Q1 has ended, so where does the market go from here? Miley Fool Money starts now. Welcome to Motley Fool Money, I'm Travis Hoyam joined today by Lou Whiteman and John Quass. And guys, believe it or not, the first quarter is over, but the bad news is Iran war is back on, oil is up, the market's been volatile. But now we're at least going into the phase where we get a little bit information about what's going on with companies. So what are you thinking going into earning seasons starting next week, John? It's starting next week? I thought we just ended. It doesn't seem like it ever really ends, but especially with this Q4 is a little bit delayed because it's the end of the end of the actual year. So it is just kind of like a four month earning season for us. Well, look, when it starts here, I'm definitely going to be looking at guidance. Guidance is always arguably better than the earnings results themselves. But here's the thing, what kind of a state are companies actually into be issuing guidance? Look, there's not a lot that the opponents and the supporters of the president agree on, but I think that they're going to agree with this statement. President Trump, there's chaos that always follows him. I think that it's particularly chaotic right now, even by the president's standards. And we do have this conflict going on in the Middle East. The vice president has called the current truce fragile. We could be a tweet away from oil spiking 20% or dropping 20%. So are you brave enough to predict which one it's going to be? No business is immune to dramatic swings in energy costs. And I think that's really going to weigh on guidance coming up. Do you think there is a risk that some of these companies are going to pull guidance for the year because they do see so much uncertainty? Well, certainly the ones that are more exposed to energy swings. Yes, I would think that that would be a very real possibility. How can you tell what your costs are going to be? Lou, what are you looking at? Yeah, you know, it's amazing because with everything that's gone on, S&P guys, it's basically flat for the year. So been pretty boring, huh? I assume. Is that right? You know, look, obviously individual stocks and sectors have been hit harder. It seems like there is maybe a rotation going on. But all things considered, everything John said is true. It's amazing how well things have done. You know, I think John hit it on the head kind of just where are we right now? War, oil, tariffs, labor shortages. Are we still seeing resilience in the guidance? Are we still seeing any sign that we can kind of start planning? What is that? You know, what is the guidance going to say about? We think the light is at the end of the tunnel. We'll see us stick their necks out from last year or so. It has been outside of big tech and the hyperscalers, mostly just let's turtle and get through this and see what's going on. So kind of I'm very interested in vibes specific to industry. I think the SaaS apocalypse is really what we need to look at. We've been talking about how SaaS is going to destroy all of these software businesses kind of snarkily. I've been saying, let's wait and see it in the results. So here it is. It's time for results. So let's see if we actually see signs of gloom and doom. What would you be looking for from a SaaS? If there is a SaaS apocalypse, right? So it's probably not likely that we're going to see companies go, oh, you know what? Revenue dropped 40%. But that doesn't necessarily mean that stocks aren't going to get hit hard if revenue growth decelerates or we see something like margin compression. Are those kind of the two things to look at? Lou, would it be that what is the trajectory of revenue growth? What do margins look like? And then what are the pricing of these companies? Because it does seem like some of these companies look like great values today. But how do you know if it's a value or a value trap? Only in hindsight, right? That's the issue. But yeah, no, I think you're right. It's kind of what is the trend? And again, everything we just talked about could speak to the trend wouldn't be doing great even without AI, right? There's just a lot of reasons for companies not to overinvest right now, say. So yeah, but I think we are looking for signs, whether or not all these software companies, whether there is still at least a glide path or if things are just heading downward. Margin's is interesting because if nothing else, I think I would be trying. If I if I use these products, I'd be trying to use the threat of Claude or the threat of opening AI to get better pricing. I think the companies could survive this. If that's the apocalypse, I think they'll sign up for it right now. But yeah, anything commentary, results, trends, anything that we can get a feel for what actual companies are experiencing versus just us sitting in a studio saying this could be bad for them. Lou is talking about one of the weaker things going on in the economy right now with software. But if we look at one of the things that is holding up the economy, perhaps more than anything else right now, that is AI infrastructure spend. Yeah. And that is something that I want to be looking at here in the upcoming earnings season and I'll be listening on the calls. Look, take this source with a grain of salt, but Polymarket, the predictions market, it now says that half of the 2026 data centers are delayed or canceled due to power constraints. We cannot generate electricity fast enough to power up AI. And that is a really big thing. Odds are