PayPal and Square: Winners of First-Quarter Earnings Season

We just got a glimpse at the latest results from PayPal (PYPL 0.34%) and Square (SQ -2.28%), including how both businesses performed in April as the COVID-19 pandemic shut down much of the U.S. economy.

In this episode of Industry Focus: Financials, host Jason Moser and Fool.com contributor Matt Frankel, CFP, dive into the numbers that investors need to know. Then the pair answer a listener question on the seemingly irrational optimism in the stock market and discusses why they have Disney (DIS 0.16%) and Sony (SONY -0.71%) on their radar right now.

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 May 11, 2020.

Jason Moser: It's Monday, May 11^th. I'm your host Jason Moser. On today's Financials show, we're going to dig into recent earnings reports from Square and PayPal. We're going to kick around a listener question about the state of the market today. As always, we've got a couple of stocks for watching this coming week.

Joining me, as always, Certified Financial Planner, Matt Frankel. Matt, how's everything going?

Matt Frankel: Pretty good. The rare Spring weather in South Carolina continues, things are starting to open up a little bit down here. It's a pretty good day.

Moser: Man, that's encouraging, hopefully, that's a sign of things to come. I think Spring weather is here in the sense that the pollen is all over the place. [laughs] The temperatures are still kind of cool up here in Virginia, but you know, it's actually kind of nice. I guess we need it to warm up a little bit, though.

Frankel: Yeah, we had our pollen, [laughs] you know, you've seen it in South Carolina, everything turns yellow. We had that happen a couple of weeks ago, so we're pretty much past the pollen.

Moser: Yeah, I think we're in the midst of that right now, so we're kind of just pushing through. But anyway, you know, it was a big week last week for the earnings season. Plenty of companies reported, but a couple of companies that you and I follow closely, a lot of listeners follow, a lot of listeners own these shares, half the War on Cash basket there, in PayPal and Square reported. And the following day, the market certainly received those reports very, very well.

Let's start with PayPal first, Matt. And I think PayPal actually had the better of the two days, between the two. When I looked at this report, the report was strong, the conference call was really strong. I mean, CEO, Dan Schulman really framed this thing up in a way, it's hard not to be optimistic about what they're doing and what the future holds for a company like PayPal.

The one thing that stood out to me just in the report, strong, strong quarterly results for the first quarter as usual, but this was really an interesting point here. The month of April alone, and that's their current quarter right now, in the second quarter, in the month of April, they added 7.4 million net new accounts. So, that's around 250,000 per day.

Now, for context, last year, for all of the second quarter, they added 9 million net new accounts, in all of the quarter. So, you could see clearly, there is a catalyst there that is getting people to sign up for PayPal and use their services more often. I mean, we obviously know what is contributing to that in many regards, but that was one of the statistics that stood out to me, that just really, it makes me happy as a shareholder, it makes me feel like they're doing the right things.

Frankel: Yeah, we mentioned a while ago that we thought companies like Square and PayPal are going to be part of the solution. And that really kind of puts that into perspective. I mean, you said, year-over-year, but in January and February, they added 3 million new subscribers a month. So, this is double what they've been adding in a typical month this year and more. So, transaction volume was up 20% in April. It was transaction volume, transaction numbers, both up 20%.

So, it looks like PayPal, I don't want to say beneficiary. I don't like using that term in context of the pandemic, because no one wants to benefit from this, this isn't a good situation by any stretch of the word. But for PayPal's business, this definitely could be a tailwind in terms of shifting more payments to online. We mentioned, you know, cash is gross, no one wants to play with cash anymore. [laughs]

I mean, you've been saying that for years, but it seems like people are finally understanding that cash is kind of nasty.

Moser: Yeah, it is. And I don't even remember the last time I got cash from when I went into -- normally, when I go to the grocery store, I'll buy food and then they'll give me the option to get some cash back when I swipe my card. And I don't remember the last time I even bothered to get cash back, to be honest with you. And it's just I just don't need to use it. I mean, if you don't need to use it then why bother? I don't know.

Frankel: And that's what you're seeing now. People need to buy more things online, especially, so you're seeing PayPal accounts pop up all over the place. And there's just a lot of use cases for them, like, a lot of people want to send their friends money who are hurting more than they are. Our fellow Industry Focus co-host Dan Kline has been -- for just to kind of name one example of how PayPal is a really big use product right now -- he's been doing these Saturday night concerts for musician friends of his, who are out of work right now, because they can't play anywhere. And the way they get their tips is through Venmo, PayPal, Cash App, things like that.

