In this podcast, Motley Fool analysts Jason Moser and Matt Argersinger join host Ricky Mulvey to discuss:
- The data center spending boom.
- Hims & Hers' messy breakup with Novo Nordisk.
- Overrated and underrated business stories from the year so far.
- Disney's box office struggle with Elio.
- Two stocks worth watching: Uber and Otis Worldwide.
Progyny CEO Peter Anevski joins Motley Fool analyst Tim Beyers and benefits Fool Holly Anderson to discuss the growth path ahead for the health benefits company.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy.
A full transcript is below.
This podcast was recorded on June 27, 2025.
Ricky Mulvey: Amazon needs more power. You're listening to Motley Fool Money.
It's the Motley Fool Money Radio Show. I'm Ricky Mulvey joining me on the Internet today. It's Matt Argersinger and Jason Moser. Motley Fool analysts. Matt Argersinger and Jason Moser. Great to have you both here. Mr. Mulvey. Good to be here. There's a big tech and I'm going to call it a macro story going on that I think we should dig into at the top of the show. It's about data centers. The amount of real estate and big tech spending going on here. We have someone who looks at tech, we have someone who looks at real estate, so we're going to get both sides of that story. McKinsey estimates, and let's take that estimate with a grain of salt from our friends at the consulting firm that global data center spend will require nearly seven trillion dollars in capital outlays. The New York Times recently reported on Amazon's Project Rainier and just the massive investment going on here. Its Indiana facility, JaMo will require enough electricity to power one million homes. That's a lot of juice. JaMo, what does Amazon want from Project Rainier?
Jason Moser: Rainier? Is it Rainier, Rainer?
Ricky Mulvey: Rainer.
Jason Moser: Rainer. Project.
Ricky Mulvey: Rainier.
Jason Moser: Let's just say Project Rainier. That's what I'm going to go with. I don't know. But what is Project Rainier? It is a massive one of a kind machine.
Ricky Mulvey: It's a mountain, JaMo.
Jason Moser: It's a mountain. This is the project, though.[laughs]This is the project. It's this massive one of a kind machine, which is ultimately designed to bring in this next generation of AI. It's spread across multiple data centers here in the US, and this cluster ultimately will connect hundreds of thousands of Amazon's Trainium to chips across the US as well. Now, what is Trainium? Trainium is the family of machine learning chips designed by Amazon Web Services, specifically designed for AI training and inference. What this does, it takes you back to something Jensen Huang, CEO of NVIDIA said a little while back, where he envisions a future where data centers are AI factories, processing massive amounts of data to train and refine AI models. This concept of the data center being the new unit of compute. I think we're seeing that play out. They Amazon's built seven data centers in Indiana alone. They're going to be 23 more. This is just a massive presence.
Ricky Mulvey: This is also for one customer, this one, just for Anthropic, which has the LLM Cloud. When you think about these AI factories that are being built at these data centers, it's impossible to imagine all of the use cases. But what do you think that Amazon is hoping that Anthropic and Amazon can achieve with these massive centers?
Jason Moser: I know Anthropic is going to use this cluster, this new AI compute cluster to ultimately build and deploy future versions of its AI model Claude. As you noted. Now, the project is going to provide five times more computing power compared to Anthropic's current largest training cluster. That's obviously a big step up. When you consider Anthropic, they're trying to build an AI system that essentially matches the human brain, and then we'll go from there. Obviously, this is a big task. They have big ambitions. They plan to train and build AI systems with this complex, but then Amazon also notes that it should ultimately serve multiple needs. Like if when training becomes significantly more efficient or if AI development hits a wall, I can imagine at some point, we'll run into that situation. Then this facility, this project could be used to deliver AI technologies to customers. There's a big focus on efficiency here as well.
Ricky Mulvey: When we think about Amazon as a whole is a company, from a buyer or from a retail perspective, most of your interactions with that company are buying things on the Internet and having them come to your door within the next two days. But if you own the stock, you really want to look at Amazon Web Services because that's where most of the operating profit comes from. You're looking at these big outlays of these massive data centers being built. Certainly Amazon's betting on that, but do you expect that to be true that Amazon's going to make most of its operating profit from Amazon Web Services? That's the profit driver for this company in the next 5-10 years.
