Compounders Past vs Present

Motley Fool Money

The Motley Fool

Business, Investing

4.4 • 3K Ratings

🗓️ 5 August 2025

⏱️ 22 minutes

🔗️ Recording | iTunes | RSS

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Summary

From overvalued stocks to outsized returns, some capital compounders keep breaking the mold. Today on Motley Fool Money, Emily Flippen, with analysts Sanmeet Deo and Jason Hall, dig into four market beaters and ask: can the flywheels keep spinning? They unpack: - Earnings from old-school winners Axon and MercadoLibre, including how they turned skeptics into believers with consistent execution - Results from new-school contenders Hims & Hers and Palantir, both of which face high levels of scrutiny despite strong performance - Tariff math that matters and where pricing power may blunt cost headwinds Companies discussed: MELI, AXON, HIMS, PLTR, ZBRA Host: Emily Flippen, Sanmeet Deo, Jason Hall Producer: Anand Chokkavelu Engineer: Dan Boyd, Natasha Hall Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. Learn more about your ad choices. Visit ⁠megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	earnings from four companies that have the market beat by triple digits.
0:09.0	But are they still growing fast enough for investors?
0:11.5	Find out today on Mottley Fool Money.
0:20.7	I'm Emily Flippin, and today I'm by analyst Sanmite Deo and Jason Hall to talk about
0:25.3	capital compounders. They're businesses that have reinvested for growth so rapidly that
0:30.1	earnings and their market values have just snowballed over time. We have earnings out from two of
0:35.1	these new school compounders that we'll discuss.
0:37.9	But first, let's talk about some of the old school compounders that reported last night,
0:42.4	both of which that have been defying that overvalued label for years.
0:47.2	A quintessential element of being a rule breaker investment is being called overvalued.
0:51.7	Send me, let's start with Axon.
0:53.7	Axon enterprises just posted its 29%
0:56.6	revenue growth with over $1.2 billion in annualized recurring revenue. They have contracted
1:02.3	bookings growth of 43% year-over-year. Management also, once again, raised guidance.
1:08.7	Now, when I rewind to August 2020, I find a seeking alpha article that
1:13.6	claimed despite the strong unit economics of Axon, the stock was too expensive at around $80 a share,
1:19.8	and that its intrinsic value is closer to 74, quote, at best. Today, Axon, after earnings,
1:26.0	trades for over $800 a share. What are your takeaways here?
1:30.2	Yeah, you know, this stock over a five-year period has grown 704%. And that is really because of a
1:38.2	consistent, strong execution and a powerful business model that's almost like a razor, razor
1:43.1	blade model where they're
1:44.5	selling hardware and offering high margin subscription software, cloud software, to complement that
	...

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