From Nasdaq: 2024-03-30 06:30:00

Jason Moser: I don’t know if this is necessarily a signal from management of a buying opportunity. I think the management sees this as a way to maybe get some new investors in, to make it easier for current investors to act. I understand they’re going to do it and literally 50-for-1 split. That is not something you see very often, especially with a company like Chipotle. Investors like Chipotle, they tend to like what that brand brings to the table, and I don’t think a 50-for-1 split changes that one bit.Dylan Lewis: Yeah, and I think it’s a little gimmicky maybe Jason. If you’re unfamiliar with the concept of a stock split, it can seem a little bit like theater, and it’s not like Chipotle is trying to make their business better by doing this. It’s not like they improved their operations in any way it’s a financial event.Jason Moser: It’s largely a financial event, I mean there are some benefits for companies. They appeal to the shareholders to make the investment a little bit more accessible, but I know this can be for dividend payments for cash payouts, I mean there are some benefits for companies and yes the fraction shares like that that maybe a little bit more difficult for them to offer it up easily. But you’re right. At the end of the day, it is kind of a little gimmicky. It is a little bit of theater, but again it’s not going to change anything about what this business does, to bring to the table or they liked about it to begin with.Dylan Lewis: Moving on from Chipotle, we had a slew of earnings to discuss this week. Emily, I handpicked some names for us to talk about that I think are particularly interesting. Let’s start with Chewy.Emily Flippen: Yeah, Chewy is one of those stories, a company that survived in spite of trends over the past few years, I mean they’ve invested heavily in things like online pet prescriptions ordering and trying to get those high margin recurring order sales that have been so kind of formidable out there for subscription businesses, a couple hundred bucks of pop into wet food for kittens every single week. It’s an interesting story, right? They’ve seen pretty significant revenue growth. Let’s see if they can continue to keep up that growth. But maybe you mentioned this one to me specifically because they are facing some– [crosstalk]Dylan Lewis: Maybe that’s why I mentioned Chewy, Emily. Maybe.Emily Flippen: Maybe. They are, continuing to fly on the radar of large cap investors, but I’m cautious. I’m very cautious about not just the business itself, but also the way that investments are being made in that space. Chewy is constantly touted as this buy and hunting ground for crossover investors. That’s certainly something that you’ve seen in the past cloud retail to other companies that may not be as ethically organized.Dylan Lewis: We also had reports for Nike and Lululemon.Emily Flippen: Yeah, not shocking to see a company like Nike and Lululemon do as well as they have been doing. Two clothing sellers, one more athleisure than the other. Lululemon yoga pants for people going to the office or going out. They’ve had success in-store, online. They’re doing a wonderous job. But I think the rumors of any secular growth, especially with companies like Lululemon, expected or anticipated, and their U.S sales are decreasing. It’s not just pandemic. It is a lot more complicated and a lot more secular than you’d think. But they’ve laid a lot for this quarter. I love seeing that Dylan.Dylan Lewis: Yeah, those stocks I think have been steady performers. Not too shocking to see that they have a good business. It’s not like it’s a sporting goods store or anything like that. But they continue to push the envelope when it comes to brand and loyalty and authenticity of women.Dylan Lewis: Lastly, I wanted to chat about Accenture.Emily Flippen: Yeah, sure, so this is a company that’s done nothing but grow. It’s seeing big numbers even after a rough last year with acquisitions and businesses driving growth of about 11%, I think. Last year top line growth. But my past history for this company says they’ve done well in the last year. I like them, I think they’re a brand that’s going to hold you come late January 2022, probably going to have the business that’s not just going to deliver the success and the growth but the details that companies need. But if you were interested in Accenture, that’s a good bet.Dylan Lewis: Turning to our radar stocks for the week, Jason I had a couple that I thought were interesting. The first one is Pinduoduo. What caught your eye with them this week?Jason Moser: Yeah, Pinduoduo. I haven’t really been super interested in them before, but they really have caught my attention this week. I’m really interested in seeing how they continue to create this value-add service for EMP customers. That’s one of the big things that they talked about early on was bringing everything in house. They’re starting to figure out more about this point. They’re really developing a nice network of business partners in China. They’ve done a fantastic job. I haven’t come out and said I don’t want to read, and I think that’s a nice energy they already doing, what I think China needs to make that connections in the future.Emily Flippen: Moving on to the second stock we have for you this week, TopGolf Callaway.Jason Moser: Yes. Callaway obviously well known in the golf world, they have this new TopGolf B2B partnership going on. They’ve definitely been pushing on that. I know a lot of volatility there. I think that’s a great partnership to have. Being in the golf industry, having that brand that they’re really excited about, they’ve got to hit their stride and get dividends from that in the first six months of this year. But TopGolf it’s also venture they own. I think it’s a good partnership.Dylan Lewis: Yeah, and one that I’m excited to see how it works shares climb over time with practice changing in golf, lots of conversations about it.Jason Moser: Yeah, and it just shows the convergence in a lot of partnerships when we think about it.Dylan Lewis: And for our last segment, we have Motley Fool contributor Brian Feroldi here to break down Reddit’s S-1.Brian Feroldi: Reddit, the self-proclaimed “front page of the Internet” just filed its S-1. The document reads like a choose-your-own-adventure where the ending is “stocks to open the suit for possible monetary gains.” The major risk facing Reddit includes a billion-dollar lawsuit or something that could land them back in hot water with the ones who shall remain nameless. Some might say this is “the end of an era for Reddit,” but it could also be the beginning of “an era of lawsuits they never saw coming.” But we probably just met a sizeable sum up in the meantime.Dylan Lewis: Thanks for the breakdown Brian. That’s really helpful.Peter Lynch: Interested in investing like The Motley Fool? You can checks out their free podcast and read their website. If you are ready to invest in stocks now, try Stock Advisor Service. Stock Advisor is a proven system to beat the market. Click the link to try it out.



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