Jason Moser: I think that's more than likely the case. The company made close to $69 billion in operating income in 2024, and AWS was about $40 billion of that. Around 58% of total operating profit came from AWS. Now, it's worth noting in 2023, it was actually 67%, so that number has pulled back a little bit. Now, obviously, they're making a lot of big investments. I would say, AWS is going to remain a very key driver. I think in time as investments are realized, we could certainly see that number go back up. My suspicion is it will. But again, as an investor, and I'm a shareholder of Amazon, a longtime shareholder of the beauty of Amazon is, it makes its money in a number of different ways. Then you just look at their ad business alone now, tracking on around $80 billion annual run rate, and that growth rate is also tracking with AWS. Now, I don't think it necessarily has the same market opportunity that AWS has, but it just goes to show that Amazon has a lot of different ways it can win.
Ricky Mulvey: Lot to dig into in the New York Times story. It's titled at Amazon's biggest Data Center. Everything is super sized for AI. If you want to get upset about a political story, one you can is that Indiana gave Amazon a 550 year sales tax break for Data Center equipment and that goes, I think, across the board for big tech companies. Just something to ruffle your feathers a little bit as we get to the real estate side of this story. Matt Argersinger we are not the first ones to notice the boom in spending and demand for artificial intelligence. There's a huge amount of interest among REIT investors, real estate investment trusts. You look at something like Digital Realty trust. It operates data centers, and it is now trading at an earnings multiple of 150 times. You see that for a growth stock sometimes, but not for a REIT, man. What's going on here?
Matt Argersinger: Well, so on the surface, Ricky, that definitely appears an incredible valuation for Digital Realty. But you have to remember with REITs, particularly one that's completing a lot of developments, making a lot of acquisitions, they generate a lot of depreciation expense. When you value a REIT, you want to strip that out, as well as other nonrecurring expenses, and you get a what the read industry calls funds from operations or FFO. That's basically the ongoing cash flow to a REIT. If you look at management's latest guidance, Digital Realty is on track to generate around seven dollars and 10 cents in FFO per share this year. That puts its earnings multiple around 25, still lofty for REIT, but a lot more reasonable than 150 and maybe not so inappropriate for REIT that is really at or near the vanguard of this AI investment cycle we've been talking.
Ricky Mulvey: Twenty-five is a little bit better than 150 [laughs] but I still see a lot of interest here. I remember what happened, let's say peak COVID, when there was the real estate story of the great move to the Sun Belt, where people are going to work from home and they're going to need apartments in the Sun Belt. It happened in Mid America apartments, and a lot of growth can get pulled forward, and then there's a leveling off sometimes for years at a time. Do you think could the REIT market specifically for these data centers, be a little frothy right now? Any hesitation for investors looking at this space?
Matt Argersinger: I'd see it as a little frothy, Ricky. I think the apartment comfy make is a good one. Many developers rushed in to build apartment buildings in states like Texas, Florida, Arizona, right after COVID. That led to a huge oversupply that has pressured rents on these buildings in those states. It's hard to say whether data centers are in that same bubble loop. But the sheer amount of spending to me is just extreme, and it's coming from so many different players, whether it's REITs like Digital Realty, which we talked about, you've got the hyperscalers like Amazon, Meta, and you've even got private equity. In the New York Times report, as well, you've got Blackstone, BlackRock, KKR making huge investments. I think taken together, it feels a little frothy. You have to remember, to me, we're dealing with technology here. What if smaller, more powerful chips come out over the next decade that just don't require the same amount of space or the same amount of power. Could that render a lot of this buildout we're seeing obsolete? It's not an unreasonable question.
Ricky Mulvey: After the break, Hims & Hers get knocked down more than 30% on a bad breakup. What happened there? Stay right here. You're listening to Motley Fool Money. Welcome back to Motley Fool Money. I'm Ricky Mulvey, joined by Matt Argersinger and Jason Moser. Listeners and Matt and Jason, before we get back into the show, I just want to note that next Friday will be my last time hosting Motley Fool Money. More to come. But for now, I just want to express my gratitude to this organization, to you the listener for making us a part of your daily routine in some cases, and just say that I will dearly miss working with the good people at the Fool every day and that I'm optimistic about the future. I'm excited about what's to come. No good way to get to the next story from that. But I will try. Let's get to this Hims & Hers story. Earlier this week, online healthcare company Hims & Hers dropped by more than 30% after Novo Nordisk accused the company of illegally selling knock off versions of Wegovy. Hims and Hers CEO Andrew Dudum biting back, responding on X that, "Novo Nordisk's commercial team increasingly pressured us to control clinical standards and steer patients to Wegovy regardless of whether it was clinically best for patients". This breakup comes shortly after the partnership was announced. JaMo, why was this partnership such a big deal for Hims & Hers in the first place?
