In this week's episode of Industry Focus: Tech, Fool.com tech analyst Dylan Lewis and contributor Evan Niu check in on two of the biggest tech companies that just won't slow down. Some talking points:
- some of the most important metrics and trends from both reports, breaking each company down by business segments;
- why Amazon.com's (AMZN 2.07%) cloud and advertising businesses are so important;
- what the wearables segment means for Apple (AAPL 2.14%) and the market at large;
- checking in on Apple's recent share repurchases;
- what we know about coronavirus' effects on Apple;
- where Amazon is investing for growth;
- why it's not too late to buy in, even though these companies are at all-time highs;
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
This video was recorded on Jan. 31, 2020.
Dylan Lewis: It's Friday, January 31st, and we're talking about amazing quarters from Amazon and Apple. I'm your host, Dylan Lewis, and I'm joined by Fool.com's Evan Niu. Evan, we're both shareholders of Apple and Amazon. It's kind of fun to see the earnings reports come in from companies that you know, especially when they're good.
Evan Niu: Yeah, this was a pretty stellar quarter for Apple. I mean, if a company this big, posting numbers this impressive, it was just a complete blowout in every way.
Lewis: They are one of those companies that seems to defy the law of large numbers, the idea that growth gets harder and harder the bigger you get because the denominator gets larger and larger. And yet, to your point, total revenue up 9% to an all-time record, almost $92 billion. That's insane.
Niu: Right. In other words, they sold over $1 billion worth of stuff every single day throughout the quarter on average, which is just kind of incredible to think about. [laughs]
Lewis: Yeah, you can't really put it in those terms for too many other companies.
Niu: And the ones who can are like Walmart, who sells everything, and then ExxonMobil, which sells gas, which you need for your car.
Lewis: Yeah. Apple's been in pretty good company there. Record on the top line with revenue growth that we saw. Also another record on the bottom line, net income over $20 billion, $22.2 billion, or $5 a share. Some pretty impressive stuff, especially given that the narrative for this company has been the real stalwart business for them, the iPhone business, has struggled a little bit in the past couple years compared to the insane growth that we saw maybe five years ago.
Niu: Right. Throughout 2019, every quarter, they're posting these quarterly declines pretty much every single report. So now, the iPhone business has returned to growth. Of course, they don't disclose units anymore. But iPhone revenue was up 8% to $56 billion. And that's really being driven by iPhone 11, not the Pro models, because the iPhone 11, the standard $700 one, is really just selling very well. It's been the top selling model every week, according to CEO Tim Cook. And we've been hearing lots of third party reports to that effect, saying that the device is selling really well in China, really well in pretty much every market around the world. So, that device is just doing really well. And now the installed base of active devices has now reached 1.5 billion, which is up 100 million from a year ago.
Lewis: Again, just a staggeringly crazy high number for a company to reach. That's insane market penetration. We like to talk about iPhone, and we like to check in on the iPhone segment, because that's the moneymaker for this business, but most people that have been following this company for a while know that the future, and really what the company has been focusing on recently, is the Services segment because it's high-margin and it gets them away from reliance on a single product. Let's check in on that.
Niu: Right. Services growth this quarter was actually a little bit more modest. It actually came in slightly below expectations. We're seeing a little bit of deceleration in the growth here both on a year over year and a quarter over quarter basis. But one thing to keep in mind is that a lot of these products that they sold over the holidays were people giving gifts for the New Year's or holidays and Christmas and things like that. That's near the end of the quarter. So, there might be a little bit of a lag there before the services monetization kicks in. But all that being said, services revenue did hit a new record of $12.7 billion for the quarter. And there are now 480 million paid subscriptions across all of Apple's platform, which is the ninth consecutive quarter where they've added a solid 30 million. And last year, they set a goal saying, "Hey, we're going to hit 500 million at some point in 2020." Now they're saying that's probably going to happen this quarter, since if you're adding 30 million, that gets you over 500. And they set a new goal saying, "We're going to hit 600 million by the end of 2020," which is kind of the same rate of 30 million a quarter. I'm also kind of curious of why we're not seeing any acceleration in the growth of paid subscriptions, particularly when you think about how many searches they've been launching over the past year or two.
Lewis: For diving into that second little bit, I think it's probably worth doing -- we talked about Services, we talked about subscriptions. There's a lot of different stuff that gets thrown in there. We've seen them kind of launch some digital streaming ambitions. We know that some of the Apple Music stuff also plays in there. Is there anything else that's really big in that market?
