Chris Hill: Hey, everyone! Thanks for
joining us! I’m Chris Hill. Welcome to Fool global headquarters here in Alexandria, Virginia!
I am joined by the Chief Investment Officer, Andy Cross. Thanks for being here!
Andy Cross: Hey, Chris! Thanks for having me, man! Hill: We have a lot going on today. We’ve got some earnings. We’re going to be taking
your questions, so go ahead and type those into the comments section. A lot going on.
We’re here in the thick of earnings season. But Andy and the team of Motley Fool
analysts have been working around the clock, especially during earning seasons, put together
a free report of five stocks. If you’re already a member of our Stock Advisor service,
you already have access to this report. If you’re not a Stock Advisor member, hey, no problem, you
can get the report for free by going to fool.com/yt. Make it nice and easy with the URL. We’ve
got five companies in the report. We’re going to go in depth on a couple of them today.
Let’s start with Twilio. Fun name. The cloud communications platform.
Cross: What Twilio does is, they provide tools and a platform for lots of big, big clients
like Amazon and Netflix, Uber, to basically create communication pathways with their
customers. If you get a notice from Netflix, Chris, or maybe from Uber, which used to be a big
client — still a client, but used to be a really big one — that communication is all happening
with Twilio’s tools that they are providing for those engineers at those companies to
be able to build these tools. I’m proud to say, Jeff Lawson is the founder of the company
and a proud graduate of the University of Michigan. In fact, all his co-founders are
also from the University of Michigan, of which I am a graduate. They built this company,
it’s a $16 billion company today. It was founded in 2008. The stock has done just phenomenally well.
It’s growing very rapidly. So when you think about all the communications we need
to communicate with people; if you’re a business, with your contacts, your clients; the Twilio
applications are really in need. It’s a very large market. Twilio is providing these services.
They’re very flexible, and developers love them. Twilio has an amazing culture that
Jeff has built at his company, with some really fun values that they have — things like be bold,
and one of my favorites, which is draw the owl. It’s really a sign of how they think
at Twilio. We don’t know all the answers. How to draw an owl? Draw a few circles,
then figure the rest out yourself. It’s really an innovative culture that they’re building
there. It’s helping them have a business that is just growing like weeds,
and it’s showing in the stock price. Hill: Well, and you think about the job they’ve
done operating at Twilio… you mentioned a couple of companies, Amazon, Netflix.
Those are huge companies. Arguably, if they wanted to, they could build this kind of thing themselves.
I think it says something about the job that they’ve done that Twilio
has provided this solution for them. Cross: That’s great! Every time I research
Twilio, when I look at their client base, I say, “Can’t these guys just develop this
themselves?” That’s true. A new offering they have is Twilio Flex. Shopify is a very big
customer. Another company that we really like. The fact that Shopify, which is very innovative,
is using Twilio to manage their customer contacts and their relationships across thousands of
thousands of Shopify users, tells me that Twilio really is building a solution that
is sticky. It works. It’s seamless, and it’s flexible, so the engineers at these companies
can take the tools and build the solutions they want, and it’s working.
Hill: You look at this industry, who are they going up against? Clearly, as we’ve talked
about, there are plenty of companies that are willing to outsource this to Twilio.
Who are they competing against? Cross: You have to think about the really
big tech companies out there. Twilio is a tech company. Jeff founded it as a tech company.
He said he wanted to build it first round engineers, then around sales people. So they
really have this engineering culture, one other reason why I really like it. Any of
those tech companies that offer communication platforms and can provide text messaging
or email — Twilio, interestingly, just bought SendGrid, which provides email messaging,
which Twilio did not have. They recognized, “Hey, we don’t have this capability, so we’re
going to go out and buy it,” with a partner in SendGrid, which brings in a lot of customers
and gives them the capability in email communications that they didn’t have. They recognize they
don’t have all the answers. And they know there’s a lot of competition out there. But,
let’s find the people who have those solutions, and maybe bring them into the Twilio family.
I really respect that they could do that. Obviously, Slack is a communications platform,
but Twilio partners with Slack in that regard in some ways. Just thinking through the market
opportunity and the solutions they’re building makes us continue to be very
impressed and bullish on Twilio long-term. Hill: Last thing before we move on to the
second company we’re going to get into. You look at Twilio, it’s a $16 billion company.
They’ve done a phenomenal job growing that, but they are still small enough — which seems
a little odd to say about a company worth that much money — that if someone wanted
to make them a Godfather offer to acquire them, they probably could. Do you get the
sense that Twilio is in this for the long haul themselves? Do they want to stay independent?
