Inflation and Market News

In this podcast, Motley Fool senior analysts Emily Flippen and Jason Moser discuss:

• July's CPI and how lower-than-expected inflation fueled a market rally.
• Axon Enterprises posting record revenue in Q2.
• Marqeta founder Jason Gardner stepping down as CEO.
• Drama between Unity Software, AppLovin, and Ironsource.
• The latest from Disney, Upstart Holdings, Sweetgreen and The Trade Desk.

Motley Fool senior analyst Tim Beyers talks with Marsha Barnes, founder & CEO of The Finance Bar, about the mindset traps that can keep people from investing and how to avoid them.

Emily and Jason analyze Nvidia's preliminary earnings announcement, as well as:

• Domino's Pizza exiting Italy.
• A listener's question about Intel.
• Two stocks on their radar: Sonos and Masimo.

To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.

This video was recorded on August 12, 2022.

Chris Hill: Software, chipmakers, restaurants, inflation, entertainment, and more. It must be Friday. Motley Fool Money starts now.

It's the Motley Fool Money radio show. I'm Chris Hill. Joining me in studio, Motley Fool Senior Analyst, Emily Flippen and Jason Moser. Good to you see both.

Jason Moser: Hey.

Emily Flippen: Hey there.

Chris Hill: We've got another big week of earnings. We will dip into the Fool mailbag and as always, we got a couple of stocks on our radar. But we begin with the big macro. Inflation moving lower helped push the stock market higher. The national average for the price of gas is now below four dollars a gallon and Wednesday CPI report showed consumer prices up 8.5 percent in July, which is lower than Wall Street was expecting. Don't look now Emily, but the Nasdaq is officially in bull market territory.

Emily Flippen: Well, now that you've mentioned it, Chris, inevitably, next week we're looking at some horrendous news story that's going to push us back down. But for the time being, we can all head into the weekend probably feeling pretty good about ourselves and the economy. Although I will say you should take these numbers with a grain of salt. As you mentioned, that national average price for gas falling below four dollars a gallon that has an outsized impact on our inflation metrics. The majority of the pullback inflation did come from energy, while things like food and housing still remain pretty elevated for the average American consumer and that is certainly taking its toll on companies. When you look at the businesses that have reported earnings over this past quarter, while these are reflective of what's happened in the past, a ton of them have pulled back guidance on expectations for weakening consumer demand, a worst global economy. This is a step in the right direction, but we're certainly not out of the woods yet.

Jason Moser: You know what they say about bear markets, Chris, or just bull markets waiting to happen. Now we are right back to where we want to be at least in the near term. I agree with Emily. I think that this is a great narrative, a great story for the time being. I don't think it means that the rest of the year is just going to be sunshine and lollipops. Essentially the same thing is going on in the world right now that have put us in this position here that we're in right now. My suspicion is this back half of the year is going to be somewhat volatile. That'd be very interesting to see next earnings season how they frame how the holiday season coming up. It does still hurt to go to the grocery store, speaking as someone who goes to the grocery store a lot. I was listening to I think it might have been yesterday's show, maybe it was the day before, but Tim Beyers was talking about how before you could go to the store, he was witnessing this. Go to the store, you get two roast chickens for $10, and now he gets that one roast chicken for nine dollars. Those are real material costs that families are bearing every day. It is nice to see fuel prices take a little bit of a dip there, but it's worth remembering the consumer is still in a tough spot in a lot of ways.

Emily Flippen: Well, I'll tell you what I'm watching. Well, inflation is this a lagging indicator telling us what has happened. I like to look at hiring for businesses because that shows you their expectations for how their business is going to perform in the back half of the year and we've seen hiring actually increase and while a lot of this is for service industries, that's the metric I'm looking at to tell, OK, are businesses expecting things to get better or are they still expecting things to get worse?

Chris Hill: Shares of Disney up this week after a third-quarter report that featured the following headlines, Parks' revenue rose 72 percent, the total number of streaming subscribers to Disney Plus, ESPN Plus, and Hulu is now greater than the total number of Netflix subscribers. Yes, Jason, the price of those services is going higher, so what's the biggest news out of Disney for you?

Jason Moser: I think you summed it up quite nicely there, Chris, next story. [laughs] I think the main focus on Disney clearly has been the streaming operations here recently and that makes sense. It's the newest dynamic, but you said it. Don't sleep on the park side of this business. That's a massive driver that's such a differentiator, and then now it really does look like traffic is coming back and you look at the performance, their revenue up over 72 percent, operating income more than doubled. That really shows how they're able to leverage those massive properties and take advantage of that growing traffic and they're able to raise prices a little bit along the way there as well.

