In this podcast, we discuss not one but two sleep apnea companies, worldwide sports franchises, and a Swiss company you may never have heard of.
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This video was recorded on March 23, 2022.
David Gardner: A lot of people, when they first think about stocks tend to lock in on the share price. Maybe this was you or maybe this is a friend of yours. They'll say, "Well, Amazon, it's at $3,305 per share, that's expensive." By contrast, the same mentality when looking at penny stocks can get a lot more excited. Some penny stock they're seeing promoted by someone, perhaps some ne'er-do-well. They think, Wow, stocks at $0.33, not $3,300, like Amazon, $0.33. They'll think, Well that's the one to buy. The one at $0.33 because if it reaches a dollar, you triple your money. Well, from the earliest days of the Motley Fool, we've tried to get people focus not on the price per share of the company, but rather on the market cap of the company. That price per share of a stock tells you almost nothing. It's the price to buy one share of the stock. But how many shares does the company have outstanding? In math, we multiply two multiple cans together, but the price per share is only one of those multiple cans. If you don't know the other one, you can't do any meaningful math or figure out much of the world around you. While Fools with a F know that you need to know the shares outstanding and then multiply that by the price per share, and now you know the actual full value of the company. Its full price tag, its market capitalization, market cap. While to teach this lesson inexorably and unforgettable, we invented a game. That's when I do. The date was Aug. 9, 2017, history will show we've been playing every quarter since. You're playing, too, you know this. You've been playing along all the way through and it's that time of the year again, that time of the quarter. Again, 10 new stocks, two guest stars, actually three guest stars because you, too, only on this week's Rule Breaker Investing.
Narrator: It's the Rule Breaker Investing podcast with Motley Fool Co-Founder David Gardner.
David Gardner: Welcome back to Rule Breaker Investing. I delight to have you joining with us this week. You are a guest star on every Market Cap Game Show. We play these on the penultimate Wednesday of every quarter, and it is that time of the year again, the second to last week of March. Which reminds me to mention that our next week's show, it is, of course, our Rule Breaker Investing mailbag, the mailbag for March 2022. It's been a fun month, we did old, new, borrowed, blue to kick off the month, telling their stories volume for with Bill Mann and Auri Hughes. Market got you down. That was last week, a lot of fun to do. Of course, I think I hope even more fun this week, the Market Cap Game Show. But of course next week is the Rule Breaker Investing mailbag. Our email address, [email protected]. Write early, write often. If you want to be included, definitely write us by this weekend, [email protected]. You can also tweet us @RBIPodcasts. [MUSIC] All right, well, let me now introduce my two guest stars in studio this week. Well, studio, not exactly, I'm sitting in a hotel room somewhere in West Hartford, Connecticut. I think my guest stars are coming from their dens, it looks like and that's the world we live in today, which isn't that bad a world. I'm delighted to be joined this week by Tim Beyers and Yasser El-Shimy, our two guest stars for this Market Cap Game Show. Tim, let me turn to you. First, could you remind us Tim Beyers briefly, how you found the Fool, and how you spend your time around ''Fool HQ'' these days?
Tim Beyers: Great question. I found the Fool back in the late '90s as a fan, as a reader of the original Motley Fool Investment Guide. I'm self-taught investor. I dove into everything I could find. After I found the investment guide, I read a lot, I spend a lot of time on Fool.com and I was a regular reader. Back in the day, we used to send this daily email called The Fool Watch Daily, which have stories of the day. One day back in November 2003 in the Fool Watch Daily, it said, "We're looking for writers." I said, Giddy-up, I'm [LAUGHTER] going to apply for this. I did and it asked for stock pick and so I made a stock pick and I wrote something up there.
David Gardner: Remember what it was Tim?
Tim Beyers: It was Akamai Technologies, which happened to be the first stock that I pitched to you in Motley Fool Rule Breakers. So December 2003, that article appeared on fool.com. I started writing regularly for the Fool after that. I can't believe this is real, but it is, 17 years next month is when I officially joined the Rule Breakers team.
David Gardner: Love it.
Tim Beyers: When you gave me a thumbs-up for Akamai Technologies. Today, I am deeply humbled that you trusted [LAUGHTER] me to run Rule Breakers, run point on Rule Breakers from here on. I also have a couple of other services that I work on and help lead Cloud Disruptors and SaaS Superstars. It's been 18 years going on 19. [LAUGHTER] That's hard to believe.
David Gardner: Thank you for every one of them, Tim Beyers and your focus on technology and emerging technologies. Obviously an exciting place to be hunting and you've always done such a good job, Tim, breaking things down and explaining to the layman. The common Fool, someone like me what this or that cloud technology is or what this implies about the future. Before I introduce Yasser, Tim, I have a one icebreaker question for you, are you ready?
Tim Beyers: Yeah, I'm ready.
David Gardner: Excellent. Tim Beyers, what is something that somewhat, to your surprise, has impressed you recently?
Tim Beyers: I would say, and I shouldn't be surprised by this, but I am surprised by the generosity of the human spirit. There's so many examples of this. I can't just isolate one. There's a couple, I think a lot of them have been in sports. One of the more fascinating, I think you're OK with this. I know you're a UNC, University of North Carolina alum, [LAUGHTER] but I will say one of the great stories of Coach Mike Krzyzewski run in the NCAA tournament this year, is something that he didn't and talk about, but has come out. One of it, the longtime fans. I think this man recently passed away, but a fan who had Down syndrome. Have you heard this story?
David Gardner: I have not.
Tim Beyers: OK, this man, his family wrote to Coach K. This was something like over 37 years ago. I think his name is Richard Mitchell, and so just said, Hey big Duke fan would love to come to a game. As that particular program, like University of North Carolina, they sell out the arenas all the time, very hard to get a seat at either one of those games. Coach K responded, he said, ''You could sit right behind me.'' I thought, how amazing is that? Just the generosity. I mean, I shouldn't be amazed by that because there are lots of stories like that of just the generosity of the human spirit. But just the simple act of being like, yeah you can sit behind me and just be part of the program and every game, Coach K would reach behind them, shake this fan's hand, and had like simple fans sitting right behind him. I thought that's amazing.
David Gardner: It's a great story. The part of the reasons it's a great story is because it doesn't make the headlines. I have cheered against Duke all of those 37 years just about. [LAUGHTER] Certainly there are aspects of Coach K and aspects of Duke that I greatly admire, that's one of them. It's not going to make the headlines. I think that's part of the reason that can surprise us a little, even though I agree with you, Tim. We're surrounded by those every day if we both love, so thank you for sharing that. Now let me turn before we get started to our other guest star, Yasser El-Shimy. Yasser, you are making your Market Cap Game Show debut. How did you sleep last night?
Yasser El-Shimy: Not well, David. Nonstop nightmares.
David Gardner: [LAUGHTER] That's deeply worrisome and yet you look ready. You got a good smile on your face, Yasser, you look ready to compete. Tim, a little bit more of an old hand. That's always fun to have fresh blood in here now I say fresh, but Yasser, you've been a Fool for quite a while. How did you find the Motley Fool? What are you doing around Fool HQ these days?
Yasser El-Shimy: I don't know if you remember the first time we met David, but I told you that I found out that I was a Fool before I knew of the Fool. I was already applying the principles of Rule Breaker Investing in my own investing portfolio and philosophy. Not obviously to the letter because up to that point I have not been exposed, but around 2008, that's when I started dipping my toes into the waters of investing and bit by bit it was a lot of self-learning in the process. I got exposed to some Fool.com commentary and from there I became interested in the services and started listening to this very podcast and that's what got me interested in the Motley Fool and I spent a couple of years just trying to get in. You guys finally graciously allowed me into the building and virtually. I have to say I started about almost two years ago now and I have not set foot in the building since I started working.
David Gardner: Isn't that remarkable. [LAUGHTER] It's just crazy to think, Yasser. Well, you've been doing a great job all the way through. Thank you and I'm so glad that we're connected now as we are and that you've got your game face on for the Market Cap Game Show. Now, Yasser, what is something that somewhat to your surprise has impressed you recently.
