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Motley Fool Money

New Highs for Alphabet, Amazon & Microsoft

Motley Fool Money

The Motley Fool

Business, Investing

4.43K Ratings

🗓️ 23 October 2015

⏱️ 39 minutes

🧾️ Download transcript

Summary

Alphabet, Amazon, McDonald's and Microsoft hit new highs. Valeant Pharmaceuticals plummets. And Oprah gives Weight Watchers a boost. Our analysts discuss those stories and share three stocks on their radar. Plus, CNBC's Kayla Tausche talks big banks, Square IPO, and Star Wars.

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 Cillin, joining me in studio this week

0:23.0

from Motley Fool Rule Breakers and Million Dollar Portfolio Simon Erickson and

0:26.0

for Million Dollar Portfolio Jason Moser and Matt Argus Singer. Could you see it?

0:30.0

It's always gentleman. We have got some blowout earnings from Wall Street,

0:34.0

Kayla Towshey from CNBC as our guest and as always we're giving inside look at the stocks on our radar.

0:39.0

We began last week's show with Walmart. This week we begin with the only retailer that is bigger.

0:44.0

And that's Amazon. The company reported a third quarter profit when Wall Street was expecting a loss

0:50.0

and the stock hitting an all time high on Friday Jason. This wasn't one of those beat by a penny

0:56.0

kind of profit quarters. This was just destroy expectations quarters.

1:00.0

No, there wasn't really any question. I'm glad you led off with Walmart.

1:03.0

It's funny, just at the end of July we were making a big deal about how Amazon had surpassed Walmart in market cap.

1:10.0

I mean, Amazon is now a clean $100 billion bigger after this.

1:15.0

Yeah, I mean, it's just like in the blink of an eye. I think the headlines we're talking about are Amazon Web Services.

1:23.0

And to be sure, I think that's the big story with Amazon today. They lifted a hood a few quarters ago to give us a better idea of how big it is, how big it will get, how profitable it is.

1:32.0

And it was responsible for more than half of the total segment operating income this quarter.

1:38.0

The thought that one day Amazon Web Services could actually surpass Amazon's core retail operations is pretty amazing to think about.

1:46.0

And I think the market certainly is looking at that as a possibility. It's at a run rate today of about $7.5 billion in revenue and very profitable operating margin at the 25% range.

1:55.0

The one thing I want to call out here though, I think it kind of slips under the radar is, you know, Amazon does a very good job with its third party selling a platform where they're kind of helping other people sell things.

2:07.0

And so, you know, we saw a big reduction in sort of in operating expenses this quarter versus last quarter is four to five percentage points lower.

2:17.0

And a lot of that was due to this growth in the third party sellers, which continues to whittle away at that expense side and really helps boost the profitability of their retail operations.

...

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