Per capita spending at the domestic Parks up 10 percent versus the third quarter of 2021 up over 40 percent from fiscal 2019 with occupancy rates at their property at 90 percent now. The property hotel is 90 percent. Those things are not cheap. I think it's astounding what they've done with the streaming services in such short order. To have a subscriber base, essentially the size of Netflix has now granted their spreading it across a number of different properties, but don't hate the player, hate the game because that's a big deal, but that's something we've always touted with Disney. All of that IP, those properties that makes a big difference unlike the parks, it's a tremendous differentiator for this business.

Chris Hill: Although they did also take the opportunity to lower their target for 2024, they did pull down that number of how many subscribers they think they're going to have by 2024. In part, I'm assuming because they are raising prices and they have to expect some drop-off.

Jason Moser: Yeah, part of that also was due to the Disney Plus Hotstar product over in India. I think it's an making some bids for content over there that leads them to be a little bit more conservative right now. Honestly, I don't think any of us were really surprised by that. We felt like that 230-260 goal was relatively high. They're pulling back on content, spend a little bit this year just going to spend $30 billion now as opposed to 32 billion. But hey, listen, it's nice to have a company where you can afford to write those checks. I think they're going to continue to do that for the foreseeable future and ultimately getting the streaming operation to profitability by 2024, which is the goal.

Chris Hill: Axon Enterprises reported record revenue in the second quarter. They raised full-year guidance and shares of the security tech company up 10 percent this week. Emily, it's been a challenging past 12 months for Axon, but it seems like they are riding the ship.

Emily Flippen: Well, Axon is in a really interesting position because what they're doing is still transforming what is largely a hardware based company to a subscription style cloud software-based solution and we saw that succeeding in this recent quarter. Part of the reason why the past year has been troubling for Axon is because they're not consistently profitable. They don't consistently generate a ton of cash flow. The market has been hammering these type of growth companies that grow at the sacrifice of their bottom-line profits, but this quarter was actually incredible, not just because they beat earnings guidance and revenue guidance, not just because they raise their guidance for the remainder of the year, but because they actually generated positive operating margin, the largest in their history up over seven percent. They're showing some level of scalability, which is going back to the success of creating these cloud-based solutions. It's no longer just a story about Tasers and body cameras, although those are still growing dramatically for this business, it's a global security suite that serves anybody who's working to protect public interests. That's records management, that's evidenced management, that's dispatch solutions, all of these things, even including VR training, they're getting a lot of traction in the market here.

Chris Hill: Assuming this evolution of the business goes the way they wanted to, will one of the results be the revenue and the profits become more predictable?

Emily Flippen: Exactly. In fact, you heard management for the first time in a while talking about that pathway to free cash flow and profitability and are really clear way in this most recent quarter because I think they're seeing that pathway for themselves clearer than ever. Although I will say this is a company that still wants to heavily invest in their product suite. They want to be the best-in-class and CEO Rick Smith is an eccentric CEO, but certainly a visionary in the sense that he wants Axon to be the best player to genuinely reduce the number of lethal desk that happened from things like police forces, and that's a big mission that's going to require massive capital investment. They see the pathways to profitability, but there are no means going to sacrifice long-term growth for the sake of their bottom-line.

Chris Hill: Marqeta CEO Jason Gardner said he's stepping down because he is not the best person to lead the payment processor through its next stage of growth. Gardner is going to stay on as Chairman of the Board, shares of Marqeta down more than 15 percent this week, Jason. What do you think?

Jason Moser: On the one hand, it does seem like it's a strong reaction to a business that really is performing very well. But by the same token, when you get big turnover in executive leadership in such a short span, we saw the CFO take off a little while back. CEO was leaving, CEO moving over to the Executive Chair. That is a big transition, so it's understandable, at least the concern but generally speaking, again, I'm not losing sleep over the report. Let's talk about the numbers here. Total processing volume of $40 billion was up 53 percent from a year ago. But interestingly, their total payment volume for the three months ending in June of this year, for the three months exceeded the total payment volume for the 12 months ending June 2020. These guys are growing. They're putting a lot of money through that network. Net revenue, $187 million.

