those shares. So it's a nice, it's a nice performance, good performance thus far for Shopify. But I think based on those numbers, that market opportunity, it's still out there, it just strikes me as one that still has a ton of share to capture. and therefore, shareholders, I think, who remain patient, should do very well with this one through the years.

This week, Microsoft announced it is shutting down its LinkedIn operations in China. LinkedIn was the last major American social network operating in China, but Microsoft says the operating environment is more challenging. And Maria, it seems like on some level they just said, you know what? This is no longer worth it for us. Yeah, I mean, this comes after a Chinese internet regulator told LinkedIn to, better moderate its content, give it a 30 to 60-day deadline. I think they said, you know what, it's too much to try and make it the same as LinkedIn. So they're actually going to go back

and launch a China-specific version of LinkedIn later this year. There will be no feeds, no ability to share posts. So no social aspect. It'll just be more focused on job searching. But China is LinkedIn's third largest market, and LinkedIn brings in about 10 billion in annual revenue to Microsoft. So it's in their best interest to continue to have some presence in the country and try to monetize it the best way that they can. But I think the way it exists right now with such a social aspect just wasn't working for them. But I also didn't realize, one, that LinkedIn brought in that much revenue to Microsoft or how big it is. So throughout the world, LinkedIn has over 740 million members, over 55 million registered companies,

14 million open jobs listed on it, and three people are hired through LinkedIn every minute. So it is one of the social medias that's really monetized well and shows a really strong, wrong use case for users to pay for it, both businesses and people searching for jobs. And so I thought that was pretty interesting to learn about. And so I think that it is definitely within their best interest to still have some sort of presence, but I think pivoting and changing the social aspects is really they don't have much of a choice, it seems. They don't have much of a choice.

But also, it seems like it could be a test that Microsoft might not have undertaken on their own. I mean, if they launch this in China and it doesn't have the social aspect, Microsoft may end up learning things about how this new version of LinkedIn works and maybe it gives them insights into how to improve it in other parts of the world. Yeah, absolutely. Kind of a test case for seeing what part of the job market is that social interaction and kind of messaging people to after you interview with them or something like that and trying to connect with people versus how much of it is just finding the job and applying for it.

That could be a really interesting study for them to do to see, okay, how much of this value is in the social aspect, how much value is in the jobs aspect, and trying to make it more efficient worldwide after that. Restaurant Brands International is the parent company of Burger King, Tim Hortons, and Popeye's Louisiana Kitchen. Shares are down a bit from their 52-week high, but that could change after next week. Popeyes will unveil a new hot sauce in partnership with Grammy award-winning artist Megan the Stallion. Yes, Megan Lee Stallion Hotty sauce is going to debut on October 19th. Moser, this is part of a deal that includes new merchandise philanthropic work in Houston, Texas. I like this, and not just because it's fun, but we've seen this business strategy work between McDonald's and musical acts like BTS and Travis Scott. Yeah, I'm with you.

I think that for whatever reason, these types of relationships, particularly when they pertain to food, they just tend to work at, out very well. I mean, it's just, it's a matter of getting with the moment, right? What's that? The zeitgeist, right? You want to just, you want to be, you want to be a part of that moment. And clearly, Megan the Stallion is part of the moment that's happening right now. So, Popeyes and Megan the Stallion, to me, it's like chocolate and peanut butter, right? This has, this has the potential to be a Reese's peanut butter cup success, right? And I mean, I, I, I love these types of deals. And moreover, if I was someone who was asked to participate in something like this, And B, they wanted to make a sauce after meat.

I would actually go barbecue rub. I would actually go rub. So, Dizzy Pig, if you're listening and you want to do a JMO rub, give me a call. Maria, 10 seconds. What are you partnering with if they come to you? Oh, absolutely Ben and Jerry's. I would make an ice cream in one second. And I'm a faithful buyer of all celebrities, Ben & Jerry's flavors.