Yasser El-Shimy: As you know David, I'm a bit of a diehard football fan, or as some people would call, soccer fan. [LAUGHTER] Again, apologies if you follow me on Twitter because I'm sure I'm bombarding your news feed with all soccer-related [LAUGHTER] posts. But when I first moved to the U.S. in 2007 and I brought that baggage with me coming from Asia to being, [LAUGHTER] this just crazy guy who loves to watch soccer every week. I've been following my team since 1999, my team is A.S. Roma, playing them the Italian soccer league. It was so hard when I first moved here to actually find any channel on which I can watch the games. I would watch these games religiously week in week out. I called my satellite company, I called my cable company. I would sometimes unfortunately resort to streaming online, one of those sites that would fill your laptop with all stuff. [LAUGHTER] What has impressed me lately is just how popular European soccer has become in the United States and more recently, the Italian league in particular has been picked up by Paramount Plus and CBS Sports. The amount of production they've been putting into it, including pre-shows, post-shows, including sending reporters and anchors into Italy to do their reporting from there has just absolutely amazed me and again, a very strong supporter of Italian soccer, I am just extremely impressed by how far we've come along.
David Gardner: That is wonderful. I'm very happy to hear. Did you ever looked at into fuboTV or considered Fubo or are you willing to pay that much for sports on a monthly basis?
Yasser El-Shimy: I know that was a recommendation before, but I would say I have never used Fubo actually just because I don't want to pay on a per match basis. I just want to make sure that I have the entire season all set up for me. It's like buying season tickets as opposed to just buying a ticket per game. I imagine that if I was living in Rome, I would definitely be buying those season tickets.
David Gardner: Yes, wonderful. Thank you for sharing that Yasser. One sports fan to another, we deserve to see our teams, and the world keeps getting better that way. It feels like streaming networks and all those entertainment executives know ultimately that they want to give us their product. Although it wasn't that long ago that they finally began showing each of the March Madness games, I would say maybe 10 or 15 years ago, but the rest of my lifetime before that, sometimes you just have to resort to network TV or just not watched your team. Amazing. Well, friends, let's get started with the Market Cap Game Show. Now a quick reminder to all those tuning in especially those new people, tried to speak to this at the top of the market cap of a stock is the price per share of the company multiplied by all of the shares. That's a pretty good proxy for the overall price tag, the overall value of the company itself. The 10 stocks that we'll be playing with this quarter have once again been randomized but we're looking at the market cap of the companies. I will certainly mention the ticker symbol of each of these interesting 10 companies. Some of us probably have a few of these in our portfolios. I challenge anybody to tell me he or she has all 10 of this game show's stocks in their portfolio. We'll see. I think there are a lot of new ideas here. Without further ado, gentlemen, let's get started. Tim, I've randomized you first. I'll be asking you the market cap range of this company. You'll state a range and then Yasser will come in and say it's either inside or outside that range and so will each of us playing at home. Each of us playing at home it's as simple as saying, do I agree with Tim, it's inside as range? Or do I disagree with Tim, it's outside his range? Let's get started. Stock No. 1. Tim, how'd you meet your wife?
Tim Beyers: That was so many years ago. It was a setup at an old friend's, college friend at their apartment.
David Gardner: It sounds like a good kind of setup. Setup as a phrase is sometimes is a negative connotation. We're not set up.
Tim Beyers: No. It was it was good. I handled it very poorly, but absolutely [LAUGHTER] it was great. I was great. Would I say, I handled that well, no, fumbled it totally. But that's how I met her. Way back in the day.
David Gardner: Well, friends and family continues to be globally the No. 1 way that people eventually meet their spouse or partner. Now, Yasser, I'm conscious that coming from the Middle East, you've spent a good deal of your time in Egypt and I know you've lived some other interesting places. The No. 2 way that people meet a spouse or partner is through an arranged marriage. I think of India most prominently as a hugely populous country where that happens a lot. Is that not uncommon in Egypt?
Yasser El-Shimy: I would say it's neither common nor completely uncommon. It happens but it's not definitely to the scale that you would assume maybe happening in a country like India, for example.
David Gardner: Yes. Of course it also happens in the United States of America. It happens worldwide. That is the No. 2 way that people meet a spouse or partner. No. 3, though, this company is the worldwide leader, I think when you think about at least outside of China, websites and businesses that help people meet, the one. The ticker symbol is of course, MTCH. This is Match Group. Match Group has appeared on a number of times on Market Cap Game Shows over the years. It was a Stock Advisor pick of mine. It's been an outstanding performer. Well, Yasser, Tim, and David, the three of us talking to you, probably weren't young enough to really use that to find our spouse or partner.
Yasser El-Shimy: I did David. I did.
David Gardner: Outstanding, Yasser. [LAUGHTER] You're about to speak to Tim's range here. We'll have to talk to that in a minute, but I'm delighted to hear that and it really is a very common way, of course, today and I know you're not quite as old as Tim and I, so Yasser thank you for that. But let me turn it back to Tim Beyers. Tim, you've been randomized as the one making the first call on the first stocks. Tim Beyers, what is the range of market cap you would like to specify for Match Group, ticker symbol MTCH?
Tim Beyers: This is an interesting one because it is a bigger company than you might expect. But I don't think it's a massive company. I'm not going to give Yasser any rookie discounts here because of that, I'm going to create a fairly tight range here, guessing that I think Yasser probably knows the answer here, so I do not have the exact answer. I will say that right up front, but I think I'm pretty close, so here we go. The range is between $39.6 billion and $43.253 billion.
David Gardner: Love the specification to the third decimal. Now Yasser, and everybody playing at home, Tim just said $39.6 billion to $43.253 billion. Yasser, inside or outside that range?
Yasser El-Shimy: I'm going to go with outside. I think it's a smaller company than that.
David Gardner: Sure enough, Yasser, you are correct. Players at home, if you said outside Tim's rather tight and somewhat specific range, give yourself a plus one. The market cap for Match Group is $26.46 billion. Now it's worth mentioning that this addition of Market Cap Game Show comes after a pretty dramatic market sell-off, really for the most part over the last several months. Let's be very clear on this friends, Match Group wasn't far off a double its market cap when we did this show eight or nine months ago if we've mentioned Match Group at the time. Like a lot of stocks and part of the interests of this week's show is the market cap, they've been coming down. Tim, you seemed very confident you went with a tight range. Any regrets now?
Tim Beyers: No regrets. This is the part of the game [LAUGHTER] One of the things I like about the game is that even if you don't know the answer if you play the game well, you can still have a shot. Look, David, I, too, have a football slash soccer club I like that I will get into later. But you may think of me as the wildly midfielder that cannot get back up and down like I used to [LAUGHTER] but I still know how to deliver a tackle [LAUGHTER].
David Gardner: Well said. Yasser, are you a beneficiary of the Match Group ticker symbol MTCH?
Yasser El-Shimy: I am. In fact, my wife and I met via OkCupid, which I believe has been acquired by Match.com since.
David Gardner: Yes.
Yasser El-Shimy: But I would say about seven, eight years ago now. I'm sorry, my wife will kill me. If I don't recall [LAUGHTER]
David Gardner: Just don't let her listen to this late show, we're good.
Yasser El-Shimy: Exactly. Yes. It's definitely seven [LAUGHTER] It was just the old school, set up your profile. I was dragged into it by a friend of mine who was like, "You got to do this. This is how you meet people today." I did it and honestly, love at first sight, we just hit it off completely from the first date and there is something to be said about the algorithm actually working.
David Gardner: That's true. Gentleman, I always think about this age of AI that we continue to talk about. We are either in it already or it's still coming, but you think about what artificial intelligence if it really is that smart, what it might be able to do through these kinds of matchmaking services that you can't possibly do in real life because you just don't have a database search when you're in your own zip code going out on a date with somebody that your friends set you up with. So it's really fascinating, I think more about that. This continues to be a company of great interest to me. Yasser, I now regret that I randomly pick Tim first to go because you are the one with the Match.com story actually it's OkCupid, but that was wonderful. Well, the good news is Yasser, you've got one point, so again, players at home, if you said outside the range, give yourself plus one, if not, you're still at zero. It's Yasser, one. Tim, zero. Let's move on to stock No. 2. Yasser, are you a night owl, an early bird, or another avian of your own description?
