A $2 Trillion IPO & the Space Economy

0:00Oil continues to climb, but is there any relief in sight? Motley full money starts now. Everybody needs money. That's why they call it money. From full global headquarters, this is Motley full money. Welcome to Motley full money. I'm Travis Hoyam, joined today by Lou Whiteman and Dan Kaplinger. Guys, we're going to get to space. Space is going to be a big topic here today, but we do want to start with the oil markets. This is kind of the thing that everybody in the market is thinking about, if not talking about. Dan, I wanted to get your thoughts on what's going on because oil is not your typical market.

1:01It's a physical product. It's traded years out in the futures contracts. We have this straight-ahorn moves. It is more or less closed. 20% of the oil in the world goes through that straight. What are we seeing in oil markets? Because it seems like prices are up. We're at about $110 per barrel for both West Texas Intermediate and also Brent Crude right now, but it seems like people in the oil industry continue to be worried that things are going to get much worse, but they're not yet. So what's the real story here? What's interesting because there are so many different perspectives to look at this from the perspective of the American consumer. Things look pretty bad. Gas prices where I live were around $2.80 a gallon in December. They're up about a dollar per gallon up around $3.80. I think that regardless of what the actual level is, that dollar increase is pretty consistent across the country. It's interesting because a lot of folks have suggested that the U.S.

2:04is insulated from the impact of this because we don't necessarily depend directly on Persian Gulf oil. But when you look at some of the other countries that do depend more on Persian Gulf oil, they have not even seen the percentage pricing increases we have. Korea was up about 15% Japan's up in the 15 to 20% area. We're up closer to 30 to 35%. So it's kind of interesting how the macro economics are playing out here. The other thing, and this threatens to get a little bit wonky about futures markets and things like that. No, let's get wonky. This is what I want to explain because you can spend your whole life just studying what the futures markets are. There was an entire class that I took in grad school doing the formulas of how you price things like oil and it's fascinating. It's a big reason that things are not higher than they are than they currently are. Yeah. So oil futures are in an unusual

3:05situation right now. Just for those who aren't familiar with this, you can buy oil at a specific price at a specific point in time in the future. And the prices will be different depending on when you want it. If you wanted it a high demand time, the price is going to be higher. If you wanted it a lower demand time, the price is going to be lower. Right now, we have this huge disparity right front month, the current month. If you want oil right now, $110 a barrel. If you are willing to wait until the end of 2026, much lower, $40 a barrel lower, still $70. Oil futures a year and a half out. They're only up $10 a barrel. Prices of the front month are up like $50 a barrel. So what this is telling folks, this is a situation that's called backwardation in the futures markets. What this is telling people is that at least the financial folks trading these futures don't think that oil supply is going to be a problem for very long. They think

4:08that something's going to happen, supply is going to get restored, and prices are going to go back at least pretty close to where they were before all of this started, which is a little bit surprising because we've got some folks saying things like, well, the infrastructure is all messed up and it's going to take a long time for everything to get back to normal. And so there's kind of disconnect between what these futures markets are saying and what you're hearing a lot of experts talking about as far as like the physical production and movement of oil across the global market. Just to underline that, the oil futures market does a lot of things. It reflects a lot of things. It reflects investor psychology. It infects some form of speculation, but also a media financial hedging is a big mover of markets here. It does not reflect the underlying physical supply or demand for oil at any given time. So it's a tough thing to do right now to kind of look at it. I think we need to focus on supply and what is actually in the refineries and not on the price,

5:12but that's a lot harder to look at. So that's why we look at price. Well, that seems to be the other piece is the difference between, we talked to think last week about crack spreads, which is the difference between the price of the refined products with gasoline and the price of oil itself. And that seems to be one of the challenges today is, hey, we can provide you gasoline, but we don't necessarily know, depending on where you are in the world, if we're going to have oil to actually refine in the future. And so there is this kind of delay, too. The other thing is, the straight-of-war moose, it's a couple of days to get to India. It's two weeks to get to the US. So there is this time-leg difference, too, Dan, that just seems to be kind of complicating things. But you're right, the market is typically smarter than any individual person, and the market is telling us that this is not going to be a big deal. So is it something we should just kind of look past in these kind of wonky pieces in the oil market, or just kind of figure themselves out?