What should investors expect from Apple and Google next week? We'll get into that and more after the breaks to stay right here. You're listening to Motley Fool Money. Welcome back to Motley Fool Money. Welcome back to Motley Fool Money. Welcome back to Motley Fool Money. Chris Hill here with Jason Moser and Maria Gallagher. Time for a round of Buy-Seller Hold.

I'm going to spot you up with the topic. You tell me if that thing was a stock, would you buy, sell, or hold it? Maria, next week, Google is holding an event to unveil the latest upgrades to its mobile device. Buy seller hold the Google Pixel phone. I'm going to sell that really, really quickly. In 2020, it only sold 7.2 million pixel smartphones in the whole year compared to Apple in quarter four sold 80 million iPhones. And Samsung sold 62 million phones. And so it's just, of all of the Google businesses, it's definitely the least interesting to me. Google's done 232 acquisitions since 2004. And I think I'd pick a lot of them over the invention of the Google

Pixel smartphone. Although, Jason, if we're thinking about the pixel phone as a stock, I mean, the market share it has is so tiny. Maybe it's a value stock or a really deep value stock. Or perhaps a value trap, Chris. I am a total sell on this one. I agree with Maria. To me, I mean, the numbers just don't really add up. She said 7.2 million phones. In the context of 1.5 billion phones, smartphones sold globally in 2019. Clearly, this is immaterial. And it does make you wonder, why do they still do it? I don't know necessarily. I mean, they really, it seems to me, the more valuable part of the business is in the operating system, right? The Android operating system gives them so much opportunity. I respect and appreciate

the effort in wanting to produce a phone. But to me, it just, it seems obvious. that Google, alphabet, whatever you want to call it, they're just not, they haven't really nailed it. Kind of like Starbucks hasn't nailed it on the food side. Google hasn't nailed it on the hardware side. You got to start wondering if it's even really worth their time. But if they're getting incremental share, then that's incremental share. It just kind of depends on how much it costs for them to continue with these types of initiatives. But yeah, absolutely as so. You'll never see me making any calls or firing off any tweets from a pixel phone. Yeah, Maria, before we move on, just real quick to Jason's point, I am genuinely surprised that

we're in what year five or six of this experiment for a business that is so successful in so many other ways. And it makes me wonder how much longer the pixel phone has before they just shut it down. Because at some point, they either need to get much more. significant market share. And I don't know if they just decide to throw money at this and cut the price so that they can get it into more hands or they need to just shut it down, don't they? I mean, are they still doing this in three years? I think when you have as much money as Alphabet has and you have as much power as Alphabet has, you have a lot of things that are in motion at all times. And they can't all be winners. And I think at some point you just have to either accept it or

you just have this part of the company that's just kind of trucking along. And it's not doing great, but it's still around. And I feel like it might be one of those where enough people use it. Maybe there are enough people who work in that part of the business that are passionate about it. Maybe they just keep it going or maybe they shut it down. I think for them it's so immaterial that it could go either way pretty easily. Jason, the day before Google's event, Apple is having its own event to unveil new product updates, even though Apple just had an event like this last month. So buy-seller hold the future of tech company events like these. Well, I must admit, when you gave me this question, the first thing that went through

my mind was widespread panic song, sell, sell, because that's what I'm saying here, Chris, sell, sell. These events, I think, have jumped the shark personally. Now, I will say, I understand why they're doing it. I mean, I get it. I mean, it is obviously terrific marketing. It gives them a chance to control the narrative on whatever they are introducing. So I do understand it, but it is so self-aggrandizing. I mean, it is just, to me, it seems borderline narcissistic in some cases the way they do these things. I much prefer the sort of just the under the radar companies that just keep on sneak and new innovations in front of us and changing the world without having necessarily to get up in the spotlight and

tell you how great they are, because that's ultimately what these events feel like to me at this point. You know, perhaps they will reformat them or try a different way of distributing them. They could make them more creative and a little bit more enjoyable. But as it stands now, I want to watch these presentations less and less, the more they announce them. Yeah, Maria, it does seem like the more they do them, the less special they become. I mean, do they need to go the route of just having one in-person event per year and then just, I don't know, sending out videos otherwise?

