Why You Want the Companies You Own to Have Big Moats

Why You Want the Companies You Own to Have Big Moats

Plus a look at what’s going on with Meta Platforms, PayPal, and ServiceNow.

In this podcast, Motley Fool senior analyst Asit Sharma discusses:

Motley Fool senior analyst Jason Moser and Motley Fool contributor Matt Frankel discuss some ways to identify businesses with moats and share some stocks that know how to protect themselves.

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.

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Captions captions settings, opens captions settings dialog captions off, selected Audio TrackFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteTransparencyOpaqueBackgroundColorBlackTransparencyOpaqueWindowColorBlackTransparencyTransparentFont Size100%Text Edge StyleNoneFont FamilyProportional Sans-SerifReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button. Should you invest $1,000 in Meta Platforms, Inc. right now? Before you consider Meta Platforms, Inc., you’ll want to hear this.Our award-winning analyst team just revealed what they believe are the 10 best stocks for investors to buy right now… and Meta Platforms, Inc. wasn’t one of them.The online investing service they’ve run for two decades, Motley Fool Stock Advisor , has beaten the stock market by 3X.* And right now, they think there are 10 stocks that are better buys. *Stock Advisor returns as of June 2, 2022 This video was recorded on April 28, 2022. Chris Hill: [MUSIC] We like big moats and we cannot lie. Investors can’t deny. I’m not singing the rest of this, we got too much to get to on this episode. Motley Fool Money starts now. I’m Chris Hill, joining me is Motley Fool Senior Analyst, Asit Sharma. Thanks for being here. Asit Sharma: Chris, thank you for having me. Chris Hill: Jason Moser and Matt Frankel are going to be here later in the show to talk about moats, also known as one of the biggest advantages that business can have. But we’re going to check in on the latest from PayPal and ServiceNow, let’s start with Meta Platforms. Shares hit a 52-week low on Wednesday. Today, shares are up more than 10 percent off of that low because of a first-quarter report that wasn’t perfect, but it definitely had bright spots. Meta Platforms seeing a rise in both active daily users and revenue per user. What stood out to you? Asit Sharma: Chris, for me, I think what stood out was made for TV Disney movie element in this earnings report. By that, I mean, in some Disney movies of old, you had the crazy tinker as genius farther who would spend part of the family’s budget on stuff for his creations. Then at some point, the mom would step in and say, hey, we’ve got to send the kids to camp this summer. You can’t keep pouring money into this, we’ve got to make it through the month. I think this was Meta Platforms realizing that as much as they want to invest in the metaverse, they can’t go all-in. They dialed back their projected expenses for this year and this gives shareholders some confidence that the company will drop a little bit more money to the bottom line, I will just point out, in this quarter, Meta had $28 billion in total revenue. Now, how do that Reality Labs, which is right now, the expression of the metaverse where all the big money is being poured into that had around 700 million in revenue? It had three billion dollars odd in expenses. I don’t want to call this a money pit, it’s an investment. The payoff is uncertain, it’s indefinite in the future. Having Facebook pullback, having Meta pullback the spend for this year gives investors a little bit of confidence that this is still an organization that’s being run with the intent to provide them some returns. Chris Hill: Stark contrast to what we saw three months ago when the stock fell 26 percent in a single day off of their previous earnings report. You refer to something that I think is important for any business, for shareholders of any company, which is not that we necessarily want to see management teams just tale telling to whatever Wall Street […]

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