Yasser El-Shimy: I used to be a night owl before I had kids for sure [LAUGHTER]. The kids have forced me into being a very early riser. But having said that, even though I do wake up early, I don't gain my full cognitive capabilities up until around 10 a.m. in the morning, so I require a lot of caffeination before I can really kick in. I would say I'm at most productive actually in that range between 10 a.m. and 3 p.m.
David Gardner: Yasser, do you make sure that you stop having coffee at a certain point in the day in order to have a good sleep at night?
Yasser El-Shimy: I do. I only have one coffee per day and that's again in the morning just to get me going, and if I do have any caffeine later in the day either tea or I buy cocoa or something, then I definitely do that before 4 p.m.
David Gardner: Very disciplined.
Yasser El-Shimy: No caffeine after 4 p.m. for sure.
David Gardner: Very disciplined. You sound like a creature of habit in this context and that's most impressive. Without prying too much or any further really, Yasser, would you say, for the most part you get good sleep at night?
Yasser El-Shimy: Again before kids, I did [LAUGHTER] have good sleep at night. Now I have kids screaming in the intercom and random kids walking into my bedroom at 3 a.m. [LAUGHTER] So I used too. Look, I love my kids, they are the joy of my life. But it comes with a package.
David Gardner: It makes a lot of sense and you think about the importance of sleep, much literature has spoken to this. I think a lot of people are very focused and many of us do have a very common problem called sleep apnea in one form or another. There is a big industry aimed at trying to correct or at least help us sleep better through our sleeping problems, whether it's CPAP machines or others. The company we're about to talk about ticker symbol, RMD, is ResMed, which is today in San Diego, California-based medical device company, a big dog, a long time, a global player. In fact, it operates in 140 plus countries, worldwide, manufacturing facilities in places as diverse as Australia, France, Singapore, etc., which may speak somewhat to its size. But we will let Yasser you figure out what you think is your best call on the market cap range for ResMed, ticker symbol RMD?
Yasser El-Shimy: How big of a range [LAUGHTER] can I guess here?
David Gardner: As big as you like. Big and generous, just makes it easier for Tim and all of our players at home, so it's how generous are you feeling?
Yasser El-Shimy: Well, I'm going to go with a relatively bigger range here just because I am not as familiar with the company. I would say the range is likely to be between $11 billion and $19 billion.
David Gardner: Eleven billion dollars to $19 billion dollars. Tim, players at home, would you like to go inside or outside Yasser's range for ResMed?
Tim Beyers: I think Yasser has got it mostly right here. I'm going to say inside the range, David.
David Gardner: I'm sorry to say, Tim, that you both have undershot it. I'm sure many of our players at home have as well. I myself was shocked to see the market cap of this company, which is $37.25 billion.
Tim Beyers: OK.
Yasser El-Shimy: Wow.
David Gardner: Bigger than we thought. Many a time on the Market Cap Game Show in the past, and still might happen this week, when somebody guesses way higher, we often say, "Hey, maybe you should buy that stock." If you thought that was $100 billion company and it's only a $10 billion company that implies that there's probably a lot of growth ahead of you. You're impressed by it. But this is an opposite case. Both of you gentlemen have this is a smaller company, but it's about twice the size. Maybe they shouldn't be one for your watch list. Maybe it's the fish that got away. Not to say though, that good companies aren't always still worth buying, they generally are. But yes, RMD 37 and a quarter billion, that brings our score up to Yasser, two. Tim, nothing. Yasser, now being confronted with the fact of ResMed's market cap, has this changed your view of the world in any way?
Yasser El-Shimy: Yes, I didn't know so many people snored. [LAUGHTER] I recognize it's a big global issue. I'm very impressed though that ResMed has been so successful with its products and being able to provide that solution on a global scale and developed the company to that level.
David Gardner: Thank you. Let's move onto stock No. 3. Again, ladies and gentlemen, Fools everywhere. All of these stocks have been randomized from a large universe of approximately 500 stocks that we do coverage on through our Motley Fool services. Even the order in which I present these stocks has been randomized, which makes this next one popping up here quite interesting. Stock No. 3, Tim, I turn to you. This might sound familiar. Tim, are you a night owl, an early bird, or another Avian of your own description?
Tim Beyers: I used to be much more of an early riser. I still probably do a little better earlier. But I am not nearly as disciplined as Yasser. I'm all over the place. I drink a pot of coffee a day [LAUGHTER] and try to drink as much water as I can to go along with that. I probably should go to bed a little bit earlier, but I don't. [LAUGHTER] I guess I'm a bird of an entirely different color. I'm a little bit of both, which is probably not amazing.
David Gardner: Tim, do you have, and I'm going to ask Yasser the same in a second, do you have any kind of go-to to put yourself back to sleep? Obviously, counting sheep is the cliche, breathe in, breathe out, count your breaths. Do you have a technique that might benefit all of us listening to you?
Tim Beyers: No, but I will say, probably the reason I'm not nearly as disciplined about this, and I get that this is fundamentally annoying. When I do get into bed and get ready to go to sleep, I never have a hard time going to sleep. I say that.
David Gardner: Wonderful.
Tim Beyers: Tonight there we go, just kiss of death right there. But yeah, I usually do not have any trouble going to sleep.
David Gardner: Well, the reason Tim that I'm asking you the same question I asked Yasser is because this company happens to be in the exact same field. Inspire Medical Systems, ticker symbol INSP, is a Minnesota based company and they make a device that can be implanted, it is specifically implanted in you to combat your sleep apnea. A really interesting emergent Rule Breaker kind of company not what I previously recommended, but I find it very interesting. Inspire, for the most part if you take a meaningful period of long-term returns has been a spectacular stock. Tim, I'm now turning to you to ask you, what is the market cap of Inspire Medical Systems, ticker symbol INSP, what is your range?
Tim Beyers: I actually have no idea.
David Gardner: Love that. That makes the game more fun.
Tim Beyers: This is a totally wild guess. But this is going to be a little bit of a crazy guess. I will give a fairly sizable range. But I think this is one that could actually be, I believe that Inspire actually could be in this range. [LAUGHTER] But it's a pretty wide range. I'm going to say $757.8 million up to Yasser's previous range, which was $11 billion, so it's a massive range.
David Gardner: A big wide range. I think it is safe to assume, although I'm not going to confirm or deny because I don't want to help anybody. It's probably safe to assume this is not as large a company as ResMed. After all, this is a company with one widget. There's a lot more going on in Inspire than just this, but this is the only FDA-approved obstructive sleep apnea treatment that works inside your body to treat the root cause, I'm really read up their website of sleep apnea with just the click of a button. I bet whether or not Yasser gets this right or not, I bet some of our listeners who may have some problems in this area are having their eyes open to some potential new technologies. Yasser, I heard Tim say something like $757.8 million on the low-end to 11 billion on the high-end. Do you want to go inside that range with Tim or outside that range?
Yasser El-Shimy: Well, I'm going to switch it up this time around, I'm going to say inside. I would have actually guessed the range to be roughly within those confines probably less than $11 billion would have been my guess. Something along the range of $700 million to $5 billion but yeah lets find out.
David Gardner: It is inside that range and you didn't even have to specify a number Yasser. You could've looked even smarter because it's actually $6.3 billion outside of the range that you just specified voluntarily but, what really matters is that Tim was generous to you and Tim is a very generous man because he spoke to the generosity of others earlier in the show. He was generous with a big wide, just about an $11-$10 billion dollar range and yes, $6.3 billion falls almost right square in the middle of the range that Tim gave. Gentlemen, I also don't know this company very well. I did do a little extra reading up on it. I think it's really interesting. I thought it was so much fun and crazy really that out of 500 or so companies, ResMed and Inspire Medical go back-to-back because they really are within the same larger field. Well, the score is Yasser three, Tim zero and Tim, I feel as if that's not fair.