So, there's a whole lot more use cases than really meets the eyes is the point of that story. And check out his concert, if you want, I could tweet out details of his next concert that would be worth checking out --

Moser: Absolutely. Yeah, we can get that out there on the Industry Focus feed. And I mean, to your point there about, getting money to people, getting it from point A. to point B.; you know, a few years back PayPal made an acquisition of a company called Xoom. Now, this is not Zoom the video communications company that we talk about today, this company was Xoom. And some listeners out there may recall, I was a big fan of that business. I actually was able to get that into Million Dollar Portfolio, a service we had here at The Motley Fool at the time, and I owned shares of it myself. They were in the business of financial remittance, and particularly outbound financial remittance from the United States to all of these different international locations, kind of, like a Western Union for the 21^st century.

And I think PayPal saw something in that very early on and decided, you know what, these guys are doing something that we really like, it works right into our business model. So, they went ahead and acquired Xoom, and really bought it for what we all felt like was a steal at the time. And in the call, this past quarter, they noted that they saw with Xoom, they saw a 400% increase in people using Xoom, net new actives coming onto Xoom since January. So, since the January and February timeframe.

Now, I mean, that's really before a lot of the coronavirus concerns even started materializing. And certainly again, I agree with you, we don't want to say, "beneficiary" but the fact of the matter is, this point in time is going to result in companies coming out stronger than going in.

But to see that Xoom has gained so much traction in such a short period of time, I mean, it is just mobile remittance, right? Instead of going to a physical location, like you would have to do with a Western Union or something of that nature, you know, Xoom just built this thing as a mobile solution and it's really, really taken off and it's starting to pay dividends for PayPal.

Frankel: Yeah. And I mean, anything that is preventing people from leaving their house, you know, it's not just getting cash out, it's that people don't want to swipe their credit cards either. You know, we don't want to touch anything that other people are touching. So, PayPal is just kind of an all-around business that really facilitates that in a lot of different ways right now. And to be fair, a lot of their gains in the first quarter came from the Honey acquisition.

Moser: Yeah, that was about 10.2 million users, I think, they noted, that was a one-time benefit from that acquisition. But I mean, when they make an acquisition like that, I mean, you know part of that is for that user base. I think it was less about, you know, buying what Honey can do, although that is going to be a great part of the situation, but really it was more about buying that network so they could plug all of their additional network users into that Honey product as well. I mean, you're talking about hundreds of millions of users.

Frankel: The way I put it is, it wasn't about buying 10 million users from Honey, it was exposing 325 million of PayPal's users to Honey's product. And that's going to be a big tailwind going forward.

And it's also worth noting that PayPal was still profitable this quarter. There wasn't just impressive growth, even after -- I mean, the quarter was pretty much normal, but all these financial companies are setting aside a lot of reserves in anticipation of losses. Even after that, PayPal earned a pretty respectable earnings per share, $0.66 per share. So, PayPal was still pretty profitable even after setting aside a bunch of loss reserves.

Moser: Yeah, they quantified that, it was a $0.17 impact from those credit loss reserves. And that makes sense, I mean, the PayPal credit products, you got to be careful with stuff like that, they work in conjunction with Synchrony Bank, so they have some support there. And looking at the balance sheet of the company, cash and short-term investments around $12.5 billion, total debt around $8 billion. I mean, clearly this is just a cash flow business. They make a lot of money, and are doing a lot of great things. And they have a huge network. I mean, it really does paint a picture of a company that has just the world in front of it, which leads me to ask, what would you consider one of the challenges or red flags or something to look out for in regard to a company like PayPal or is there one?

Frankel: Oh, I mean, there's definitely red flags. Obviously, it's a business that's dependent on consumers' willingness and ability to spend money, whether or not they're using cash, if people don't have money, then PayPal is going to suffer. So, right now, again, I don't want to use the word "beneficiary" but the government has been doing such a great job of putting liquidity into the system that it really has -- and for the most part, I mean, a lot of people are hurting, but for the most part, people's ability to spend really hasn't gone down, it's just their ability to go out and spend.

So, if we see the pandemic drag on for longer than the government is, you know, stimulus payments, the enhanced unemployment, if the pandemic keeps going after the government support has run out, that could be a bad effect on PayPal's business.