Niu: I mean, there's a lot going on. There's a lot of moving parts. Apple TV+ is one of the more high-profile services they launched. Of course, they're giving away a free year of it. I actually asked their investor relations department -- they haven't responded to me, kind of expectedly -- on whether or not these bundled free subscriptions of Apple TV+ are included in that paid subscription number. I mean, free trials typically don't count as paid subscriptions. But if you're giving away as part of a promotion, and the customer did make a purchase, and it's being bundled, I want to know if Apple TV+ has been included in that number. But the last, year they also launched News+, but I don't think there's been a lot of traction from News+, so I'm not really too surprised that that's not really contributing much. But you also have things like Apple Arcade, like you mentioned, Apple Music -- which, they didn't give an update. We don't know how many subscribers there are. I mean, last count was 60 million. So, there's a lot of moving parts here. And, unfortunately, there's still also a lot of questions.
Lewis: That's why I love reading your earnings takes on Apple, but really, your analysis on almost anything, Evan, because you dig in and you get into some of the nitty-gritty, some of the disclosures in the footnotes that a lot of people tend to gloss over. I hope you get an answer on that so we can follow up. But nice to know that you're asking the hard questions of investor relations. We appreciate you doing your service over there.
Niu: [laughs] I'm trying.
Lewis: Why don't we talk a little bit about wearables, too? I mean, this is a business that I think for any other company would be pretty meaningful and a pretty big contributor to the overall direction of the company. For Apple, it's kind of an afterthought.
Niu: Yeah, so CEO Tim Cook does this really annoying thing where he compares the Wearables business to the Fortune 500. And he's been doing this for years. And instead of just giving us a straightforward disclosure of, "This is how much we're bringing in," he just uses this roundabout way. So, now he says that wearables is the size of a Fortune 150 company, which is another way of saying that revenue over the past year has been about $21 billion. I mean, that's pretty impressive when you consider the fact that they only started the Wearables business in mid-2015, when the Apple Watch first shipped. That's only been like five years, and they already have a $21 billion business. The broader Wearables, Home and Accessories segment, which includes wearables, hit $10 billion for the first time. And of course, the bulk of that is these wearables like AirPods Pro, which is suffering from supply constraints because the demand is just so strong. Of course, that's a good problem to have. Apple Watch Series 3, which is two years old, is still actually selling very well, because Apple kept it in the lineup, but then they dropped the price last fall to $200 when they launched the Series 5. Series 3 is also still under supply constraints because demand is going pretty well.
Lewis: I think just anecdotally, looking at the AirPods product, there was a period immediately after they launched it where I didn't really see too many people using the product. The people that tended to have them were the early adopters, the people that would be buying a lot of i-device type stuff anyways. But they didn't really seem to hit the mainstream. And I think over the last six to 12 months, that's totally changed. I see them so much more in the office. I see them so much more on the D.C. Metro. It seems like that is becoming a bankable product for them in a way that maybe it didn't when it first launched.
Niu: I agree. I think it did take a little bit time for the adoption to get to this mainstream phase. But at this point, yeah, you see them everywhere. I think we talked about this on a previous show, but even kids nowadays are all about the AirPods, even though they're like $160. But the AirPods Pro are even more expensive, those are $250, and those just launched during the quarter. And people are loving those, too. If you read what people are saying about them on social media, same thing, you see them everywhere. I mean, it's all part of this growing wearables business. They also have some Beats products that are wireless wearable devices as well. But overall, I mean, they're just really executing very well on putting these out there. Even right now, if you go to try to buy AirPods Pro on the website, I think it's a month delay because they're so backed up.
Lewis: The brilliance of AirPods, I think it just shows how good Apple is with branding, because you immediately recognize them when you see someone, whether it's walking down the street or in the office or, like I said, on the Metro or something like that. It's basically an advertisement for the product. They've done such a good job of making them so easily identifiable and so sleek that, in the way you might expect for Apple, it's hard to miss. You know it when you see it. And it seems like it's finally resonating with customers. Gives them another nice wearables product to be able to tout and show off and kind of help build up that revenue base.
Evan, we cannot talk Apple without also talking about share repurchases. They are pretty much the most aggressive share repurchases in the market right now. Why don't we check in on their buybacks?