Cross: I believe so. The company that Jeff and his team have built, at $16 billion,
phenomenal growth. Grew 77% revenues last quarter, now really starting to expand their ecosystem.
They have very high retention rates and they have revenue that is very recurring.
They continue to have these businesses that are using Twilio, relying on Twilio. It’s not profitable,
Chris. Many of the SaaS — software-as-a-service — companies are generating some cash. But,
Twilio is continuing to grow, and that profitability, I think, will come. But I don’t see them right
away looking to go into a larger family, considering the market opportunity that Twilio has.
Hill: Alright, let’s get to the second company in our report. That’s Workday. Not exactly
a household name, but pretty impressive job growing an enterprise software.
Cross: Yeah, it may not be a household name, but I’m gathering that many viewers probably
have used Workday. Workday provides human resources and financial management software
to very, very large companies. We’re talking like 40% of the Fortune 500 companies.
Your HR teams and your finance teams will use their software to manage things like payroll and
other human capital management — which sounds rather Orwellian, but it’s actually the term
that everyone uses. Things like onboarding people, staffing people, hiring people, training
people, developing people, Workday does that. They also have financial software that helps
the finance teams, being able to do their jobs much more effectively. It was
interesting, it was founded by David Duffield, who founded PeopleSoft, and Aneel
Bhusri, who is the CEO. They both worked at PeopleSoft and then PeopleSoft was acquired
by Oracle in this hostile takeover that wasn’t very friendly. Then they spun off and in 2005
created Workday. And now it’s a $40 billion company. It’s been growing exceptionally fast,
very stable. It is really just the gold standard out there when you think about this kind of
software. It has very large companies, very sticky software. When somebody uses
that software, they’re not likely to change. And Workday continues to innovate that. They spend an
amazing amount of dollars on research and development, just to continue to innovate
into their product suite and continue to offer these solutions to their clients and the customers
that will continue to keep them spending more and more money with Workday.
Hill: It seems like a similar story with Workday, like we talked about with Twilio.
Yes, this is something that certainly smaller companies can do on their own. But if Workday
is doing their job right, they make it almost a no-brainer for companies
to just outsource this to them. Cross: Oh, Chris, totally! First of all,
it’s all cloud-based, so it’s all off-premise. Subscription-based, that’s good for Workday.
But if you are a large company operating very complex systems, lots of legacy systems,
like from PeopleSoft or Oracle or others out there, and you’re looking for a much more flexible,
user-friendly interface for your employees, something like Workday is almost a no-brainer
from a cost benefit perspective. Just to be able to scale your organization, as we all
think about growing our companies, and being able to hire many, many more people
to do that, is very complex at very large levels. Workday is providing solutions for these very
large companies to be able to do it. And it’s obviously working because their retention
rates are very high, and their cash flows and their revenues are very high, too.
Hill: Alright, if you want to check out the full report, the links are in the description
of the video. You can go to fool.com/yt. And if you’re enjoying the video,
give us a thumbs up. We’d appreciate it. We’re going to get to the questions. A lot
of great questions coming in. But real quick, as I said, we’re in the thick of earnings
season. Let’s start with Microsoft. You look at their stock hitting an all-time high today.
This morning, it briefly crossed over to the $1 trillion market cap mark. It dropped back
down a little bit from then. Third quarter was really impressive. For all the talk that
we do about Amazon Web Services, and Amazon’s done an amazing job with Amazon Web Services,
Microsoft’s work with Azure has been just as impressive. Cross: Chris, almost across the line, this was just a really impressive report for such
a large company. I mean, Satya Nadella, who’s the CEO who took over a few years ago,
has just done an amazing job getting this company focused on the future. It was almost
a joke five, 10 years ago before he brought this innovation culture into Microsoft. You look
at what they’re doing with their cloud business, growing so fast. The Azure cloud particularly
was up more than 70% in revenues this quarter. The commercial cloud, the total cloud operations,
which includes Office 365 — which many, many of us use — Azure, the Dynamics cloud,
that was up 41% over the year. So this is a company that’s very large and still putting up those
kind of growth numbers. It’s really impressive. That’s not easy to do in a culture — Microsoft’s
been around for 40 years. As innovative as it was when they started, it’s hard to turn
those cultures around. What Satya has done at Microsoft is really one of the most impressive…
I wouldn’t quite call it a turnaround, but really a reinvigoration of what it takes to
survive and thrive in a world of cloud-based, distributed learning. They made the acquisition
of LinkedIn, the acquisition of GitHub. Those are all playing benefits. And we saw
so many of those benefits show up in this quarter. Hill: Well, and you talk about the reinvigoration
of Microsoft with what Nadella did with the cloud, all while they continue to make money off of
that subscription business with Microsoft Office. It’s just a cash cow for them.
