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Motley Fool Hidden Gems Investing

Costco, Tesla, and Temptation Bundling

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 25 September 2020

⏱️ 39 minutes

🧾️ Download transcript

Summary

Costco reports strong growth but shares slip. Nike just does it. AutoZone revs up revenues. Stitch Fix gets slammed. Tesla generates some buzz from Battery Day. Nikola founder and Chairman Trevor Milton abruptly resigns. Quibi explores strategic alternatives. And Amazon unveils an indoor drone security camera. Motley Fool analysts Andy Cross and Jason Moser discuss those stories and share two stocks on their radar: Unity and Inspire Medical. Plus, Wharton Professor and consumer behavior expert Katy Milkman talks temptation bundling and how an increase in temperature makes us bad at shopping. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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

0:07.0

From full global headquarters, this is Motley Fool Money.

0:19.0

It's the Motley Fool Money Radio Show. I'm Chris Hill joining me this week. Jason Moser and Andy Cross. Good to see you, gentlemen.

0:25.0

Hey Chris.

0:27.0

We've got the latest headlines from Wall Street. We'll talk financial behavior with Wharton Professor Katie Milkman.

0:32.0

And as always, we've got a couple of stocks on our radar. But we begin with big retail.

0:37.0

Costco's first quarter report was pretty much everything a shareholder could want.

0:42.0

Profits and revenue were higher than expected. Digital sales nearly doubled.

0:47.0

Same store sales up more than 11%. And Jason shares down a little bit on Friday.

0:54.0

Are we not entertained?

0:58.0

Well, I mean, it was definitely entertained. It was a good quarter.

1:01.0

And yeah, the market market is selling the stock modestly. I wouldn't read too much into it.

1:07.0

I think part of the market's reaction here is we're pretty far into this pandemic.

1:12.0

And I think we're closer to things getting back to somewhat normal or at least we're seeing that trend.

1:19.0

And so that ultimately means that shopping behaviors are going to start to normalize to a degree.

1:24.0

And I think the big question and maybe the question that the market's focused on really is,

1:29.0

will Costco be able to hold on to the current behavior and then keep growing from here?

1:33.0

Or is there going to be some kind of a reset for the business and going to the performance that you were talking about there?

1:40.0

I mean, share earnings per share of $3.13 versus $2.47 a year ago.

1:46.0

Very strong. Fourth quarter membership fee income up modestly from a year ago.

1:51.0

Total paid households though. I thought this was really impressive.

1:54.0

Total paid households at the end of the quarter came in at $58.1 million.

...

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