Niu: This quarter, they bought back $20 billion, which consisted of $10 billion in open market purchases, and then another $10 billion was part of another accelerated share repurchase program. It's worth noting that throughout the quarter, Apple shares just kept climbing higher and higher, steadily, to hit all-time highs. Just a straight line up there, and they just kept on buying. They were not concerned about valuation. They were not concerned about buying at all-time highs, which I think is a pretty strong vote of confidence from Apple's part. Now, if you look back throughout the year for 2019 total, they bought almost $80 billion worth of stock, which is kind of mind-boggling. But then, if you go back even further to include 2018, which is right after tax reform passed at the end of 2017, which just gave all these companies all these tax savings, many of them are using them toward repurchases -- Apple has bought back $150 billion dollars' worth of stock over the past two years. Again, just mind-boggling numbers.
Lewis: Yeah. And you can say what you want about how companies have chosen to use the money that they have repatriated, and whether the tax reform did what it was supposed to do. I think, though, you look at that $150 billion number. It's worth emphasizing, they bought back effectively a large-cap company, almost a mega-cap company, over the last two years, in their own stock. And if you look at the chart for Apple over the last couple of years, it's hard to spot a point where any of those share repurchases would have been a bad decision, if you're trying to allocate capital, buy shares back at a discount to reward people long-term, especially when you consider the fact that shares were up like 80% in 2019.
Niu: Right, I mean, without getting too into the politics of the tax reform, companies are going to do what's in their best interests. And if they think that the best thing to do with extra money is to buy back shares, that's what they're going to do. I mean, Apple is at least rich enough, they have so much money, that they can at least invest in the U.S. economy at the same time as they're buying back this insane number of shares.
Lewis: Evan, so much of the narrative over the past week, two weeks or so, has been the coronavirus and all the companies that have exposure to China, and how that might affect their business. Do we have any sense of what management thinks about that, or any update there?
Niu: Right. Since Apple's supply chain, like many consumer electronics companies, is very heavily concentrated in China -- all their suppliers are there, it's where production is -- this is a pretty important risk for them. So, they do face a lot of uncertainty with regards to their supply chain because of the coronavirus. Just as an example, the largest iPhone production facility in the world is only about a five to six-hour drive north of Wuhan, which is the epicenter of the outbreak. Cook said that they do have some suppliers in that city, but they also have alternative sources for pretty much all of the components. So, of course, there's some risk, but we know that they're diversified. They have some backup plans, contingencies, they can lean back on. He said they're also donating to groups that are fighting the virus and trying to contain it. They're also taking a lot of operational precautions like limiting travel. They've closed, I think, two stores now at this point. They're doing a lot of deep cleaning of the stores. They're checking employees regularly. So, they're trying to do as much as they can to mitigate this risk.
But at the same time, there's a lot they can't control, right? When they provided their revenue guidance for the first quarter, they provided a broader range than they typically do just to accommodate for that uncertainty. They're calling for revenue of $63 billion to $67 billion in the first quarter. Again, we'll have to see how this plays out, because this whole situation is rapidly evolving.
Lewis: We really harped on the fact that no matter how you slice it, the quarterly results were pretty darn strong for this company. Shares were up immediately after they reported. I think it's worth looking again at the market cap for this business because a lot of people really marveled at the fact that they hit $1 trillion, and there were the natural concerns of, how big can accompany get after hitting that $1 trillion figure? Their current market cap is like $1.37 trillion. [laughs] So, they have already, in the time since passing $1 trillion, added another 37% or so. I know Microsoft is about $1.3 trillion right now. It doesn't seem like passing the $1 trillion mark has gotten in the way of these companies continuing to grow.
Niu: I think I saw a stat today that Apple is now 5% of the S&P 500, which is only the third time in history that any company's ever done that. I think the first was Microsoft, and then there was Exxon at some point. And now, Apple is 5% of the entire S&P 500, which is just kind of insane to think about.
Lewis: By that same measure, that means Microsoft is also about 5%.
Niu: Getting pretty close.
Lewis: If you own the S&P 500, about 10% of that is going to be driven by Apple and Microsoft alone.
