Motley Fool Money is a one-hour weekly business radio show syndicated to radio stations across America. On our most recent Motley Fool Money Radio Show, Chris Hill talked with our analysts about some of the big earnings stories. You can catch this week's show online at motleyfoolmoney.com . This transcript has been edited for clarity.
Chris Hill: priceline.com
Joe Magyer: Yeah, go figure, and especially with all the drama that is going on in Europe right now, you wouldn't expect to see that kind of strength coming out of there, but their bookings in Europe were up 48% year over year, which is pretty massive. Shares are trading at 28 times earnings right now, which seems pretty rich, but I probably would have said something more a thousand percent ago, so take that for what it is worth.
Hill: On Thursday, Activision Blizzard
Hanson: Well it was an interesting release, because it disappointed the market on revenues, but beat expectations on profits. What that shows is that their online games business, as opposed to their console business, is starting to come along. And the investing thesis here is that you will see profit margin improvement over time, as lower-margin console games become a smaller part of the business and the higher-margin online games, where you don't have to make packaging, you don't have to make a plastic cartridge; it's just people download it off the Internet. As that becomes a bigger part of the business, the company is going to become more profitable, and that looks to be taking place for a company right now that has more than $3 billion in cash on its balance sheet and no debt, is generating more than a billion dollars in free cash flow per year, which is a free cash flow yield near 10%, which is really attractive in today's interest rate environment. I think the market got this one wrong and that Activision looks like a pretty promising long-term opportunity.
Hill: Research In Motion
Magyer: These guys are becoming somewhat of an "also ran" here, considering the size of the market that they've got. Right now, consumers are flocking to Android. In the past quarter, there were more Android-powered phones sold to consumers than RIMM or Apple
Hill: One area where BlackBerry still has the dominant position though is right here in D.C. in the government sector. Tim, you are a former government worker. How much longer can BlackBerry live off of that?
Hanson: You know, these were affectionately known as the "CrackBerries" when I was working in the government. People were addicted to them. I don't spend a lot of time down on the Hill anymore, but friends of mine who still work there have their government-subsidized BlackBerry, but they are carrying multiple devices on top of it, like an iPhone or an Android phone, because frankly, they are better, and they are more fun. BlackBerry continues to milk this cow for the time being, but as soon as the government subsidy wears out, I don't think employees are going to stick with the phones.
Early: With the new phone, BlackBerry has finally met the industry standard. Unfortunately, it happens to be the standard from 2006. So it is probably not going to be a game-changer. I think as soon as the government and businesses migrate to the iPhone or Android, they [Blackberry] are toast.
Joe Magyer , James Early, Tim Hanson, and Chris Hill may own stocks discussed during the course of the weekly radio show. To see the stocks they own, follow the links above to view their profiles. Mac Greer doesn't own any of the stocks mentioned.
Activision Blizzard, Apple and priceline.com are Motley Fool Stock Advisor selections. Google is a Motley Fool Rule Breakers selection. The Fool owns shares of Activision Blizzard, on which Motley Fool Options has recommended a synthetic long position. Try any of our Foolish newsletters today, free for 30 days. The Fool has a disclosure policy.