Tim Beyers: This is typical for me. I got absolutely hammered by Maria the last time I was on. [LAUGHTER] No one should be surprised by this whatsoever.
Yasser El-Shimy: Not at all. This is just rookie luck, nothing more.
David Gardner: Yasser, do you have any sleep tips before we move on to stock No. 4?
Yasser El-Shimy: Yes. If you happen to subscribe to any British podcasts, they do wonders in putting you to sleep. [LAUGHTER] I don't intend to make any offensive statement, I love people in Britain. But the accent is just so relaxing to me that I can just put on some podcasts in a British accent, and in less than a minute I'm out.
David Gardner: Wonderful and hey Tim, he just falls asleep when he hits the bed, which is a neat trick if you can pull it. Yasser three. Tim, zero. Let's move on to stock No. 4. Yasser, you've already described yourself as a sports fan, so we know you love what some people call football and other people call soccer, but it's that sport with a white and black dotted ball that's very popular worldwide. Do you have any other sports or interest in, do you bought tickets and attend stadiums for any other sports?
Yasser El-Shimy: I do not follow other sports as religiously as I follow football slash soccer. I do occasionally watch basketball and I would probably watch the super bowl. I would watch like the big events in the sports world but not much outside of the soccer field.
David Gardner: But when you watch the sports and let's just go back to A.S. Roma. I'm assuming that you're assuming that everyone is trying 100% to win. Nothing is being faked. Nobody's taking a dive. It's genuine. We, as sports fans expect most of our sports are authentic.
Yasser El-Shimy: That's absolutely, right.
David Gardner: That is the assumption you make. Are there popular sports in your mind that don't have that same assumption in the minds of the fans? Are there sports that are pretend? Is there some fakery out there in the sports world?
Yasser El-Shimy: I know where you're going with those, David. I think we're talking about wrestling here. [LAUGHTER] I can tell you that as a young preteen in Egypt, I used to watch a lot of American wrestling on Egyptian channels whenever they would air over there. I used to believe it with all my heart, like this is real. But eventually, I was told the sad truth [LAUGHTER] that it may not be all that it pretends to be. It was as shocking to me as you telling a 10-year-old that Santa doesn't really exist.
David Gardner: Careful now. [LAUGHTER] I will say that my brother Tom and I had a very similar childhood. Saturday mornings, at least in Washington, D.C., on TV, wrestling, championship wrestling came on and we loved it. I think I was about nine and Tom was about seven when somebody at school told us that it's not actually real, that they're just going through the motions out there in the wrestling ring and that did kill it for me. But it turns out it doesn't kill it for that many people. There are a lot of people who are adults who probably already know that, but maybe love it even more. Well, let's let the market cap be the judge. Yes, you did correctly, divine Yasser, that we're talking about World Wrestling Entertainment, ticker symbol WWE. I think a lot of people who are new to the stock market, probably some people hearing us right now don't realize that it is a public company. You can actually become a part owner of World Wrestling Entertainment. I'm curious, Yasser, I think a lot of us are. What does the market cap range you want to state for ticker symbol WWE?
Yasser El-Shimy: Well, again it's one of those companies that are not too small, not too big, maybe somewhere in between, I'm going to guess that the market cap of WWE falls somewhere in the range between $31 billion and $38 billion dollars.
David Gardner: Thirty one billion to thirty eight billion for a long running sport that has been on television and increasingly pay per view. Tim Beyers, have you ever attended a WWE event?
Tim Beyers: No, I never have but the old-school wrestlers, the late great Rowdy Roddy Piper is one of my absolute favorite. But yeah, I couldn't even tell you the last time. I'll date myself, and say, I forget his last name, but the commentator on, I guess back then it was called the World Wrestling Federation.
David Gardner: I think it was probably was.
Yasser El-Shimy: The WWF.
Tim Beyers: Yeah, Mean Gene. That's who I remember. [LAUGHTER] I wish I could remember his last name but was giving the commentary from the sideline and yeah, I have no idea. The last time I actually watched a wrestling match.
David Gardner: From Mean Gene, let's turn to Slim Tim and ask you Tim, and players at home. Are we inside Yasser's $31 to $38 billion market cap with World Wrestling Entertainment or outside that range?
Tim Beyers: I can't decide whether it's a little bit lower or a little bit higher, but I think it's outside David.
Tim Beyers: Plus one for Tim on the scorecard, Yasser, three. Tim one, gentlemen, Yasser was not even close with this one. Again, I love playing the game because like Alex Trebek, I sound all knowledgeable because I always have the right answers and I never have to look a little crazy. But my friends, the market cap for World Wrestling Entertainment is just $4.39 billion. Almost 1/10 what we were contemplating earlier. Tim, when you said it might be a little lower, you were right. It is a little lower. This is a much smaller company than I think a lot of us might have thought it. Yasser, why do you think you guessed so high now in retrospect?
Yasser El-Shimy: Well I am thinking of it as a global franchise, a long running one at that, I know they had a lot of very successful broadcasting deals over the past few years. All of those give me confidence that it was a much bigger company that it actually is. But now that I know it's such a low market cap, I may need to give it another look.
David Gardner: Well, and we've made that point many of time and I already made at once this week, but I would like to point out I didn't know this myself. But if you look at the stock market performance for WWE over the last 10 years, which I think is a good amount of time to judge something. My friends market crusher, the stock is up 600% to that market cap of just $4.4 billion. This might be one for the watch list, the El-Shimy and/or Beyers watchlist, even if we don't pay too much attention, I think it's in general, not doing bad things out there in this world. I don't find myself compelled by the entertainment. I know we have some big fans at Fool HQ and Motley Fool Live, some of our hosts talk regularly about the WWE. But just from a business standpoint, it does have a long history. It does have a worldwide brand, in some senses, it's only a $4.4 billion company. Some of us thought it was about 10 times that, so I'd say that's a watch-lister. Well, Yasser, three. Tim one. Let's move onto stock No. 5, Tim, what is your favorite form of social media? I going to say, favorite maybe in the sense that you log the most hours there.
Tim Beyers: Oh boy, David, at the risk of being get off my lawn guy. I will tell you [LAUGHTER] that I quit Facebook and Twitter over three years ago. I'm not going back and that's not an indictment of those, it is really bad for my brain and I have discovered that and can't do it. What's my favorite form of social media? The one that classically remains is LinkedIn, which I get for business news. I'll say this, I don't have a Twitter account, but I do look at, I will just follow up here. Yasser's big fan of A.S. Roma, my English Premier football team, is this tiny little club called Crystal Palace in South London, and I love that club so much. It's so fun to watch that club and follow along. They do have some clever stuff that the fans sites and the club itself do put up on Twitter. Even though I'm not a Twitter user per se, I do log in to those feeds, to get. Yeah, there's some really great stuff. What they put up on there that just makes me smile. I guess I have to say Twitter in that sense.
David Gardner: Fair enough. Social media can mean many different things. This is, by the way, a fun icebreaker question for all ages. We found ourselves on spring break skiing in Colorado with people of all ages in the house we were in, and just asking each person that question, everyone can relate, and even if you're not active at all on social media, one of you said Motley Fool discussion boards. Depending on what we mean by social platform, social media that's a perfectly legit answer. Writ large, we're all participating in social media, but it's not just Facebook to Tim's point, or Twitter. This company is one that I don't think I will be using anytime soon as a social platform, but it's very popular for the professional audience that uses it. I'm not a doctor and I do not play one on TV, but LinkedIn for doctors is not a bad way of summarizing the business of Doximity. The ticker symbol is D-O-C-S. LinkedIn for doctors, they would say the professional medical network for physicians, the largest community of healthcare professionals in the country, Over 80% of US doctors using this platform, 50% of all nurse practitioners and physician assistants, as verified members, they cornered the market for people working within the medical professional field. I'm going to say more about this company and a little bit. I do want to disclaim right now, this is not a previous stock pick of mine. I don't know much about Doximity, but I'm glad that I randomize it for this week's Market Cap Game Show because I think it's a pretty interesting company. Tim, let me turn back to you and ask you, what is the market cap of Doximity, ticker symbol DOCS. What is your market cap range?