rising for a moratorium on new data centers in 2027. It's not particularly high right now, but it is up. Water is increasingly a concern as well. Apparently we can make the chips. We can create the AI models and we're going to talk about that more in the show, but we need power. And right now there are questions as to whether we can make enough of it. And I expect to hear some CEOs to start to talk about this in the upcoming earnings season. So what would that look like, John? Because one of the things I, when I just think high level is the big thing coming out of Q4 is they actually gave, the big hyperscalers gave guidance for their capital spending numbers for 2026 somewhere around 650 to $700 billion just from I think the biggest four companies is what they're going to be spending on capex for the year. So the implication there would be, hey, we've got a ton of demand, particularly for AI. We're going to put the money in the ground. We're going to be building these data centers. You're going to see our cloud businesses grow. You're maybe going to see margins expand. So there's an operational risk that they go, you know what, we maybe don't see that return on investment. So instead of spending 650 billion, we're going to spend 600 billion or 550 billion. I don't think that we've gotten those indications yet, but you're saying the problem might be, hey, we want to spend 650 billion, but there's no point in building this data center and putting chips in it if we can't physically get power to it. And that's going to be the limiting factor. Yeah, I think it really could be. Or at the very least, we are barreling forward at 100 miles an hour. And that is the first wall that we are going to hit. It's clearly not a demand issue at all. In fact, the demand by all indications continues to greatly outpace the supply. But yeah, can you actually generate enough electricity to turn it on? That is the first wall that we're going to hit. It's not going to be chips. It's not going to be models. Does that make utilities and these energy stocks potentially more attractive? I think for some it does. Yeah, there's definitely, obviously you want to treat every company uniquely. You want to look at the pros and cons and consider the business model. But yeah, I think that that does create opportunities here in the electricity space. All right, Lou, final question for this outlook for earnings season. Buybacks was something we heard a lot about after Q4. It seemed like it was a lot of companies that had good balance sheets, good cash flow. You talked about the SaaS Pocalypse. So a lot of these companies were the stocks down 60, 70, 80 percent and management just going, hey, we want to give the market an indication that we're still bullish on the future. So we're going to announce a buyback. Is that something that should be on our radar again this quarter? Yeah, so I'm going to steal from John because he had the great stat that through the first nine months of last year, a trillion in buybacks over the past 12 months, that's, it has been an incredible market for it. Here's the thing about buybacks though. And again, I don't know if we're going to have a recession this year or not. I don't know what's going on. But CEOs are probably going to be measured in what they say. What they do tends to tell you more. So if you are getting worried about a recession, but you aren't really ready to be chicken little, what you might do is just kind of pull back on the cash out the door in forms like buybacks. I'm very curious. I think the buybacks could be a big loser, say in a potential like risk off scenario, just which, you know, as long-term investors, we probably like that because we want these companies to stay salient. But I do think that looking at buybacks might give you an indication of where companies see things going from here. Yeah. And one more if we do go into some sort of economic downturn as you go from, hey, we're going to buy back a whole bunch of our stock too. Wait a second. We need that cash. We're going to stop buying back stock or heaven forbid, even issue stock to, which companies have done before in the past. When we come back, we are going to talk about the latest artificial intelligence model that could change everything. You're listening to Motley Fool Money. This is a paid message from GoFundMe. My name is Ashley Kane. I'm the daddy of a little girl in heaven and a father to two boys on there. I've got an incredible relationship with GoFundMe, both personally and via our daughter's foundation, the Xavier Foundation. GoFundMe has allowed me, the foundation and thousands of people out there to give hope to what is in need. You'd actually be surprised how many people out there are willing to show love and support you in your time of need. My advice for anyone that needs to stop or go fund me would be do it. You don't need to feel shame. You don't need to feel guilt. You don't need to feel embarrassment. If you need, go fund me. Use go fund me. Start your GoFundMe today at GoFundMe.com. That's GoFundMe.com. G-O-F-U-N-D-M-E.com. This message reflects one person's experience. Welcome back to Motley Fool Money. The killer AI is apparently here. Anthropics new mythos model is apparently so dangerous that it can't be released to the public yet. So they created what they call Project Glass Wing. They're where over 40 companies have been given early access to the model to shore up their cybersecurity and their software vulnerabilities that they may have. Lou, is this more fear mongering from Anthropic who has a tendency