That was also up 53 percent from a year ago, gross margin hanging in there at 42 percent. A big point of focus for investors with this company is their reliance or the relationship with block formerly square. Block accounted for 69 percent of net revenue that was up from 66 percent in the first-quarter just a tick there. But you also look at it was 72 percent a year ago. It is down slightly from a year ago and it's also worth remembering, they're going to succeed as block succeeds. When blocks succeeds, that's going to translate to more successful Marqeta. Something to keep an eye on there. The total payment volume from customers, block clearly in that top 5, outside of the top 5, the total payment volume grew at three times the pace of their top 5 customers.

It looks like they're really winning all our fronts there, which is nice to see. Guiding for a third-quarter revenue at 37 percent at the midpoint. They are being a little bit conservative there as new customers are being a little bit more deliberate in how they're investing in their payment programs there. But I mean, you go back to it, the big news there was the founder and CEO Jason Gardner stepping down soon. They're going to begin the search for the CEO and he's going to step over to the Executive Chair role and you said it. He was very transparent about this on the call. This was because he feels like he doesn't have the skill set to take this business to the next level in what is a very nuanced and complicated industry. Frankly, in my book, that's the self awareness you want to see from a CEO that has an opportunity to build a company really capitalize on such a massive market as this one.

Chris Hill: After the break, we've got the latest on software digital advertising, and the business of salad. This isn't one of those other shows. This is Motley Fool Money.

Chris Hill: Welcome back to Motley Fool Money. Chris Hill here in studio with Jason Moser and Emily Flippen. Unity software second-quarter results got overshadowed by the announcement from AppLovin, a gaming software company in which AppLovin announced an offer to buy Unity software in an all stock deal worth $17.5 billion. Complicating matters is the fact that Unity had previously announced plans to buy one of AppLovin's competitors a company called ironSource. Emily, what is going on here.

Emily Flippen: Honestly, Chris, your guess is as good as Unity's at this point. Although I will say after Unity reported what was a pretty disappointing quarter, they must be feeling like the bell of the ball because not only is there stock-up, but it seems like everybody wants to be Unity's partner. But this deal in particular, may be these strangest acquisition/merger that I've ever seen, which is to say that AppLovin came public with an offer to acquire a company that is effectively larger than them. Allow the CEO of that company to takeover, allow the board of that company to takeover, but to change the name to AppLovin. A good [laughs] way to summarize what's happened is AppLovin came to Unity and said, "Hey, you want to change your name? You can keep everything else but change your name with us." I think it's a pretty clear answer as Unity shareholder myself and as we've seen from the public reaction to this offer, it's doubtful that Unity moves forward with this, especially since they've already announced that nearly $4.5 billion deal to acquire ironSource.

What is interesting though is that Unity has made no public statement about this acquisition to date other than saying that the board is reviewing the deal. IronSource did come out and tell shareholders and employees in an internal memo that they think that their offer and their combination will be more competitive. But this whole situation is so odd. If I had to have my guess as to what's going on behind the scenes is AppLovin went to Unity and said, 'Hey, what do you think about this deal?" Unity probably said, "No we're not interested." Then AppLovin said, "Well, let's see what everyone else thinks." Let's take it public and I think the market has answered that question for AppLovin. I doubt this moves anywhere. But it is certainly helping Unity shareholders this week.

Chris Hill: Shares of Upstart Holdings up nearly 15 percent this week after the FinTech lending platform got a boost from the better than expected news around inflation. Jason, it seems like that because after their second-quarter report and their conference call, seemed like a lot of investors are unsure of what strategy Upstart is trying to execute on.

Jason Moser: I mean, I think that's a fair concern. I think that investors really need the view the reception to this announcement as a tremendous win. I mean, it's a stock that's been taken to the woodshed here for very understandable reasons and we knew really the results coming in for this quarter because they pre-announced it, but the guidance that they offered for the current quarter. I mean, they're targeting $170 million in revenue versus the expectations of close to 250 million at the time. That's a significant downward guide. I think ultimately this is pretty much summed up, but the way that CEO David Gerard started the call. He said, I quote it, "May be natural free to question whether Upstart's AI powered risk models aren't working as designed, but we're confident this isn't the case." I mean, he's starting the call that way. There on the defensive because it's a company that's really lost control of the narrative, so to speak.

