On this podcast, Motley Idiot analysts Dylan Lewis and Tim Beyers focus on:
- The fallout from Johnson & Johnson‘s talc settlement.
- What the lawsuit may imply for J&J’s spinoffs.
- Why the U.S. Division of Justice is looking at Activision Blizzard.
Motley Idiot producer Ricky Mulvey and Motley Idiot analyst Emily Flippen take a better take a look at Chewy‘s development initiatives and what they may imply for shareholders.
To catch full episodes of all The Motley Idiot’s free podcasts, take a look at our podcast center. To get began investing, take a look at our quick-start guide to investing in stocks. A full transcript follows the video.
10 shares we like higher than Johnson & Johnson
When our analyst crew has a inventory tip, it could pay to hear. In any case, the publication they’ve run for over a decade, Motley Idiot Inventory Advisor, has tripled the market.*
They only revealed what they consider are the ten best stocks for buyers to purchase proper now… and Johnson & Johnson wasn’t considered one of them! That is proper — they suppose these 10 shares are even higher buys.
*Inventory Advisor returns as of March 8, 2023
This video was recorded on April 5, 2023.
Dylan Lewis: In the present day, we be taught the Texas Two-Step. Motley Idiot Cash begins now.
[music]
I am Dylan Lewis, sitting in for Chris Hill, and I am joined by Tim Beyers. Tim, scale: caffeinated to very caffeinated. How are we doing as we speak?
Tim Beyers: We’re absolutely caffeinated, Dylan, able to go. Let’s do it.
Dylan Lewis: I am excited that you simply’re absolutely caffeinated, as a result of we’re going into the customarily obtuse world of company settlements. We’ve a few items of stories associated to that, and I believed it would be fascinating to dive into it.
The primary is Johnson & Johnson is proposing a $9 billion settlement to 1000’s who sued the corporate, claiming its talc merchandise prompted most cancers. If this deal is accepted, it will be one of many largest client legal responsibility settlements of all time. Notably, it’s a sizable bounce from the $2 billion that the corporate had beforehand booked associated to these claims in 2021.
Tim, as I see it, that appears fairly intentional. It seems like Johnson & Johnson is attempting to do some little bit of a maneuver right here, and in case you take note of the chapter world and the company chapter world, you may understand it because the Texas Two-Step. Trying to make use of chapter regulation to switch this talc case legal responsibility to a subsidiary, which might then file for chapter and disburse cash to these affected via the chapter course of. J&J would fund the payouts, however it will cap the long-term legal responsibility and the associated fee for Johnson & Johnson. Do I’ve that proper?
Tim Beyers: I believe you are proper within the ballpark right here. Let’s be clear. The court docket already noticed this and stated, “Trip, wait a minute right here. You do not simply do away with this and simply dismiss it.”
The corporate did suggest a chapter prior beneath the LTL subsidiary that you simply’re speaking about. This was created in 2021, and a federal appeals court docket stated, “No, you aren’t getting to do that. LTL doesn’t get to qualify for protections of the chapter court docket.” So this grew to become a factor that J&J had to return to the drafting board. They actually did do that as soon as and say, “Hey, we have now this subsidiary, we’ll file chapter.” The appellate court docket stated, “No, you aren’t getting to simply do away with this.”
Now what we’re seeing is a revised model of this that roughly greater than 60,000 claimants right here. This can be a class motion lawsuit, and so there’s lots of people with claims who are actually backing this and saying, it is a higher settlement.
Now, we’re going again to the chapter court docket. Now, LTL will go into chapter 11 and say, “Look, this is what we’ll do. We’ve the backing of a bunch of claimants right here, and our complete payout shall be roughly the current worth of that shall be $8.9 billion. We already settled a 2018 declare for $2.1 billion. Here is an extra 6.9, roughly $7 billion, and let’s get this off the books.”
Now to be honest, LTL, which shall be a subsidiary and can have its personal operations right here, and J&J will take care of this otherwise, and there’ll nonetheless be prices related to each. It does not get instantly rid of all of it.
However what it does do, I believe the language that you simply used that is most essential there, Dylan, is capping the liabilities. It settles the most important claims in order that we do not have a bunch of latest lawsuits heaped upon J&J or LTL. We begin settling out the issues which were agreed upon, after which we transfer on from there. It is a platform from which J&J will get to maneuver on.