Are you, like Jason, a hard sell on this one? I'm going to go the opposite. I'm a buy. I think it's fun. I think I always like an event. I grew up my whole life doing theater, so I always love the chance to see something dramatic happen. And there's, especially the Apple ones.

They always have the cool colors. And I just think it's kind of a fun way. I think it's smart to stoke excitement. I think it probably is useful for their marketing. They have kind of a different vibe each time. And you get people riled up and then you get the excitement. And I do think the more they do, the less meaning they have. But I don't think I wonder when they've reached that point where they're now doing too many.

Because I'm someone who I will still tune into a lot of them because I just think they're fun. When is the car coming? Because the rumored Apple car seems like the product that is really ripe for a big event. And if they're working on that, that seems like that's the event I want to see. What do you think, Maria? I don't know anything about the car at this point. I think it would be a very cool event, and I would totally watch it. I think they would have a really cool light show, and they would drive it onto the stage. Or it would come up from the bottom of the stage with a fog machine.

I mean, I agree. I think a car could be a wow type of thing. That, to me, maybe that's it. It just really needs to be something that focuses on something truly special. Yeah? And, I mean, to me, these things are just telling us about the next iteration of the MacBook or the iPad or the watch or whatever it may be. And it's just like, all right, whatever. I mean, next. And give me something special.

And yeah, I'll be interested. In 2014, CVS stopped selling tobacco products. This week, Walgreens CEO, Ross Brewer, said tobacco is, quote, under real scrutiny at her company right now. Maria, buy-seller, hold Walgreens quitting tobacco in the next six months. So I'm going to sell that idea just because it's so lucrative. So I feel like realistically, instead of commercial, completely stopping selling them. It'll be more like they'll add a label, add a different

type of restriction. So in 2019, they made it so only customers over the age of 21 could purchase slightly ahead of the federal guidelines changing. And so I think that even though they're trying to say that they're leaning more into their health and wellness-related merchandise, in 2017, 249 billion cigarettes were sold in the U.S. And even though it's decreasing, it's such a lucrative business. I don't think that they're going to stop selling it completely. at least not in the next six months, maybe in the next couple years. Do I want them to? I think that, yes.

Like, morally, I think that would be good. But I think it's just a pretty lucrative business plan for them to completely cut it off. Jason, you're buying this, selling or holding? Yeah, I'm going to take the other side of the coin here and buy. I think that, you know, this is, you go back to the beginning of 2015, right, when CBS had phased out cigarettes from their stores. Now, the stock hasn't really done all that well since then. I mean, that's a total return of around 4%.

You look at Walgreen, though, it's interesting. It's even worse, down about 20%. So I wouldn't attribute that performance necessarily getting rid of tobacco as much as just that's a difficult business, right? And these are also two businesses that are evolving a bit, so to speak, right? Becoming more modern-day healthcare companies and CVS with its acquisition of, what was it, Aetna. You see Walgreen kind of going in that same direction as well.

So I think it's very difficult for a company to balance being a health care company while selling things that are clearly so detrimental to one's health. So there is a blueprint out there for the way this has been done. Thanks to CVS. So to me, it feels like this is a decision that's almost already been made. They're just trying to ease it out there as opposed to just being a headline that shows up in the news one day. So, to me, I think they will do it, and I think long term they won't suffer from it.

There is a blueprint that Walgreens can follow in terms of the way CVS did it, really pivoting and leaning into health. I will point out, however, that that blueprint includes the fact that on the day CVS announced they were going to stop selling tobacco products. The stock fell 5%. Because to Maria's point, I mean, this is a lucrative purpose. part of the business. I think in CVS's case, it meant somewhere in the neighborhood of $2 billion annually in terms of sort of the front of store revenue. So I think Maria just comes