You look to a core ago where they were essentially started behaving more like a bank and taking loans onto their balance sheet. Fast-forward to this quarter, they've pivoted back taking action to convert those loans back into cash, puts them in a little bit of a desperate seller situation, ultimately impacted their revenue. I don't think that share repurchases are a wise use of capital at all for a business in this state. I mean, it sends a conflicting message, honestly. It's just a business with a ton of uncertainty right now. I think they need to make sure they keep their balance sheet in the best possible shape for the unknown. If this ends up working out, it ought to work out well for investors. I mean, there was a higher level of risk you're taking on with a company like this. I think it's also worth remembering. This is a little bit more difficult to understand this business. There are a lot of dots to connect with a business like this. Just make sure you feel comfortable connecting those dots in this value.

Chris Hill: As part of its second-quarter earnings announcements Sweetgreen also lowered its guidance for 2022 and said it's laying off five percent of employees. Shares of the salad chain initially fell more than 20 percent, but bounce back to finish the week just about even. Emily, they're trying to be the Chipotle of salad, but at the moment they don't have Chipotle's pricing power.

Emily Flippen: It certainly challenging for Sweetgreen, especially because Chipotle themselves had an incredible quarter. But what's so odd about this report is that the earnings itself, we're not bad at all. But they had to lower guidance pretty substantially and one of the comments management made was that there's a huge drop-off in same store sales. During April and May, same store sales growth was 21 percent. During June and July, it was seven percent. It fell off a cliff. The business is trying to be proactive with guidance here. But the big question mark is, do $15 salads really sell as well as $8 or $9 burritos. I'm not sure if I'm a buyer yet, but I will say just Sweetgreen stock looks a little bit more interesting to meet this week.

Chris Hill: Shares of The Trade Desk up more than 40 percent this week after strong second quarter results and guidance for the third quarter as well. Jason, this comes obviously against the backdrop of more services like Disney and Netflix looking to add advertising platforms.

Jason Moser: Absolutely connected TV for the win. I think this quarter in a nutshell, you look at revenue up 35 percent from a year ago and they saw meaningful growth across really all verticals have spend that the company serves. But it really, it's connected TV that is really driving this trains so to speak. I mean, you've got video representing low 40 percent of the overall business mix, but it continues to pick up more and more share of the overall business mix. They did see a healthy 45 percent boost in operating expenses, but that really is investing in the business and technology behind it. Macro factors that management called out specifically on the call really, it goes back to this ad-supported video on demand. It's this move toward ad-supported streaming. Then this idea that really is a new paradigm or [Alphabet's] Google isn't necessarily calling the shots when it comes to advertising. We've been really used to that narrative for a long time.

But Connected TV is changing at this UID 2.0, which is the alternative to cookies, offering up more personal experiences while protecting consumers, privacy and our data even more so. It really just puts Trade Desk in a very attractive position because they get to work with such a large base of customers. I mean, they just have essentially the largest base of customers in this market. The calling for 28 percent revenue growth this quarter. I think something to keep in mind too, there's some language in the call regarding Netflix and while Netflix partnered up with Microsoft, ultimately, green noted Jeffery Green on the call, noted that once they've done the work on the supply side in regard to Netflix, driving as much demand as possible toward those ad impressions will come next. Netflix is very well-positioned to open their ad inventory on the demand side, which is the Trade Desk, and that's something that really could play out through Trade Desk's financials further down the road.

Chris Hill: Guys, we'll see you later in the show. Up next, how to avoid the mental traps that can keep you from investing. Stay here. This is Motley Fool Money.

Welcome back to Motley Fool Money. I'm Chris Hill. Marsha Barnes is the founder and CEO of the Finance Bar, a company that helps women and couples achieve financial wellness. Motley Fool Senior Analyst Tim Beyers caught up with Barnes recently to talk about how to avoid the mindset traps that can keep people from investing.

Tim Beyers: You talk about, and we had a conversation before this interview, and I asked you a bit about some of the mindset traps that people get caught in when it comes to generating wealth of any kind. That includes things like stock market investing but may include also responsible use of credit. How you think about banking, how you think about credit overall, things like that. Can we talk a little bit about some of the most common mindset traps that you run into in doing this work?