I’d argue, some actually damaging litigation each from a human perspective — plenty of most cancers sufferers right here is plenty of human tragedy right here that no sum of money could make up for. But additionally some actual injury to its popularity, as a result of this has been happening for a very long time. Really settling this — not admitting any wrongdoing, however saying, this is a factor that we wish to be sure we get behind us, and claimants who’re saying we deserve some compensation right here, they usually’re getting that.
You hope calling it a win-win does not really feel proper contemplating the dimensions of the tragedy that, as a result of most cancers is rarely nice beneath any circumstances, so win-win feels incorrect to say. However getting to some extent the place there’s an settlement and hope that settlement can fulfill some individuals who have reliable claims.
Dylan Lewis: You talked about this being a platform for J&J to maneuver on, and there’s the legal responsibility ingredient of the talcum powder, after which there’s the company course of J&J total. This can be a enterprise that’s actually attempting to concentrate on its pharmaceutical and its medical machine items and is trying to take plenty of the buyer manufacturers that I believe we’re very aware of from this firm and transfer it to a different enterprise, a self-contained enterprise that can have its subsequent chapter. Do you see this as one other piece of that path for them?
Tim Beyers: It positive looks like it. LTL goes to take basically the buyer well being unit. I do not know if it is particularly LTL. It is exhausting to inform from the studying of the filings right here. What we do know is that J&J will separate right into a separate unit. The separate unit shall be known as Kenview, and that is going to tackle the brand new model of Johnson’s child powder, which I consider now, as an alternative of talcum powder, shall be utilizing issues like cornstarch powder. After which Tylenol. That turns into a stand-alone firm.
Then you will have Johnson & Johnson, which is the a lot greater firm that can concentrate on issues like medical gadgets and prescription drugs.
Let’s keep in mind that Johnson & Johnson was one of many massive suppliers of COVID vaccines not that way back, Dylan. That is nonetheless a giant pharmaceutical firm that does make medical gadgets. It is identified for issues like Tylenol, however there’s much more to it. These two separate, and it does seem after we take a look at the market motion round this settlement or this group plan, this chapter plan, that there could also be some buyers who’re this and saying, what, if I purchase J&J now, not solely am I getting the settlement, however I may be getting two corporations.
At what level, how does this Kenview spinoff happen? Will it turn into a public firm, will I get shares in a brand new public firm known as Kenview? There’s quite a bit to be decided right here, Dylan, however there’s potential for worth to be created out of this settlement.
Dylan Lewis: Talking of settlements, we even have settlement discuss within the gaming house as we speak. The U.S. Division of Justice is looking at Activision Blizzard’s aggressive balanced tax in its esports leagues. Tim, it is a story that developed fairly rapidly. We noticed a declare earlier this week, after which I consider yesterday or earlier as we speak, we noticed that the DOJ was already reviewing a proposal from Activision Blizzard associated to the declare.
Tim Beyers: Proper, yeah. It was inside like three or 4 hours. I imply, it was astonishing. This may be a bit of little bit of a salty take right here, Dylan. I really feel just like the Justice Division is possibly…overstepping feels incorrect to say.
However this is what is going on on, this concept of a aggressive balanced tax. Activision Blizzard basically assigned to those esports groups. They’ve this esports leagues. The aggressive stability tax concept is that you do not need a crew that’s basically paying a unprecedented sum of money for a ringer and say like leagues that should do with video games like Name of Obligation or Overwatch. The notion is that we would like a league of groups which are fairly evenly matched, and so that is going to be enjoyable to look at. It isn’t like one crew goes to come back in, pays all of the ringers, blows all people else away, and now that is prefer it’s a rigged sport.
The thought of a aggressive stability tax, actually, Dylan, type of is smart to me, as a result of in a league, I imply, we have seen this in American sports activities. We even see it in European sports activities. Within the NFL, for instance, we have now a factor known as a wage cap. Does the aggressive stability tax sound all that totally different from a wage cap? I imply, I am positive, functionally, it’s, and since we’re speaking a couple of enterprise, and a enterprise that’s truly getting income, and shareholders presumably get a declare on earnings from that income, you may’t use the identical governing dynamics of a league. And but you need the league to be aggressive.
In a method, I really feel like it is a nonsense declare from the Justice Division. So settling it rapidly feels proper to me, Dylan.
Dylan Lewis: I used to be going to ask, Tim, if that is simply a part of the trail from esports being gaming to changing into sports activities and sports activities leagues in the best way we give it some thought within the standard sense, as a result of we do have this type of mechanisms in plenty of the most important sports activities. I assume possibly among the distinction there’s we have now gamers’ unions and collective bargaining that performs into a few of that, and there is most likely a bit of little bit of maturation that simply must occur for esports to catch as much as that surroundings.
