Motley Fool Money - “This is why we invest the way we do.”

Episode Date: February 4, 2022

The last few weeks have been particularly head-spinning for investors. We've seen stocks setting records (both good and bad) as volatility seems like it's becoming the norm. It's sometimes difficult but still important to remember how much better investing can be when we focus on the long term. Jason Moser and Emily Flippen share some perspective on their approach to investing and discuss: - Amazon's digital ad business and raising the cost of Prime to $139 - Alphabet splitting its stock (20 for 1) and posting huge 4th-quarter results - Meta Platforms battling "an unprecedented level of competition" - Snap's 1st-ever quarterly net profit - PayPal continuing to struggle with its transition away from eBay - Pinterest increasing revenue while losing global users - The latest from Qualcomm, Spotify, AMD, and Starbucks - Two stocks on their radar: Chipotle and Tenable Holdings Want 15 more stock ideas? They're included in our free Investing Starter Kit. Get your copy at http://fool.com/StarterKit Stocks: AMZN, GOOG, GOOGL, FB, AAPL, SNAP, PYPL, PINS, QCOM, SPOT, AMD, SBUX, MKC, DASH, SHAK, TENB, CMG Host: Chris Hill Guests: Emily Flippen, Jason Moser Engineer: Dan Boyd Learn more about your ad choices. Visit megaphone.fm/adchoices

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This is Motley Fool Money. It's the Motley Full Money Radio show. I'm Chris Hill, and I'm joined by Motley Fool Senior Analyst, Emily Flippin and Jason Moiser. Good to see you both. Hey, hey. Chris. It's Earnings Paloza. We have so much to talk about.

We don't even have time for a guest this week, but we do have a couple of stocks on our radar. Before we get to the earnings, I think we should start with just how bonkers the market has been lately. And by that, I mean some of the whipsaw movements of well-known businesses. A few examples. Last week, Netflix had its biggest drop in a decade. This week, Snap had its biggest gain ever. PayPal and Facebook had their biggest drops ever, and we will get to Amazon's huge day in a minute. But Jason, we also had a huge jobs report for December that came with a big revision upwards

for November. And I am so glad I'm a long-term investor because the short term can just be really confusing at times like this. Yeah, I think that's probably the best word confusing. It is, it's a lot of information at once and it all seems to, a lot of it seems very contradictory at times. But I think to me, these are the stretches that really reiterate why we invest the way that we do here. We live in a world of headline-driven markets. I mean, they move on the daily and predicting what's going to happen is at this point, it is literally flipping a coin,

I think. So if you want to gamble, that's great. Open a Fanduil account and have at it. At least you go in there with the understanding that you're gambling. But we are investors, obviously. In the stock market is the greatest wealth-generating machine in the world. Now, we're Now, with that said, it rarely, and I mean rarely, operates on our desired individual timelines. And I think the longer you do it, the more apparent that becomes. So yeah, for me, it really just takes me back to this is why we invest the way we do. It really is just volatility being the name of the game right now. And I want to circle back around to that jobs report because not that I can do any better,

But this was such a large misestimation that it reminds me just how much I dislike economic forecasting. At least with weather forecasting, I know there's like barometers or Doppler radars behind what they predict. But sometimes I feel like economists are just doing the weather person equivalent of licking their fingers and holding it up to the air. And I feel like that's what we saw this month. Let's get to Amazon's fourth quarter profits being driven by AWS. No surprise there, Jason. The advertising. The advertising division is now so big that Amazon is actually disclosing the number. And as we talked about on this show two weeks ago, Amazon announced it will increase the price

of its prime membership to $139. And all of that combined to a big day on Friday for the stock. Yeah, it was a big day. It seems for a long time on this show, every earnings season, we just say, well, nothing to see here is the same old great Amazon. I will say, I think we can actually call this quarter a mixed-based. back. I think mostly it was really good. There are some things, I think, to keep an eye on, though. Now, if we look at the numbers, you look at the actual sales numbers there, this was a bit of