We're actually going to switch gears and talk about another company that just joined the Trillion Dollar Club, Amazon, in a second, and their most recent quarterly results. I just want to give our listeners a heads up before that, though, that we have a special 50% off discount for our Stock Advisor service. You want to check it out, go to if.fool.com. Get stock recommendations from David and Tom Gardner every month, Best Buys Now, and a whole lot more. That's if.fool.com for access.
I teased it before, Evan, but Amazon back in the Trillion Dollar Club. We are now at the point where we've got four mega tech companies with $1 trillion market caps.
Niu: Yes. Amazon briefly touched $1 trillion last year. Then I think there was some news release, and they came down again. So, they pulled back and went back under. And now, with this strong earnings release for the fourth quarter, they're back above now. So, as you mentioned, there's now four U.S. companies that are trillion-dollar companies. We've got Apple, Alphabet, Microsoft, and Amazon.
Lewis: The rich keep getting richer, it seems. We've talked about how strong these companies are, and how a lot of them kind of operate on an ecosystem strategy, or they have some element of their business that has recurring revenue. That allows them to defy a lot of the things that typically befall big companies, because they continue to get all the customer activity coming in. There are those lingering concerns about whether they may be targeted for anti-monopolistic type stuff down the road, antitrust type stuff down the road. TBD. The immediate story with all of them, though, is that they continue to succeed, they continue to build products that people love to use, and their financials follow.
In the case of Amazon, net sales up 20% year over year. Pretty impressive free cash flow, up over 30% year over year. Maybe the dud in this report was that operating income was only up 2% for the quarter. I think that really has to do more with where they're investing their money, rather than the long-term trajectory of the business.
Niu: Right. I think Amazon investors are very familiar with how Amazon runs their business, which is, they're constantly investing in business and future growth and infrastructure and things like that. In this case, the top priority right now is just the one-day shipping, and all the kind of logistics and infrastructure necessary for that. But I think it's clearly showing that by doing that, they're really accelerating sales growth and getting more people to keep buying on the platform, because you're getting stuff the next day. I mean, I did all my holiday shopping on Amazon.
Lewis: [laughs] Yeah, and if you want a sense of how that affected the financials -- in North America, sales up 20%, but operating margins shrinking from 5% in the year prior to about 3.5%. That comes with them heavily investing in their supply chain and their infrastructure in order to get those packages to people when they want them. Looking at some of the other big segments for them, AWS sales up 33% for the quarter. This is their cloud infrastructure business, the industry-leading service that they offer. Their full-year margins were about 26%. Down slightly from where they were in 2018. Maybe a little bit of that is the pinch of competition as Microsoft and Google continue to grow.
Niu: Right. I mean, as usual, AWS was really the main profit driver in this business, which it has been for many, many years. So, it's no surprise there. But AWS alone represented about two-thirds of total operating income. That cloud businesses just continues to just dominate.
Lewis: It seems like it might be joined by some other profitable segments, though. The classic way that Amazon breaks down its business is North America, AWS and International if you're looking for operating income. But they also give you revenue breakdowns for some of their other businesses. And they have four segments with 30% growth or higher. AWS is one of them. The other ones are third-party seller services, subscription services, and other. Other is, for the most part, their advertising services. So, with all of these, you have generally pretty high-margin businesses that are growing at over 30% year over year. And if you look at their contribution to overall revenue, Q4 2018, these segments combined for 39% of revenue. This quarter, it was 42%. So, they are becoming a larger and larger piece of the pie because they're growing faster than the core e-commerce business, even though the e-commerce business is growing 20% year over year. But, we're not really seeing the impact on the overall financials right now because of those heavy investments that they're making on one-day and same-day shipping, and because the International segment continues to be a little bit of a money pit for Amazon.
Niu: Right. I think they're putting a bunch of money into India and some of these emerging markets, which, yeah, those investments will take quite a long time to pay off. But I'm sure that they will eventually. I mean, the advertising business is also pretty exciting, because there's that famous quote from many years ago, where then-Google-CEO Eric Schmidt said that Amazon was his biggest competitor, just because if you're looking for a product to buy, you just go straight to Amazon nowadays. And that's really what's driving a lot of growth. There's been some consumer behavior change in that, that's been happening more often. Instead of going to Google and searching for something that you're interested in buying, you just go straight to Amazon. That's just driving this advertising business like crazy.
Lewis: Yeah, the marketers would look at that and say, when people go to Amazon, they have purchase intent. There are times where people on Google in the search results are looking a little bit more for information, but might also be looking for products. But if you're on Amazon, you are there to buy something. I think marketers know that. I think people trying to buy ads know that. And so, it's a very lucrative ad business for them to operate.