Tim Beyers: That is most likely proper. As a part of the reporting on this, Activision Blizzard has been very clear that there actually hasn’t been an software of the aggressive balanced tax. There’s been no influence on participant salaries. We have not suppressed participant salaries so as to rig the sport in the best way that we would like it, which is the argument of the Justice Division. The Activision Blizzard is saying that simply hasn’t occurred. In a method, the Justice Division may be leaping the gun right here to stop one thing that hasn’t occurred.
However yeah, you make a very good argument right here, Dylan, that we’re speaking in regards to the concept of aggressive dynamics and guaranteeing aggressive dynamics in a nascent league that also has quite a bit to mature, develop, like we have not seen any of this but as a result of esports are so new and esports leagues are so new.
However there’s an argument to be made in case you are the Justice Division to say like, “Hey, look, irrespective of the way you construction an esports league, you may’t make it the place gamers do not get to profit or reap the rewards of offering worth to shareholders.”
And in that sense, I agree. However on the identical token, I disagree that it’s a must to impose some Draconian guidelines earlier than. We do not even know what the market dynamics of esports are but.
Dylan Lewis: The factor I wish to depart people with right here, Tim, is we had a reasonably clear sense of consequence with the J&J story. There’s greenback determine that is being talked about.
Tim Beyers: Proper.
Dylan Lewis: With this Activision story, I am positive there are Activision shareholders that weren’t even conscious of this or possibly it is flying beneath the radar. Is that this a giant deal for Activision? Is that this a giant deal for esports? Each? Neither?
Tim Beyers: It is too early to say, nevertheless it does take away a blocker, does not it? In that sense, eradicating any blocker hopefully greases the skids to completion of the acquisition we have all been ready for. We actually need this acquisition to undergo with Microsoft. Something that will get out of the best way of that may be a good factor, nevertheless it’s most likely too early to know simply what occurs right here.
I believe esports are so new, and how much dynamics they’ve, just like the economics of an esports league and the way it works with different skilled sports activities leagues, it is simply too new. The way it contributes to Activision’s total enterprise, it is simply too new. But it surely does have the potential to be huge.
I actually am shocked by how compelling I’ve discovered it to look at esports competitors. That is actual, Dylan. I truly did watch the FIFA ePremier League Remaining Match, and I used to be shocked by how compelling I believed that it was. There’s undoubtedly one thing right here.
Dylan Lewis: I wager it wasn’t extra compelling than watching Crystal Palace, although.
Tim Beyers: Properly, it was digital Crystal Palace, they usually misplaced. Sure, not as compelling as a result of they misplaced.
Dylan Lewis: Tim, thanks a lot for becoming a member of me as at all times.
[music]
Tim Beyers: Thanks, Dylan.
Dylan Lewis: Pet retailer and pandemic-era darling Chewy misplaced 250,000 prospects within the newest quarter. Is that this a pace bump or a long-term downside? Ricky Mulvey caught up with Motley Idiot Senior Analyst Emily Flippen to check out the web pet retailer.
Ricky Mulvey: Step one in Peter Lynch investing type is wanting round you. There are most likely plenty of Chewy packing containers in your house advanced, your neighborhood, or in your house. However the on-line pet retailer is dealing with some extra headwinds. Becoming a member of us now, Emily Flippen and Chewy stakeholders Xiaobao and Stevie. Emily, you talked about Chewy on the present a few weeks in the past, and I received the vibe that you simply had extra to say.
Emily Flippen: I actually did. For those who let me go on about Chewy and my cat, Xiaobao, go on about Chewy, we shall be right here ceaselessly, and that is as a result of it is a kind of few companies that I believe does profit from being client dealing with.
As you talked about, all people is aware of what Chewy is as a result of their packing containers are ubiquitous, a minimum of throughout america proper now. But additionally as a result of it is a comparatively easy-to-understand enterprise that adapts the Peter Lynch type of investing, the place you may simply wrap your head round it. And in addition it is extraordinarily easy by way of their development technique. All they should do is increase their relationship with prospects, purchase new prospects, and promote extra issues for this funding to repay.
Ricky Mulvey: Let’s begin with the dangerous information, although. Chewy’s lively buyer base dropped by about 250,000 accounts in its newest quarter, now stands at about 20 million buyer accounts. How involved are you about this? How involved ought to long-term buyers be?