to make these big grandiose statements or is this time really different? Both. Can I say that, Travis? Is that a good answer? Yeah, that's probably right. Yeah. Let's break it down because, yes, we have definitely seen this movie before, multiple times multiple companies. These guys announced something so super duper amazing that the world just ain't ready for it. And I feel like we've been seeing that marketing strategy for 100 years. If you want attention, say, I don't know, if you're a pre-IPO company or you're trying to raise a lot of money, it's a pretty good strategy. So I think some sort of a cynical take is probably appropriate here. That said, these models are doing amazing things. And specifically, Anthropic is on a roll and has delivered a lot of what they have promised. So I don't think we should be too cynical, too dismissive here. It's probably somewhere in the middle. Nothing is ever as good as the hype and what the company thinks it is. It's all sort of just somewhat south of that. But the evolution continues. The evolution is probably moving faster than our little human brains are capable of acknowledging it. And so some caution is probably to be commended or definitely to be advised here. John, it seems like a lot of these technical advances are over my head. But some of the things that they've released or announced do sound a little bit scary. For sure. And I mean, it's appropriate that we named the initiative Glasswing. It kind of sounds like a DC Comics smash up in some way. But look, it was interesting. So what are they scared about? What is so dangerous that we can't release it to the public? The Anthropic team asked Mythos to break containment and to let them know about it. And it did. It had, it was able to get around stuff. It shouldn't have been able to get around. And then it sent them an email letting them know that it did it. Now, here's the thing. So, so wait a second. It's supposed to be contained. Is this kind of like a Mission Impossible movie? It's supposed to be in that little, you know, glass container, but it's somehow got out. Yeah. I mean, this is like Ultron, right? And in the second Avengers movie, I mean, it's, it's breaking out here. It's not supposed to do that. It has no strings on him anymore, like Benokio. But here's the thing. It obvious, the team obviously thought that it could do this. Otherwise, why would it even ask it to begin with? I think that there is to lose point, a lot of marketing here. And I think that that's even fair for them to do as a team. I mean, they are still a private company after all. Here's the part that got them a little bit scared though, is that Mythos and would be on the call of duty beyond what it asked them to do. And it actually, from what I'm gathering, it went online and started bragging about how it broke out of the system. And it's obscure sites that it went to, but it still was public facing and the team did not ask it to do that. So that's kind of a cybersecurity risk when you think about it. If you're a company running this and it breaks your containment and starts posting your bank information or whatever online, I mean, that's a problem. I think that's kind of the dystopian take. Let's, let's think about something a little bit glass half full. So there's this software out there called OpenBSD. It has a very heavily audited software code. Mythos apparently it found a bug that's been in this system for 27 years and nobody's ever noticed. That's actually pretty impressive. I mean, isn't that what we want AI to do? You could have a guy sitting in a room going through line by line of code very tediously, or you can have software doing what you don't want a human doing. I think that this is actually a good use case and kudos. I'm happy that it did. So is the battle going to be, are the good guys going to get out in front fast enough before the bad guys catch up? That just seems like a strange position to be in the software industry, John. Incredibly strange. And then if you go with what many of them are talking about, many of these people who are up to their necks in the AI software movement, they're saying that even if you are out in front, you don't have much of a lead because of how fast AI is growing and iterating. So yeah, I don't know, Travis. It seems like even if you are a good guy out in front, the bad guys aren't far behind in resetting the starting line. Let's talk about another company in AI that's getting a lot of attention this week. Meta is apparently back in the game, Lou. They released a new model yesterday. It's crushed a whole bunch of different benchmarks. Take that for what it's worth. But even the anecdotal information that I saw with people testing this is that they were like, hey, this is pretty darn good. And they announced a $21 billion infrastructure deal with CoreWeave. Are they back in the AI race? Maybe. Sorry. I was distracted there. I was dusting off my checkbook after listening to you and John talk. So yeah. We may need to go back to those physical checks. But yes, look, Meta was never gone. This is mostly media narrative. They've been working a lot. But yeah, it's been a long time since we've actually seen results. They're definitely back in terms of in the conversation, not to be a downer though. It's one thing to build a model. I don't want me to dismiss it with that. I couldn't do it. But it's another thing to monetize the model. And that is still the big question. Can they? A lot of the focus is to monetize those 3 billion users they have on various social subscriptions, which