an attention getter. I mean, sales up excluding currency, sales grew just 10%. And for a business that's just routinely chalking up 20 plus percent growth, that to me is just something, it's a little bit curious, I guess. I mean, granted, we're operating in unique times, but operating income got cut in half to $3.5 billion. for the quarter. Net income of $14.3 billion sounds like a really great number, but it is worth remembering that includes a pre-tax valuation gain of $11.8 billion from their investment in Rivian Automotive, right? In Rivian, we know, just went public. This is an electric vehicle company that makes no money. Like, literally, they are just starting to generate revenue. So you got to

take that with a grain of salt, I think, as well. When you look at the retail operations, really the core Amazon business. Retail operations across the board, both chalked up, they chalked up operating losses. The U.S. and international, and international sales are actually down to tick. So, back to your point on AWS, clearly a bright spot. Sales grew 40 percent, operating income, 49 percent. A, yeah, a nice little $31 billion advertising business now, right? Chris, Twitter, what? Snap who? Raising the price of prime to $139 per year. The monthly cost. will go up $2 a month. And I don't know why you'd pay for the monthly cost anyway. That equates to $180 a year. So just up for the full year, Chris. Come on. I mean, everybody, just up for the full

year. Do us favor. Yeah, mixed bag, I think, but all in all, more good than bad. So let's get to the timing of the increase, because I said two weeks ago on the show, they're going to raise the price of prime this year. I'm actually surprised they raised it this quarter. And I'm wondering if you think they might have pulled the trigger now as opposed to later in the year because of the revenue softness that you referred to. Perhaps. I think also it's probably a good time to bump that price up now because everybody is bumping prices up, right? Inflation is top of mind for everyone. If they wait six, nine months, perhaps 12 months to do this when inflation isn't necessarily at the forefront of the conversation.

Maybe that's something that consumers push back on a little bit, but I think right now it's something that people can understand a little bit more because prices are being pushed up everywhere we look. Alphabet announced a 20 for one stock split, which somehow overshadowed the fact that Alphabet's fourth quarter results were strong across the board and not surprisingly, Emily, Google search leading the way. A really amazing quarter for Alphabet, so they handedly beat expectations on their bottom line by over 10%. Revenue also beat expectations. But all anybody wants to talk about is this stock split,

right? A 20 for one stock split, which effectively decreases the average price per share to buy a single share of Alphabet. And as we all hopefully know, this fundamentally changes nothing for investors in Alphabet. A stock split does nothing except for make the average price of the share lower. But in practice, we see a lot of retail investors often associate the price of a share with valuation, which is to say they see a lower price stock to be perceived as cheaper. So there may be increased buying from retail investors as a result of this split. We saw this happen with other businesses like Tesla, although there's lots of other factors and play with Tesla as well. But stock split aside, this was an amazing quarter for Alphabet.

The weird downside here was actually YouTube ad revenue. And this is interesting because as Jason just mentioned, we're looking at Amazon come out with this $31 billion year ad business. Well, Alphabet has a $61 billion year ad business. So around double what Amazon is experiencing. So smaller, I think, when you compare it than expectations with something like Amazon. And seeing the weakness come from YouTube ad revenue just makes us all realize how much competition there is for our eyes in the entertainment space right now. As I mentioned at the top, Facebook, sorry. Meta platforms had its worst day ever. Shares fell 25%

on Thursday after the company's fourth quarter results reflected what CEO Mark Zuckerberg called an unprecedented level of competition. Part of that, Jason, is Apple's change to its operating systems' privacy settings. That is clearly taking its toll on Facebook's advertising revenue. I think you called it Facebook on purpose, Chris. I don't think that was a slip. I think you Look, I'm still getting used to it. It took me a full year, if not longer, to get used to Alphabet instead of referring to it as Google. So apologies to the dozens of listeners, and I beg for their patience. Yeah, and don't even get me started on block. But let's get back to Facebook. I mean,

meta. This was actually, I mean, this was a breathtaking sell-off, right? I think it took us all by surprise, considering the scale of this business. But when you look at the numbers, I think it actually makes some sense. I mean, much like PayPal, PayPal, this is not a business that's in trouble, right? And we'll talk about PayPal a little bit, but they've got some work to do here. And there's some material risks going forward given this pivot toward the Metaverse. So when we look at the actual numbers they recorded for the quarter, not all that bad. Revenue up 20% for the quarter.