Tim Beyers: I know this business pretty well, we'll see how much I know about the market cap, but I do know this business pretty well. Because it is a Rule Breakers recommendation. LinkedIn for doctors is a good way to describe it. It provides some the good services for doctors and allows them to essentially find medicines that they may want to prescribe in a way that eliminates what used to be, which is people coming by the office and giving away samples. Instead it does have, there are some advertisements that the pharmaceutical companies will put into a Doximity feed, but it provides really great services to physicians. Very valuable, profitable company, well-run, founder-led, I'm going to say the market cap, $9.237 billion to $9.934 billion, [LAUGHTER] that does not mean that I know it, but you have to decide whether or not specificity means accuracy.
David Gardner: I rotated off of the Rule Breakers team last May. Of course, our service continues, it's been some tough sailing, not just for Rule Breakers but for the stock market period. But I love that, clearly, this is a company, Tim, that you and the team have picked, and I will mention while it has come down from its high highs of last fall post IPO. This is a stock that IPO'd around $40 last June. Today, I'm not going to say exactly where it is, but it's one of those that's not that much farther above or below its IPO after having run up. I'm not going to say anything more for now. I loved that I was asking you about this company because clearly, with your tight range, you have knowledge of Doximity, Yasser and players at home. Tim stated a market cap range for Doximity of $9.237 billion to $9.934 billion, Yasser, inside or outside that range?
Yasser El-Shimy: Well, I am just going to have to say that Tim is playing mind games with me right now, because this range I've never heard anything tighter than that. [LAUGHTER] I know it's a Rule Breaker recommendation and Tim is familiar with it, but I'm going to go with outside the range. That's because I think that range is very tight.
David Gardner: It is indeed just outside Tim's range. now, let's be clear, anytime somebody brings in a really tight range on the Market Cap Game Show, they probably know this company pretty well and they might just be head gaming their opponent. Tim, I'm not going to say whether you were doing that or not, but I will say that as of this Tuesday afternoon, March 22nd, the market cap for Doximity is $8.74 billion, so just a little bit lower than that narrow range. Players at home, if you said outside Tim's range, give yourself a plus one, Yasser. You get a plus one. Tim, I need to start right back to you. Tell us a little bit more about Doximity.
Tim Beyers: Honestly and I will say that actually wasn't head games. I must have just been late in looking at the market cap because I thought for sure that I had it right. I actually thought I had seen it at 9.3 billion.
Yasser El-Shimy: It's probably the enterprise value, Tim.
Tim Beyers: I actually thought I was right there. Doximity is a great company and like I said, it's founder-led and one of the great ideas of this is there is a couple of things. First, and one of the things, I really like it as a Rule Breaker is the vast majority of medical students coming out. One of the first things they do is choose to go on Doximity so they can get found, they can find and network with other doctors and more experienced physicians that maybe have their own offices. A service that Doximity provides, is called the dialer. On the dialer, you can pick up a call like through your answering service, say like on your iPhone and the patient doesn't necessarily have your direct number, that is obscured from the patient. But you could still actually get calls that need to go to you through your iPhone and you are not compromising, say like your personal time. It is a fascinating service that connects medical students going into the field as they get into residency and move up in their career. Doximity gets them early and then provides an additional layer of services later and that gives them the right, the permission to maybe put some pharmaceutical ads into that Doximity feed, fascinating business, really well-run. I think it's one of those profitable breakers that is probably going to be better known, David, over time, but just isn't yet.
Yasser El-Shimy: Yeah. If I can add one more thing about Doximity, I love how stakeholder-oriented their management is. Right before their IPO, they actually offered all the doctors who are on the platform the chance to own their shares pre-IPO. I know that because my wife is a physician and she is a user of Doximity and she was given the chance to purchase, I believe, up to a $5,000 worth of Doximity shares pre-IPO. Let's just say their shares, I think almost instantaneously doubled after the IPO. Not that my wife actually bought the shares, of course, [LAUGHTER] but I love the fact that they wanted their users to be stakeholders in the business itself.
David Gardner: I love how this company in connects in with both you, Tim, clearly just knowledgeable because you're fascinated by the technology and the opportunity. Yasser, in this case, your wife, a physician. Clearly this is one of those companies, at least within that field, I think probably passes the snap tests. That is, if you snap your fingers and Doximity disappeared overnight, would anyone know or does anyone care? Certainly everybody in healthcare, at least in the US, would notice and a lot of people would care. I did mention the IPO. I'll just point out some numbers here. The company IPO-ed at first day was at 40. That probably means it traded up from wherever your wife got those shares initially, Yasser and many others besides. The stock went from that first day of 40, about two months later, 60, so it was up 50 percent. Two months after that, touched over a 100. But with the market sell-off from the fall into the spring of this year, from a 100 down to where it touches right around $50 a share today. So those who are just hearing about this company for the first time, you're going to be getting a 50 percent off from just this fall if you're interested. Anyway, it sounds guys as if this is one to follow, one to put on your watch list, I'm glad it was randomly company No. 5. All right, Yasser four, Tim one. How are you doing at home, raise your hand if you have five. I hope you're not listening to this while driving a car, keep those hands on the wheel, but great job if you have 5 or 4, 3, 2, 1. Some of us have zero, but you know what? We're learning the most, those of us who have zero, we're learning the most. Let's keep going onto stock No. 6. Turning now back to Yasser. Yasser, rate yourself on a scale of 0-10, where zero is horrendously bad, of course, and 10 is professionally awesome, as a photographer?
Yasser El-Shimy: I would probably say I'm a seven. I've not studied professional photography. I've never messed around with the real deal cameras. But I do tend to pay attention to things like lighting and distance and perspective and so on. I used to minor in film back in the day in college. All of those things have wrapped up a little bit on my photography.
David Gardner: Based on my knowledge of your innate humility, Yasser, if you're giving yourself a seven, that means most of us will be saying nine at this point. I appreciate what you're saying. One of the things, this is a small pet peeve of mine, not one I'll probably feature on a future podcast, I will just share it here, but sometimes I'm sad when inevitably you give your iPhone camera to somebody else because they graciously said, I'll take a picture of you and your family in front of this beautiful place. You're like, thank you so much. But then later you look at the picture, you like, that person unfortunately didn't really understand composition at all. Because they didn't realize it's as simple as if they'd waited three seconds, the person behind us who basically ruined our picture would've been moving left to right, they'd been gone. So not everybody is thinking about what's in the background, for example. I'm going to give myself about a four because I never took film class, let alone photography class. But I do feel like we're all photographers these days with smartphones, we're all photographers. I would have been a one without my iPhone, but I think I'm a four with it. Lots and lots of pictures are being taken. These days with the demands of visual learners and the visual web, more than ever before it seems like beautiful photographs help sell products, help unite tribes, help bring people together and not all of those are owned merely by an individual. There is a lot of stuff that is in the public domain these days that whether it's photos, video clips, sound clips, there's quite a large collective comments today of digital assets. Yasser, Shutterstock, ticker or symbol SSTK, is a company that's been doing this almost 20 years now, building a library of photos, sometimes generic stock photos that you need to put next your Motley Fool article, let's say, or maybe it's a picture of a snowboard and you're putting together your Shopify site, you're a home-brewed dude, you need some stock photos, video clips, music. Yasser, have you heard or spend any time looking at Shutterstock?
Yasser El-Shimy: I have not spent much time looking at it. Of course, I have heard of the company and its products, but it's not one that I'm very familiar with.
David Gardner: In that case, it's even more fun than to ask you, what is the market cap range you would like to specify for ticker symbol SSTK, Shutterstock, which by the way was founded in 2003 and came public in 2012.
Yasser El-Shimy: Here it goes. I think I'm going to go between $2 billion and $3.5 billion.
David Gardner: Two billion to $3.5 billion. Tim Beyers, players at home, do you want to go with Yasser inside that range of 2.0-3.5 billion or outside that range?
Tim Beyers: I feel like I should say inside the range, so naturally I'm going to go Costanza and say outside the range.
