Podcast Summary
Apple and Starbucks report strong financial performances: Effective communication and innovation contribute to business success as shown by Apple's 17% revenue growth and 34 million iPhone sales, and Starbucks' 34% profit growth and 7% increase in global same-store sales
Effective communication skills are essential in business and life, and the Think Fast, Talk Smart podcast can help individuals hone these skills. Apple, the world's largest company, continues to grow, despite concerns over margins. With revenue up 17% and 34 million iPhones sold, Apple remains a significant player in the tech industry. Meanwhile, Starbucks reported impressive earnings, with 34% profit growth and a 7% increase in global same-store sales, most of which came from increased traffic. These companies' strong financial performances underscore the importance of effective communication and innovation in business success.
Starbucks Opens 500 New Stores, Facebook Reports Impressive Revenue Growth, LinkedIn Surprises with a Loss: Starbucks expands with 500 new stores, Facebook reports strong mobile sales, LinkedIn experiences a loss but maintains growth potential
Starbucks continues to expand its store count, opening 500 new locations in a quarter, bringing them close to 20,000 worldwide. They also have over 1000 stores each in China and Japan, with plans for significant growth. Starbucks also announced a 24% dividend hike. On the other hand, Facebook reported impressive revenue growth, with mobile sales accounting for nearly half of total ad sales. However, CFO David Fischer revealed that Facebook won't be ramping up news feed ads as fast as expected, causing a stock dip. Additionally, there's a concern about declining usage among younger teens, although the impact on Facebook's long-term growth remains uncertain. Meanwhile, LinkedIn reported a small loss in Q3, surprising investors. Despite this, LinkedIn now has nearly 200 million members, representing a significant opportunity for growth. Overall, both Starbucks and Facebook show potential for continued expansion, while LinkedIn faces a slight setback.
High growth stocks facing sell-offs during earnings season: High growth stocks with high valuations face sell-offs if earnings don't meet analyst expectations. However, their business models, diversified revenue streams, and continued growth make them promising investments.
During earnings season, high growth stocks with high valuations are experiencing significant sell-offs if their guidance for future quarters does not align with analysts' expectations. This was evident in LinkedIn's case, which reported a 56% increase in sales but only guided for a 37% increase in the next quarter. Despite this, the company's business model, diversification of revenue streams, and continued growth are still promising. The focus on adding corporate clients, which numbered around 1700 in the latest quarter, is often overlooked by mainstream financial media. Buffalo Wild Wings, on the other hand, reported impressive 3rd quarter profits with a 67% increase and revenue growth of 28%. The company's ability to execute flawlessly, even with volatile input costs, is a testament to its leadership. The success of these companies, despite potential hiccups, underscores the importance of long-term investment strategies.
Baidu's Mobile Investments and Expansion: Baidu, the Chinese search engine leader, is seeing revenue growth through mobile investments and expanding to other countries, while Lays introduces a new milk chocolate dipped wavy potato chip product in response to popular trends.
Baidu, the dominant search engine in China with an 81% market share, is heavily investing in mobile and seeing significant revenue growth, despite a slight increase in profits. With over 1.2 billion mobile phone users in China, Baidu's upside potential is huge, and its stock has nearly doubled over the last 12 months. Although Google faces challenges in making inroads into China, Baidu is expanding into other countries. Meanwhile, Lays, the largest maker of salty snacks in America, is introducing milk chocolate dipped wavy potato chips, which could be a moneymaker for its parent company Pepsi. Despite the higher price tag, the combination of potato chips and chocolate is a popular trend, and the new product seems like a natural follow-on to the successful chocolate covered pretzels. This week on the show, we welcome special guests Mac Greer's parents and an interview with Motley Fool co-founder David Gardner.
Discussing upcoming earnings reports for LeapFrog, BofI Holding, and Tesco: LeapFrog eyes holiday earnings, BofI Holding shows growth, Tesco offers high dividend and Berkshire Hathaway backing
The hosts of Motley Fool Money discussed several stocks on their radar for the upcoming week, including LeapFrog, BofI Holding, and Tesco. LeapFrog, a maker of educational games for children, is looking forward to reporting earnings during the holiday season, despite recent underperformance. BofI Holding, the virtual bank, has shown impressive growth and reports earnings this week. Tesco, a large retailer from the UK, has a high dividend yield and Berkshire Hathaway as a significant shareholder. David Gardner, Motley Fool co-founder, will be sharing his experience of having picked a stock that went up 100 times in value, which turned out to be Amazon. The hosts also mentioned their personal connections with some of the companies and looked forward to upcoming earnings reports.
Market's current state: A natural progression for long-term investors: Patience and focus on the big picture are essential for successful long-term investing, even during market volatility.