You compare that to something like Alphabet, 33, 34% growth, though. I think you can at least get a better idea of who's winning that race. It's something where Facebook, I think, is starting to witness some headwinds there in their model operating margin of fell nine percentage points. As expenses well outpaced revenue growth at 38%. Earnings per share down 5%. But it's worth noting actually net income was down 8%. So there's a little bit of a share repurchase effect going on there.

Bit of a one-two punch there on guidance, right? I think you've got macro concerns. You've got inflation impacting advertising budgets. The new iOS standards that you mentioned as well, they're going to impact the top line of this business to the tune of about $10 billion. dollars this year in 2022. And so the revenue guide of $27 to $29 billion was just well below expectations. And we know how that goes. The market is going to reprice based on that new set of expectations.

But I think looking further out, you know, the bigger risk, I think, for meta, and this is going to be something that won't be apparent immediately. They're going to be spending a ton of money on this metaverse investment. Whatever the metaverse may be, meta is aiming to play a big role in it. They are going to spend tens of billions of dollars on this. If this doesn't pay off the way they think it might or they think it will, I mean, that's going to be a big problem for this business. And the tough part for investors here is really understanding that these investments in the metaverse really, that's not going to be like flipping a switch either, right? That's going to be something that just becomes more apparent over time. And I think it's fair to say that as much successes

Facebook has had, as Meta has had, in the social media. space, replicating that in the Metaverse, I think it's going to be a tougher ask. I think it's going to be a tougher ask. And I think investors are starting to take stuff like that in consideration. Coming up right after the break, we've got the poster child for this week's craziness. Stay right here. You're listening to Motley Fool Money. Welcome back to Motley Full Money.

Chris Hill here with Jason Moser and Emily Flippen. We don't obsess over short-term stock movements, but no business provides a better example of the whipsaw movements we discussed earlier in the show, then Snap. The parent company of Snapchat saw its stock fall 25% on Thursday, then Snap reported its first ever quarterly net profit, and shares on Friday rose 50%. Emily, please help me focus on the actual business here. Well, who knew that a social media platform that I exclusively use to take photos of my cat and send it to my mom was so monetizable? And I say this a little sarcastically because I think part of what we're seeing here is a story of low expectations.

The poor earnings reports from other platforms earlier in the week certainly set up expectations, as you mentioned, heading into this earnings reports that were extremely low. And when Snapchat came out and said, hey, no, we're actually doing pretty well. The market was just stunned. And that's a bit of what we're seeing here. But revenue was still up 64% year of year, which is incredible. And the daily average users, which I think is even more impressive, grew 20% to almost 320 million globally. Now, it's important to remember that Snapchat's really only monetizing those across

North America and Europe, but they see an opportunity to expand monetization across the globe. It really was, again, a power of those low expectations for this platform. I mean, we talked about meta or Facebook, whatever you want to call it. They broke down these massive headwinds, thanks to Apple's privacy changes and expectations were for Snapchat to say, you know, hey, our guidance is also hit because of this. But heading into that, you know, we're seeing Snapchat actually come out and say, no, our ad transitions are better because, you know, we handle privacy with our ad targeting products a bit more consciously, right?