Marsha Barnes: Yeah, absolutely. One of the most common is that oftentimes, let's say you get your first job Tim, or you're someone that you get promoted at work or you change careers, your so income is climbing. But many times the only thing that we're thinking about is, does this job help me to pay my bills? There's not many, emotionally, there's not this feeling of how does this job help me to generate wealth. One of the mindset traps is that just be glad that you have a job and you're able to survive and pay your bills. How many times there are conversation around when we go into different jobs, like how does this job help you build wealth? How will this job allow you to have more time with your family and friends? That's the number one trap that we hear the most of mindset trapping that just be glad that you have a job and you're surviving right now, like the time that we're currently and there's so much topple and news about a recession.

For the average individual, you're just going to freeze up. Stop spending money. Don't spend our money on things that you like, definitely don't invest right now. There's this scare-tactic that all wage drilled into our head, so it's really hard to move beyond this to just say that, just like I pay my bills every month, I should also be paying myself to help me build wealth and to make life a little bit easier for me and my family. That's one of the major mindset traps. Tim and the other is, as I mentioned before, that investing is just not for me. It's for the wealthy, is for the rich person is definitely not for me. I'm just a middle-class individual trying to pay my bills, helping my family out, my parents out, my grandparents out. That's a nice to have. We often look at investing as a nice to have, not a need to have in our life when absolutely, it is something that we need to have. It's just really hard to get beyond what we've heard many years ago. Like you have to have this amount of money to invest. Now at a time where it may not take you much to jump into this. Those are the biggest mindset traps that we really deal with at the Finance Bar.

Tim Beyers: Let's talk about some of the things personally you have learned in doing this work because, how many years has it been now since you founded the Finance Bar?

Marsha Barnes: Oh, that's been about almost seven years now.

Tim Beyers: It's been a while. I imagine there has been some interesting lessons you've learned in that time. Let's talk about that. What have you learned working with people, helping them get on firmer financial footing?

Marsha Barnes: I would say that the feeling really goes away, Tim. That has been the lesson for me, is that financial wellness, financial therapy, financial education, it never goes away. I view it as physically working out. Instead, one thing for money that's true is that it always follows us until the end of our lives. It does not go away. Our income can go up, our income can go down and there's always something to learn. That is what I personally learned. Something else that I've learned, Tim is that there are many ways to earn money that we hadn't been taught. We've been taught, as I've mentioned before, just get a job, be glad you have one and that's it. We often don't think about the many ways to earn money, the way that you want to invest and you still have a bit of fear about using your full-time check.

But what appears like a part-time gig that you have and it's only devoted to wealth generation or building wealth. That's another thing that I've learned it, and so you get beyond those roadblocks. Consider a different way to earn income does specifically, a lot easier for you to invest. There are just so many ways now. Those are two of the biggest lessons that I've learned, but also Tim, building the Finance Bar 100 percent changed my lives. Having an attachment to people, learning about their financial journeys has been both fulfilling. It has been a learning experience for me. You and I have talked about this before, what comes easy for one person mentally does not come easy for the other. That's something that I think it should be a learning lesson for all of us. What may be easy for you to do Tim, may not be easy for me. Those are the three biggest lessons that I've learned along the way personally.

Tim Beyers: Tell me if this is right because you drew a really interesting parallel earlier in this discussion Marsha, about financial management or financial wellness as similar or maybe analogous to working out. I wonder if maybe we could talk through that a little bit because I'm a 50-plus-year-old man, so my idea of working out is getting my steps in and if I do that, I'm good. But do you have, maybe it's habits or a routine when you teach some of this. I want you to fit everything into it because it seems like that's what you're saying is you want to have something that's holistic, that includes how you manage your checkbook, how you manage bills, how you manage your investing, group at all, talk us through some of that may be at a slightly more detailed level.

Marsha Barnes: Sure, so you just mentioned it, Tim. You said that I'm a 50-plus-year-old man and as long as I get my steps in, I'm good. But what you didn't say is that I'm a 50-year-old man and I just won't do anything. You said, as long as I get my steps in. Financial management is very similar if you are making sure that you can do your budget. Tim, if you're making sure that you're managing your debt if you make sure that I'm just giving you an example here that every month I'm committed to purchasing one stock. If I get to a certain point, let's say I have seven different stocks, I'm now committed to watching my portfolio. That is how you simplify financial management. Because as I mentioned, this is something that doesn't go away with money as you learn more, maybe you want to get more detailed into, should I buy more or what is this investment look like for me? That is the goal. Oftentimes we make investing as like this far away mystery land out in space somewhere.