Jason Moser: It gave them access to a leading GLP-1 drug, which I think enhanced credibility, which I think could help the company achieve its long term growth plans. I think it was some validation of the model. Now, on the flip side, and Hims is certainly not the only company that does this, but, they have a focus as well on these compounded drugs, which serves a purpose for sure, particularly in shortages, but they're also not FDA approved. There are questions as to whether they're actually serving the patients best interests. I think when you put all of this together, it just gives investors at least a little pause. I'm not saying it's something fatal for the company, but I think it gives investors a little bit of pause there. Dave Moore, the EVP of Novo's US operations said as much regarding the decision he said, "We expected that the efforts toward compounding personalization would diminish over time. When we didn't see that, we had to make a choice on behalf of patients". It's just very interesting to see Hims perspective there and Novo's perspective there. When it comes to the best interest of the patients, I guess we will see how this evolves, but it's worth noting. Give Hims a lot of credit that shares have been on a tear recently, and it's easy to see why the company's grown revenue annualized 80% over the last five years. It's just been on fire.
Ricky Mulvey: This is a company I've taken a look at. The bull case that I've heard, there's a lot of excitement. The bull case for Hims & Hers is that it could pull a Netflix or Spotify for direct to consumer healthcare with personalized treatments. You've also got an AI driven platform, we're redefining healthcare. Are you buying the bull case?
Jason Moser: On the fence with this one, I think it's certainly possible, but they need to be careful how they go about it. This is something that comes with some reputational risk. If they come this platform that just provides non-FDA approved, compounded drugs and utilizes questionable marketing tactics. That could absolutely scare people away. In the best look when it comes to healthcare. They'll just need to be very thoughtful, I think, about their next steps and how they ultimately communicate with not only their prospective customers, but also investors, because part of their growth strategy is explicitly stated in building partnerships and expanding globally. If they're not able to achieve that, that's going to be a big problem for the growth picture going forward.
Ricky Mulvey: Matt, any concerns when you hear X stock is the next Netflix, the next Spotify?
Matt Argersinger: You always have to be careful with those. Ricky. It wasn't, I think, more than several years ago, when investors were calling Nikola. The next Tesla. Remember Nikola, it demonstrated its electric trucks by rolling them down hills. There have been so many companies, I've fallen for this over the years that have compared themselves or called themselves the next Berkshire Hathaway. I have a long list here. I won't get into it. But I've learned, and I think Jason has, as well. When you say XYZ is the next ABC, you're almost always better off holding or buying ABC.
Jason Moser: I feel like you were getting ready to say Big Lori Holdings.
Matt Argersinger: I was.[laughs] By the way, when Edie Lamper was running it?
Ricky Mulvey: Don't forget Boston Omaha had a guy running it who was, what was it Warren Buffett's great nephew?
Jason Moser: I think he's still running it.
Matt Argersinger: He's now the only CEO. But definitely not the next Berkshire Hathaway.
Ricky Mulvey: That's a real stretch. I got to start publishing who my cousins are on the show. I want to do this story, and I'm stealing it from a podcast I really like Matt Beland is the town. At the midpoint of year, which we're at about at, they looked at the overrated and underrated business stories of the year. I thought for entertainment for them, but I thought it would be fun to do it more holistically for business stories. I'm going to stay on Matt with this. Matt, first up, what is your overrated story of the year so far?
Matt Argersinger: I don't want to ruffle any political feathers here, but DOGE. Do you remember DOGE?
Ricky Mulvey: I do.
Matt Argersinger: There was supposed to be, I don't know, two trillion in savings, and it became one trillion in savings, and they got rid of the guidance. But, I don't know. In most reports right now say that the DOGE, by the way, the Department of Government Efficiency previously run by Elon Musk. It's saved or it's cut somewhere under 100 billion in costs. There's even some reports out there that suggest that it's actually cost taxpayers more, some of the efforts because of the inefficiencies and some of the replacement costs. Again, I don't want to get into politics at all, but I clearly, there was both significant hype and significant concern about DOGE, and it basically has turned into a nothing burger, as far as I can tell.
