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Motley Fool Hidden Gems Investing

Retail, Tech Earnings, and Berkshire’s Surprising Buys

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 19 February 2021

⏱️ 39 minutes

🧾️ Download transcript

Summary

Walmart shares slip on earnings. The Trade Desk surges on record revenue. Roku rises on an unexpected profit. Fastly falls on growth concerns. Shopify slips. CVS Health treads water. Berkshire-Hathaway makes some big investments. And Marriott suffers a big loss with the death of its CEO, Arne Sorenson. Motley Fool analysts Ron Gross and Jason Moser discuss those stories and weigh in on autonomous driving, big tech break-ups, and the streaming wars. Plus, Ron and Jason share two stocks on their radar: Bluebird Bio and RadNet. 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.

0:10.0

It's the Motley Fool Money Radio Show. I'm Chris Hill joining me this week.

0:22.0

Senior Analyst Jason Moser and Ron Gross. Good to see you as always, gentlemen.

0:26.0

Hey, hey, doing Chris. We've got the latest headlines from Wall Street.

0:30.0

We got something special planned because it is our twelfth anniversary if you can believe it.

0:35.0

Woohoo! And as always, we've got a couple of stocks on our radar.

0:38.0

But we begin with big retail. Walmart's fourth quarter was full of highlights.

0:43.0

Ecommerce sales up nearly 70%. Same store sales in the US up more than 8%.

0:49.0

But despite that, Ron, shares of Walmart fell 6.5% on Thursday.

0:54.0

That seems like a big drop for a business like Walmart.

0:58.0

Yeah, you know, earnings disappointed as did guidance.

1:01.0

And the report was perfectly fine, but this is not a high-flying tech company.

1:05.0

So we can't expect those kind of numbers out of it, especially once we get back to normal post-COVID.

1:10.0

But the numbers are great. Walmart comp sales up almost 9%. Ecommerce 69%.

1:15.0

Sam's Club. I'm a Costco guy, but hey, Sam's Club does a nice job as well.

1:20.0

Sales increased to almost 11% there, and international was up 5%.

1:24.0

So you kind of boil that all together, and you get revenue up 7%,

1:28.0

which is a perfectly respectable number for a business, a retail business, the size of Walmart.

1:33.0

And you even saw gross margins increase as there was strength really across all categories.

1:38.0

Now, we had some higher expenses. Operating margins took a hit.

1:42.0

That we see consistently across the board, partly as a result of COVID.

...

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