Moser: Yeah, that would feel like that could last a while, but it would still be temporary in nature. I mean, it's still at the end of the day.

Frankel: Right. For the time being, July 31^st is the key date, because that's when the $600 boost to unemployment benefit is set to run out then. So, that's a key date to watch when you could potentially see people, consumers start running into a little bit more trouble if this is still dragging on.

But I mean, the fact that a lot of the country is opening up at least somewhat is very encouraging. And I mean, I think there's minimal risk, but there is definitely a risk to that happening.

Moser: Well, moving on from PayPal to another company that we both like, I think we both own, a lot of our listeners own. I know you're a big fan. Square also reported earnings, I believe, the same day, and yeah, after the market closed. Another strong quarter. It was interesting to see the reaction initially from the market, it was a bit tepid, but the following day it opened up. And I think there's a lot of enthusiasm.

And again, I see why, Square is not nearly as big as PayPal, but doing a lot of the same kinds of things that we saw from PayPal in its early days as well. I mean, that was another strong quarter. Revenue was up 44%, actually 51%, if you exclude Caviar which they recently sold off, but what stood out to you from Square's quarter, Matt?

Frankel: Oh, what didn't stand out? It was a pretty solid quarter all around. I mean, let me collect my [...] I have, like, 10 things on my punch list. Well, and some were good, summer some were not, I'll get some of the bad out of the way first.

Unlike PayPal that was still profitable after setting some reserves aside, Square was not. They posted a loss of $106 million in the first quarter after setting aside some loss reserves. So, there's that. And to be fair, Square is a lot more loan exposed than PayPal. Like you mentioned, PayPal's loans are pretty much made through Synchrony, whereas Square Capital makes its own loans.

Square is a participant in the PPP program, the Paycheck Protection Program. So, that's kind of a new thing that's going on. And just some of the numbers in April were really impressive. Cash App direct deposit volume tripled in April month-over-month, most of that was the stimulus checks, but it's getting people into the ecosystem, getting money into the ecosystem that creates more transactions.

Moser: Oh, sure. I mean, once you experience the seamlessness of that experience once, I mean then, I think, really, all it takes is one or two of those experiences and you're hooked. And then you realize, why am I doing this the hard way when there are easy solutions like the Cash App out there?

Frankel: Right. And that's on top of, in the first quarter, the Cash App gross profit more than doubled year-over-year in the first quarter. So, Cash App could be a force to be reckoned with going forward. And one of the things that really stood out to me in addition to the Cash App was the Square online store initiative that's really, really small at the moment. I think that's what PayPal needs to be worried about, and if this gets big, it could be something that could eat into PayPal's revenue.

Square has a platform that essentially lets sellers design and build an online store in less than a day. It's really a seamless app.

Moser: And that's what that Weebly acquisition was really all about, right?

Frankel: Yeah. This came from the Weebly acquisition. And what they saw when things started shutting down and you couldn't go inside stores anymore, that payment volume through the online store shot up and quintupled. It quintupled in just a couple of weeks since launching curbside pickup options and things like that. So, and again, don't want to use the word "beneficiary" but Cash App and Square's online store are two things that really could gain some traction here.

Online stores are ones really to watch, because it's really new. Again, even after I said it quintupled since they launched curbside, it's still roughly $50 million of payment volume. And Square's payment volume is in the, you know, about $100 billion per year. So, still a drop in the bucket, and I could see it getting a whole lot bigger over time.

Moser: Yeah, I mean that's similar to, it's kind of like they are trying to become a little bit more like Shopify in that regard. And you see Shopify trying to become a little bit more like Square on the payment side. And you know, I think we've talked about this before, it's not really having to choose one or the other, when you look at both of these businesses and then consider, they're all doing really neat stuff and they're participating in a huge market.

I mean, when you look even further out, these companies like Visa and Mastercard, you know, when they're talking about these $185 trillion opportunities of just money flowing around the world. I mean, really, it's mind-bending how much money you're talking about. And really, it's not about one company winning this market, it's about companies providing excellent solutions and taking part in it, and Square just happens to be one of them.