Ricky Mulvey: I went to a crypto convention earlier this year, and they had a McLaren that had the DOGE logo on it, and then a stand that was just like, for the Department of Government Efficiency at this cryptocurrency convention. Matt, that is when I first started to have my doubts about that project. Jason, what is your overrated story of the year so far?
Jason Moser: Well, I'm sure this is going to ruffle a few feathers, too, but I got to tell you, that Tesla Robotaxi thing just seemed like a dud, man. Elon Musk has been promising this thing for years. Granted, he's delivering it in some capacity. Obviously, he never really hits his timeline, but all the way he's been ripping on geofencing, they got to use geofencing. He's been ripping on having human supervisors and cars. He had to have human supervisors and cars. The rollout was to a very limited invite only audience. You have to assume that's a very biased audience in Tesla's favor. They're going to say it was great, no matter what. But the videos that I've seen, the accounts of misfire, some of the things these cars did, I think just demonstrates that they still have a lot of work to do. I'm not saying they won't get there eventually. I want to take my hat off to him for doing what they're doing. I think it's important technology. But man, it's just going to be a while in that event, I thought was just over hyped and underdelivered.
Ricky Mulvey: I'm going to give you a quick one that's non-Musk, and that's the rise of investor interest in Vatels these personal electric taxis. There's companies bidding up these companies. There's investors bidding up these companies by the billions for companies that don't have revenue and a lot of big questions about the regulatory landscape for putting these electric air vehicles in cities. This is one of those things. You hear about self driving cars crash. What happens when that's an air taxi? That's a negative story. Let's go to underrated stories of the so far.
Ricky Mulvey: Matt, what's your underrated story of the year so far?
Matt Argersinger: This would be strange based on what JaMo said. But my underrated story is actually Robotaxi. Yes. [laughs] I love it. Not because, I'm not reversing this here, I think, the Tesla role was pretty much a disaster, but I think the concept in general is going to be hugely life changing. If in five years, most of the taxi rides you get in a major city are through an autonomous vehicle, I think that has major implications for life, for the economy, etc. I actually think even though it's all over the headlines, we've talked about it, it seems underrated still.
Ricky Mulvey: JaMo as we start to wrap up. You got an underrated story of the year so far.
Jason Moser: Sure, we talked about this a few weeks back. But I think, you know, we're starting to see the IPO market open up a little bit. I think there's some potential for some above average activity here in the back half of the year, looking at technology, healthcare, and FinTech. We've got some drivers there, private equity looking to cash out. You get stabilizing interest rates, it looks like relatively strong market performance, which could help drive that demand. It just doesn't seem like something that's being talked about a whole lot, but I expect activity to pick up here in the back half of the year, going into 2027.
Matt Argersinger: There's been some big IPO so far this year.
Ricky Mulvey: My quick one will be the return of speculative bubbles. I think there's a lot of speculative investing action going on in 2025 that seems a little like 2021. Up next, we are checking in on a company solving one of the most important healthcare problems. Stay right here. You're listening to Motley Fool Money.
elcome back to Motley Fool Money. I'm Ricky Mulvey. Pete Anevski is the CEO of Progyny, a company solving a life creating problem. Progyny specializes in fertility benefits, especially for self insured companies. Anevski joined Motley Fool Senior Analyst Tim Beyers and Holly Andersen, who works on our benefits team to talk about Progyny's growth path ahead and the company's unique partnership strategy.
Tim Beyers: Pete, so great to see you. Thank you for being here. We really appreciate it. We gave you a quick intro for what progeny is, but we would love to hear before we get into the opportunity, how you see Progyny. How do you how do you describe it? Again, thank you for being here.
Peter Anevski: First of all, thank you, as well. I was really looking forward to this for a couple of reasons. One, as you guys already mentioned, you're a partner, and you offer progeny to your employees. We're really proud of that. But also, just for my own personal success fuel or achievement, I discovered Motley Fool, personally, in the early '90s, used it a lot, love it, loved it as a service. To come full circle and be invited to do an interview on the platform on the show is really fun back for me personally. Thank you. Progyny is a global leader in women's health and family building solutions. We focus on areas that are either overlooked or underfunded by managed care, and we address issues that fill those gaps. That's generally what we do across all of our products. We started first in the facility and family building solutions product step, but then have expanded beyond that. Really excited to talk about what we do.