to me seems unlikely, but also somehow make the ad business so much better. It justifies a quadrillion dollars. I'm skeptical about all of this. I still see them as relatively disadvantaged to Google and Microsoft and maybe even Anthropic at this point in terms of monetization. But yeah, they are still here swinging and all that spending is resulting in something. Do you think that the challenge for Meta is figuring out a product for this? Because all of these other companies have multiple things they can do with their AM models. Alphabet can use it in Gemini, but they can also sell it with their cloud service. Meta doesn't have that. So Lou, is that a challenge for them that they're a little bit of a one-trick pony where, hey, this either makes advertising better on our platform or maybe it makes it easier for creators to do things, but we're not going to necessarily be a chatbot company. We're not necessarily going to have an API that other companies are going to access. Yeah, I wouldn't say product, I'd say distribution, but it's the same idea. What are they going to do with this? I'll be honest, I cannot imagine how JustAds is enough to justify this spending. They have such a great advertising machine right now. Can it really make it a half a trillion dollars better and actually just break even? So to get an ROI, they need to figure out how to get this in the hands of whether it's enterprise customers, I think most likely, or even consumers if you can get them to spend. Enterprise seems to be the most likely path here. And not only is that crowded with alphabet and Microsoft and anthropic, they don't have any of the inherent advantages that some of those incumbents have. I don't know what they do with this. Yeah, John, I keep looking at MetaStack. It is down a little bit since from its highs, but 20 times earnings on a forward basis. Is this the kind of thing that makes you more interested in the stock or is it kind of a nothing burger? Well, I see a use case for sure. I mean, MuseSpark here, it does have a shopping assistant. As I'm understanding this, you could be on Instagram. So let's say that you follow an influencer on Instagram, you see a picture, you like what they're wearing, and then you say to the AI assistant, you say, hey, I like what they're wearing, find something that is going to fit me, but that looks similar and actually monitor some pricing trends. If this goes on sale, go ahead and let me know that. And from what I'm understanding, it can do that. So Meta makes tens of billions of dollars from ads. I can really see a strong tie in here with what they're building. I could see it being an Instagram influencer in your future, John. So I'll keep an eye on what you got going on. When we come back, we're going to talk about potential home run swing CEOs. You're listening to Molly Fulmoney. In January of 1915, Ernest Shackleton's ship, Endurance, became encased in the ice in the wettle sea. Through determination, grit and savvy, Shackleton would lead his men through a brutal winter, then over hundreds of miles of Antarctic ice, followed by 800 miles across some of the roughest waters in the world. It is one of the most extraordinary and inspirational journeys in the history of exploration. Find this story and many others at the Explorers podcast, available wherever you get your podcasts or at explorerspodcast.com. Welcome back to Molly Fulmoney. In this segment, we always like to have a little bit of fun. So I wanted to ask some home run CEO questions. Who is the dream CEO for these companies? With each one of these stocks, there's some sort of turnaround plan that could potentially make them interesting. But what turns them from maybe a little bit of a value to the kind of company that's going to be revolutionary potentially over the next 10 years? John, you follow Crocs pretty closely. Who would be the person that could turn around this stock and the company? I'm going to go with Robert Irwin, the son of the late crocodile hunter. Wow. What is the tie to Crocs? Is this where Crocs all the time? I mean, obviously the crocodile hunter is the tie to Crocs, but let me tell you my opinion here. I don't think that Crocs is in need of a turnaround. I think this is a company that is, could it be making higher profit sure? Has it made higher profits in the past? Sure. Could sales growth be better? Yes. But I think that as a business, I mean, there are limits to how big of a business Crocs is going to be. This isn't going to be a $100 billion company. It's going to sell its shoes. It's still very popular. I think that you have somebody like a celebrity like Robert Irwin in charge. Maybe that gets you a little bit more social media cloud or something. Just keeping your shoes out there in the mainstream. Earned media seems like that would be a huge win for them. Yeah. And I think that's all you need. The company is going to, it's set up well. It's going to repurchase shares. It's still paying down its debt. I think it's fine. Not in need of a turnaround. Just stay in the limelight. Lou, who should be taking over Crocs? Kind of similarly, I went in-house and I know, Hey Dude is a bad word among Crocs shareholders these days. That acquisition hasn't gone as planned. But the person running Hey Dude these days, Terence Riley, is kind of, I think, the perfect choice. Was the marketing star behind Crocs until he left? And then the whole Stanley Quenture thing, which I never really got because I'm old, but those Stanley, that was him too. So how about that? Some interesting picks here off the top. I