down to, is Roz Brewer and her team at Walgreens willing to take that hit? Because they have to know it's coming, don't they? Yeah. And I think that it is interesting to see, you know, as consumers get more and investors get more invested in the idea of a company that does well and is not harming people with what they sell. I wonder how much they're taking that into account and seeing, trying to lean into maybe getting different types of investors into their stock or trying to make their company one that you can admire in that kind of way, the way you do with some other companies like Costco being an example of one. And so I think it'll be interesting to see, you know, how much

stakes she puts in in that and how much passion her and her team feel for that kind of messaging and marketing. Last month, the National Confectioners Association reported that retail sales of chocolate and candy were more than 40% higher than last year. So, Jason, buy-seller-hold Halloween spending setting a record this year. Oh, that's a strong buy, Chris, and I'm helping the cause. We have a standing rule here in the Moser household. Once October 1st hits, we start buying the Halloween bags of candy. And that's just we have a standing rule. been our house, because we're going to enjoy the entire month, right? You know, some people like to enjoy their birthday month.

We like to enjoy each of the three holiday months, right? October, November, December. It's a great time of year. And I think that, honestly, we're seeing folks are more and more feeling like it's okay to get out there and do things like trick or treat or travel and whatnot. So to me, I think there's going to be a little bit more enthusiasm behind this Halloween season than perhaps we've seen recently. And if I can help the cause at all, Chris, I certainly will.

And I mean, you know, listen, I've already got it in the top. I'm going to go grocery short later today. I'm going to buy another bag of candy. Maria? Oh, yeah. I'm buying, I'm helping the cause. I have a lot of candy fun facts if anyone wants to hear them. Lay them on me.

Americans purchase nearly 600 million pounds of candy a year for Halloween. 90 million pounds of chocolate candy is sold during Halloween week, which is more than Easter and Valentine's week. 10% of annual candy sales happen the days leading up to Halloween. The top selling candy, even though chocolate is more popular, the top selling candy is actually candy corn. And there are 35 million pounds of candy corn produced each year, which is 9 billion pieces. So if the candy corn kernels sold during Halloween were laid out end to end, they would circle

the earth 4.5 times. And those are my candy facts. Those are some very fun facts. Now that you mentioned it, because we know Domino's benefits. greatly from Halloween. That's one of their top five days of pizza sales. I wonder if you laid each pizza out end to end, how many times that would go around the world? I think that's an important thing we should probably try and figure out as a team. It would certainly taste better than the candy corn that's circling the globe, however many

times. Candy corn is very, very controversial. I'm coming to find. Through our shows and responses on, that's a very controversial subject. Let me just share this nugget in terms of retail spending because the National Retail Federation believes that overall Halloween spending, so candy but also costumes, decorations, is going to set a record this year. It is going to be north of $10 billion. And one retail analyst said in response to that, and I'm quoting here, the National Retail Federation may actually be underestimating willingness to spend. This means that the biggest risk to Halloween spending in 2021 is not consumer confidence at this point. It is continued supply chain disruptions and the availability of merchandise to meet consumer demand.

I mean, Jason, we've been talking about people needing to start their holiday shopping earlier this year. Do I need to start my, I usually do my candy shopping a few days before Halloween. It's like, based on this quote, maybe I need to get out there now. I think you need to take a page from the JMO playbook and just start your candy shopping October 1st. Like, you know, you're really embracing the holiday. I think you're right. I mean, I think I think it's a good point. We saw just going back to those bank results, right? I mean, Bank of America, that deposit number, 15% growth on the deposit side. I mean, we're just at a point right now where consumers are still in a pretty good financial place, right? And in credit, the cards are doing

well. So I think you're right. It's going to be less about the consumer's ability to spend. It's going to be more about just having stuff to actually spend it on. Last thing, before we go to the break, Marie. I'm sorry to put you on the spot, but we are talking about supply chain disruptions. It's a big, theme this year, certainly of the last few weeks on this show, with so many companies talking about it. And during our production meeting this morning, you mentioned that you have a Halloween costume idea that's sort of built around that theme.