I think they said something along the lines of our product were built with privacy in mind. So we'll see if those realities come to fruition when they continue to. reports and future quarters, but for the time being, Snapchat is doing pretty well for itself. The main story of PayPal's business for the past year has been the company's transition away from eBay as a payment platform. And PayPal's fourth quarter results reflected how hard that transition has been. Jason, I think you and I both like the job that Dan Shulman has done in the eight years he's been running PayPal. But I also think you and I agree, he really hasn't done a great job of communicating this. Oh, Chris, how the table is.

have turned, right? Instead of the war on cash, it looks like we've got a war on PayPal instead. I say this as a PayPal shareholder of many years, PayPal 100% deserve the butt kicking it got this week. No, the business isn't in trouble, but we heard three words in the call that we don't like to hear, transformation, investment, and pivot. And I think this all goes back to what you said at the top there. Leadership really dropped the ball. on communicating here. Now, it's not all bad. Let's focus on the good news here because the quarterly numbers were good. If you look at the total payment volume, $340 billion that was up 23% from a year ago, and they pushed through $3.2 billion of buy now pay later total payment volume as well. That's now

operating on a $13 billion run rate, so not bad for essentially what is a homegrown offering for them. Venmo processed $60.6 billion in total payment volume, up 29%. They're now contributing. Venmo is now actually helping drive a sequential increase in the overall take rate. So total take rate for the quarter was 2.04% that was up from 1.99% a quarter ago. But we get to what caused this sell-off, what led investors to flee. And you've got guidance there for revenue growth of 15 to 17% for the year. That was versus an expected 17.9%. It's ultimately going to result, though, in essentially flat earnings growth.

which is a problem. And I think that really boils down to the user base. PayPal pulled a lot of success forward, right? They added a lot of users in a short period of time over the past couple of years for obvious reasons. That's starting to normalize a bit. Management now expects to add 15 to 20 million net new customers in 2022. And further, they no longer believe that the 750 million user target that they set here over the median term is even really achievable. It'll probably take a little bit longer to get there. For context, they have 426. million actives today. Nothing to sneeze at, but you can see that forecasting does matter. So they are focusing more on the quality of the user. They're going to be relying less on incentive

programs to bring new users in. This matters because the quality of the user matters for PayPal of their massive user base. Really, the majority of the volume comes from about a third of that user base. So they put a lot of information out here that should have been put, out long ago. And that's frustrating. They have put themselves in a little bit of a position here. We're going for these next few quarters. We're just going to need to pay very close attention to what they say and really hold them accountable. Pinterest's fourth quarter results showed a small drop in global users, but average revenue per user was up 23%. Shares of Pinterest bouncing up nicely on Friday, Emily, but kind

of like Snap, it seems like there were some low expectations going into this one. I think the words I'd use to describe myself as a Pinterest shareholder after this earnings report is cautiously optimistic. I've said this before, but Pinterest has always been a story about monetization, not user growth. And as you just mentioned, we saw monetization this quarter up 23%, which is what they need. International monetization, so international average revenue per user was even better, rising 62% in the quarter. It led to helping the business beat on both the top and the bottom lines here. But management is also realizing their backs are against the wall. They can keep users steady. They can lose a bit of users when they have over 430 million monthly

active users. That's okay. But they can't hemorrhage users. And this is what he saw this quarter. Users declined globally 6% in the US by 12%. Now, they blame some changes in Google's algorithm as a result of this big decline, but they can't be monetizing at an increasing rate while also decreasing engagement. So finding the way to balance both is going to be critical for Pinterest to perform well from here on out. We're just a few months removed from PayPal reportedly looking to buy Pinterest. How confident are you? Pinterest will still be a standalone company two years from now? I'd say fairly confident. I think Pinterest is underrated as a social media platform. It's become so integral, especially in young American female's lives, that I think

I think it's being underappreciated in terms of its market opportunity. What the question mark is right now is, what is Pinterest going to do to drive engagement from that audience? They already have this massive user base signed up, but they now are having to compete for the time in those eyes. So making sure that people are routinely coming back to that Pinterest app is going to be critical. But I think if they're able to do that, then Pinterest, in my opinion, is better as a standalone company than as a potential acquisition.