One of the more staggering numbers for me from this report was the check-in on Prime membership.
Niu: Right. They said that they have 150 million paid Prime members worldwide now. To put that number and growth into perspective, Prime was first launched in 2005. They didn't say until early 2018 that they hit 100 million members. So, it took 13 years to get the first 100 million. Then, less than two years to get the next 50 million. [laughs] That growth is just exponential, it's like an S-curve growth right there.
Lewis: Yeah. I think it would be tempting to look at a company like Amazon and say, so much of the growth has been realized. I think that Prime membership is a great example where, yes, a lot of the growth has been realized; but they've been able to add so many people to the platform that it's still pretty meaningful. And once you bring those people in, they start interacting more with the e-commerce side; they start signing up for digital services; there are all these things they can start tacking on and adding to the overall value for that individual customer. I saw this great tweet from frequent IF contributor Brian Feroldi, talking about all these different times where people might have said, "Oh, I missed the boat on Amazon." And maybe when he said it himself, too; marking that on this chart over time. And you could have bought fairly recently and still been sitting on pretty good gains. I think that's the case for a lot of these big tech companies. We tend to think of them as being too big to put up good results, and yet Microsoft, Amazon, Alphabet as well, they have these killer cloud businesses that are growing really fast, and they're super high-margin. So, even though they're huge as a company, there's still a lot of growth ahead of them.
Niu: You know, back when I was starting my career as a stockbroker in financial services, I had Amazon at $60 back in like 2008, 2009, kind of around the time of the Great Recession. I sold out for a small profit. And I've always kicked myself. I mean, I ended up buying back in a year or two, maybe three, some point recently. But, still always beat myself up because I let it go at $60. [laughs] It's like $2,000 now!
Lewis: That reminds me a little bit of the piano story, too, Evan.
Niu: [laughs] Exactly.
Lewis: What was it? The million-dollar piano for your dad?
Niu: Back in 1986, my dad wanted to buy Microsoft stock. And my mom said, "No, we should buy the kids a piano." And they ended up buying the piano. My dad ended up buying Microsoft stock the next year. But if he had basically bought it when he first wanted to -- that piano, it's actually probably closer to $5 million plus at this point. Because Microsoft is also at all-time highs, and they reported a strong quarter also. [laughs] And he still owns that position that he bought in 1987 today, and it's enormous.
Lewis: Well, that's the power of compounding, and I think why we say so often, the second-best time to invest is now; the best time to invest is yesterday, with a lot of these companies. But all to say, it's not too late to hop in with a lot of these businesses. They're putting up great results, but they continue to grow very quickly and they are market leaders that are going to be very difficult to unseat.
Niu: Right. It all ties together. I mean, this one-day shipping stuff is really driving Prime membership growth, and Prime members are just going to keep using it. I think they said that they were allocating $1.5 billion in the fourth quarter to invest in one-day delivery. They ended up investing slightly less than that. And now, they're expecting another billion in Q1. I mean, they're definitely in it for the long game. And they're executing very well. It's all starting to pay off.
Lewis: We're going to wrap our company discussion there. I tell folks every week on the podcast that if they leave us a five-star review, I will read it on the air. We have a couple ones from the past week coming in. This one from Brady and Gabe's parents. "As someone who listened to every episode of MarketFoolery, Motley Fool Money, and Rule Breaker Investing, I was surprisingly slow to embrace the IF podcast. That said, the new cadence and maturity of the hosts and the continued development has me hooked. Keep up the great work. I'm in net promoter of all your work."
I appreciate that. I think, after reading this review, I went back and listened to some old episodes that I've done -- I've been podcasting now for The Fool, I think, for 4.5 years -- the early episodes didn't sound great. [laughs] Evan, I think you did a lot of the heavy lifting back then when we were doing some of those shows together. I appreciate all the listeners that have bared with us as we've gone through and continued to hone the craft, and tried to work to bring you better and better content. It's just another case in point for some of the stuff we're trying to do. I mean, over the last year, the sound quality with our remote guests has gotten better and better and better. So much of that is thanks to the work of Austin Morgan, and getting some great mics out there to our folks, like Evan, that are remote, having them record locally rather than doing things over Skype. So, we're trying to make things better all the time. I want to hear Evan as well as I can when we're doing these shows together, because I know he can hear me crystal clear when we record later. So, I appreciate everything that we're doing there, and I appreciate the love.