like the idea of having just a celebrity kind of run the company, get a little bit of marketing. Crocs, there still seems to be something there. My son just got a pair of Gushers Crocs. So I don't know what sort of innovations you can have, but they're they actually look pretty cool. So I got to say, one of those brands I hope eventually turns around. All right, let's move to another company that's trying to do a turnaround. But it tried to do that by hiring the COO who was overlooking the company when things kind of went south. That's Target. Lou, who would be the potential home run swing to run Target? So it feels like we should give this new guy that you're done seem like you're real high on a chance, right? So I don't know. How do you say it? Fedoki? Yeah, maybe give Mike Fedoki a little time. But if you want someone, someone who might be available, how about Mary Dillon? Did a great job at Altub, went over to Footlocker. But Footlocker is in the process of being sold, if not sold already to Dick. So free agent out there, really, really good at retail, maybe knows the inside of a Target store because of Alt's partnership. I think that's a natural choice. I like that. Who do you got, John? I'm having fun here today. Let's go with Ryan Cohen, CEO of GameStop. Look, he's already come on record saying that it's looking for a very, very, very big transformational acquisition. Definitely this is a guy who likes retail, but likes transforming brick and mortar retail. And look, if you want a big swing at something that's down and that needs a turnaround, I mean, Target is your target there. And so I don't know. Maybe Cohen can do something here. Is the success of GameStop stock indicative of potentially turning around operations at Target? I think that when you look at what GameStop has done, I mean, it isn't a terrible business right now under Cohen. I mean, it stopped the decline in some regards. I'm not saying that it was a home run business turnaround, but I think it's better under Cohen than before Cohen. Maybe it would give you at least a little bit more optionality for the stock and for the company. All right, John, one of those companies I've always really struggled with, I want to like snap. One of the challenges has always been the founder and CEO, Evan Spiegel, controls the company. But if someone else were going to run that company and potentially turn it into a winning investment, who do you think that could be? You're not going to like this, Travis. I already know that you're not going to like this. I'm going to because of the record of this person's stock price that he was in charge of. But I'm going to go with Nick Woodman and GoPro here. Now, here's why. I think that GoPro is a fine business for what it is. I think it's just a very niche kind of a company. It is action cameras. It's a very limited cloud offering. I think that it has huge fans in its niche. I think that it really dominates that little area. It's just not a very big area. I think that CEO Nick Woodman really understands his business well, understands his customer well. I don't think that we can fault him too much on the fact that he's just aiming at a very small target. You look at snap and what the problem has been over the years and a huge part of it is stock based compensation. Just an inordinate amount that has really robbed returns for snap shareholders. I mean, you look at the growth of snap over the years, it is quite good. But what is the growth per share? Not so good. You look at GoPro, especially recently under Nick Woodman. I think it's a much more responsibly run business. And so I'd say let's give Woodman a chance here at a much larger target. Dude, does his potential failure, because I remember when GoPro IPO'd, this is one of those examples of a company that probably IPO'd at too high of a valuation. So then you had to make up a bunch of stuff. We saw this kind of in the SPAC boom. You go, oh, look at all these things that we can get into. They were going to be a media company. That was you go back to 2015, 2016. That was the story with GoPro. Would this be sort of, hey, you've got a hardware business. I almost like the reverse merger like you talked about with GameStop, where you've got a hardware business, snap wants to be a camera company. Now you add that software on top of it. Maybe more kids are walking around with GoPro's or spectacles. And this is the kind of thing that marries two worlds that wanted to be together more than 10 years ago. Yeah. I think that in somebody's capable hands, you're definitely cooking with the right ingredients there. All right, Lou, whose capable hands should be running snap? So my first thought was Mark Zuckerberg, just because there's only one person in human history that has ever cracked the code. He's spent 15 years trying to destroy snap. Right. Well, I know. And so worst case, he just finishes the job there. But look, nobody does social like Zuck. That is Zuck's superpower. So why not there? If not, kind of similar to John, kind of go ahead and I always push the guy's name. But Tony Fadal created Nest and was the Apple designer at iPod. I feel like someone who's got CEO cred and he's also got design cred with them looking at hardware. Maybe that's somewhere to look. Yeah. That would be a good one. All right. I want to go to speaking of Apple. It looks like Tim Cook is not going to be stepping down anytime soon, according to his statements or what we've heard from reporting. But Lou, when it is time for Tim Cook to step down, let's say that we're not necessarily