Cross: It totally is. And Windows 10 now is active in more than 800 million devices.
I think it was Oprah who made a comment about a billion devices for Apple users.
Windows 10 is not small! Microsoft continues to put up these really impressive numbers in this
turnaround. Their Windows commercial business was up 18%. Gaming… if you have to pull
out one little weak spot, maybe gaming was a little bit on the soft side, and I don’t
think up to their expectations. But the rest of the line — revenues were up 14% and earnings
per share up 20%. They generated a lot of capital, they paid the dividend, bought back
a lot of stock, returned it to shareholders, and that’s one reason why
the stock price has done so well. Hill: Last thing before we get to your questions.
And keep them coming because there are some great questions coming in. Facebook.
First quarter, record revenue, record profits. This continues to be one of those companies
that I think defies expectations, certainly for investors who don’t like what’s going on with
the privacy aspect of Facebook, and maybe they’ve deleted it from their phone or closed
down their account and that sort of thing. Advertisers, though,
continue to love working with Facebook. Cross: And, Chris, I think the media loves
to talk about what happened with their FTC charge. They took $3 billion, maybe up to
$5 billion, as a preliminary charge this quarter. So much talk about that. But when you look
at the investing performance, the stock performance, the business performance, just really impressive.
Revenues up 26%. Earnings per share, not counting the FTC charge, up $1.89. More than
2.1 billion daily users of the Facebook platform. That’s Facebook, Instagram, WhatsApp. Mobile
ad revenues, Chris, as you mentioned, up 30%. They continue to, while they face these struggles —
and, I mean, I think Mark Zuckerberg and his team has to get some credit for recognizing that,
yeah, they dropped the ball on so much of this, and even the addressing of that dropped
ball wasn’t perfect, but they’re starting to get it more and more right. People continue
to use those platforms, especially Instagram and WhatsApp. And they are starting to figure
out better ways to monetize that. Like you said, the advertisers are continuing to care
more about that. I think advertising placements across all their platforms were up more than
30% this quarter. Just continued impressive metrics from the business side for Facebook.
Hill: Alright, let’s get to the questions. Let’s start with Michelle, who asked,
“What is your feeling about staying invested in Facebook with all of their ethics problems?”
This sort of speaks to what I touched on. This really hits people at a gut level when
you start to dig into who has access to your data. I absolutely understand those concerns.
But I think that, look, obviously, anytime you feel like there’s an ethical issue, then
maybe that’s not a stock you want to be invested in. But as we talked about, advertisers look
at Facebook as a must-have when they’re looking at digital campaigns.
Cross: Yeah, I think that’s right, Chris. They still have some challenges. The advertising
business will go through some challenges. We might still see some of the problems they’ve
had in the privacy really impact who wants to buy advertisers and how. But their Stories
business continues to do well. I think, Michelle, your question is really relevant. I continue
to own Facebook shares and be impressed with the way they are trying to manage this better
and better, and with the assets they have. But, Chris, you’re right. If you don’t feel
comfortable owning a company that is tied in that way to privacy,
you don’t have to own the stock. Hill: Turnips asks, “Post-earnings,
is Microsoft’s valuation too high to get into now?” Interesting question because, look, the trillion-dollar
market cap, even though they came in under that later in the day, that’s one of those
things that is such a huge number, I totally get the question. But that being said,
even though it has a market cap of, let’s round up and say it’s $1 trillion, when you look
at the stock, is the stock expensive? Cross: I don’t think so, Chris. Twilio was
up more than 3X in value over the course of a year. You’re not going to see that in
Microsoft’s stock. You will, I think, continue to see impressive returns. Don’t let the trillion-dollar
market cap [be your] focus too much, because it’s really per share that’s the most important point.
They pay the dividend, they buy back stock. That will all keep the share price
continuing to move higher, along with the growth of the business. But when you look
at the stock, Chris, it’s not really all that expensive in the confines of the tech world.
It’s actually downright cheap. It’s profitable, generates a tremendous amount of cash.