Emily Flippen: Yeah. Like I simply talked about, one of many key components of their development plan is to accumulate new prospects, and anytime you see lively prospects dropping quarter over quarter — or 12 months over 12 months, on this case — it may be regarding. That is actually what the market was reacting to in Chewy’s most up-to-date quarter. However I do not suppose it is a motive for buyers to be overly involved, as a result of we did count on some stage of churn in lively prospects popping out of the pandemic, they usually depend their lively prospects as anyone who’s made a purchase order on their platform over the course of the previous 12 months. So they’re nonetheless very a lot popping out of this huge inflow of customers they acquired throughout the pandemic.
What’s essential to recollect is that they nonetheless have greater than 20 million lively prospects. That is round 20%, 22% of the full variety of pet households in america. It is a huge variety of customers. So when you consider how way more can Chewy develop, I’ve at all times been way more targeted on them increasing their margins, so giving extra revenue to shareholders, growing their relationships that they’ve with these lively customers, so discovering new causes for them to have interaction on the platform, buy extra issues, and coming into ancillary sections, so pet healthcare, pet insurance coverage, some of these value-added companies.
My thesis has at all times been way more about buying worth from their most loyal prospects versus buying greater than 1 / 4 of each single pet family in america.
Ricky Mulvey: Whenever you see that drop, do you suppose that is a macro downside? Lots of people received pets over the pandemic. Perhaps a few of these went again to shelters, sadly. Or do you suppose that is an issue with the corporate?
Emily Flippen: I truly suppose it is displaying up as a macro downside proper now. We’re seeing this headwind for the pet business throughout each retailer, which is to say pet inflation has been extremely excessive. Individuals who received pets cannot essentially afford them. There was plenty of discounting churn, some of these headwinds which were influencing pet homeowners in United States. From that facet, it is actually a macro challenge.
However when you consider what the difficulty is, the corporate particularly is coping with, they’ve handled provide chain constraints, doubtlessly dropping lively prospects as a result of they have not been in a position to ship issues as rapidly as they’ve deliberate to. These have subsided in current quarters, however that may nonetheless result in, once more, that churn being a year-over-year churn that may nonetheless result in among the decline in lively prospects that we have seen. I believe it is largely macro, however there are actually some micro elements that might be enjoying on right here.
Ricky Mulvey: I additionally suppose that it has to have some long-term tailwinds, although, not simply the pandemic, however plenty of people treating extra of their pets like kids and being inflation resistant, particularly in a higher-income family, to get their pets the perfect meals they will.
Emily Flippen: Yeah, that is actually the case. We have seen that point and time once more, the place folks shall be extra keen to spend cash on their pets than they may on themselves. Whenever you see pet meals inflation up 15%, persons are nonetheless shopping for their pets pet meals and fancy pet meals. They’re nonetheless spending more cash on their pet meals, despite the fact that they might be discounting the kind and high quality of the meals that they are consuming on their very own.
It is the pet humanization pattern that we have heard and seen a lot of, and it is particularly prevalent amongst Chewy’s youthful customers. That is nonetheless very a lot a tailwind. The truth that costs have elevated a lot, they have been in a position to increase costs on their platform. That is additionally been a margin tailwind for Chewy. With all of the headwinds which are current on the planet proper now, actually, these tailwinds are benefiting Chewy as nicely.
Ricky Mulvey: Chewy’s management very a lot enjoys speaking about worldwide development plans, their pet insurance coverage program, the pet pharmacy. Their Autoship income, robotically delivery people issues like pet meals, is greater than 70% of the full gross sales. Why is that this such a giant a part of Chewy’s enterprise? And is that this one thing that you simply’d wish to see the management spending extra consideration on?
Emily Flippen: Yeah, so let’s clarify why this metric is essential for buyers. We talked in regards to the decline in lively prospects. That is regarding. However whenever you see an increase in Autoship gross sales, rising to over 73% in the newest quarter, that claims the shoppers they’re dropping should not the identical prospects which have the deepest relationship with Chewy.
The identical is true for his or her web gross sales per lively buyer, which has continued to rise greater than 15% in the newest quarter. Even if they’re dropping customers 12 months over 12 months, the customers that they are retaining are spending extra money and time on the platform, and Autoship gross sales are a perform of that.
