In this episode of Industry Focus: Tech, Dylan Lewis and Motley Fool Premium analyst Joey Solitro do a deep dive into Sea Limited (NYSE:SE). This little-known Southeast Asian company resembles some attractive asset-light businesses you are already familiar with. Learn about Sea's various operations, growth story, and future prospects.
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This video was recorded on July 24, 2020.
Dylan Lewis: It's Friday, July 24, and we're talking about a stock that's up over 800% since the beginning of 2019. I'm your host, Dylan Lewis, and I'm joined by Motley Fool Premium analyst Joey Solitro. Joey, how's it going?
Joey Solitro: It's been too long, Dylan. I've missed that face. I know, [laughs] we've been talking about this company for quite some time, so I'm excited to finally get on here and discuss it with you.
Lewis: I can't think of a better lead-in than "up over 800% since the beginning of 2019." We're looking at a year and a half and 800% gains, the business we are talking about is Sea Limited (NYSE:SE). And, yes, Joey, you nailed it, we have been talking in the background about this business for a while, been meaning to do a show on it for such a long time. You were the natural choice, because you own this company and you've been pounding the table on it for a while.
Solitro: Yeah, it's one of those that, you know, as soon as I got to The Motley Fool in March 2019, it's one of those companies I knew was just a perfect fit, because I saw a lot of, you know, MercadoLibre and other winners that we've had in the past. So it's one of those that, I mean, I just keep talking people's ears off, whoever would listen, I'd just keep talking. I remember Foolapalooza, me and you, I was at the table. I think there was, like, five different people, and I would one by one just start talking about it, hoping, you know, maybe one of these services will take notice. And then, you know, I talked about it around the desk enough and some analysts picked it up, and here we are.
Lewis: Yeah. And that's a pretty good lens into what Joey is like at HQ. [laughs] If he is hot on a stock, he's going to talk to you about it until you ultimately give in. And for the most part, they're great ideas, so we're happy to have those conversations.
With a company like Sea Limited, because they don't really operate in the U.S., they're not super U.S. focused. There are not a lot of folks here who probably know them outside of the investing community, so why don't we talk a little bit about who they are and what they do. Because they do resemble some businesses that a lot of our listeners are probably already pretty familiar with?
Solitro: Yes. So how I first stumbled upon Sea Limited is back when it was known as Garena. And so, I'm a big IPO nerd, I buy a ton of IPOs on day one. It's worked for years, and now it's almost like the cool thing to do. So I've been getting into the SPAC [special-purpose acquisition company] game a little bit more. But, yes, so this company starts talking about going public, called Garena. And I was like, oh, I think I know these guys, the gaming company, and that's what they were known for, but as they were actually filing for the paperwork, they changed their name to Sea Limited. And you could kind of see they were doing these other things and they didn't want to basically put themselves in one category. So you see -- SEA stands for Southeast Asia. So you knew that they were going for something bigger.
So now we come to today, and you've got Sea Limited, and it's basically got these three pillars of growth, and it's about as beautiful as you can make it. You've got the gaming unit, what they were originally known for, Garena. Then they've got something called Shopee, which is kind of like the Amazon of Southeast Asia. And then you've got what they used to call AirPay that now is SeaMoney. And then they've got where it branches out into different categories where it's AirPay, ShopeePay, Shopee PayLater, and such, which we can talk more about each individual unit.
But, yes, so one way to look at this is kind of like, if you combined Activision Blizzard, Amazon, and PayPal into one company.
Lewis: Yeah. And maybe for folks that follow MercadoLibre, that's an easy comparison. Add some gaming elements to a MercadoLibre-type business and that's kind of what we're working with here with Sea Limited.
Lewis: And it's a compelling model. I think one of the easiest, most investable ideas is one that has been proven to work in one market and is being applied somewhere else. And you know, the Garena is the bread and butter for this company. The numbers around that gaming platform are staggering. But they are also investing in a lot of trends that have some major tailwinds.
Why don't we unpack the gaming business a little bit though, because that's the majority of the revenue for them right now.
Solitro: Yes. So gaming was their sweet spot, and that's where they originally came from, which is why they were originally known as Garena. And so, the big thing for them is a game called Free Fire, which they actually own fully. And that's kind of like, you know, if you think of the active-shooter games, kind of like a Fortnite. And that currently supports over 400 million quarterly active users. Now, where they do operate in many Southeast Asian countries -- and I made sure to note what comprises Southeast Asia, which is, Indonesia, the Philippines, Taiwan, Singapore, Thailand, Vietnam, and Malaysia. But the gaming unit also extends into India. Which, you know, that's quite a large population there, so having the exposure there. And only 10% of the users are in India. So you've got this massive gaming unit. And that's what kind of generates the bulk of their revenue.