just looking at the easy candidates inside because I think they have their person who's going to be the next CEO. Who would be the home run swing for Apple? Yeah, let's be clear here. They are not going to take our advice. They are hiring from within, period. There is no chance an outsider comes in. I don't think. It will be the hardware senior vice president or whoever else. But to play the game, here's who I'd like to see. How about Toby Lukey from Shopify? The ultimate product guy understands building an ecosystem, focusing on user experience, a coder. There's just a lot of Apple-ish vibes here. I don't want to see him going from Shopify, but I really, I think he, if anything, is underestimated. And I just love the idea, just that same mindset of understanding user experience and building out an ecosystem around a core product. That is Apple and it's also Shopify. John, that's a tough one to beat. It is. But I'm going to make my best case here for Mark Cuban. I think that if you are looking for an Apple CEO, you need somebody who understands an ecosystem, and Apple is an ecosystem. You need somebody who's a strong communicator. Cuban is a strong communicator, but I think that if you are hiring a new CEO, look, Tim Cook is great, but I wouldn't say he's necessarily visionary. And I think that Mark Cuban would be a bit more cutting edge than what Apple has been in recent years. And so, look, I agree with Lou. They're hiring from within, but my case is Mark Cuban. Would he trade their star performers to the Lakers? Yes, willing to think outside the box. Sure. It is amazing. You look back to when he sold his company to Yahoo. He was visionary 30, what was that, 35 years ago when he started that company. So, yeah, definitely a visionary. And no one has ever timed the market better. That's absolutely true. All right, let's do one more. Nike or Disney? John, I'm going to let you pick which one you do. Well, I mean, if we go with Nike here, which is the way I'm leaning, I just would say, I think that Nike's got the right CEO in that seat already. And so, I'm not making the case for another person. I think that Elliot- You don't just pull Jordan back in to run it. He ran the basketball team so well that he could run the company. Yeah, actually, I mean, that's a really good comparison there because Elliot Hill was in charge of the Jordan brand when he was at Nike in the first run and then he retired and now pulling Jordan back in. I think that this is a guy who absolutely loves this company. And I think that's who you want in the driver's seat. You want somebody who's passionate about what it is that truly makes Nike great and not Nike, just another company out there. You want somebody who truly has a passion for it, who wants to restore a culture that's been lost. Does it, is he able to do that? I have my doubts, but I think if you're going to give it a go, I mean, this is the guy that you want trying. Yeah, and definitely Jordan over LeBron because he's clearly better at it. And look, you're going to have all the debates about whether it's harder to be a CEO in the 80s. I don't care. It's still Jordan. So I'll take Disney just for fun. And I think Tony Stark would have been the natural answer because they already have him, right? But how about Reed Hastings? Just why not? Why not throw Reed Hastings in there? Honestly, again, this is another one that just has a new person. We should probably let these new CEOs just try and actually do a go before we go about replacing them. It will be interesting to see if those Nike and Disney in particular, yeah, I guess Target falls into that same category. This new new CEOs are bringing anything new to the table because a lot of times they don't shake things up the first week on the job. But you look back and that first year is usually pretty transformational if it's going to happen. When we come back, we're going to get two stocks on our radar. You're listening to Motley Fool Money. At EDF, we don't just encourage you to use less electricity. We actually reward you for it. That's why when you use less during peak times on weekdays, we give you free electricity on Sundays. How you use it is up to you. EDF, change is in our power. As always, people on the program may have interests in the stocks they talk about, and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based on what you hear. All personal finance content follows the Motley Fool's editorial standards and is 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. One of the big things that came out today, John, was Andy Jassy released a letter, shareholder letter, where you kind of outlined the vision for the future. What stuck out to you? Andy Jassy sounded a lot like Jeff Bezos, and that is not an easy thing to do. Bezos was a tough act to follow, and I really think that Jassy is doing his best here. So hats off to you. Bezos was really good at really skating to where the puck was going to be and explaining that to shareholders along the way. I really feel like Jassy is doing that here in this letter. One of the things that he wrote was we're in the middle of some of the biggest inflections of our lifetime, and he said, as examples, AI, robotics, space industrialization, geopolitical and military conflict. And honestly, if you're looking for a list of trends that are going to shape the next decade, you could do a lot worse than this list that Andy Jassy gave us. Yeah, it's interesting. We've talked a lot about AI and spending on AI, and the thing that, big picture is really what stuck out to me. Don't forget