And I'd love it if you could share it with the dozens of listeners. Oh, well, listeners, if you decide to do this as well, let me know. But I decided that I want to be the boat that blocked the Suez Canal for Halloween. And then I think it would be very funny to block everyone when they're trying to go play places and just say like, oh, sorry, I'm stuck. And I think that would be really funny. I don't know if I'm going to actually do it, but it's my idea. It's a strong buy. It is a strong, strong, strong, high conviction by. I love that idea. Thank you. Radar Stux coming up after the break. So stay right here. You're listening to Motley Full Money. As always, people on the program may have interest in the style.

They talk about and the Motley Fool may have formal recommendations for or against, so don't buy ourselves stocks based solely on what you're here. Welcome back to Motley Fool Money, Chris Hill here with Maria Gallagher and Jason Moser. Time to get the stocks on our radar and our man behind the glass, Dan Boyd, is going to hit you with a question. But first, Dan, we were talking earlier in the show about the upcoming promotion from Popeyes, the partnership with Megan D. Stallion. And you're someone who does a decent amount of boots on the ground research at Popeyes.

I'm curious. Are you excited about this new partnership? There is never not a moment in my life, Chris, where I am not excited for Popeyes. The idea that I could get Popeyes will bring me out of depression. It will get me up in the morning. I am always ready for some Louisiana fried chicken. Are you going to get the new sauce? I'll try it. Yeah. I love Megan the Stallion. I think she's great. I think her songs are great.

And, you know, anything they can do to shake up that menu up there, I'm always here for. All right. Let's get to some radar stocks. Jason, Moser, you're up first. What are you looking at this week? Yeah, just taking a closer look at Marvell, ticker MRVL. At the recent Investor Day, the term 5G was mentioned 34 times. I really do feel like this is an excellent way to play that 5G movement, sort of a pure play 5G kind of idea. The growth is really being driven by three key markets for the business. Cloud, 5G, and automotive. All three growing better than 20 percent annually represent a tremendous opportunity for the business. Remember, they had a recent acquisition of Infi, which was a company I had recommended a little while back. I think that'll provide some nice tailwinds, and they have another acquisition, a smaller one of Inovium,

and that will give them additional networking solutions for cloud and edge data centers. And ultimately, that's what this business has done. Thanks to CEO, Matt Murphy. They've had this vision to transform Marvell from a consumer-oriented business to an infrastructure-oriented company. And this vision is starting to bear fruit. So I think at around 45 or so times full-year fiscal estimates right now, to me, it seems like a very reasonable price in a market where a lot of valuations seem maybe a bit frothy. Dan, question about Marvell? I can't think about Marvell without thinking about Marvel, obviously. So, Jason, I have a speculative question for you. How many semiconductors are used in the production

of a Marvel movie? I got to believe if cars have thousands, I'd have to believe there'd be hundreds of thousands of chips involved with a production of something like that. But that's just a wild, that's a wag, as we call it, in the business. A wild, you know what guess. Thanks, Jason. Maria Gallagher, what are you looking at this week? So I have reached the age where all my free time is spent looking at homes I can't afford on Zillow and looking at the Zestimates. And so I'm going to spend a little bit more time looking at Zillow Group and trying to understand the dynamics of their eye buying business, I think is really fascinating.

So then buying your house, then flipping it and understanding the margins of that and the risks associated with that as well. So I think those trends will be really interesting to watch. And the ticker simple? Zigi. Dan, question about Zillow Group? So I am a Zillow shareholder, which is great because it's rare on this show when I actually get to be that for radar stocks. But I bought a house in 2019.

And so what I do, Maria, is I am glued to the Zillow estimate of my house, whereas I'm not looking for a new house because I can't afford two houses. But when Zillow tells me how much they think my house is worth, I get very excited. My mom, you sound like my mom. She likes to email my sister links to Zillow estimates for apartments near her to convince her to move to my mom's building. What do you want to add to your watch list, Dan? Like I said, I already have Zillow in my portfolio, so I'm going to go with Marvell. All right. All right.

Jason Mose and Maria Gallagher. Thanks so much for being here. Thanks for having us. That's going to do it for this week's show. We'll see you next week.