And you peel back some layers and you see how they kind of built what they have. So they do have their company develop games, which are super popular, like, Free Fire, but they're also backed by Tencent, the huge Chinese company. You know, like, Tencent and Alibaba have their hands in almost everything.
And so Sea Limited, they made this genius deal to sign a ROFR with Tencent. Now, ROFR stands for right of first refusal. And that means, anything and everything that Tencent does in China with the gaming unit, Sea Limited has the first right of refusal to do the same game and basically launch it in their coverage area, all of Southeast Asia. So they can pick-and-choose, like, if a game starts blowing up that Tencent produced. They're like, yeah, we're going to launch it down here. And you see how they've got like this funnel of games, they've got this huge user base, and that is this cash machine that then they could use to fund these other ventures, these other huge growth areas. So you can see how this Garena unit is actually what has fueled and been pumping the cash into Shopee and into SeaMoney.
Lewis: Yeah, it's going to be hard for us to not overemphasize the number of ways that this is similar to MercadoLibre. When you were talking about how they have that relationship with Tencent, you could go back a couple of years and say, well, that's very similar to the eBay-MercadoLibre model. And you know, them deciding, we're going to have a stake in you and really help you grow as a business rather than compete super actively.
And I think there's a good parallel there too, Joey, with the markets that it operates in. You know, you listed off those countries that they're in, and that is not all that different from MercadoLibre in Latin America. You know, they've been able to carve themselves out in this very defensible position because they're in super-fragmented markets and have been able to combine all of that into one business. And I'm sure for Tencent's purposes, they're like, yeah, if you guys want to be the ones who take this to all these markets for us, awesome, you're saving us a lot of legwork by doing that.
Solitro: So you look at the executive team, and it's actually very smart for the two teams to kind of align with this, because while Forrest Li is the CEO and founder of Sea Limited and he was born in China. But he has the specialty, and he knew the Southeast Asian market. So by him basically saying, "Look, I'm the expert on these areas, I'm going to go out and do this, I'll basically" -- and, of course, Tencent owns over 30% of Sea Limited, so they have a significant stake. So even while they're signing this right of first refusal, they know that they're going to benefit from the success of Sea Limited just as much as they will, because they own such a huge stake in this company.
So Forrest Li, another cool thing, I'm just a nerd about these small details, but Forrest Li, he chose Forrest as his English name. Of course, that's not what it is over there. But, you know, Jack Ma, he has that huge obsession with Forrest Gump, and a lot of these big Asian businessmen just love that movie, and it's kind of like, you know, he developed his own dream, he built himself, he's a self-made guy, as everybody that's seen Forrest Gump knows. But I even saw like, you know, I want to know the meaning behind this name, like, why did he choose this? And seeing similarities between Forrest Li and Jack Ma, and then being partnered up with Tencent, you can see. I saw in the very early stages that, OK, Sea Limited is pretty much going to be like Alibaba or Tencent in Southeast Asia.
Lewis: Yeah. And to put another couple of numbers to that Garena unit before we move on and start looking at some of those e-commerce operations as well: 100% year-over-year growth in Free Fire monthly paying users in April, which is just staggering for what is already kind of a mature business. And that might be the COVID tailwind pushing them a little bit with people staying at home and being a little more careful, but still a huge opportunity there. I think less than 10% of their monthly active users were paying users in India for April. So another massive opportunity for them. But they have not decided [laughs] to stay within that "small" arena of gaming; they're expanding into e-commerce and payments in a real way. And these are really attractive businesses for a variety of reasons, chief, really, being that they're asset-light businesses for the most part.
Solitro: Yeah, because when a lot of people think of e-commerce, they think, you know, it's going to be very expensive to run this. They're pretty much the marketplace, where Amazon, they're just connecting buyers and sellers. And that's kind of the genius part about the payment side, is because, look, we're going to take a percentage of the GMV, the gross merchandise volume, and, hey, we'll process the transaction for you as well, and they'll take a cut here. But, yes, so Shopee was genius because -- so, they're not the only players in Southeast Asia. Shopee is the most popular in its specific markets. It's either No. 1 or No. 2. Majority, they're No. 1 in those areas. In Southeast Asia as a whole they're No. 1. But Alibaba does have a company that they back named Lazada, and then there's Tokopedia. Which, they're both great platforms. But if you look at the popularity and how people rate these sites, Shopee is the runaway winner. So it's kind of like, you know, Amazon dominates the United States. There's plenty of others in our market that do similar things, but Amazon is kind of the go-to.
