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Motley Fool Hidden Gems Investing

The Business of Baby Yoda

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 21 February 2020

⏱️ 41 minutes

🧾️ Download transcript

Summary

Walmart reports strong e-commerce growth but has problems with fun and games. Dropbox surprises investors and aims for profitability by the end of 2020. Domino’s delivers again. And McDonald’s introduces Quarter Pounder-scented candles. Motley Fool senior analysts Ron Gross and Jason Moser, and Jeff Fischer of 1623 Capital, discuss those stories and weigh in on the latest from Amazon, Boston Beer, Stamps.com, Texas Roadhouse, and Virgin Galactic. Plus, the guys share three stocks on their radar: Pinterest, Synaptics, and Hasbro. And toy expert Chris Byrne analyzes the current state of the industry and the business of Baby Yoda.   Click here to take our brief listener survey, and thanks for helping us out! 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 Full Money.

0:18.0

It's the Motley Full Money radio show. I'm Chris L. Joining me in studio this week.

0:22.0

Senior analyst Jason Moser and Ron Gross and from 1623 capital, Jeff Fisher.

0:27.0

Good to see you as always, gentlemen.

0:29.0

Hey, you know, we've got the latest headlines from Wall Street.

0:31.0

We will dip into the full mailbag. And as always, we've got a few stocks on our radar.

0:35.0

But we begin with big retail. Walmart's fourth quarter profits in revenue came in a little bit lower than expected this week.

0:43.0

Holiday quarter. I don't know, Jeff. This is what we saw with targets.

0:48.0

Holiday quarter in that bizarrely the video games and the toys. They didn't do that well.

0:54.0

Big retail, not big excitement, though. Yeah, Chris sales were, same store sales were only up about 2% in the fourth quarter.

1:02.0

And basically for the whole year, 2.8% same store sales. Walmart, US.

1:07.0

So you're seeing this business, which is giant. I mean, Walmart has 520 billion in annual revenue.

1:13.0

They're able to grow revenue by low single digits year over year. That's their goal now. That's their hope.

1:20.0

But as you said, Chris, retail toys didn't do that well over the holidays.

1:25.0

And we can talk about why that might be. But groceries did well. E-commerce did well.

1:29.0

And overall, as long as same store sales are in the green, Walmart is still a relevant business.

1:37.0

I think it was neat to see the performance in grocery because we talked before about how Walmart,

1:41.0

you know, I don't think a lot of people really make that immediate connection.

1:45.0

I mean, it really is. I mean, grocery is responsible for the half of all US sales.

1:50.0

And then on top of that, when you see Warren Buffett's recent big investment in Kroger,

1:55.0

I mean, a lot of interest in the grocery space there as well. I mean, when you've got Walmart and Kroger,

...

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