David Gardner: Like Costanza, [LAUGHTER] I'm sorry to say it, it doesn't always work out because Yasser did a pretty darn good job with his range. The answer is the market cap of Shutterstock is 3.33, three and a third repeating billion dollars today and so yes, that is inside the range of 2.0-3.5 just barely. Tim, do you often go Costanza or just in Market Cap Game Show context?
Tim Beyers: I do that in the Market Cap Game Show because I feel like my instincts are wrong. [LAUGHTER] If my instincts are wrong then I have to do like the Costanza, but didn't work out that time. [LAUGHTER]
David Gardner: All right, well, let's keep moving onto stock No. 7. I've got Yasser, five, Tim, one. No pressure Tim, but you will need to get all of these to tie.
Tim Beyers: That's true.
David Gardner: Now you both know it's not about either of you, it is about our players at home so I'm really curious to hear. Anybody who'd like to tweet it out, @rbipodcasts, you can give us your Market Cap Game Show score this week, 0-10. Someone may still be at zero. No one can be at 10 yet because we're only at stock number 7. Tim, what did you think of Amazon's effort to shop its HQ? You remember, hey, put on dog and pony show, American cities.
Tim Beyers: Yeah.
David Gardner: What do you think?
Tim Beyers: What did I think of it?
David Gardner: Yeah.
Tim Beyers: I thought it was a little indulgent, but I do get it, you're trying to get the best deal and you're trying to get incentives from different localities. One of the things that's true about Amazon is they are ruthless about managing their costs and turning costs into an opportunity to generate profit or margin. They've done that arguably better than any company in history. This is another one of those where they essentially said, we're going to bring you a lot of revenue, what are you going to do for us? [LAUGHTER] You could argue whether or not that was a little bit too much leverage. Nice-looking city you got there, shame if you didn't get our HQ. [LAUGHTER] That's the leverage they had.
David Gardner: I have to say, I think it's pretty brilliant what they did because the amount of buzz-free marketing that they got city by city.
Tim Beyers: Totally.
David Gardner: I don't think it was done cynically. I don't think it was all just to market it's services. I do think it was a genuine effort to figure out what would be the best place. Really happy to say that Northern Virginia won, so about one zip-code over from Fool HQ. Amazon is in the process of moving in, but Amazon's not the only company that's ever done that or will ever do that. In fact, the next company about which I know precious little, recently did a similar thing. Now, it didn't make it national. Many of us have never heard of this company before, but Healthpeak Properties, ticker symbol PEAK, real estate REIT-like company. This is a company that was shopping where it might move its headquarters. It was doing this in November of 2020. It shows Denver, Tim Beyers, not so far from where you live these days in Colorado. Chose Denver. Picked it over Dallas, by the way, and Nashville. This process, of course, Amazon made huge headlines over a prolonged period of time [LAUGHTER] with the decision it made, but many other companies are regularly assessing where does it makes sense for us to be. Denver, a beautiful city today. Seems like a lot of the world is moving to Denver. Some of the world's moving out of Silicon Valley to move down to Texas and Colorado. That's certainly been a trend. Well, I'm not sure I've done a very adequate job explaining Healthpeak Properties, which is basically a company focused on real estate in senior living areas and in medical businesses as well. A long-standing member of the S&P 500 since March of 2008, if that helps anybody start to dream up, Tim Beyers, what they're going to call the market cap range on this one. This company IPO-ed in 1985. It's gone through a couple of name changes over time, but Healthpeak Properties, I'd like ticker symbol, PEAK. Now we as Rule Breakers and after all, this is the Rule Breaker Investing podcasts, and I'm speaking in two Rule Breakers with me this week, we're not necessarily Matt Argersinger. We're not necessarily combing the world for what the next great real estate play is, but the Motley Fool is. Part of the reason this company was randomized from our database of 500 plus companies that we're tracking is because we have a lot of people who are interested in this, just not as many Rule Breaker types. But I do think senior living, think about the growth of that, this company seems very well-positioned. With all that as prologue, let me now turn to you, Tim, and ask you, what is the market cap for Healthpeak Properties, ticker symbol PEAK? Your range?
Tim Beyers: My scientific process for guessing the market cap range on this one is basically magic eight ball.
David Gardner: It's a creative decision where you want to start your range and how much you want to widen the range. That's the game here.
Tim Beyers: Exactly. Clearly, there is some real strategic prowess at this company because they've chosen Denver [LAUGHTER] as their headquarters. That's clear. There has to be a floor here based on what they are doing. I'm going to say between $3.6 billion and $5.8 billion. So like solid, but not enormous yet, but they'll get there.
David Gardner: Now turning to our players at home and Yasser El-Shimy. Tim has just stated a market cap range for Healthpeak Properties from $3.6 billion to $5.8 billion. Yasser, inside or outside that range?
Yasser El-Shimy: I'm going to go with outside that range. I'm not too familiar with the company yet, just like Tim, but my assumption here is that the market may have been favorable to them recently as of redividend paying company compared to a lot of high-growth stocks that got absolutely smoked over the past few months, so I'll say outside.
David Gardner: Indeed it is outside. Yasser, I'm going to name you rookie of the year now as you take a six to one lead because you nailed it. Actually gentlemen, maybe a little bit of a giveaway with this one is it's been in the S&P 500 since March of 2008, so this is a larger company, not a big company. Had I ever heard of Healthpeak Properties before researching? This week's podcast, the answer is no. Let me make it clear, I'm just like Tim, but the company's market cap is $17.95 billion. It's basically an $18 billion real estate. This REIT and as Tim pointed out, REITs pay dividends. The dividend yield if I'm seeing it right right now for PEAK is 3.6 percent, not too shabby. Although you can certainly find some higher dividends among other REIT companies. But REITs, real estate investment trusts, are required to pay out a substantial amount of the income that they make on an annual basis in the form of dividends. That's why they have structured themselves as real estate investment trust. This is one of them. Gentlemen, I will say before we move onto the next stock, again, the senior living space, I'm visiting my father this week outside Hartford, Connecticut, and I can tell you having spent a lot of time in and around a senior living facility, these are really vital businesses that do important work every day. Real clearly going to pass the snap test if you're involved as a family member, let alone a customer of these businesses. I think they're just only increasingly important. The graying of America, our increasing longevity, seems like, gentlemen, peak, PEAK, to just use its ticker symbol, seems well-positioned to me. Anybody want to offer anything more before stock number 8?
Tim Beyers: I can't top that. I think that's totally right, and I agree that Yasser is rookie of the year here, but I'm pretty easy competition. Let's be clear, this is second in a row where I think if Yasser gets one more, he ties the record that Maria set against me. You're playing for the gold here, Yasser.
David Gardner: Thank you for adding some spice back into this and a little bit more suspense and some pressure on Yasser to whom we turn next with stock number 8. Yasser, question for you. Pepsi or Coke?
Yasser El-Shimy: Can I go with Dr. Pepper?
David Gardner: You can. You sure can.
Yasser El-Shimy: My favorite soda drink would probably be a Cherry Dr. Pepper Zero, which is not very well-known beverage, but its definitely one after my heart. But between Pepsi and Coke, I'll go with Coke Zero any day.
David Gardner: But let's stick with your beverage of choice because Pepsi or Coke, that's just a stand-in phrase. But what we're really heard from you was Cherry Dr. Pepper Zero, did I get that right?
Yasser El-Shimy: That's correct.
David Gardner: Yasser, here we are in late March of 2022. Roughly, how many Cherry Dr. Pepper Zeroes would you have consumed so far this year?
Yasser El-Shimy: This year, if I had my way, I would have probably had one every single day. But some days I do make sure not to have a soda every single day.
David Gardner: They probably got approach.
Yasser El-Shimy: Yeah, I would say maybe 2, 3 dozen.
David Gardner: You were certainly a loyal customer to Cherry Dr. Pepper Zero. Before we move on, Tim, what is your soda of choice?
Tim Beyers: Great question, but I just don't have any anymore. I'm not drinking alcohol anymore. I can't even remember the last time I had a soda and when I did, [LAUGHTER] it had soda, the probably my favorite. Which one I still would have will be cream soda. I love cream soda, I mean its terrible for you. But I do love a good cream soda. I will say cream soda.