So how they've made Shopee so successful was basically making it as good of a platform as Lazada and Tokopedia but charging less fees. And at the beginning, I believe they even offered a lot of these features free that you would have to pay for for Lazada. So they knew, if we give the better user experience for the businesses, we will create the network effect, because people come to us to buy it, they'll see their favorite brands on there and they'll see that those brands are launching more products because there's more money in it for them, at the end of the day, to be on Shopee. And then they built this ecosystem. So it's almost like spending money to grow. And by having the superior platform, then you see the network effect take off, and it's just been -- where Garena feeds that, but it's just been absolutely by the book to perfection what they have done.
Lewis: Yeah, and we've seen the model play out. We know that being the low-cost provider, building up the network, having more buyers, having more sellers, that leads to more buyers and more sellers, because you have this active marketplace, and then you can really let the economies of scale fuel your business and start to enjoy a profitable business down the road with volume. And the volume's there, [laughs] I mean, gross orders up over 100% year over year, GMV up 70% year over year. They are trying to grow this business as quickly as they can. And I imagine, in a few short years, it's going to be a much larger contributor to their revenue. It won't be so reliant on gaming.
Solitro: So one of the most beautiful things I've seen is, look at Amazon in the early days, and they turned their expenses into revenue streams. So sales and marketing was a huge expense, and it still is today, but offering advertising kind of offsets that. They had logistics, because they had to ship all these products, that was an expense. Then they have Amazon Prime, and these different sellers are paying for the fulfillment there. So you see how Sea Limited can do the same thing, where, you know, payment processing through its pay platform could be an expense they turn into SeaMoney. They have ShopeePay and all this.
So they're doing the same Amazon model where they're turning these expenses into basically revenue centers. And you can see there's a lot more they could do, but they're just not trying to do too much at the beginning. Just like we had an interview with MercadoLibre's investor relations guy and David Gardner, and he was talking, you know, are you going to start doing almost like an Amazon Web Services? They said, you know, not right now. We're going to focus on what we're good at, and maybe in the future, but we're not going to write it off, but we're not going to do it now.
I could see Sea Limited doing the same thing, where they start having an Amazon Web Services-type service or almost like an Alibaba Cloud or Tencent, it does very similar things. And they've got the expertise that they could tap from Tencent to do the same thing. So that's where I see Shopee is losing a lot of money right now, but I don't feel like that will be the case in five years.
Lewis: Another thing I think worth touching on with this business is, we've seen with MercadoLibre, but there's a symbiotic relationship between having a digital commerce platform, having an e-commerce platform where people can buy and sell, and creating the space for people that are currently unbanked or are not part of a digital financial system to make payments, and creating the space for digital payments, because in order for you to participate on those platforms, you need a way to pay, and very often in areas where -- like, smartphones are the dominant way that people are getting online, a lot of these digital payment solutions are taking off. And often, some of these people don't have access to traditional financial services and are kind of leapfrogging the conventional banking method and instead going straight to these digital options. And that feeds into these businesses so well because it gives them ready-made customers.
Solitro: Exactly. And it's where you see that network effect even on Shopee where, you know, they wanted people to sell more because then buyers come in. Once they have those, then it's like, OK, so, you're going to need ShopeePay in order to pay for these items online; did you know you could also use this over here? You know it's right into SeaMoney, basically create the SeaMoney account and have your banking here, and then you could also use it in all these other places. So yeah, it's not like a Jumia in Africa, where they have a lot of their orders are still COD, cash on delivery, where it's almost like a distrust of the digital banking system, where, you know, my money is my money, I'll give it to you when you bring me the product. It's more like they're more technologically advanced, which you will actually see, I mean, the gaming unit, technology in Southeast Asia is much more advanced than most people may think. It's much like China. So yeah, you can see where -- you know, underbanked people, you need somewhere to put it, it's almost like creating PayPal over there, it's just going to be the main bank.