Tim Beyers: We're going to get into more of that because you're right. There's been some expansion in what you do, but I want to just start. We're going to get a little bit more into your story in a minute. But before we do that, let's get into the Progyny story. This is how I've heard you describe it, Pete, is that the opportunity is there are about 105 million covered lives that you could address, and you're currently addressing, and these numbers may have changed, Fools, so don't hold them to me exactly, but roughly 6.7 million of those, about 6.4%. How much do you need to invest to scale that? Because this does sound like if I'm an investor, this is a scale story. This is a benefit that we could scale to a lot more people. What do you need to do to scale that? What does that cost?
Peter Anevski: It's a great question. It's not necessarily a cost answer. It's a constant evangelizing and creating awareness around and understanding of why this benefit is the top five benefit that your employees want. Millennials, as an example in the workforce are the largest portion of a population today in the US. Millennials are also the age group that will use a fertility benefit. The average age of a woman going through fertility treatments that's infertile is 36-years-old. It's an important part of your workforce. It's usually your middle management. It's usually the glue that holds a lot of things together. It's a really important benefit. It's one that based on benefit consultant surveys that employees look for when they're looking for a job because it's that important to them. It's a really important area. It's constantly making sure it's constantly competing with other decisions that companies are making relative to managing benefits overall, relative to addressing medical cost inflation, relative to anything that's out there that they're struggling with, and so it's a prioritization exercise for them. Whether they do it today or do it down the road, more and more companies are adding the benefit, and we'll keep doing that. As more and more companies offer the benefit, those other companies who realize they should be offering the benefit but aren't come on board, so it's constantly educating the market.
Holly Andersen: One thing that stands out to me about Progyny is the unique smart cycle approach to fertility benefits. I'm curious. When you're looking at potential partnerships for acquisitions, what's your process for identifying opportunities that will enhance both Progyny's services and financial strength? Then also what ensures that these partnerships stay true to Progyny's vision?
Peter Anevski: I love the question. We leverage partnerships in many different ways. In terms of financial strength, we leverage them in go to market, and so we have partnerships with many of the constituents within healthcare. For example, we've been adding a lot of payer partnerships. We've taken what are competitors, and now they become partners. The payers recognize that we have a solution that's differentiated versus what they're offering, and it's a function of the fact that they're dealing with managing thousands of conditions, and we're focused on one, and so it could do a much more comprehensive job. As a result the most recent announcement around that was our agreement with Cigna. That's one of the partnerships. We use partners relative to advancing our ability to go to market with products to the extent that we can do that. Whether they're partners or an acquisition opportunity, we'll look for those opportunities to the extent that they're on our roadmap and things that we're looking at, or if it makes sense with the audience that we address today, we will add those as well. On a product basis, it's a classic buy versus build or partner. Then in terms of go to market relative to the overall offering, it's leveraging the partners that are out there in the healthcare ecosystem.
Tim Beyers: I think one of the tough things is Progyny seems to be one of those benefits, and Holly, maybe you could speak to this first. It's one of those benefits that doesn't come up until somebody has a question about, hey, does the Motley Fool offer this? Then we introduce them to Progyny, and it's amazing, and they end up doing it. You talked about this in terms of evangelizing. But, Holly, what do we do on our end? How do we get more of our people digging into the Progyny benefits?
Holly Andersen: We do a lot of training, education. We sent out postcards or actually, we didn't. Progyny sent it out on our behalf for Women's Month. That was awesome. We promote it to our prospective employees. I say that because we've had people join the Fool and start using Progyny the very next day. We've had to be very quick on getting them enrolled so that they can start. Now, one person in particular, she has a baby now because of it. I love the benefit, and I think that it's a benefit forever in the sense that once they have a baby, from the Motley Fool support of Progyny that even 10, 20 years down the line, they'll look back at Motley Fool and Progyny and think, look what they gave me. I think my passion and our passion as a company also helps because we're always sharing. It's a great benefit.
Tim Beyers: It is. I won't go into the details for privacy reasons, but I have recently held a baby that came into the world with the help of Progyny, and it's pretty amazing. Pete, I want to come back to a bit of financial reality. Again, Fools, you can ask questions about this. This is a Rule Breakers picking it. It hasn't quite worked out yet. I want to talk a little bit about unit economics. You've already answered some of this. I'm going to flip it a little bit. You've talked about expanding the opportunity. Could you help us understand what's the situation that really is ideal for Progyny? What you want to see? Is it over time a Progyny client tends to add more services and spend more money. In terms of a unit economic benefit, staying power, like aging is something that really works best for you. If you have a client that has been with you for five years, the margins on that client tend to get better. Or is it something else? Help me understand the unit economics. How do you grow, or maybe put it this way, expand the cash flow that you're already generating today? How do we get it to even higher cash flow margins, say, over the next 10 years? What needs to happen for that to come to be?