For buyers, in addition they present a very nice stage of visibility into Chewy’s income stream. As a result of the notion is, is that Autoship gross sales, regardless of the very fact they are often canceled — all people is aware of this, we have all canceled Autoship — however they supply some sort of recurring income for the enterprise. Usually, folks aren’t getting into and altering their Autoship each single week or each single month. That gives visibility, it supplies stability, and extra importantly, it supplies an indication that the shoppers that Chewy is participating essentially the most with are nonetheless very loyal, nonetheless spending plenty of money and time on the platform itself regardless of the decline.
Ricky Mulvey: What is the buyer’s motive for going to Autoship on that? Is it predictability, or are you getting a greater deal on pet meals?
Emily Flippen: There’s some deal. Chewy gives, I consider is sort of a 5% low cost on Autoship. Routinely, , each single month, my cat will eat three cans of one of these Fancy Feast, which Xiaobao could be very explicit in regards to the meals he eats. I needed to Autoship very explicit issues. I do know what he likes and I do know he eats it on a constant foundation. I feed him on a constant foundation. It simply is smart to have that Autoship setup.
For those who learn via Chewy’s most up-to-date annual report, they really present that greater than 58% of pet households get the vast majority of their meals via this Autoship relationships.
That is all to say that individuals just like the predictability that comes with ordering Autoship. I believe there’s a component of, I save a bit of bit of cash after I do this, however on the identical time, I haven’t got to be consistently eager about what meals did Xiaobao wish to eat this week? I do know it is coming to me robotically.
Ricky Mulvey: It is good when an investing thesis is that cats are choosy.
Chewy’s received a pet insurance coverage program, Chewy Well being. It additionally operates the biggest pet pharmacy in United States. Sadly, this does recall to mind when Amazon tried to disrupt healthcare with medical insurance and working a pharmacy. Is that this a distinct state of affairs?
Emily Flippen: I believe that is a completely honest comparability, and I’ll say that I do suppose it is a totally different state of affairs. Persons are already accustomed to combining pet healthcare with pet meals and pet retailers. Take into consideration the connection that Banfield Pet Hospitals had with PetSmart. That is been a wildly profitable funding for PetSmart. The publicity to pet well being is one thing that I believe all shoppers are already conscious of.
For those who go onto Chewy’s healthcare choices proper now, you may get on there and order pet healthcare the identical method you may order your pet meals, the drugs and medicines and the truth that they’ve a relationship with insurance coverage suppliers as nicely. They’ve underwriting companies offered by corporations like Trupanion signifies that it simplifies the method of, I am going to the vet, I would like a prescription for my pet. I can get it paid for via my insurance coverage that is managed by Chewy, delivered by Chewy Well being. It is type of a symbiotic relationship.
I believe shoppers are simply extra keen to method that relationship with Chewy. I do not usually go onto Amazon to hunt out healthcare. That was a tougher uphill battle for Amazon to struggle.
Ricky Mulvey: One main development plan, although, goes worldwide. I’ll quote from CEO Sumit Singh within the latestearnings name “We plan and count on to deliver all parts of our worth proposition to the worldwide market, and on the identical time, we’ll be very actively listening to the voice of the client, designing our launch, working backward from that so there isn’t a dissonance in the best way we present up within the cultural nuance as Chewy model enters the worldwide market.” What’s your response?
Emily Flippen: I am unable to have a response as a result of that claims nothing. That tells buyers completely nothing. You’ll be able to return, rewind, take heed to Ricky learn that once more. As a result of that tells buyers nearly nothing aside from, “Hey, we’re fascinated by increasing internationally, and we’ll be acutely aware about the best way that we do it.”
It is OK, however acutely aware how? They’ve given buyers successfully no details about how they plan on coming into worldwide market. Which worldwide markets they’re planning on coming into? If they’ll use third-party logistics or distribution techniques, if they’ll construct out their very own?
As an investor in Chewy, if anyone who’s listened to the Motley Idiot Cash radio present after we talked about this beforehand, this was a giant pause for me, as a result of it is a huge change in technique for the enterprise. We simply began to see them get some working leverage right here in United States. They save some huge cash by not having to spend so much in advertising and marketing to accumulate prospects right here within the U.S. Nice model popularity.
“Why now?” grew to become the query of why did Chewy resolve to hunt out worldwide growth the identical quarter that they are asserting this decline in lively buyer development? There is a concern amongst buyers, myself included, that this choice was made not as a result of they see a large alternative that they suppose could be actually worthwhile however as a result of they see a chance to increase customers as soon as once more and assuage buyers’ fears that they’re a declining enterprise.