Frankel: Right. Like you said, they're kind of trying to be a little like Shopify, they're kind of trying to be a little like PayPal and moving away from their traditional brick-and-mortar business. I think this whole pandemic could kind of accelerate their plans to do that, because right now they're reliant on people being able to go to stores, and that hasn't really been the case. I mean, the Cash App certainly helps, but as far as their core payment processing business, it's pretty much an in-store payment system there, they don't have that much of an online presence yet.

Moser: No. And I noticed for Square, in April, they're talking about that total payment volume and that gross payment volume that went through the system and they processed $25.7 billion in gross payment volume in the quarter, that was up 14% from a year ago, but if you look at what's going on in April, they said April seller gross payment volume was down 39% over the same quarter a year ago. And they've seen some improvement in -- and I'm not sure that has something to do with states trying to get up and up and running a little bit, but it also has a lot to do with Square rolling out all of these different features for those online stores, as more and more sellers move online.

Frankel: And that's kind of like the brick-and-mortar, kind of, the stark differentiation for PayPal. PayPal is, we just talked about their transaction volumes was up 28% in April, whereas Square's was down 39% and that's kind of why you don't want to rely so much on brick-and-mortar in times like this. And I mean, this is an extreme example, it's not like you're going to get -- we don't get a pandemic like this every few years, but hopefully it is not going to happen.

But there's a lot of things that really could disrupt brick-and-mortar payments that don't really affect online. Like, you know, a major hurricane goes through the Southern U.S., people need to shop online, stores are closed for a while. I mean, when I lived in the Florida Keys, there was one of the storms when retailers were closed for two weeks and we really didn't even get anything major, so, I mean. But online, like, I could still buy whatever I wanted to on Amazon.

So, there's a lot that can really disrupt brick-and-mortar payments. And I mean, not to mention retail bankruptcies and things like that that we've seen. So, I could see Square focusing a lot on that going forward. I am sure someone at Square was, kind of, jealous of PayPal's number for April.

Moser: [laughs] PayPal envy, it's a thing, huh!

Frankel: [laughs] I mean, I would have been, if I was Square's CFO or something, I would have looked at PayPal's numbers and, you know, maybe try to realign my short-term priorities.

Moser: Oh, well, I'd tell you, after listening to that PayPal call, it really struck me just -- it felt like they just won earnings season with that release and that call. It was just so good in so many ways, so.

Frankel: Yeah, I would agree with that. Like we said, Square's wasn't bad at all, both stocks were handily up after that.

Moser: Yeah, I think, very much the long-term picture is still very much in play, the long-term thesis there is still very much in play, just like in liking the move toward less cash, more electronic transactions and liking the investments that these businesses are making in all sorts of different ways to facilitate that movement. So, yeah, we'll keep an eye on any red flags that come out, but for now, I remain a happy shareholder of both companies.

Okay, Matt, last week we got a question in from a listener, a friend of the show, Milo McMahon had sent in a little video question for us asking us how we are reviewing the market in this state of what seems like irrational exuberance today?

Milo McMahon: Hey, Jason, how are you doing, buddy. Milo here. I just had a quick question for you, we've just, obviously, gone through a completely unprecedented period of economic turmoil, millions of businesses all over the world having to shut down, and yet, as we look at what's happening in the market now, we're seeing prices creeping up, in some cases almost back to where they were or even above that. I'm wondering, you know, as a Foolish investor, we are not interested in trying to time the market or anticipate what's going to happen in the short-term, but what kinds of things should we be thinking about when we see what essentially appears to amount to irrational exuberance in the market?

I'm wondering what kind of things you're thinking about in terms of raising cash or trimming certain positions. Because for every Shopify or PayPal out there, there's probably 10,000 small businesses who have had the exact opposite happen. They haven't grown, they're teetering on collapse and I just don't see how we can -- I don't see a situation where we wouldn't see the ripple effects play out on earnings. So, I'm just wondering your thoughts on that, how should investors be thinking about periods like this where it seems abundantly clear that there's irrational exuberance happening in the market?

Thanks a lot. I really appreciate it and I hope you're keeping well.

Moser: I thought this was a really good question for a lot of reasons. It made me think about this decoupling of sorts that we're seeing. I mean, the economic picture on the ground, obviously, is extremely challenging, unemployment numbers have clocked in at 15%, there's talk of it going to 20%. You hear people throwing around the words "Great Depression," I think that's probably a little bit of an overreaction. I think, when you look at what caused the Great Depression, I mean, these are two very different points in time and I think ultimately there is a finish-line here in regard to the pandemic and COVID-19.