Peter Anevski: There's a couple of things that are really important. I'll also throw in the macro trend that are going on that's helping fuel the need for our services. The fertility rate overall nationally has been declining and continues to decline each and every year since 2000. The age of a woman having a baby in the US, in the latest report dated from the CDC, more babies were born to women over 30 than under for the first time. In the average age of women, there's a decline in the number of babies being born in the US over the last 10 years at roughly 1.7%. But the 35 and over population has been growing at a compounded rate over the last 10 years of 2.5%. Again, the average age of a woman going through infertility and needing fertility treatment is 36-years-old. That macro trend is fueling the need overall. The trend with our clients since the beginning is a couple of things. One, we have a 99% retention rate, and we've had that for years. That's unheard of in the healthcare space. There's a reason for that. We provide a great service, and we help a lot of people out, and we're very differentiated.
But the second piece of and the Motley Fool is an example of it is the product expansion. Every year, roughly 20 and last year it was 30% of our clients add to the benefit somehow. They expand either smart cycles, they'll maybe add egg freezing and fertility preservation if they didn't have it. They'll add adoption and surrogacy if they didn't have it. In the latest year, on top of those things, they also added menopause and pregnancy and postpartum. It's all of the above. As time goes on, it's continuing to provide a differentiated value-based service that changes people's lives and create more and more of those solutions so that you have a stickier overall client base, and on top of it, continue to create products that are useful and address a larger portion of the employer's population so that more and more problems get solved and we help more and more people and then, obviously, the financials take care of themselves when that happens.
Ricky Mulvey: As always, people on the program may have interests in the stocks they talk about in the Motley Fool may have formal recommendations for or against no buying ot stocks based solely on what you hear. A personal finance content follows Motley Fool editorial standards and are not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our show notes. Up next, radar stocks. Stay right here. You're listening to Motley Fool Money.
[MUSIC].
Ricky Mulvey: Welcome back to Motley Fool Money. I'm Ricky Mulvey joined again by Matt Argersinger and Jason Moser. Fools, a good time to check in on the summer Box Office season well underway. One surprise to me is this opening of Elio, which was the Pixar movie this summer. Usually, that does really well. It's a family friendly, original film from Disney. Brought in $21 million at the domestic Box Office this past weekend. Matt, it turns out audiences, they're not asking for original movies. They want IP. This is interesting to me because there's parts of Disney where they've done really well. They had Inside Out 2 last year, one of the biggest animated films of all time, but it's definitely had some stumbles lately. I'm a Disney shareholder. How should I take in this news, if at all?
Matt Argersinger: It's not great news, but Disney has such a vast and diversified portfolio now. In the past, it really needed that once a year or once every two year Pixar film to really hit. Now, it can have a clunker like Elio as long as they're Inside Out 2, Moana 2 or even the Thunderbolts movie earlier this year did a lot better than expected. I think there's a lot more, though, riding on this Fantastic Four film coming out next month, because if it's a hit, it will set the stage for that next leg of MCU films over the next several years, which are going to be a lot more vital to Disney. But I don't think Elio is going to mean much.
Ricky Mulvey: Which are no longer guarantees, by the way. Thunderbolts, which was a good movie. Critics liked it. Audiences liked it. I saw it. I had a good time at the Thunderbolts. You would think, oh, with Guardians of the Galaxy, you can get people to see new superheroes. Not really. The film didn't perform that well.
Matt Argersinger: We'll see.
Jason Moser: It's a different time. Getting people out into the theaters is just a tougher proposition because we have so many other things competing for our attention today. Making a great movie doesn't seal the deal. You still got to get butts and seats, and that's just more difficult to do today than it was 10 years ago.
Ricky Mulvey: Great original movies can still bring people in checkout centers. It is awesome. Question before we get to radar stocks, though. If you could buy stock in one movie coming out this year, even in this tough environment, JaMo, what stock are you buying?