I’d a lot reasonably have a enterprise that’s mildly declining in lively customers however nonetheless rising relationships with essentially the most loyal customers, producing extra revenue, increasing margins, and dominating the market right here in america reasonably than spending plenty of time, cash, and energy attempting to increase internationally in markets which will already be saturated.
So I am a bit of bit involved. I do not like the shortage of coloration that buyers have about worldwide growth, however I am doing my finest to be affected person — it is a exhausting factor for me to do — and look ahead to administration to present us some extra data over the approaching quarters.
Ricky Mulvey: They appear to be enjoying a 2021 sport in 2023.
Emily Flippen: Precisely.
Ricky Mulvey: As an instance you had a couple of minutes with CEO Sumit Singh. What are you pitching him as one other development driver? Is there possibly do that concept as an alternative proper now?
Emily Flippen: Yeah, I really like that. There’s plenty of issues that I’d reasonably see proper now than them increasing internationally. The very first thing I would say is, you do not want one other development driver. Your core enterprise is a development driver proper now. Web gross sales grew 13% over the newest quarter. That is unimaginable for an organization of Chewy’s dimension.
I’d be hyper targeted on rising the underside line simply as rapidly. I’d be targeted on, let’s proceed the leverage that we have already developed in United States, monetizing the distribution higher than we have now. We have already spent plenty of capital, tons of cash increasing right here. Let’s examine the earnings at that. Let’s perceive the shoppers a bit extra.
And now let’s take into consideration worldwide growth. Now let’s speak about market analysis. Which markets are we coming into? What can we leverage there to take care of our margin profile but in addition increasing internationally?
I dislike this a lot that I believe I’d reasonably have heard Chewy’s management come out and say, we’ll construct bodily retail Chewy shops. We’ll construct out bodily shops to promote pet meals in america reasonably than increasing internationally. I believe that might be much less of a cash suck than this potential worldwide growth.
Ricky Mulvey: You are going to put plenty of administration consultants out of enterprise in the event that they observe that recommendation. With these phrases and strategic questions, although, are you continue to holding onto your Chewy inventory? I am a shareholder. I am nonetheless holding it.
Emily Flippen: Yeah, look, as unfavorable as I have been within the second half of this dialog, I am nonetheless a Chewy shareholder. I am nonetheless shopping for from Chewy. I am nonetheless planning on holding Chewy’s shares.
I believe it is essential to be actually vital of the businesses that we personal, to at all times be evaluating whether or not or not they’re proper for our portfolios, whether or not or not their technique has damaged our thesis. At this level, I haven’t got sufficient data to find out whether or not or not I believe that is going to completely destroy Chewy’s focus. In the event that they pull a Wayfair and spend some huge cash attempting to increase in Europe, I’d take into account that doubtlessly a motive to be promoting the inventory proper now.
However I do not see that because the case in the meanwhile. Till I see that because the case, then I am persevering with to carry my shares, take the long-term method right here, and going to belief that administration goes to do what they do finest, which is be measured, calculated, and really acutely aware of their method.
To provide Sumit Singh some credit score right here, once they expanded Chewy, once they went public, they had been a really metrics-focused enterprise. They’d a deep understanding of the lifetime worth of their buyer and their acquisition value. In the event that they take that very same method to worldwide growth, then this might be actually profitable. I am hesitant, however I am nonetheless a shareholder, nonetheless holding, nonetheless following this firm.
Ricky Mulvey: Nonetheless hanging on. Emily Flippen, admire your time as at all times.
Emily Flippen: Thanks a lot.
[music]
Dylan Lewis: As at all times, folks on this system might have pursuits within the shares they speak about, and the Motley Idiot might have formal suggestions for or towards, so do not buy or promote something based mostly solely on what you hear. I am Dylan Lewis. Thanks for listening. We’ll be again tomorrow.
John Mackey, former CEO of Complete Meals Market, an Amazon subsidiary, is a member of The Motley Idiot’s board of administrators. Dylan Lewis has no place in any of the shares talked about. Emily Flippen has positions in Chewy. Ricky Mulvey has positions in Chewy. Tim Beyers has positions in Amazon.com and Chewy. The Motley Idiot has positions in and recommends Activision Blizzard, Amazon.com, Chewy, Microsoft, and Trupanion. The Motley Idiot recommends Johnson & Johnson and Wayfair. The Motley Idiot has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