Satya is doing a lot of exciting things. So when I look at the future for Microsoft, yeah,
it’s not going to be a stock that’s going to double overnight. But I think shareholders
are going to be well-rewarded by holding on from here. And if you are interested in buying
into that growth, yeah, I think the price is reasonable here.
Hill: Koi asks, “What do you think Warren Buffett’s elephant gun is pointed at now?”
A little bit of explanation required here. Warren Buffett from Berkshire Hathaway has,
for years now, talked about his desire to make an acquisition, add another company to
the Berkshire Hathaway portfolio. He refers to his elephant gun, which is of course his
gigantic pile of cash. He’s got somewhere in the neighborhood of $80 billion he could
deploy if he wants to. But I don’t know. You look at his comments lately, it really seems
like he doesn’t see anything out there that he wants to buy because,
let’s face it, he’s not going to overpay. Cross: He won’t overpay. We did a show on
this, actually. One of our podcasts, we did a show, what might be out there. I look at
a company like maybe Sherwin-Williams. You’re looking for companies that are
probably in that $30-$50 billion range. Microsoft, much bigger than that, so I don’t think he’ll
go there. But if he does make an acquisition, I think it will be somewhere maybe in the
insurance space, or maybe in the industrials space. Not so much in the tech space.
But like you said, Chris, looking at the prices for the stocks, he’s probably thinking things
are somewhat a little bit elevated after this run. We had an amazing bounce-back in the
first quarter. So I don’t expect him to make any big announcements anytime soon on a
complete acquisition. He has certainly been patient, and certainly looking for that. I wouldn’t
be surprised if he does in the next few years. But not in the next year or so.
Hill: It’s a great question, Koi, and one that I expect will come up not this Saturday,
but the following Saturday at the Berkshire Hathaway annual meeting. For those who haven’t
seen it, Buffett is famous for him and his right-hand man Charlie Munger sitting up on stage,
taking questions from the audience for hours. Really impressive to see!
Cross: Very! Hill: Several people asking about Zoom. lot of hype
around Zoom, a recent IPO. The stock shot up. You’ve looked at Zoom, do you look
at it right in the wake of its IPO and think, “Yeah, this is something I want to buy right now”?
Or, do you want to see how they do after a couple of quarters? Cross: Great question!
Zoom is a very impressive company! I’ve read through the filings and
listened to their CEO and their founder speak. It’s very impressive. It’s profitable.
It’s growing very fast. They have a sticky business. And this is another one of those businesses,
Chris, that really has innovated in a space where you have a lot of competition that’s
really dropped the ball. Including Microsoft, including Cisco. Zoom has been able to really
do something pretty impressive there. We use Zoom here. I do think
that the stock price has performed so admirably after its IPO price,
there’s no rush to get in. On the flip side, if you do want to take a little bit of a nibble and
bite and get started in Zoom, that’s great! IPOs tend to be kind of hot, they drift off
a little bit after a few months, there’s some lockout periods when insiders can sell and
when they can’t, which puts a little pressure on the stock. You really, really have to take
that long-term perspective if you’re investing in Zoom. Don’t trade around it. If you’re
buying into it, you have to buy in for the next five years, as we think here at
The Motley Fool, because the stock will be exceptionally volatile during that time.
Hill: Well, and for those unfamiliar with Zoom, this is a video conferencing company.
I’ll just say, from a user perspective, we’ve been using them here at The Motley Fool.
The interface is incredibly easy to use. I’m not a tech person. I can use it.
They have that going for them. Cross: Yep. That’s great!
Hill: “What do you guys think about pot stocks?” Great question from Kevin!
Cross: There’s obviously a lot of conversation. It’s all over the media, of course, right up
there with the IPO market. There are some that are good, some that we like. There’s
a lot of hype out there. You have to be very particular and very careful in what you’re
grabbing. We do have some conversations and some recommendations around some of the
pot stocks. I think, generally, again, you have to take that long-term perspective. Certainly,
don’t be going down into the penny stock range, companies that are more speculative.
But in the larger cap range, there’s probably some that are going to be a little bit more
impressive and will be a winner in that space. Clearly, the market is really evolving and changing
and growing, both in Canada and the U.S. and actually around the globe as well too.
I think there are some that are going to do well. There’s a lot of speculation,
and you have to be careful. Hill: Nathan asks, “What do you guys think
of MercadoLibre? It’s up over 60% so far in 2019. Is there more room to run?”