But if we simplify it, my budget to make sure that I have guardrails around my finances a budget is not for deprivation, a budget is just to help you identify that I have everything like it, I'm not going up the road, Tim. My bills are paid, my needs are met. There are some loans in there that I have, I have savings in there. I need to still think for the future. I'm purchasing one stock per month. That's it. Then I'm just going to keep learning. Even if I learn more, maybe my method does not change until I feel like it needs to change. That is how it's very similar to working out. It's just the consistency and a rhythm, but you don't stop. That's the analogy that you mentioned earlier, as long as I get my steps in, so for me, as long as I've purchased the stock per month, I'm good. I don't need to get like it took fancy terms or like China build up this dictionary or an encyclopedia to sound smart. I need to keep it simple because simple plus actionable and taking action gets us results. It's not anything fancy. That is they can say, very similar comparison to physical activity and financial activity or financial management.

Chris Hill: Going up after the break, Domino's stopped selling pizza in the birthplace of pizza. Details next, so stay right here. You're listening to Motley Fool Money.

Marsha Barnes: Of course, my kid is in the right car seat, well, I think he is.

Chris Hill: As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against. Don't buy or sell stocks based solely on what you hear. Welcome back to Motley Fool Money. Chris Hill here in studio once again with Emily Flippen and Jason Moser. NVIDIA doesn't report earnings until late August, but earlier this week, the graphics chip maker announced preliminary earnings showing second-quarter revenue will be solidly lower than they originally projected and not surprisingly, Jason. Shares of NVIDIA down a bit this week?

Jason Moser: Yes. To define solidly, we mean down 19 percent sequentially. To put some numbers around that, it's not that great of a look, but it is a risk that comes with a business like this when demand for a given sector slows down. We've talked a lot about companies that have pulled a lot of growth forward or the past couple of years. It seems like more and more, virtually every company did write some more than others. But gaming tailwinds of the past couple of years are normalizing a little bit and that's ultimately what this all boils down to. It's the second biggest revenue driver behind datacenter for NVIDIA. They're calling for revenue 2.04 billion.

It would be down 44 percent sequentially. The good thing for NVIDIA is that they are pursuing multiple large market opportunities beyond gaming. If you look at professional visualization, for example, yes, that's down 20 percent sequentially, but you look over a datacenter, which is the largest part of the business, that revenue is set to come in at $3.1 billion, up just 1 percent sequentially, but 61 percent from the year ago. Automotive as well up 59 percent sequentially up 45 percent from a year ago. All things considered to me, this is one of those situations. This isn't a long-term red flag unless you believe that gaming is in secular decline and I don't. To me, this stands out more as a timing thing than, than a fundamental issue that investors should expect to persist with the business, and often times those represent decent opportunities. NVIDIA is a high-quality business for sure.

Chris Hill: The business of Domino's Pizza has been fueled in large part by its international growth. Domino's is sold in more than 80 countries around the world. But this week, one of those countries got crossed off the list when the company announced it is closing each remaining stores in Italy. Emily, it's a pretty big swing for us pizza company to try and compete in the birthplace of pizza.

Emily Flippen: I'm going to entitle this commentary in defense of Domino's. Because I see a lot of news outlets running with this story laughing at Domino's Pizza and I take that personally as a Domino's fan [laughs]. I also spent a semester in foreign, so I'm qualified for my opinion on Italian pizza. I'm asserting, and I will say, I think that this story is being misrepresented. What killed Domino's in Italy was the pandemic. At the time, they are the only person who is really providing effective delivery service prior to COVID. Now once COVID has happened, all of these local mom-and-pop shops, the competition just increased exponentially, making it harder for them to compete for delivery of pizza. But here's what I'll say about Domino's Pizza versus Italian pizza, two different markets. It's like saying that you can have one market for New York style pizza and Chicago style pizza, it's a different consumer who's ordering one or the other. I'm convinced the person who is getting Domino's Pizza and Italy, I'm not quite sure that first and looks like, but I'm convinced that that person was probably not viewing the local mom-and-pop shop as a illegitimate substitute, especially considering that nice, garlicky, buttery crust.

Chris Hill: You can email questions to [email protected] or your comments on pizza, [email protected] is the email address to hit. Question from Jonathan, who writes, I've been looking at Intel recently as a buying opportunity. My problem is it's already one of my largest investments. It's currently about seven percent in my 401K portfolio. Personally, I'd be willing to go up to 10 percent. It seems so cheap with the current cost basis around $50 a share. I'm just worried I have blinders on as I love the long-term prospects of the company with their new plants and the government investing in chips, would love to hear your thoughts. Jonathan, thank you for the question. Jason, what do you think?