Up next, we've got the latest on chips, not the tasty kind, the Semiconductor cut. Stay right here. This is Motley Full Money. Welcome back to Motley Full Money. Quillian posted strong profits in the first quarter and gave upbeat guidance. Jason, I'm not a shareholder, but for a variety of reasons. I would like the semiconductor chip shortage.

to end, and I know that Qualcomm is one of the companies that can help make that happen. Yes, yes, I think you're right. And it feels like we're already seeing leadership with these chip companies starting to use language, just kind of putting this stuff in the rearview mirror, hopefully, Chris. So hopefully 2020 shaping up to be better for you there. But if you look at Qualcomm itself, I mean, this was a really, really strong quarter. And I'll lead off with just what Cristiana, a CEO, Christiana Man said in the release, he said, I quote, we're at the beginning of one of the largest opportunities in our history

with our addressable market expanding by more than seven times to approximately $700 billion in the next decade, end quote. Chris, to me, feels like there's an opportunity brewing here. Qualcomm is kind of just trading water here over the last year, but you pan further out. This has been a wonderful investment of the last three years up better than 250 percent. And I'm starting to see why A revenue growth of 30% from a year ago resulted net income growth of 38%. In earnings per share growth of 41%. Again, a little bit of a share repurchase impact there. But it's nice to see that Qualcomm's repurchases are ultimately having an impact on that overall share count.

They brought the share account down over 24% over the last five years. The QCT business, the chip side of the business, the other side of the business is the licensing side. But the QCT business grew operating income by 62% on 35% revenue growth. They saw strong performance in handsets with revenues up 42% from a year ago. They saw strong performance in IOT revenue. That was up 41% from a year ago. And all in all, it feels like this is a business that has a number of different ways to win, so to speak, because it's handsets, it's IoT, it's automotive, its radio frequency, it's all of that.

it. Interestingly, and perhaps sadly, Chris, there was only one solitary mention of the word Metaverse on the call, but it is something they're very excited about with partnerships, with companies out there, including Microsoft and Meta. For the second quarter here, they are forecasting earnings to come in at $2.90 at the midpoint versus $1.90 a year ago. And they're even so much as guiding out to 30 percent earnings per share growth for the third quarter as well. So it feels like the tailwinds for this business just continue to grow stronger. Spotify showed strong growth in the fourth quarter, but guidance for 2022 sent the stock down this week. Emily, let's face it, most companies are not getting the benefit of the doubt

from investors right now. And the drama surrounding Joe Rogan certainly does not go in the plus column. I describe this as a good earnings report that's really being overshadowed by negativity thanks to the way that this platform has become a beacon, I guess, for misinformation. almost like a political fighting ground in some sense. But looking at the quarter itself, it was all good things from Spotify, right? Revenue grew 24%, monthly active users, which is that critical metric, as we just discovered with Pinterest, that grew 18% to over 400 million, so tons of monthly users. And their adjusted net loss was less than half of what was expected this quarter. So the actual earnings report itself was great. Now, the challenges are really.

around what has been portrayed in the media with Spotify recently, I think is adding skepticism, mostly because of, as you mentioned, controversies surrounding Joe Rogan and the $100 million dollar relationship that Spotify has with Joe Rogan to be the exclusive distributor of that podcast. So it's going to be interesting to see how CEO Dan Eck continues to navigate these challenging waters because being a company that is having to deal both with the impact from users, musicians and even politicians is not an easy position to be in. It's also a sign of just how big and influential a company Apple is, that Apple isn't making headlines this week, and yet all these companies we're talking about are dealing with Apple

in one way or another. Facebook is impacted by the changes to the iOS privacy settings. Spotify has a couple of musical artists who say, hey, we don't want to be in your platform anymore. And when I opened up iTunes earlier this week, there's Apple Music, just promoting these artists. If you get to be big enough, eventually you're going to have to deal with Apple one way or the other. That's a fair criticism. But in Spotify's defense, they're so large now that they're ubiquitous. And I doubt any one or two departures from any specific artist is going to do a lot to take away those engaged monthly active users. When Spotify hasn't been able to get those exclusive rights to new

albums in the past. It hasn't done anything to prevent users from engaging on the platform, even when they've been available in other places. I doubt this will be any difference, but I hesitate to say that because we've seen the continued years-long fallout with the meta and its perception from consumers and the government about its relationship with information on its platform. Spotify certainly doesn't want to find itself in the same situation. So again, it all comes down to being proactive and managing it with tech. Jason, stop me if you've heard this before. Another strong quarter for advanced micro devices and strong guidance for the new year.