Great e-commerce company in Latin America! Cross: Simple answer is, yes. When you look
at the MercadoLibre market cap vs. something like Amazon — I know that’s comparing it
against one of the best companies in the world — but, the opportunity to be able to grow
in Latin America and the global space, but particularly Latin America MercadoLibre.
There’s plenty of room to run. Yes, the stock has had a nice run, as many tech companies have.
It hadn’t for a while. It really struggled a little bit. And is tied to some of the global
concerns that we hear a lot about. But from a growth perspective, and really delivering
for customers, I think MercadoLibre has a lot going for it. I would expect to look out
five years and see that stock higher. Hill: We got a question from Marvin. “What do you
guys think about Amazon’s earnings report?” Amazon reported while we were
doing this, so let me just hit you with a couple of the headlines here. It looked like
a blah quarter. First quarter results for Amazon, earnings per share came in, I would say a
good 70% higher than analysts were expecting. Revenue, right in line. We were talking before
about Azure. Amazon Web Services coming in close to $8 billion dollars in revenue.
I would expect that shares of Amazon are going to be up tomorrow. But it is interesting to
see what happens on the conference calls, and the questions that analysts tend to ask
during those. But on the surface, it looks like Amazon put up a really solid quarter.
Cross: The thing that I’m really interested in when I look at the Amazon story is their
continued growth in the advertising space. Facebook, Google, Alphabet, largest advertising
platforms online, Amazon is quickly making inroads into that space and starting to grow
their advertising base on their platform as well, too. So continued conversation about
what the advertising business is going to evolve to. Clearly, as you mentioned,
Chris, we talked Azure, which is Microsoft’s professional cloud
business. The cloud business for Amazon is such a big driver of both their profits and
their growth. Listening to what they are talking about from the cloud side, but it sounds like
it was a pretty impressive quarter. I would expect the stock to be up as well, too. Maybe going
against that $1 trillion market cap of Microsoft. Hill: Yes. Rohan asks, “What’s your take on the stock market right now? What sector
should we avoid and what should we focus on?” Cross: I think overall, like I said before,
the U.S. stock market by the S&P 500 really has had one of the most impressive January
to April runs in the last 100 years or so. It was a very tough December, so it’s rebounded
very aggressively from that. Tech has really been the winner in that space. Tech continues
to be the winner. I, and I think it’s fair to say we, are bullish on the tech space and companies
that can take advantage of technology trends. All the ones we mentioned today. Twilio, Workday,
Microsoft, Facebook, and Amazon as well too. I would say, again,
if you are a long-term buyer, continue to be an investor and be
a buyer. I would say, we are thinking also, if you want to hold back some cash, 10% or
15% of your portfolio, I’m probably somewhere in the 7% to 8% range, after paying some
tax bills. But I think probably, if you want to hold some cash aside, that’s smart, because
we will see some prices drop over the next two, three years, at least. That will give
better buying opportunities from today’s prices. Hill: I’ll just add that it seems like one
of the stories we talked about in 2018 was consumer products, packaged goods. That was
such a troubled industry last year. It seems like things have turned around a little bit
for the industry this year. In terms of industries to avoid, if we were having this conversation
last year, I would put that on the list. I don’t think that’s
necessarily on the list anymore. Cross: Chris, you’re kind of sticking the
knife in my back there. We have a Long Short service that is short some of the stocks.
And it’s been painful. Really, you look at Hershey, Conagra, a lot of these companies
— outside of Kraft Heinz, which is by far the worst performer in that group, when you
think about the challenges they face in the secular side. But what they’ve been able to do,
though, is maintain prices. That was actually a very big surprise. From an innovation
perspective, going against lots of other younger, private consumer products goods companies,
that’s a challenge for them and will be. Speaking of trouble and challenges innovating,
they do have those. But they’ve actually had some pricing power, and been able to raise prices.
And that’s actually kept a lot of the growth — and that’s all profit for them.
They’ve exceeded a lot of the analysts’ estimates, and that’s been good for their stocks.
Hill: Great point! It’s one of the things that we love to see here at The Motley Fool,
is companies that have pricing power. It’s the thing Warren Buffett himself has said,
he loves to see that quality in a business. We’ve certainly seen that with businesses
like Apple, Costco and their ability to raise their membership fees over time. You’re right,
we actually don’t really think of consumer products companies as having a lot of pricing power.
And certainly, in the case of Procter & Gamble over the last couple of quarters,
they have flexed that muscle. That’s been a nice surprise for shareholders.