David Gardner: Well said.
Yasser El-Shimy: You should try Cream Soda Dr. Pepper.
David Gardner: Yeah, zero. Well, I didn't hear either of you gentlemen speak to a certain category of soda. In this case energy drinks, but certainly Monster Energy has been a powerful purveyor of energy drinks for low these many years. Monster is a longtime Rule Breaker pick. Its ticker symbol is MNST and as I recall, it's not ever that I picked Monster Beverage for Rule Breakers, it's that I think I picked Hansen.
Tim Beyers: That's right.
David Gardner: It was bought out by Monster.
Tim Beyers: That is correct.
David Gardner: We ended up with Monster on the scorecard, Tim.
Tim Beyers: That's right.
David Gardner: It's been a pretty stellar performer much of the time ever since. It's a reminder, sometimes you don't actually have to buy the big brand name like Disney. You can buy Marvel stock then Disney buys out your Marvel. All of a sudden you've got Disney in your portfolio, well that's what happened to us with Monster Energy. But let me turn now back to Yasser because we need to put some pressure on it. It's been a little bit easy street. I think Tim, you've been suggesting. Let's ask Yasser for his market cap range, for the Monster Beverage Corporation, ticker symbol MNST.
Yasser El-Shimy: I would say that Monster Beverage is somewhere between $47 billion and $53 billion.
David Gardner: Fairly tight range there. It implies Yasser, you've spent some time recently perhaps looking at this company.
Yasser El-Shimy: Maybe, maybe not. I cannot divulge that information in front of mutual friend, Tim Beyers.
David Gardner: [LAUGHTER] I like that, very caging.
Yasser El-Shimy: But I would say, if I'm not mistaken, Monster Beverage is one of the best-performing stocks historically for the S&P 500, I believe over the past 15 years or so.
David Gardner: Let's get into that in a minute, but let's first turn to all of our players at home. In all of the many homes that they are in right now, some of us are listening to this podcast on top of the mountain. Others are trying to get kids to soccer. We're all over the world right now, Tim, listening to what you're going to say and thinking what we're going to say. Yasser said $47 billion to $53 billion for Monster Beverage Tim Beyers, players at home, inside or outside that range.
Tim Beyers: See Yasser was very confident on that one. I'm only playing demand here, David, this is a 100 percent of what's happening here. Very confident, diverted a little bit from his previous, the way it was calling it before, this one was different. That tells me that either he's totally nailed it or he is playing a little bit of a head game with me, and I think he's playing a little bit of a head game with me. Actually, they gets higher and I'm going to say outside the range.
David Gardner: You've got it Tim. That's right. It was a pretty good call by Yasser. Monster though I heard it's sold off along with the rest of the market here over the last several months. Yasser and players at home, it probably was within 47 to 53, not too long ago. Today though, Monster Beverage tipping the scales at a market cap of $40.62 billion. Just a little bit, just about 15 percent under the lower-end of Yasser's range. This is a company that has been a stellar performer. When you look at the data of market performance over the course of, let's just go back to like the last 20 years. Stocks up 50 thousand percent or so. It's up more than 500 times in value. It is a company gentlemen that hits the headlines sometimes in a negative way. Do you remember there was like a new story or two back in the day that somebody had had a Monster Energy drink and unfortunately died. Then whenever I story like that hits the headlines, people tend to start watching and waiting for the next one to happen. Then you hear somebody else who may have had some other drug in their body but then had an energy drink also died, there's a bandwagon effect. This was not a lot of people, but the story cast a big dark cloud over Monster Energy stock that's happened from time-to-time. In fact, hint. One of the stocks yet to come also has had that same dynamic play out in its business. Anyway, guys, pretty good call on Monster Beverage to the Market Cap, right around 41 billion rounding up. Tim, congratulations, it's Yasser six, Tim two. Let's keep going. Onto stock number 9. Tim, have you ever been to Europe?
Tim Beyers: Yes.
David Gardner: Can you share a brief memory, a happy memory? One of your times in Europe where were you? What was happening?
Tim Beyers: There's a few I really loved. The trip was, went to Dublin and Ireland, Glasgow, and Scotland, and London, and then brief trip to Paris. That was one another time. Actually on that same trip, returned to Monte Carlo. Been to Monte Carlo.
David Gardner: Wow, I've never been there.
Tim Beyers: Florence, Italy. Brilliant, loved Florence. I'll say for this particular story, I will go with what I've told before internally, I don't know if I've ever told it publicly. I have had and it's the closest thing I've had to a physical religious experience. Cue the hallelujah chorus. Even though I don't drink anymore, I probably still would have one of these on a special occasion, went to the St. James Gate Brewery, which if you know anything about Dublin, Ireland, that is where they brew Guinness. At the Guinness brewery after you get the tour at the end of it, there are taps there and they will pour you [LAUGHTER] a Guinness straight from the tap. I'm getting the chills right now. [LAUGHTER]. It was glorious. Like the heavens open. Cue the hallelujah chorus, just as amazing. [LAUGHTER] That was great. Dublin was phenomenal but all of it was great. I can't wait to go back to Europe at some point, principally to see a game at Selhurst Park. But that was brilliant. I love it.
David Gardner: Would you ever consider going to Switzerland?
Tim Beyers: Sure. I've heard nothing but it's just incredibly beautiful in that part of the world.
David Gardner: We're talking about where companies choose to put their headquarters earlier. This company, which was founded in 1891, I believe was founded in Switzerland. So it makes a lot of sense that they would put their headquarters in Zurich and just keep it there.
Tim Beyers: Sure.
David Gardner: For a long period of time. Well, actually until ABB sold its Power Grids division in 2020, it was Switzerland's largest industrial employer. This is a Global Fortune 500 company. Maybe that helps people think about what their market cap should be or their range might be. But ABB, which is well actually the Bs were Brown and Boveri. They were two gentlemen who founded this company over a century ago, but this company today is in electrification, in process automation, robotics, motion. They're making trains. They're electrifying the trains along the tracks. They're doing a lot of big heavy stuff not just for Europe but for the world. Again, a Global Fortune 500 company for 24 years. All that said, gentlemen, this is not a stock. I know particularly well. I will say it's been a little bit of an underperformer in recent years. It hasn't been an exciting place necessarily to have your money, but it's certainly it's got to have been in a remarkable investment if you've held for 30 plus years and I bet some people at least in Switzerland have. Let me turn now to Tim Beyers. This is your final call this week Tim. The market cap range for ABB Limited, ticker symbol ABB.
Tim Beyers: I think this is one from the Market Cap Game Show where we think it's a little bit bigger and it actually is because it has such a long history, but it's not so small as it's not one that's been so punished that it's tiny. But it's the kind that you would think is like maybe like 75 or $80 billion. But I don't think it is. I think it's closer to 27-31. Actually, I'll take that back $27 billion to $40 billion. I'll make it a slightly bigger range.
David Gardner: Enlarging your market cap range a little bit for your friend Yasser, and all of our listeners at home. Well, I was admitting off air to my friends that I really have very little association or knowledge of this company. I did watch a pretty good two-minute video. One of those beautiful slow motion video is Tim Beyers with his Guinness slow motion video showing the work of ABB around Europe. Beautiful snowy landscape with a train flying by. It's obviously a very important company. I also love to diversify some of my holdings. I love to find companies of real substance that are based in other countries. I think that helps our portfolios diversify further, so let me now turn to Yasser and to all of our players at home and ask you, do you want to agree with Tim's market cap range of $27 billion to $40 billion, inside that range or outside that range?
Yasser El-Shimy: It's really hard to say. I can see it being inside that range. I can also see it being outside that range. It's definitely one of those classical industrial powerhouses in Europe. You would assume that it's bigger. But at the same time, as you said, David it has not been performing very well over the past few years, maybe not. I'm going to go with outside the range.
