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Motley Fool Hidden Gems Investing

Netflix, Tesla, and the State of the Movie Business

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 23 October 2020

⏱️ 39 minutes

🧾️ Download transcript

Summary

Intel falls on a big drop in its data center business. Netflix reports its weakest subscriber growth in 4 years. Tesla reports its 5th consecutive quarter of profitability. Southwest Airlines rises despite reporting its biggest loss ever. Chipotle falls despite a surge in digital sales. Procter & Gamble hits an all-time high. Boston Beer gets a big boost from hard seltzer and Twisted Tea. Coca-Cola reports better-than-expected profits. Quibi calls it quits. And Jack in the Box serves up chicken-scented face masks. Motley Fool analysts Ron Gross and Jason Moser discuss those stories, weigh in on some recent dividend hikes, and share two stocks on their radar: Ameris Bancorp and CRISPR Therapeutics. Plus, corporate governance expert and film critic Nell Minow shares some surprising insights on the state of the movie business. 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 Ron Gross.

0:24.0

Good to see you as always, gentlemen. Hey, you're doing Chris.

0:27.0

We've got the latest headlines from Wall Street. Nell Minnow is our guest. And as always, we've got a couple of stocks on our radar.

0:33.0

But we begin with a couple big names in technology both down around 10% this week.

0:40.0

Intel's data center business was weak in the third quarter. And that brought the stock down on Friday.

0:47.0

You tell me, Jason, how bad is this?

0:50.0

Well, so I mean, it could be worse. It's obviously not been a very good year to date for Intel.

0:59.0

I mean, their transition from being a PC based company to becoming a data center, a centric company is certainly presenting its fair share of challenges.

1:08.0

Now, with that said, as much pessimism that is out there right now, there could actually be a value play developing year for you value investors out there.

1:15.0

So Ron, take note.

1:18.0

I got my pen. As you mentioned, Chris, data centric revenue, eight and a half billion dollars. That was down 10% from a year ago.

1:25.0

And they attributed a lot of that to code really weaknesses. PC centric revenue, basically flat. Nothing really to write home about.

1:32.0

But the thing is, if you go back just a quarter ago to July, they recorded 34% growth in the data center inside of the business.

1:39.0

PC centric grew 7%. So clearly, they're running into some head ones there. They're seeing some weakness in the Internet of Things department there.

1:49.0

The revenue fell 33% operating income down 80%. Again, they're attributing all of this related to COVID related demand, we just said there's something to that.

1:58.0

But remember, they also remain behind the pack on that seven nanometer chip pushing that that farther and farther out.

2:05.0

I think that you've got this sort of confluence of events here where there's potentially going to be more consolidation in the space, right?

2:12.0

You've got Nvidia and ARM merging rumors floating around with potential potential type between AMD and Xylanks.

2:19.0

They're going through rough stretch, but again, I think this is temporary. It seems like a timing thing. It's a big company with a lot of capabilities. So they're down, but I wouldn't count them out yet.

2:30.0

So the numbers of Netflix are up more than 200% over the past year, but they gave some of that back this week.

...

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