6:14I think it's too early to conclude that, because you often will see these markets get see major disruptions. They'll see major moves in one direction or another. They're very responsive to current events. You'll see five, ten dollar barrel moves in a single day based on, okay, there was an attack, there was damage to a major facility, or there was progress and negotiations, there was some sort of deal starting to get European countries involved with that, and you know, oil is fungible. It kind of doesn't matter. Iran could say, we're never going to send oil to the US again, but if it just continues to provide, if it opens markets back up, if it starts selling oil to European countries, to Asia-Pacific countries back at their normal regular volumes, then the global markets are fine. It's just a matter of allocating what's in the global market between the US and other providers. So that, I think, you know, to me, it's too early to conclude that the futures market is right, and all of the technical experts are wrong, because like Lou

7:19said, there's some financial wrangling going on with the futures markets. It doesn't always reflect what's actually happening in the physical world, what's happening at the individual oil well level, at the pipeline level, at the tanker level. You got to look at all of that. Lou, the other piece that I'm ultimately more concerned about than specifically what's going to happen with oil is what happens to the economy? And one of the data points that we got before we started recording is that the jobs market's actually doing pretty well. Jobs were up, unemployment was down slightly. You know, I think everything was better than expected in that report by and large. So it doesn't seem like this incremental step up in prices. And this is only, we're only a month or so into this. So maybe we wouldn't see some of that data yet. But is an economic impact something that we should at least be thinking about investors as investors, because the market is, you know, at or near correction territory with the NASDAQ. So the market's starting to pull back a little bit if oil stays elevated in this backwardation that, you know,

8:23Dan is talking about doesn't stick. And we start to go to 140, 150 dollars a barrel. It seems like that would impact the economy, but that's not actually what we're seeing. Yeah. So let's take a step back because I think it helps answer this question about this whole, because we talk about a lot to the US as a net exporter. And what, you know, Dan's talk about like how much, how insulated are we? We are a net exporter, but that can kind of be deceiving, because that is refined products too. We export a lot of petroleum. We still import crude. So we are actually still very dependent on the world for crude. We're not energy independent. Fortunately, less than 10% of that comes through to golf. So, you know, we, again, the Saudi oil doesn't really meet, you know, what's going to straighten our news isn't too important for us. That's a global story. But we still do need this idea that, well, since, you know, we have energy, we can just stop exports and shut it down and let the rest of the world have a problem. That really doesn't work. So where does this leave us with the economy?

9:25Should we be about watching it? Yes. Absolutely. Does it lead to a recession? I mean, I hate to answer this way, but the answer is maybe it's definitely a headwind. We definitely have headwinds already. Seems like the US consumer is doing okay in aggregate. We've talked about that, you know, like the consumer. That's a tough thing to read. Jobs number is strong. If I had to guess, I do think there's enough headwinds that we will end up in at least a mild recession in 2026. As all of this ripples in, as remember, we still have the tariffs rippling in. There's just so much going on. I don't know if I'm worried about a terrible recession and I don't, you know, it's not a given. It's never a given. Yeah, I'm worried if nothing else. It's funny, though, because we've been saying this for so long, every week, so many of these factors that have been like, oh, well, the consumer's got to give up now, but the consumer sentiment is terrible right now. And nobody's certain about what's going on. And yet, the economy just keeps plugging along. And so I agree with you 100%, Lou, but I have agreed in the past with that sentiment,

10:31and that sentiment has just been 100% wrong, right? You know, in the past, in the recent past. Yeah, this is why I think, you know, as foolish investors, we talk about the long-term, what sort of investments are going to do well over the next 5, 10, 20 years because it's so hard to predict what's going to happen over the next six months, particularly with you kind of. The other thing to throw into this is the dollar is getting stronger. So, you know, I don't know how that will complicate things from an economic perspective, but lots to think about as, you know, this conflict continues. And oil prices are going to be something we're probably going to be talking about for quite a while here on the show. When we come back, we're going to talk about the space economy, the potential $2 trillion IPO you're listening to Motley for money. Have you ever gazed in wonder at the great pyramid? Have you marveled at the golden face of Tudankamun, or admired the delicate features of Queen Nefertiti? If you have, you'll probably like the history of Egypt podcast. Every week, we explore tales of this ancient culture.