And you see they also -- which a lot of people overlook -- but Sea Limited actually applied for a full digital banking license in Singapore. So you see they are thinking much bigger, because when you offer digital banking, it's like, "OK, we are the full-on bank, we also have the payment services that you can use on these multiple websites," but then you also have more and more data on your users. I saw something where, you know, Google [Alphabet] wanted to start offering bank accounts and, oh, Apple has a credit card, all this stuff. That has nothing to do with them just wanting to make a couple of bucks off of your transactions, that is your data. They want to know everything and anything that you're buying, because then they can better tailor the other growth centers toward you.
Lewis: Yeah. And in the U.S., those offerings might be a little bit less compelling because we have access to all of these other financial instruments, and we have credit card networks that are easily built out, access to credit cards and these digital payments, things like Venmo, PayPal, etc., are kind of tack-ons to all of these financial networks that we've already been able to participate in. It's a very different value proposition when some of that infrastructure hasn't been built out yet.
Lewis: So I want to talk about how this all comes together with their financials, because we've talked about the three individual segments, and I love doing the, who they are, what they do, but we also need to give folks a sense of, all right what's the top line looking like?
Solitro: Yeah. So we've got it growing at 58% on the top line, which I mean it's no small number, I know it's grown over 100% last year. But the important thing here is the runway for growth going forward. And you see, the total addressable market there, I think the population is over 650 million people there, so of course, they still have quite a runway in the e-commerce site and gaming, since they offer it in India, they still have quite a bit of ways to go there with the 402 million quarterly active users.
So you can easily see where this could continue to grow over 40% in the next three to five years and maintain that over 30% maybe for the next decade. So I always like to see, OK, the law of large numbers will come into play at some point, but basically, how significant could this be going forward? And I like that you brought up the April statistics, because you can see it's almost like the COVID catalyst. You know, people are staying at home, they're playing video games, they're buying stuff online, they want to pay with things online. No one wants to touch cash right now. It's just considered dirty. And it basically plays into all the sweet spots that we have going on here.
So of course the important thing to note is that Sea Limited is still losing money, but they do have $2.6 billion in cash, and I know they raised, like, $1 billion, either earlier this year or late last year. They didn't even need it, but it's one of those, like, they're getting the war chest ready, because it seems like they're ready to make a big move or launch something new.
So they definitely have the cash they need to reach profitability, and where they're not absolutely hemorrhaging cash, it is one of those, you know, we like to see it sooner rather than later, but you can see like a MercadoLibre and an Amazon, if they wanted to turn it on, they could, it's just they would completely turn off marketing spend or reduce it drastically. And so, I like to kind of go to the financial statement. Well, if they didn't do certain things, could they be profitable? And Sea Limited could definitely be if they wanted to. But as a shareholder and someone that loves growth companies, I'm glad that they're spending to grow.
Lewis: Yeah. And just to put that cash number into context, they have about $1.3 billion in long-term debt, so they're able to cover that relatively comfortably. You know, they're in a net cash position, which is always a good thing.
Solitro: Yeah, $1.3 billion in net cash for someone like this is very important.
Lewis: Yeah, and honestly, when a business is growing the way that they are, and they are really in, kind of, land-grab mode, you don't mind that they're losing money, because the idea is that that real estate is only going to be there for so long, both in terms of customer mindshare and also just customer accounts and all that kind of stuff. You know, if you're the first mover in the space, you want to take advantage of that, we see that all the time in the software-as-a-service space. No shock that we're seeing it here with a company that operates in gaming, payments and e-commerce as well.
Solitro: Yeah. And I just pulled up the -- the $1 billion in notes that they had put out was at 2.25% convertible note. So it's one of those, if they wanted to raise cash, it's so cheap to do so right now. And that would even be easier now with how rates have been doing. So yeah, if they wanted to go out and get more cash, especially with the performance of the stock, they could easily do so.
Lewis: We can't talk about the business, though, without also talking about risks, Joey. I know that you've been a perma-bull on this company, and that has served you very well. But we -- and just for folks that are, kind of, following along, we're talking about Sea Limited and the ticker is SE on the New York Stock Exchange. And the reason that I'm going to emphasize the ticker here is, this is an ADR, and it's a foreign business, and I know that some people are going to have some concerns about that, particularly in the wake of Luckin Coffee. And I think that some of those are well founded. Do you have any ways of, like, kind of putting people's minds at ease with those?