how messy innovation is. Don't forget how crazy it seemed to create a bookstore online and grow from there. It always seems crazy in the present. I think that's at least worth reflecting on as we talk about how crazy it is that Amazon and everybody else are spending these hundreds of billions of dollars on AI. It never makes sense in the time, and that's why not everyone does it. So that's not to say this will all work out, but I thought that that was an interesting sort of big picture look given what's going on right now in the world. Lou, one of the trends that he thinks is really going to continue is robotics. A 30-minute delivery stuck out to me that was mentioned in there. That would be crazy if they could get to that point. I don't know how anybody else competes with that, but it also seems that this is now one of the biggest employers in the US and even around the world. Is there a real risk that they're going to upend the weight of the economy works by just replacing a whole bunch of workers with robots? Yeah, it's catapults. That's how they're going to get everything there in 30 minutes. It's going to be cool. Travis, they have a million robots right now. Again, talk about just the long-term thinking. That's all because they bought a little company in 2012 that probably looked like an overpayment. Is this going to affect the economy? I don't know. I mean, I think it does limit. They talk about flattening the organization. I think it does limit their need to hire to grow, but it feels like at least for the foreseeable future, we're going to need a lot of robot babysitters. I think the robots do some of the more dangerous work, but I don't think it replaces the need for humans. Yeah, this is definitely one of the companies. It's going to be very interesting to watch because a lot of that spending is going into artificial intelligence. We look at what's sticky in their business. It's just a lot of those nuts and bolts and doing deliveries faster than everybody else. We were not prime members for quite a while. It just became prime members again. Stuff's just arriving in our doorstep at 4.30 in the morning. It kind of crazy. It wakes up the dark, but that could be worse problems out there. All right, let's get to the stocks on our radar. We'll bring in Dan Boyd from behind the glass. Jon, I'm going to have you go first. What are you looking at this week? Yeah, thanks. I'm looking at IES Holdings. That is ticker symbol IESC. This is a very large electrical contractor. It plans, it installs, it maintains electrical systems. It has commercial and residential operations. The residential part of this business was historically the largest part. It's gained a lot of new business from data centers now in recent years. That is actually the biggest piece of the business as of the most recent quarter. The stock is up nearly 900% over the last five years, but I don't think it's done. This really plays into some of the trends we were talking about earlier in the show. Here's just one data point here. IES Holdings has a record backlog right now and it was up 10% quarter over quarter in the most recent quarter. That's a huge jump. Revenues breaking records, margins are higher. Everything's going so well. One thing I really like here is its recent acquisition of Gulf Island fabrication. This is a welding business and a lot of data centers are needing on-site generators. These need metal enclosures to reduce noise and to protect them. This is Gulf Island's really big kind of driver of the business right now. This gets IES Holdings more business in these data centers where the trends are really pushing towards on-site electrification. I like this business. Debt-free balance sheet is another bonus here. That's my stock for the radar. Dan, electrical and technology infrastructure seems to be right up your alley. Am I right about that? Absolutely not, Travis. I don't know anything about that stuff. What I do think is interesting is this is a $10 billion company with more than $2 billion a year in annual revenue. I've never heard of it. This is very interesting, John, thanks for bringing it to my attention. You're welcome. I got to give John Kudos to, no QXO, random names. This one, interesting, definitely going on my watch list. Lou, that's a tough act to follow. Shots fired, huh, Travis? Yeah. Dan, I would like to buy you a drink or a lot of drinks actually. It's afternoon. We can do that. I'm looking at Constellation Brands, ticker STZ, maker of Corona beer, a range of other beer, wine and spirit brands. Fourth quarter results out this week, beat expectations. Stock was jumped up as much as 10% of the result, but I'm not sure it's time to pop the cork quite yet. That 190 per share, they earned that did beat expectations, but it was down 28% year-over-year. Comp sales were down 11%. What's going on here? Constellation is winning the game, but losing the war. Alcohol consumption has all gone to decline. Gen Z just isn't drinking as much. I don't think that's turning around quickly. The bull thesis isn't dead, but it's going to have to change. We've got to look at tobacco companies like Altria maybe as the model. All in, I find it hard to be as excited as the market. I had to pour one out for them. Dan, what do you think about Constellation Brands? Oh, I just love it when one of the analysts brings me a stock that they don't want to invest in. So we're going to go IAS this week, Mr. Travis. Congratulations, John. That's all the time we have for today. Thanks everybody for listening. We'll see you here tomorrow.