Jason Moser: Up to 10 percent for one shift companies sounds like an awful lot. I will say that. I mean, Intel certainly has the opportunity to benefit from tailwinds in the segment as we tried to invest more in our chip infrastructure you here domestically. But remember that they are the only player in town. A lot of other companies out there that present a lot of competition in chips, while they're the lifeblood of virtually everything that we do. Stilley, notoriously cyclical industry. I don't know to me, it just seems like a pretty big bet, perhaps unnecessarily.

Emily Flippen: I also think it's a big bet. I will say I like the chip industry, but diversification and a portfolio is key, as well as time horizon and risk tolerance. So all of those should be taken into an investor's portfolio. But I will say there's also a bit of interesting competition from AMD. If somebody is really interested in expanding Chip exposure, they really love this space. They're willing to wait it out and I guess whether the cyclicality of the space maybe consider adding AMD in addition to a business like Intel for maximum exposure.

Chris Hill: Let's get to the stocks on our radar. Our man behind-the-glass, Dan Boyd is going to hit you with a question. Jason Moser, you're up first. What are you looking at this week?

Jason Moser: Well, Masimo, ticker MASI, announced earnings this week as well. They're known primarily for healthcare technology in pulse oximetry, you're measuring the oxygen levels in the blood and inside note, Chris, I saw Masimo equipment in the wild here recently taking my daughters and for their annual checkups. I mean, I know our pediatrician probably thought them in total psycho nerding out at the fact that they had that equipment. But there you go. It was a good quarter consolidated revenue, $565 million, with healthcare revenue growing 17 percent or actually 19 percent in constant currency. The non-healthcare revenue, the consumer side of the business, $208 million. And that really comes back to the Sound United deal. That's the biggest question mark, I think with Masimo right now it was a big deal they made. They're ultimately trying to see exactly what they can do with it. They are making a foray into bio sensing watches, SmartStyle watches, which will learn about more as the year goes on as some interesting behind the scenes litigation there with Apple as well regarding that which could actually work out in Masimo's favor, but we'll learn more about that at our Investor Day in December.

Chris Hill: Dan, question about Masimo.

Dan Boyd: I'm pretty sure we talked about Masimo on the show. But I still always get excited, Chris, when I hear somebody talking about Masimo because I think erroneously that they're talking about Masimo, the fashion brand. I don't know if that's fashion. I just get excited about graphic tees.

Chris Hill: I mean, who doesn't? I'm onboard with graphic tees, if there was a rock solid publicly traded company selling graphic tees, I'd give that a closer look. Emily Flippen, what are you looking at this week?

Emily Flippen: I'm looking at Sonos this week, the ticker is SONO, but it's on my radar this week for a bad reason, the stock is actually down 25 percent after reporting earnings and which management had to dramatically cut its full-year revenue guidance is due to an anticipated pullback in consumer spending. They are, of course, the makers of an at-home sound devices. They do compete a lot with businesses like Amazon and Google in terms of their core products. But I liked their competitive positioning in terms of being built into the houses. They've constantly had above-average product. They did lose their CFO to Axon this week too, which is certainly hurting them as well. But I will say they're trading at around 15 times operating income right now. It's nothing to Scott bad for business that has managed to grow its top line every year since 2004.

Chris Hill: Dan, question about Sonos.

Dan Boyd: Are people still watching TV? I mean, maybe it's because I have a five month old baby at home. But the only time I am ever absorbing entertainment is like late at night on my computer alone. I don't know about Sonos, man. Seems like a bad bet to me.

Emily Flippen: Here's what I will say. It did just get back from Texas where I visited my parents and their new town home, which has this Sonos speakers built-in and they could not stop playing it. There are differing opinions out there Dan.

Chris Hill: Two very different businesses. Dan, you got a stock you want to add to your watchlist?

Dan Boyd: Well, I wish I could add Masimo, the graphic team made her, but so you got to pick between Masimo and Sonos I don't know, just because Jason saw it in the doctor's office. I'm going to go with Masimo.

Chris Hill: Boots on the ground research. There is no substitute people. Emily Flippen, Jason Moser. Thanks so much for being here.

Emily Flippen: Thanks Chris.

Chris Hill: That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Dan Boyd. I'm Chris Hill. Thanks for listening. We'll see you next time.