meta_pixel
Tapesearch Logo
Log in
Motley Fool Hidden Gems Investing

Amazon's Investments, Tesla's Surprising Profit

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 25 October 2019

⏱️ 41 minutes

🧾️ Download transcript

Summary

Amazon slips as one-day shipping costs rise. Microsoft climbs higher thanks to growth in the cloud. Tesla generates its best day in six years. Southwest Airlines reports record earnings despite MAX headwinds. And Biogen surges on encouraging results from a discontinued Alzheimer’s drug. Motley Fool analysts Emily Flippen, Ron Gross, and Jason Moser discuss those stories and weigh in on the latest from eBay, Hasbro, Hershey, PayPal, Twitter, and Visa.  Plus, we debate overrated and underrated Halloween candies and share three stocks on our radar. Thanks to Molekule for supporting our channel. Get 10% off your first air purifier at http://www.molekule.com with code fool10. Get $50 off your first job post at www.LinkedIn.com/Fool. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0

This week's Monty Full Money is brought to you by Molecule. Molecule is reimagining the future of clean air starting with the air purifier.

0:07.0

For 10% off your first air purifier, visit Molecule.com. That's M-O-L-E-K-U-L-E.com and enter the promo code full10 at checkout.

0:18.0

Thanks also to LinkedIn. LinkedIn Jobs uses knowledge of both hard and soft skills to match you with the people who fit your role the best.

0:27.0

Post a job today at LinkedIn.com slash fool and get $50 off your first job post.

0:34.0

Everybody needs money. That's why they call it money.

0:42.0

From fool global headquarters, this is Motley Full Money.

0:52.0

It's the Motley Full Money Radio Show. I'm Chris Hill, joining me in studio this week's senior analyst Jason Moser, Emily Flippin and Ron Gross. Good to see you as always.

0:59.0

We've got the latest earnings from Wall Street. We will dip into the full mailbag.

1:04.0

And as always, we're giving an inside look at the stocks on our radar.

1:07.0

Earning season, in full swing, we're going to begin with Amazon. The e-commerce giant sold $70 billion worth of stuff, Jason, in the third quarter.

1:16.0

But profits were lower than expected due to all of the investments that Amazon has been making. Interesting to see.

1:22.0

You look at the stock after hours. It was down nearly 10% when the trading day opened. It basically stabilized.

1:29.0

Yeah. And having gone through the report and the call, I mean, I appreciate that the market has come to its senses.

1:34.0

I mean, maybe it's not an ugly quarter if you mean to do it, right? I mean, it's all a matter of percent.

1:40.0

I got it right down. I'm going to do that.

1:42.0

Listen, Amazon, you said it. They grew their revenue. The revenue grew 24% of the quarter. 70 billion dollars in sales.

1:48.0

I mean, this is a behemoth. We know what they're capable of. Given the market opportunity, I mean, I don't understand how you can justify not owning this stock.

1:57.0

And so I do understand the knee jerk reaction from the market when you look at the profitability picture.

2:05.0

In to compare the margins from 2018 to 2019. And I keep track of these operating margins operating margins in the North American segment fell from 5.9% to 3%.

2:16.0

Operating margins internationally improved slightly, but Amazon web services were down from 31.1% to 25.1%. So while they're bringing more on the revenue side, they're spending more on the investment side.

2:29.0

That makes a lot of sense. I mean, they've made this move to one day shipping. They said it's resulting in more orders and more spending. We like to see that.

2:37.0

We're seeing another lever coming to light here in the advertising. And in line with that advertising, I was really impressed to see that the fire TV franchise here, all of these devices that support this fire TV platform, they've got more than 37 million active users worldwide.

...

Please login to see the full transcript.

Disclaimer: The podcast and artwork embedded on this page are from The Motley Fool, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of The Motley Fool and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.

Copyright © Tapesearch 2026.