Lisa Sue has been running AMD since 2014, and not only is she one of the best CEOs in America, she's also one of the most under the radar. She's just quietly going about her business. And AMD is just, I don't want to say unstoppable, but this business and this stock has just been on fire for years. Well, I agree with you. I think Dr. Sue has just been a tremendous asset for this business, and shareholders have really benefited all along the way. You look at the five-year chart. Stocks up almost 900%. And I think that really things are poised to get better.

I think on its own, there are plenty of reasons to like AMD over the coming years. This connectivity continues to proliferate. You see investments in Edge, Cloud and Data Center. They're all becoming greater opportunities, and they're helping AMD continue to branch out. I think the addition of XI-Links should even open up a few more windows of opportunity for the business. We'll talk about that shortly, but let's look at the quarterly numbers because there's a lot to like, like you said. I mean, revenue $4.8 billion grew 49% from a year ago.

Interestingly, I mean, you look at non-gap diluted earnings per share, 92 cents per share. That was up 77% from a year ago. I mean, just amazing. The growth this business continues to chalk up. Strength and enterprise embedded in semi-custom and segment revenue. I think that was something that really stood at. That segment, the revenue of $2.2 billion was up 75% from a year ago. And they recorded their six straight quarter of greater than 45% year-over-year revenue growth.

You add to that five percentage point increase in the gross margin side as well, which is just, you got to love that. And so they continue to capitalize on the data center opportunity as we continue to move more. more towards the edge in the cloud. And then really, I think the icing on the cake for a lot of folks, the Xylinks acquisition has finally cleared hurdles with Chinese regulators. So that deal actually should close any day now. And that's really going to catapult their overall opportunity even more.

So it brings in additional tailwinds in 5G, data center, automotive, industrial, aerospace, and defense. In Xilinx is a higher margin business as well. So I think there are a lot of reasons why shareholders should be very optimistic about that A&B's future. You know, Jason, so many businesses depend on semiconductor chips and with the global shortage. Rightly so, so many of them for the past year or so have been talking about that impact on their business.

But at some point in the future, we're going to get to that place where the shortage does not exist any longer. And don't you think there's going to be at least one company that comes out in their earnings report and says, you know, it was the shortage of chips that really hit. us this quarter and analysts will have to be like, there's no shortage anymore. With Qualcomm, AMD, all these businesses, at some point, there's going to be no more shortage and therefore the excuse is gone. That's right.

At some point, you have to go with Alice and Chains. There are no excuses. And I think that time is still a ways away. The neat thing about the opportunity for these businesses is that as connectivity continues to grow, there are just so many, so many things out there that really require this to I mean, Chris, I got a Trigger Grill for Christmas that's connected to the internet for crying out loud. I mean, the possibilities seem endless at this point. But I think you make a great point there, too, and that as optimistic as this space looks right now because of obvious tailwinds, let's remember those tailwinds don't last forever.

And so just like we saw a lot of success pulled forward here the last couple of years with the pandemic impacts, at some point, that party ends, right? And things start to normalize a bit. So there will be a point where these chip companies start to normalize a little bit, and that'll be something investors need to pay attention to. Starbucks' first quarter report was a window into how many headwinds the company is facing, from higher costs to staffing challenges, to say nothing of its second largest market, China. Emily, I'm a big fan of the CEO, Kevin Johnson. Even with the hits that the stock has taken recently, am I wrong to be optimistic about Starbucks?