Cross: Yeah. You just think about, from a private label perspective, when you go to
the grocery store, for example, you see a lot of private labels out there. That’s been
a struggle for them, to be able to compete against those. That was one of the thesis
last year. And I think it’s still accurate. But, with the low inflation — they’ve had
the ability to be able to do it over the last quarter or so, and that’s
shown up in the stock price. Hill: Several people are asking,
“What do you guys think about Snap?” Is it finally time to give Snap a chance?
Cross: Uh, I don’t think so. This is my personal opinion. I just don’t think it’s one that
I would want to be chasing at this level. Speaking of the competition they’re facing,
just the challenge they’re going to have to continue to grow that system, to find
growth there. We saw a really nice number from a report from Twitter this week. Otherwise,
though, these platforms that are facing these bigger gorillas in the likes of Facebook
and others, I think it’s just going to be a tough space to play, so it’s not
one that I’m interested in looking at. Hill: Nolan asks, “There are a lot of messages
in the chat box on YouTube about Chinese stocks, but nobody’s mentioning Tencent, what gives.”
I think that’s really more a question for the other people who are watching, Nolan. Cross: [laughs] Probably. Hill: What do you think of Tencent?
Cross: The whole Chinese market in general, not this year, but over the past year or so,
it’s really been struggling as they’ve been finding their sea legs in a slower growth market.
It’s been hitting some of the Chinese stocks, many that we like and still look at
long-term as being good investments. I think Tencent captures there. I mean, just talk
about the big gorilla in that space for China. Tencent jumps to the list. And that’s not
going to slow down anytime soon. Hill: Brian asks, “What are your thoughts
about Pinterest?” Another recent IPO, did pretty well.
Cross: It did, yeah. It’s done very well. I can’t remember the numbers off the top of
my head here. It’s an interesting business. We just put out a report taking a look at it.
We don’t have a recommendation on it. I think, again, when you look at
the consumer tech space, if you’re trying to find companies that truly have that edge, that uniqueness,
Pinterest does jump out. Snap, I would have thought that might have been one, but when
you start digging under the value for them, that quickly evaporated. But Pinterest has
some real advantages there. It’ll be interesting to see how they actually
evolve and grow that business. Hill: It will be interesting to see.
It’s worth pointing out, Pinterest went public just in the last few weeks at about $16 a
share. It’s now around $28 a share. Important to always remember that when a company gets
ready to go public, the documents they’re putting together — I’m not saying they’re
falsifying. They’re not falsifying. But they are dressing those up. They want those numbers
to look as good as possible so that when they go public, there is that interest. It’s very different
to be a public company than a private company, which is why a lot of times we say,
you want to see how they do those first couple of quarters — in part, how they
deal with questions from Wall Street. Cross: I think that’s a great point, Chris.
They certainly are talking to bankers and talking to investors behind the scenes.
But once you get out in the public markets, it’s different. Stocks start trading on things
that you might not expect them to be trading on. I think Pinterest, from a user perspective,
and from a uniqueness perspective, has a lot of assets going there. It’s not one that
I own or have recommended. Again, it’s so early in the public markets. But, watching how it
evolves and how the management team evolves as a public company is an important point
for all IPOs, whether you’re Pinterest or whether you’re Zoom or whomever.
Hill: Alright, last question, then we’re going to have to wrap it up. Mason asked,
“What is your favorite non-tech stock?” I’ll just say from my perspective, my favorite
non-tech stock is Starbucks. I don’t know what technology is going to look like in 40
years, but I’m pretty sure I know how coffee is going to get into my system in
40 years: the same way it does now. Cross: [laughs] Yeah, exactly! And not just
coffee, Starbucks is doing a lot of other things besides coffee, but that primarily.
And coffee prices have just dropped like a stone. That’s going to probably help their
business overall. One business that we like that’s a smaller business that is really not
tech at all is Ollie’s Bargain Outlet, ticker OLLI. It runs what they call semi-lovely discount
stores, mostly here on the East Coast. Looking at that company, how they are growing
and how their founder is growing that business, owns a significant amount of stock and has
long-term interest in seeing that business succeed. That’s a really interesting and fun
company to follow. Not many stores and not many states, so a lot of room to expand.
Hill: Alright, Andy Cross, thanks so much for being here!
Cross: Thanks, Chris! Hill: Thanks everybody for watching! We really
appreciate it! Again, check out that report, five stocks. You can go to fool.com/yt to
get all five stocks in the free report. I’m Chris Hill. Thanks for joining us!
And we’ll see you next time!