David Gardner: Sure enough, it is. In fact, I love what Tim did there because he put out that this is probably a company that might be around, I don't know you said 70 or 75 billion, but then you qualify that a little bit of Costanza here Tim as you came down much lower, but in fact this company is $71.01 billion [LAUGHTER] so you put out there that probably what it is but you're not going to do that. You're going go with [LAUGHTER] 27-40.
Yasser El-Shimy: So typical.
David Gardner: Yasser you said outside the range. Tim's instincts were right. This company is a $71 billion company today. I will note because there are a lot of people looking at dividends for stocks like these. This company is presently yielding 2.48 percent not as much as Healthpeak Properties, the read earlier, but certainly a pretty generous dividend. Admittedly, the stock has been more sideways that up in recent years, but there's some comfort certainly as we get older in life and need some income in a big substantial European enterprise like this that pays and safely so a pretty hefty dividend. Tim, I want to give you props because I almost feel like you should get a half point there but I can't do that. That's not the way the game's scored. Players at home if you said outside.
Tim Beyers: It's tense because now Yasser has officially tied the number of points that Maria had absolutely crushing me. Get the next one and you set the new record. [LAUGHTER]
David Gardner: Well, let's pick it up right there then with the stage set then. The past is about prologue. Yasser, turning to you. Now, you have spent substantial portions of your life both in the United States and in Egypt. Yasser, have you spent three or more years in any other countries besides those two?
Yasser El-Shimy: No. I would remember.
David Gardner: Good. You sure would remember, but I didn't know so I figured I should ask. I'm just curious if you give us just a snapshot of how you would compare and contrast law enforcement in Egypt as you saw it and in the United States as you've seen it?
Yasser El-Shimy: I would say that law enforcement in the United States, it's definitely a place where I don't feel a problem calling the police if there is an issue. In fact, I have on occasion before. One time I was living in Boston and a gentleman was trying to break into the apartment as I was inside of it. I called the cops and they came right away, but of course when that person saw that I was actually inside the apartment, he thought it was empty, he made a run for it. But it was one of those unsettling experiences. But I loved the fact that the police officer came and he asked me how I'm doing. Asked obviously for description of the person who tried to break in. But ultimately, he started chatting with me about college, about sports and he was a real Bostonian and he loved the fact that I went to BU and not to Harvard. I was living on the right side of the Charles river not across that elite Cambridge side. [LAUGHTER] It was a fun experience. Now, contrast that with an actual break-in that happened in our childhood apartment in Cairo, where we called the cops after and the police officer asked my dad, "Have you caught the robber?" My dad said no. The police officer just very instinctively responded, "Well, why should we come over then?" [LAUGHTER] Exactly. I'll leave it at that and I will say that pretty much sums up the disparate experiences I've had with law enforcement in both countries.
David Gardner: Thank you. We all have different stories to tell, and part of what I love about this podcast is hearing the different perspectives and experiences and certainly it's a Motley world out there. Thank you for sharing that, Yasser. That's quite amazing. Roughly what year did you have that conversation at Boston University?
Yasser El-Shimy: I would say that was 2007.
David Gardner: Probably police body cams were not really out in force if at all, and I'm not even sure. Probably tasers were. Tim Beyers since Axon Enterprise, originally called Taser, has been a long time Rule Breaker performer. I'm pretty sure tasers due date back to that time and before that time. But in particular, the growth in video footage. What does the policemen see? Let's be transparent with that. I want to understand that, and so police departments these days put body cameras on their officers, at least in the United States and increasing parts of the rest of the world, and all of that video needs to be housed somewhere, and so Axon Enterprise, pretty smart company, started a Cloud-based initiative called Evidence.com. They might have acquired it, I can't quite remember. But anyway, this is today a pretty fully featured Cloud-based law enforcement support company. I think a lot of us know this company, it's certainly come up a lot on the past in this podcast, it's been in some of my five-stock samplers. This is a company that some people have mixed feelings about, some people don't like tasers, they think they're more dangerous than they purport to be, supposedly non-lethal. I side more with the, yeah, they're a lot less lethal than bullets, and I also love transparency in police body cameras and body armor, and I like a good policeman, I think we have a lot of them in the US and sometimes they don't get the headlines unfortunately. With all that said, I'm turning back to you now Yasser for the final market cap range of this Market Cap Game Show. The ticker symbol AXON, the company is Axon Enterprise. Yasser, what is your market cap range for Axon Enterprise?
Yasser El-Shimy: Axon is one of those companies that you always assume it's bigger than it actually is [LAUGHTER].
David Gardner: This is what you said last time. This is a good way to play the game. [LAUGHTER]
Yasser El-Shimy: But I'm still going to stick with the tight range just like the past question. I'm going to go with between nine and $10 billion.
David Gardner: Between nine on the low end and $10 billion, again, implying that Yasser knows this company pretty well, has looked at it recently. Some of us, we can probably say the same ourselves. Many of us have not, so it's very interesting. Tim, I see you because we can see each other in video, you've got a little bit of Rodin's thinker look as you sit there. I'm not saying you're posing, it's just a natural, that Rodin-esque look. I'm wondering Tim whether you want to say inside and players at home, that range of 9-10 billion or outside.
Tim Beyers: This is interesting. I want to say inside and my instincts have been correct today and I've been going against them. [LAUGHTER] It would be hilarious if this does give Yasser the eight. For all of those reasons, I will go inside the range.
David Gardner: Good on you Tim Beyers, and I know a lot of people are pulling for you because you have performed better than three suggests. But darn it, you got to three with a plus 1 right there because the market cap for Axon Enterprise is 9.28 billion, it is inside Yasser's range. Yasser, excellent call on that, clearly you know this company pretty well. Thank you for sharing your stories. Axon Enterprise, one of the better stocks you could have owned over the last 10 years. Get this gentlemen, this stock 10 years ago was somewhere around, I don't know, five dollars a share, today it's around $125 a share. In just the last decade, the market's up slightly more than a double, whereas the Axon Enterprise is up about 30 times in value. Let me hasten to mention that it's dropped, that 30 times the value is after a drop from 200 at the end of last year to about 125 today. This is one of those companies down more than 30 percent from its recent highs, might be worth looking at. Yasser, Tim, does either of you own Axon Enterprise?
Yasser El-Shimy: I do.
David Gardner: Yasser, a little bit more of your thesis going forward for the company, why do you own Axon?
Yasser El-Shimy: Well, for all the reasons you have mentioned earlier David, but I would also add their mission statement really appeals to me. I believe their mission statement boils down to something along the lines of saving lives, or protecting lives. I do believe that body cams and other non-lethal means of law enforcement do help in protecting lives. I love what they've done with their offering through Evidence.com and other SaaS-type offering. I believe they've created almost a complete ecosystem for law enforcement, and I don't see much competition in that field. Axon Enterprise is definitely one of those companies that I feel good about having in my portfolio.
David Gardner: Wonderful. Thank you for that, Yasser, and congratulations, you've racked up seven points in your rookie debut on the Market Cap Game Show. Tim Beyers, talented and good-natured and humble as always. We will agree. Tim's slightly humbled this particular time because Yasser really did bring the goods. I think a lot of us learned more about what an inner Costanza could mean or not mean for each of us.
Tim Beyers: That's so true.
Yasser El-Shimy: I know. I just wanted to yell at the end when he was making that final call when Elaine says to Costanza, stick with the opposite. But unfortunately, he went with his God and made the right call.
David Gardner: He nailed it. While Yasser scored seven and Tim has scored three, we would love to hear how you scored on this week's Market Cap Game Show. We hope you did well. Even if you didn't, we hope you learned a lot and had fun along the way. This is a delight to do four times a year. This has been the Market Cap Game Show for March of 2022. I want to thank you again Tim Beyers and Yasser El-Shimy for their guests stardom. I want to thank you for suffering Fools gladly this week we hope you had fun. I also want to thank Heather Horton who stepped in as our producer for this particular show. Always so talented across so many different Motley Fool multimedia offices. Thank you Heather. [MUSIC] Next week, it is the Rule Breaker Investing Mailbag, looking forward, your questions, my best answers, in the meantime, have a great week. Thank you, Tim, thank you, Yasser. Fool on!