Not at all. In fact, I love the kind of comparison here against chip businesses for Starbucks. If you'll humor me, because when you ask the average person, which do you think is more cyclical, right? Demand for which wanes more. Is it something like chips or is it something like Starbucks? And I think a lot of people will assume that when economic times get tough, businesses like Starbucks are the ones who face the brunt of that, whereas chips continue in demand.

And reality, we see a lot more cyclicality with a business like AMD or Qualcomm. than we do with Starbucks. It's become such a blue-chip bell weather business. And even though they did miss this quarter in terms of earnings and revenue expectations, it really wasn't a complete surprise given the widely publicized challenges with labor, supply chains, and inflation. But even with the miss, Starbucks does what it does best. It had a great, really impressive quarter. Revenue rose nearly 20 percent. And importantly, same store sales across the globe were up 13 domestically, that was even higher at 18%. So the demand for coffee here has not changed. And actually, if you look at the change in price for Starbucks products since just October,

Starbucks has risen prices three times, largely to keep up with all those challenges that I mentioned earlier. And it really hasn't done a lot to change demand for its products. So while they did update their guidance to be slightly more conservative, which is contributing to some of that skepticism we see today, when you look at that, When you look at the actual business performance itself, I mean, Starbucks is doing what it does best, which is sell coffee. Up next, we've got a business partnership just in time for Valentine's Day. We've got a couple of stocks on our radar.

Stay right here. You're listening to Motley Full Money. Now, let me say this about that when we have we're on equipped for that comprehension, how we've tripped into this dimension. That about this, let me say, for the race. Wonderful day. What a wonderful day for the race. As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against.

We don't buy ourselves stocks based solely on what you hear. Welcome back to Motley Fool Money. Chris Hill here with Emily Flippin and Jason Moser. A couple of things to get to before we get to the stocks on our radar. McCormick reported fourth quarter results last week, and maybe it took investors a few days to digest the results because on Friday, shares of the Spicemaker hit a new all-time high. Jason, I know this is one of your favorites. It is. I'm an owner, and I've been behind the stock for a long time for a lot of reasons I stated before, but it was an impressive quarter. They grew sales 9% organically for

the fourth quarter. They are calling for 5% annual growth here for 2022. Again, very encouraging. And I think they've made some acquisitions that have really paid off. They now hold the number one and two spots in the hot sauce market with Franks and Chalula respectively. And Chris, I'm going to tell you something here over the holiday season. I was working on a recipe. Okay, you know, I like the grill. I like the barbecue. I like the smoke stuff. But I'm working on a recipe over the season and I perfected it. Okay. You utilize this a lot of McCormick stuff too. I call it Big Daddy's Boy Howdy mustard sauce. Okay. This is a mustard barbecue sauce. I made it. It's my recipe. I'm not going to tell you what it is, but McCormick, give me a call because

I've got a feeling, I've got your number three shareholder right there. Wow. Yeah. You went in a direction I was not expecting there. No, hey, you know, listen. You listen every week. We're going to give you something new. Real quick, before we move on, the dividend aristocrat status of this business does not

appear to be threatened at all. I don't think so. And it's just such a reliable business. And that's why they really take a lot of pride in that. They raise their dividend again to maintain that status. I suspect that it is a point of pride for leadership that they will not relinquish anytime soon, I'd imagine. This week, DoorDash and ShakeShack partnered up to create a limited edition dating app

called Eat Cute. From now through Valentine's Day, people can go to let's eatcute.com, create a dating profile with a photo and share how spicy they like their food. And once they are matched up with a compatible person, they'll receive a promo code for Shake Shack's Buffalo Chicken sandwich delivered, of course, by DoorDash. Emily, I'm not saying it's cause and effect, but I will say that shares of both these stocks are up since the promotion started on February 3rd. Oh, let me be clear.

I love a good gimmick, but there is no way that I could review this story without experiencing it myself. And I apologize to my boyfriend, but I did have to go make a profile, obviously, to get my free chicken sandwich. And the experience was interesting. They made it very clear the app was not for chatting. only for sending sandwiches. I went through. I liked about 100 profiles, and nobody likes me back. So I don't get my chicken sandwich, I guess.

