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Motley Fool Hidden Gems Investing

Meta Misses, Shopify Stabilizes

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 27 October 2022

⏱️ 28 minutes

🧾️ Download transcript

Summary

On a day when Shopify and Comcast gave shareholders reasons for hope, Meta Platforms slid to its lowest level since 2016. (0:21) Andy Cross discusses: - Meta's worrisome R&D spending metric - Low expectations helping to fuel Shopify's rise - Comcast beating tough quarterly comps, thanks in part to the Minions (13:41)  Ricky Mulvey talks with Scott Ford, CEO of WestRock, a "brand behind the brands" coffee business serving up 20 million cups a day. Companies discussed: META, SHOP, CMCSA, WEST Host: Chris Hill Guest: Andy Cross, Scott Ford Producer: Ricky Mulvey Engineers: Dan Boyd, Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

We've got e-commerce, entertainment, and a consumer good stock you've probably never heard

0:09.6

of.

0:10.6

Motley Fool Money starts now.

0:11.6

I'm Chris sale joining me today.

0:22.2

It's the Chief Investment Officer Andy Cross.

0:24.8

Thanks for being here.

0:25.8

Of course Chris, happy to be here.

0:27.4

Thanks for having me.

0:28.4

We're going to dig into this more on Friday's show, but I did want to get your thoughts

0:32.8

on meta platforms because that company continues to invest heavily in building out the metaverse.

0:40.9

Those investments absolutely affected their third quarter results and shares of meta are

0:44.9

down more than 20% today.

0:47.2

Yeah, and Chris, if you think about the investments that they're making, this has been an ongoing

0:52.0

story.

0:53.0

Talking about right sizing, their employee base, but I was just looking through some of

0:59.4

the data and you guys will talk a lot about this on Friday, but with the actual results,

1:04.4

I mean, the operating margin down to 20% from 36% a year ago, that's the lowest that I

1:10.4

can remember.

1:11.4

They're operating margin being for at least for years.

1:16.1

Costs and expenses up 19%.

1:18.3

What really caught my eye, Chris, is the research and development expenses was this quarter

1:25.7

came in at 33% of revenues.

...

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