Jason Moser: Is this a movie that has been released or has yet to be released? Because it feels like to me it begins and ends with the Mission Impossible movie with final reckoning. Tom Cruise is single handedly saving the industry on his own. But I will say, if you're looking for one that is to be released, I'm going a little under the radar here. Spinal Tap II: The End Continues. I think it comes out in September and turn it back up to 11, Ricky.
Ricky Mulvey: Matt, I thought it was pretty clear we were doing movies yet to be released, because we have less information about it, but Moser wanted to cheat a little bit. That's OK by picking a Tom Cruise movie that's already come out this year.
Jason Moser: Spinal Tap II is my final answer.
Ricky Mulvey: Fair enough. Matt, what stock are you buying?
Matt Argersinger: I'm buying Superman, Ricky. Next month, James Gunn. This is a pivotal movie to revive the DC Universe film franchise, which actually has never been that great. I really hope it succeeds. I also have a vested interest as a big owner of Superman comic books, so I have a lot writing on this release next month. I'm pumped. I'm excited.
Ricky Mulvey: For my pick, I'm taking One Battle After the Other,100 million plus Paul Thomas Anderson movie, but I think that movie rules. I hope it does. I really do. Let's get to radar stocks. You'll pitch a stock that you are interested in, and then Dan Boyd, our man behind the glass will hit you with a question, concern or a backhanded compliment. JaMo what you got this week.
Jason Moser: I'm going to go with Uber, ticker, UBER. We were talking earlier about Tesla's Robotaxi event. On Tuesday Waymo Robotaxis became available to Uber users in Atlanta under much less fanfare. It's honestly one of the things I like about Waymo is they're under that shelter of alphabets, so they don't really have to get out there and sell the sizzle. They just get to work and do what they can. But it seemed like it was received well. It covers approximately 65 square miles around the city, and it's something that is available to Uber passenger rides only, not Uber Eats deliveries. But when you look at Uber, we talk about how autonomy is going to disrupt them, perhaps. It's very clear that Dara Khosrowshahi is completely in on the autonomous future. I personally would not look at Uber and say, well, this is the company that's being disrupted. They're a company that's participating, and they're participating today by the partnership with Waymo, for example, and we'll see how that all goes. But I don't think this is a winner take all market. I assume Tesla will succeed. I also assume Waymo succeeds, and I think that Uber succeeds by virtue of however it approaches the space. Right now, it's via that partnership. But in the most recent quarter they had they grew bookings, 18%. They grew trips 18%. Revenue was up 17%. I just think this company has so many different ways to win and very forward-looking. I think it's one worth keeping on the radar.
Ricky Mulvey: Dan, question about Uber.
Dan Boyd: Jason, how's that total addressable market looking these days? Is it still the entire population of planet Earth?
Jason Moser: I think that's a fair assessment. They just bought this 85% stake in a Turkish food delivery platform called Trendyol Go for $700 million. Hey, they're going global, Dan.
Ricky Mulvey: Matt, what you got this week? I hope it's not a Turkish food delivery platform.
Matt Argersinger: No. Otis Worldwide, ticker OTIS. This is, of course, the elevator, escalator company. It was spun out of United Technologies in 2020. It's actually only been a public independent company for about five years now. As you guess, it's the leading manufacturer, and this is key, though, leading maintainer of elevator and escalator systems around the world. 20% market share of new equipment sales, but here's what I like best, 2.4 million unit maintenance portfolio. That means Otis has this very large stable base of units that has to keep in working order. If you're a landlord or a major building manager, you've got to keep those elevators running. You need Otis to come out there and service them. With Otis in service and modernization, which is about 65% of revenue, 24% operating margins on that business. It's a great recurring revenue business. The dividend yield is only about 2%, but they're raising that dividend by quite a lot. They've grown it by 110% over the last five years, also buying back a lot of stock.
Ricky Mulvey: Dan, quick question about Otis.
Dan Boyd: I think with respect to Uber, but I think that if Otis disappeared tomorrow, I think the impact would be a little bit bigger than if Uber did.
Ricky Mulvey: I think I know what's going on your watch list this week, but Dan Boyd, what stock is making your watch list?
Dan Boyd: Sometimes we go up, sometimes we go down, but this week [inaudible].
Jason Moser: I love it.
Ricky Mulvey: You can love it, but I hate it. That's the end of the show. I'm Ricky Mulvey. Thank you to Jason Moser. Thank you to Matt Argersinger, and thank you to Dan Boyd for mixing the show.