We just need to get the word out. Maybe once people hear this episode of Motley Full Money, get some more people on the app, and we'll check back with you next week, see if you actually get the sandwich. I'm not there to dream. Let's get to the stocks on our radar. Our man behind the glass, Dan Boyd is going to hit you with a question. Jason Moser, you're up first. What are you looking at this week? Yeah, taking a look at Chipotle, ticker CMG. They've got earnings coming out Tuesday, February 8th. I'm going to be very interested to see how they frame the state of the consumer and inflation. Last quarter, they talked a good a bit about it from wage inflation to construction and everywhere in between.

But management is exercising patience in regard to this. But there was an interesting quote from last quarter's call. I have to call this out. They said, and I quote, there is food inflation as we, talked about. We don't know how much of this is temporary or transitional versus permanent, but what we do know is we've got what we believe is great value. Our customers continue to appreciate Chipotle. They love the convenience. They love the value. And here's the kicker, Chris. And so we believe we've got pricing power really better than almost anybody, if not everybody, in the industry. So I think this is going to be really fascinating to see how they framed this this quarter, particularly as we just saw Starbucks, as an example, we saw Starbucks

just starting to pass among price increases as well. So I'm kind of interested. Is my burrito bowl getting more expensive? I want to know, Chris, because you know what? Even if it does, I'll still pay it. Dan, question about Chipotle? Yeah, Jason, did you know that I'm a Chipotle shareholder? Well, me too. Dan, welcome to the club. I bought in 2011, and I'm having a good time as a Chipotle shareholder. I don't know about you. You got to be, I've owned those shares for about at that same time and you've got to be feeling really good about that call right now. I am. I'm also a Chipotle shareholder.

Am I the only one confused that they've got this marketing message out there about their plant-based chorizo that they refer to as this is the best chorizo we've ever made? I'm like, wait, so it's better than actual chorizo? I'll tell you what. I will say my daughter tried that last week or so when we last had Chipotle. And she gave me a bite of it to try. I will say it is very, very good. I'm still confused. Emily, what's on your radar this week?

Well, it's going to be hard for me to compete with plant-based chorizo, which is the best chorizo. But I have a decent cybersecurity company for you. The business name is Tenable. The ticker is T-E-N-B. They're a cybersecurity firm. I think it's underappreciated by the market. Had a really impressive quarter this past week, generated massive 30% free cash flow margins. And they're getting more traction with enterprise customers with their tenable I.O. And tenable EP solutions. Now, I know that it's an extremely competitive space, but in some sense, a rising tide really does lift all boats. And when you compare it to the valuations of other cybersecurity firms in the market, I'm thinking mainly about crowd strike here.

It is much cheaper. So I could see it being added as a basket approach to tackling the cybersecurity industry. Dan, question about tenable holdings? Yeah, Emily, what kind of plant-based meat substitute products is Tenable introducing to the market this year? Well, they actually force all of their in-house employees to at least one plant-based meal a day. However, they do ensure that it's in salad form. So you can take with that what you will. It's not quite Chipotle.

You can't get your rice. But as long as you're eating your plant-based salad at Tenable, you're okay. Wait, is that real? No, I'm being 100% sarcastic. I'll just add, Dan, Chipotle's not doing anything to keep your network secure. I suppose. All right. What do you want to?

That makes it harder. Hey, I got one bumper sticker on my car and it says I love tacos so much. So here we go. I'm taking Chipotle to the moon, baby. There we go. Hang on to those shares, Dan. Emily Flippin, Jason Moser. Thanks so much for being here.

Thank you. Thanks, Chris. Drop us an email, podcast at fool.com. Send us your questions, your feedback podcast at fool.com. That's going to do it for this week's edition of the Motleyville Money Radio show. The show is Mixed by Dan Boyd. I'm Chris Hill. Thanks for listening.

See you next time.