But it was a very fair question and I wanted to get your point-of-view. How do you view the conditions in the market today? Do you feel like it's irrational exuberance or you feel like some of it is justified?

Frankel: I feel like some of the moves have been irrational, but I don't feel like anything is too expensive right now, in other words. The way to kind of explain it is that the stock market is a forward indicator when it comes to the economy. It's not based on what's going on right now, obviously, if it were, I mean, unemployment spiking, you know, the stock market would be collapsing right now.

The stock market is, kind of, derives its value from the expected results of businesses going forward or over, you know, infinity years from now. So, as things happen, that picture gets better. On the economic side, the day the market bottomed was the day the Congress passed the CARES Act, the big stimulus package. So, that changed the picture, there was going to be more money in the economy.

When they approved the drug they just approved, Remdesivir. Don't laugh at me, if I just said that wrong.

Moser: [laughs] You don't pronounce any of them right, man, those are all funky names.

Frankel: [laughs] But when the news came out that that was actually helping coronavirus patients, then the market went up, and rightfully so, because the future projection changed. And nobody has a crystal ball, is kind of the point, all that investors can do is, kind of, make their best guess to where the future is headed. And the future right now looks a lot better than it did on March the 18^th.

Moser: It does. I think that's a really good point. It felt like the entire month of March was just one long nightmare of bad news. You could not get away from it.

Frankel: Right. And the present doesn't look very good. Obviously, if you just take a snapshot of the U.S. economy and tell somebody randomly that the market was up 30% from the lows, they would ask you, why? Like, what happened? [laughs]

Moser: Yeah, to that point though, we're kind of in like a little bit of a Twilight Zone right now. I mean, we've not gotten back to the levels where we were at the time that the bear market started, not even close. I mean, that was the fastest trip into bear market territory ever.

Frankel: Right. I think the Dow is somewhere around in the 24,000 ballpark right now or is that 29,000. You know, it was closing in. And people were already having Dow 30,000 hats in the New York Stock Exchange.

Moser: [laughs] Yeah. I mean, that's a very good point. I mean, for as much enthusiasm as it feels like there is today, it still wasn't even close to where we were when everything fell, when the bottom fell out. I mean, that is a really good point there. We fell so far, so fast, that any kind of bounce-back almost feels like irrational exuberance to a degree. But yeah, I mean, that's a good point, we're not even close to the highs where we were before the bottom fell out.

Frankel: And I will say, the last time the market peaked, was the day that I was up there talking to Jason in-person. So, there may be something to that. You know, we need to make a trip to Fool HQ and just meet you at the office and the market will be, you know, react positively to that development.

Moser: I like that thinking. You know, I was thinking about this over the weekend too, and there was a quote from Microsoft's earnings call, I guess it was last week. But CEO, Satya Nadella, said in the call, he said, "We've seen two years' worth of digital transformation in two months." And he's right. I mean, we're seeing it even at The Motley Fool. I mean, we had to close down Fool HQ, I guess, it's been a couple of months ago. And we were quick to pivot into introducing all sorts of technology that we've tampered with, technology that we've used, but we essentially took that technology and we made it our entire workflow. So, whether it's Zoom Video Communications or whether it's Slack or whether it's Microsoft or Google [Alphabet,] I mean, we're getting all of the work done, it's just in a different way now.

And it struck me that he was right, this digital transformation was really pulled forward. It's not that digital transformation wasn't happening, it was, but this really hastened the process. And I think in the process, it's really, it shone a light on the companies that are leading the way in this regard.

And it's not just in any one vertical, right? I mean we talked about Zoom and Slack and Microsoft, companies like that, but look at companies, like, DocuSign, or PayPal and Square, even Teladoc Health. All of a sudden, now people are starting to get it a little bit more. I mean, even esports, for example. Now, that the entire sporting world has ground to a halt. I mean, you're seeing all sorts of different things coming to the forefront now that there were signs that they were coming to the forefront, but this really hastened the process.

And so, it's one thing to look at the greater market and understand that there are plenty of companies out there that are really suffering, but within that market, within that group, there are some companies that are really, really shining. And I think a lot of that just has to do with this digital transformation that they're leading.

Frankel: One of the big questions I have is, how much of that shift is going to be permanent? For example, after 9/11, people were saying, no one's going to fly again and all business is going to take place over the phone and things to that effect. So, one of my big questions is, how much of that is a permanent shift? Because, yes, e-sports is getting a big bump right now, but people aren't going to stop going to football games, and people aren't going to necessarily stop going on vacation and staying in hotels.