We also got a great review. This might be one of my favorite reviews of all time, from Qreator -- creator? It's hard to say. But, Qreator writes in, "I became a basketball fan back in the 80s. This is a time when the Celtics-Lakers rivalry ran hot, and I rocked the fanny pack because it was so useful and socially acceptable. I knew the teams, the rosters, the bench players, the strategy, and the tactics employed, and marveled at the play. But the thing that made all that understanding possible for me was my friends, who were also fans, and the courtside commentary of the legendary Chick Hearn, their Lakers radio and TV commentator who shared his decades of experience and made every game, even the hard losses, more fun. The Industry Focus team delivers the same type of energetic fun and expert commentary on business topics every day. This makes it possible to keep up to date with my favorite companies and learn stunning amounts on industries I never knew or cared about before. Entertaining and educational, the IF team is fantastic at putting together professional, quality content that outstrips any of the other discussions I have found in the financial media. I can't recommend them more highly. Fanny packs, however, not recommended. Maybe they'll make a comeback next season."
I love that note so much. That's a great metaphor, and it's really awesome to hear that that's the kind of impact that we can have on folks. I will say to that, I'm seeing people rock fanny packs in Washington D.C. I don't know what things look like out there in Colorado, Evan, but it seems like fanny packs might be on their way back over here.
Niu: I don't see them here, but I have to admit, my wife bought one a couple years ago, and I kind of made fun of her a little bit for it.
Lewis: [laughs] I've noticed over the last couple months, we're seeing a lot of the stuff from the 90s kind of start to work their way back in, kind of the big, clunky Fila shoes, and the acid wash jeans, and baggy fits --
Niu: VSCO girl stuff. Have you heard all this stuff? It's a bunch of 90s stuff.
Lewis: Yeah, and it's back in vogue. My girlfriend has a fanny pack, and she loves it. She takes on hikes with her all the time. I haven't seen her use it so much out, but I think we're going to see more and more of those coming.
We've got one more review that I want to wrap up with. This is actually a follow-up on a review that we got a couple weeks ago that we talked about on the air. This one's from Ebunny. Listeners may remember when we read the review from Ebunny a few weeks back, she said that she didn't love the new theme song. She went back in and edited that original post to say that she listens to her podcasts usually at 2X speed. After we talked about it on the show, she slowed it down and she said, "You know what? The new intro sounds pretty good." So, look at that! Austin Morgan, making things happen for us! And that's an interesting point. I think a lot of people listen to shows at advanced speeds. I don't do that, maybe just because I'm a patient individual, or I'm a glutton for punishment. I don't know. But, Austin, I don't know, how do you listen to your shows?
Austin Morgan: Not at 2X speed. I can definitely confirm that the intro is not meant to be played at 2X speed.
Lewis: [laughs] Well, there you go. I'm amazed that people can digest what I say at 2X speed. I feel like I mumble and I talk way too quickly to make that happen. So if Ebunny is able to make that happen at 2X speed, power to her. But I'm going to try to make it work for people at 1.5X speed. I know there are some folks out there -- if I ever talk to you fast, just write in. I'll slow it down a little bit for you guys. But it always delights Austin to know that people are liking the new intro. I'm a big fan of it. Evan, thanks for hopping on today's show, checking in on Apple and Amazon. Always love chatting with you.
Niu: Thanks for having me!
Lewis: Alright, listeners, that's going to do it for this episode of Industry Focus. If you have any questions or you want to reach out and say hey, shoot us an email over at firstname.lastname@example.org, or tweet us @MFIndustryFocus. If you want more stuff, subscribe on iTunes, or you can get additional investing content over on our YouTube channel.
As always, people on the program may own companies discussed on the show, and The Motley Fool may have formal recommendations for or against stocks mentioned, so don't buy or sell anything based solely on what you hear. Thanks to Austin Morgan for all his work behind the glass today. A couple edits he's going to have to work through, but you guys aren't going to hear them because he's so good at his job. And, like I mentioned, we're going to be taking things out with Burke Ingraffia, fulltime Fool, and his song Checks and Balances. For Evan Niu, I'm Dylan Lewis, thanks for listening and Fool on!