Solitro: Well, so there's always going to be the potential, but if you look at the management team that we have here at Sea Limited, there isn't anything shady in the past like you would have found in a Luckin Coffee. And the business models here are proven. You know, we've seen success in gaming, e-commerce and digital payments across almost any country, whereas Luckin Coffee, the signs were there. You know, they were a coffee brand that was doing a similar concept to Starbucks, but you know we're going to just have it ready for pick up when you walk in. The growth rates were so absurd that even Starbucks is like, "Hey, you know, we're expanding pretty quick, we're growing fast, but nowhere near as fast." So it was almost like, it was too good to be true and it turned out that it was just that.
Where with Sea Limited, you can kind of see, it makes more sense to me, and that's where I saw it at the beginning, I've kind of seen them grow up as a public company since I've watched it from the IPO. Where, of course, it wasn't all that rosy. I remember, they IPO'd around $15. I think I got my first couple of shares, like, $14.75. It rained down to the single digits at one point, and, you know, that was a world of pain. But just making sure the investment thesis doesn't change and knowing if they do everything right, this is how significant the returns could be and this is how big the company could be. So kind of like watching how each unit has turned out.
Plus it's one of those, it doesn't take too long for frauds to be exposed. Luckin was a special situation where it just happened so quickly. Now, it could be because they couldn't fake the numbers when everything in China shut down for a little bit, and they had to figure out how to make these numbers look better, or they were running out of cash and they had to figure out what to do. I'm not sure what exactly was going on there. But with Sea Limited, I just trust this management team more. And seeing it from day one when it came public and seeing each release and the numbers always adding up, to me, kind of adds. I mean, this is, I think 98% of my 401(k) so, I mean, I'm quite confident and I haven't seen anything that kind of throws me off just yet.
Lewis: Joey, has his own rules when it comes to allocations [laughs] and concentration. That is a high-confidence pick right there, Joey. [laughs]
Solitro: Yeah, it's one of those. So everybody knows, I started in-house at The Motley Fool in March 2019. And so I did the standard, you know, 9% of the paycheck going into 401(k) and there's a company match. So you know, all the cash that would go in. I was trying to figure out, you know, where's the right company that I want to do? And Sea Limited just hit everything for me. So you know, every time or twice a month as cash would hit, I'd just buy some more, buy some more. And I kind of had this running joke with Austin Morgan, who now he's on another side of the premium side of this, but I was like, you know, I want to buy as many shares I can up to $80. And he'd be like, why $80? I'm like, I don't know, it just sounds awesome. Because the stock was at, like, $26 at the time, and it just seemed like, I had a couple of years to accumulate shares, and it just turned into a rocket ship. So I didn't get to build it up as large as I wanted, but you know, it's one of those, it grew into a significant position of its own and then it crossed that mark, and I was like, fine, I'll go find a second stock, and I've been slowly building that one now.
Lewis: Yeah, you got to water your plants, and it's good to have a couple in the garden. As we're talking about risks with this business. I mean, those allocation numbers may not be appropriate for everyone. So that's possibly a risk. But you know, we talked about the ADR side of things, and the fact that it's foreign business. I think too, it's important to emphasize, gaming is a really big part of this company right now. The e-commerce and payment side are huge tailwinds, and they're probably going to become very relevant parts of this business. But right now, Free Fire is a huge part of the company as we currently know it.
Solitro: Yes. So you know a decrease in popularity for Free Fire would negatively impact these guys significantly. And that's where I like that they aren't a one-trick pony. So it's one of those, you know, you always do your one-trick-pony test. And say, if the primary, whatever it is, within a company goes away, would that be the death of the company? And where Free Fire has, I think it's like over 250 million active users, and that seems significant when there's 400-something million quarterly active users, but they do have quite a stable of games.
So I've always been of the belief, if Free Fire becomes No. 2 or No. 3, chances are it's going to be something else within their repertoire that takes over as No. 1 and No. 2, so that ROFR or right of first refusal with Tencent on its gaming unit definitely comes into play. Because say some game takes off in China, that's where they're going to want to basically launch it in Southeast Asia. And it's kind of like, I wish they had a deal with Gravity over Ragnarok, which is a popular game in Korea and they've been expanding there -- but I mean, that's just a completely different company that we can touch on another time.
Lewis: [laughs] Yeah. And I have to say, I have been pleasantly surprised with the staying power for a lot of games. And you know, we've seen in the U.S. with a lot of the game publishers, the franchise model is so successful, the franchises are so bankable. And a lot of the top-grossing media titles are games, you know, they are not necessarily movies anymore. Because the lifetime value and coming out with these different versions of the games, these different editions as the years pass, is such an easy way. In the same way that you have a superhero movie, you make the sequel, you make the third movie, [laughs] you just keep going. They allow you to do that.