People who are saying that virtual meetings are going to completely take the place of in-person business, are the same people who'll tell you that K-Cups are going to replace going to Starbucks. It's just not a fair comparison, it's not permanent. I'm sure a lot of people, instead of going to Starbucks are making a K-Cup or two, but it didn't replace it by any means. So, it'll be kind of curious to see the dynamics when things snap back to -- you know, how much of the videoconferencing is permanent, how much of the using PayPal or Venmo instead of using, like, credit cards in the stores is going to be permanent. So, there's going to be some interesting dynamics, but like I said, the economy definitely looks -- the future economy looks a lot rosier than it did a couple of months ago.

Moser: Yeah, I think that's a good point. And, Milo, thanks for the question. I hope that was helpful. Okay, Matt, before we wrap it up here, let's jump into the ones to watch. We got stuck watching this coming week, what is your one to watch, Matt?

Frankel: Well, I think neither of us are going to mention any financial stocks right now, not on purpose, there are some good deals there. But I'm looking at Disney right now. And I'll tell you why, I recently bought Disney in my kids' account for the first time. I had been wanting to buy it forever and finally had some good opportunities in recent weeks. And we all know why Disney's stock is down. The parks are closed, the cruise ships are docked, but there's also some reasons to be positive.

One, they have tons of liquidity. They raised another $7 billion in debt, $5 billion on their credit line. They suspended their dividend. They have plenty of money to make it to the other side. That's No. 1.

No. 2., they just reopened Shanghai Disney, their biggest one in Asia. And if that demand is any indicator, then people are not going to be afraid to go to Disney World and Disneyland when we reopen. The brand value of Disney is kind of unmatched. They are almost to their 2024 projection for Disney+, and the service launched six months ago. So, they hit 54.5 million users, they said they are on-track, they wanted to do 60 million by 2024. So, there's a lot of --

Moser: Yeah, I'd say they got that.

Frankel: Yeah, they're probably going to get that this year. So, I think there's a lot to like about Disney, especially at these levels. Disney is not a stock you buy for the short-term, that's something you buy and hold for a long, long time. So, if you have some money that you want to just buy something and leave it alone for a while, Disney is one of them --

Moser: ... that's a good one, yep. I mean, this pandemic is going to be temporary, but when it's all said and done, Disney is still going to be awesome. So, that's a good thing to keep in mind.

Well, so I'm actually going to be keeping an eye on Sony. And the ticker on this market here SNE. And Sony is a little bit of a financial company, believe it or not. That's not why I'm watching it, but really, I mean, they are making all sorts of investments in immersive technology from AR visors to VR gaming experiences with the PlayStation. And they're helping customers build out solutions for industrial AR uses today.

So, I'm very fascinated by the immersive technology angle. But it's also a very well-diversified business. Around 35% of their operating profit comes from gaming with the PlayStation platform. But as I mentioned, there is a financial dynamic to this business.

Now, it's mostly insurance, I think, most, if not all of that takes place in its home market of Japan, but that's around 14% of revenue interestingly enough, so just kind of interesting to think of Sony as a financial company in some capacity.

But the stock, it's not one that's on our radar very often, I think, in our Foolish universe for whatever reason, but it's one that's been on my radar for a while now. And if you look back over time, it's actually performed quite well, and I think there are a lot of reasons for that. It's just a very well-diversified company that does a lot of different things. And as technology continues to evolve, it seems like Sony is playing a big role in that. So, earnings are out on Wednesday, I'm going to be digging into that to see what the rest of the year looks like for them.

But, Matt, I think that's going to do it for us this week, I appreciate you taking the time.

Frankel: Of course. Hopefully, things will start to get back to normal gradually as we go over the next few months, I'm kind of curious to see how this plays out.

Moser: Fingers crossed. And remember, everybody, you can always reach out to us on Twitter @MFIndustryFocus or you can drop us an email at [email protected]. Let us know how things are going, ask us questions, tell us about stocks that you're buying, we're always interested to hear.

As always, people on the program may have interests in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear.

Thanks, as always, to our man Austin Morgan for making the magic happen. For Matt Frankel, I'm Jason Moser, thanks for listening and we'll see you next week.