Even though the market is hitting new all-time highs and has been for the past two months, it's a natural progression and not a cause for immediate concern for long-term investors. The speaker, who has been investing for nearly 30 years and plans to continue for at least another 40, feels good about the market's current state as it means their advice has been successful for their members. However, it's important to remember that language used to describe market movements can be imprecise. For instance, a stock only "tumbles" if it experiences a significant loss, such as 10% or more in a single day. Additionally, when looking back at old investment reports, it's striking to see what wasn't foreseen. In the case of Amazon, which was first recommended in a report in 1997, the innovation that has since occurred was not anticipated. Ultimately, the key takeaway is that successful long-term investing requires patience and a focus on the big picture, even when faced with market volatility.
The Importance of Patience and Visionary Leaders in Long-Term Investing: Patience and faith in innovative, visionary leaders who stay committed to evolving their companies can lead to successful long-term investments, even if initial success is not predicted. Staying focused on a company's core business is also crucial.
Becoming a successful long-term investor requires patience and faith in innovative, visionary leaders who stay committed to evolving their companies. Amazon, which has been a top investment for the last couple of decades, took 16 years to make 100 times the initial investment. The company's success was not predicted in the early days, with cloud computing being an unimagined concept back then. However, the absence of mention of Amazon's music revenue source in a 6,000-word write-up highlights the importance of staying focused on the company's core business. Regarding The Washington Post, the Graham family's sale of the institution to Jeff Bezos was a significant event for someone growing up in Washington, D.C. While there might have been a sense of nostalgia, the sale to a respected figure like Bezos was ultimately seen as a positive development. Similarly, Reed Hastings' caution on Netflix's stock performance should be viewed as a conservative business tactic rather than a cause for concern. Finally, the impact of streaming services like Netflix on traditional networks, such as AMC, highlights the importance of adaptability and innovation in the media industry.
Netflix's Impact on Television and Content Business: Netflix's role in reaching audiences and providing access to content is growing, with some arguing that the cost of producing and acquiring content is decreasing due to the increasing supply.
The relationship between streaming platforms like Netflix and traditional television networks is evolving, with Netflix playing an increasingly important role in reaching audiences and providing access to content. Vince Gilligan, the creator of Breaking Bad, has publicly acknowledged Netflix's impact on his show's success. While some may view the business of producing and acquiring content as becoming more expensive, David Gardner argues that the opposite is true. He believes that the supply of content is increasing, leading to lower prices. This misconception could benefit Netflix as it continues to grow and adapt to the changing media landscape. Additionally, Gardner shared that as an investor, he tends to hold onto stocks, even during tough times, as long as the company is performing well. He sells the underperformers and waits for bad news before making a sale. Despite Netflix's rough patch, with a decline in subscribers and stock value, Gardner believes that the business itself continued to operate effectively during that period.
Focus on long-term potential, not IPO hype: Investors should look beyond IPO hype and focus on a company's long-term potential and alignment with investment thesis. 2013 has seen a record number of IPOs, but investors should exercise caution and consider the future developments of companies like Nike and Under Armour in the wearable technology trend.
Investors should focus on the long-term potential of companies, rather than getting caught up in the hype of initial public offerings (IPOs). The speaker emphasizes that they don't sell often and instead look for future developments that align with their investment thesis. He also mentions that 2013 has been a record-breaking year for IPOs, with the New York Stock Exchange announcing special measures to ensure a smoother process than the Facebook IPO. While the Twitter IPO is expected to be a big event, the speaker expresses that he might not buy on the first day. He also discusses the potential of wearable technology and suggests that companies like Nike and Under Armour could be worth considering, as they have a strong presence in the market and the trend towards wearable technology is expected to continue. Overall, the key takeaway is that investors should look beyond the short-term hype and focus on the long-term potential of companies and industries.
Understanding the Future: Wearable Technology and Investing: Investing in wearable technology companies can provide insights into future market trends, but it's crucial to consider the company as a whole.
Wearable technology is an emerging field with both small pure plays and large companies investing in it, indicating the potential for significant growth in the future. David Gardner, Motley Fool co-founder and chief rule breaker, suggests wearing and investing in wearable technology to gain a better understanding of the direction the world is heading. Companies like Jawbone, Nike, and Google are already making strides in this area, with Google Glass being a small but significant part of Google's revenues. However, it's essential to recognize that investing in a company solely based on its wearable technology offerings may not guarantee a return specifically related to that technology. Instead, it's crucial to consider the company as a whole. As Gardner puts it, "we invest in order to predict the future," and keeping an eye on emerging technologies can provide valuable insights into where the market is headed.
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