Solitro: Yeah. So with video games, I call it the theme park test. Like, if you had a theme park, like, could this be something that attracts people continually. So it's kind of like, you know, Frozen takes off for Disney, they make the park. It's one of those where Free Fire has become more than just a game with a beginning and an end, it's like this all-out battle-royale style. And because they've got all the pros that have gotten into this, they've got the viewers that love watching, there is strategy to it, they can always make changes to it. They are always innovating to basically make Free Fire not something that is like, oh, well, this is getting old. They keep it very entertaining and interesting.
Kind of like Fortnite, where they started having, like, in-game concerts, and they have all these celebrities going to basically do these shows within it. You can see gaming is much bigger than it used to be, where it's like, oh, I play this game and beat it, kind of like the original Grand Theft Autos. You might think, oh, they got to keep releasing over and over, then they got this online one, or like a Call of Duty, you can beat that game, but Call of Duty Online, it's one of those, it never gets old, just going on and murking kids. I was a gamer for a long time until I had kids, and then it's just that all went out. But if you're a true gamer at heart, it's one of those... a great game never gets old.
Lewis: Yeah. And they're intentionally designing the games, whether it's through online play or other features, to make them last, to make them endure. And I don't think that's any coincidence. [laughs]
Solitro: No, not at all.
Lewis: [laughs] So I think the final comparison that I'll make to MercadoLibre here. After this massive run that Sea Limited has gone on, these are almost two identically sized businesses. By my math, Sea Limited is about a $50 billion business, MercadoLibre is currently a $49 billion business. So they're just about at parity. I think past returns are no indication of future results, Joey, particularly when a company goes on a run like this, but at a $50 billion business right now, I mean, do you still think there's just plenty of growth runway for them?
Solitro: I think this could be a $500 billion company. It's one of those -- you know, if I buy a company, I think it could 10X in 10 years. I am pleasantly surprised when 8Xs in three. So I just kind of look at the runway.
And, you know, a MercadoLibre and a Sea Limited where, if you're looking at, like, wow! That's a $50 billion, in our notes, I actually put. "That's it?" Like, that this is a small company, because compared to an Amazon at $1 trillion-whatever. Like, you can see the staying power and the massive growth potential, all their divisions are growing so quickly, but even if, say for 25 years they grow over 20%, that is, you just compound those numbers, this is a massive company. And once they start turning on those profits, I can strongly suggest that they expand into other growth vectors. These three, this could be the three-headed monster right now, but kind of like an Amazon, you know, they're not just doing marketplace and logistics, it's much bigger. And I know that Sea Limited will continue to innovate. They're going to do something. They'll make big acquisitions, they'll expand more; the sky is the limit for these guys, and it's just exciting to watch.
Lewis: Well, that's the beauty of having that platform and having the customer base is it allows you to role other functionality, other monetization opportunities in. And we've seen the model work before. I think we're going to continue to see people take that model, apply it to other regions, and see a lot of the same success.
Solitro: And one of the very interesting things is, Amazon started launching a lot of their private-label products. And a lot of their private-label products are not manufactured here in the United States. For Sea Limited, I always look at, you know, the potential profit, if they launched private-label products that are actually developed in Southeast Asia, that the logistical capabilities could be directly from the factory to the end user. So when you look at the strategic placement at distribution warehouses or something like that, the gross margin and net profit potential is even more significant than at Amazon. And if you add in, if they started doing, like, Sea Web Services or something like that, kind of like the AWS model, man! It could just be absolutely massive. And just talking about this makes me want to buy more.
Lewis: [laughs] I'm sure there are some listeners out there saying, "800%! Dylan, why didn't you have Joey on earlier to talk about this one?"
Solitro: I can only scream so much.
Lewis: [laughs] I promise that next time Joey is pounding the table this hard for something, I will get him on faster. I know in our Slacks, there are already other companies that are starting to get to that point. But, Joey, thanks so much for hopping on today's show and walking through the company with me.
Solitro: Always a pleasure.
Lewis: All right. 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 IndustryFocus@Fool.com, or you can tweet us @MFIndustryFocus. If you want more stuff, subscribe on iTunes or wherever you get your podcasts.
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 Tim Sparks for all his work behind the glass. Thanks for listening, and Fool on!