11:38The history of Egypt is available wherever you get your podcasting fix. Come, let me introduce you to the world of Ancient Egypt. Welcome back to Motley for money. Space is hot, and so is SpaceX. They have apparently officially filed for a confidential public listing. It doesn't really sound like it's that confidential if everybody knows that it happens, but they're looking at potentially lieu a $2 trillion valuation. That's a huge number. Can you help me make sense of this? I can't because the part that's confidential is all of the numbers, which is what we'd like to talk about. But look, let's talk about what's going on here because there's a lot of market dynamics going on here. Nothing illegal, nothing unfounded, but this is just how it works. SpaceX, as we all know,

12:39has a huge number of shares outstanding. All of its investors, employees, all of that, but they don't sell all of those shares in an IPO. They don't need to come up with $2 trillion, and I think that's so important because we're talking about, oh, can the market support a $2 trillion IPO? They only need to come up with $80 billion or whatever they end up pricing. Just that small sliver they're going to sell, given how hot space is, and given investor interest in Elon Musk, I don't think it's a surprise that they can raise 80 or 100 billion, and that's a lot more reasonable sounding than the $2 trillion number. There's a lot of other levers here. I know Dan loves to talk about the index, so we can get into that. But look, this is a very, very big company with a very large share count. All they need to do is sell this small amount, and gosh, there's interest. So yeah, I mean, $2 trillion, $3 trillion, who knows what they can get to if they squeeze enough? Eventually that matters, though, doesn't it? Because eventually the lockup period,

13:39you talked about all the investors. Those investors, this is what you would call an exit, and that means that they get to take their money out, and even if there's a three-month or a six-month lockup period, you would think that eventually the number of shares being sold in the public market, the float, is going to increase pretty dramatically. Absolutely. The better question is can they sustain that valuation, not the valuation they can get on the first day? Can they look? I mean, I feel like we're redebating Tesla. As people have been saying for years, we can't sustain that. I think I'd probably take the under on whether or not it's still over $2 trillion, if it goes out to $2 trillion in six months, but I don't think it's going to fall dramatically. I think there is a lot of excitement, a lot of interest here. There is definitely market support for this IPO. It's big numbers. It matters and stuff, but we're almost talking semantics, whether or not lately, like on what level can it support. There is interest here, and that's what you need to do an IPO. Travis, I want to point out one thing about the exit that you talked

14:45about. It's true that the most obvious exit is just selling the shares outright, but recently, we've had more and more investors, more and more employees, high-level employees with big stock holdings. They never sell shares. Instead, they'll go to a broker. They'll make an arrangement. They will pledge shares as collateral. They will have a loan facility that lets them draw money out of it. The shares never get sold. It is at that point in everyone's best interest, the shareholder, the bank, the lending bank, to keep the share price as high as possible, and so those shares never actually trade hands. Elon Musk has done that to great success over the course of his career. I suspect that his best employees have seen that and are willing to emulate it. I will be curious to what extent the investors that have gotten in on SpaceX pre-IPO decide to fully exit versus using one of these alternative strategies. The other thing that a lot of these investors can do is just distribute the shares so that they can take their management fees for being a hedge fund

15:52or whatever sort of fund you're investing with. Lew, I wanted to ask you about the space economy because this is ultimately what we're buying if we're going to be buying the SpaceX IPO and just so people are aware. I believe the date now is they're looking at June as a potential IPO date. So sometime between now and June, we will get the full S1. That's where you get the information about the financials. How many shares are going to be sold? All of those details. I'm sure cover those on the show when they come out. But what is interesting about the space economy because that's really what we're buying and I'm still a little bit confused of exactly what that's going to look like five or ten years from now. Travis Space is the final frontier. It's a chance to boldly... Sorry, no, okay. There are estimates all over the place here. The most famous one is Morgan Stanley saying a trillion dollars in space were revenue by 2040. That's like the North Star. SpaceX, we don't know exactly, but it's maybe 16 billion today. So they're not going to have half of that trillion even if it comes, but there is at least a

16:55there there for growth. How's it going to grow? I mean in theory, there are a lot of things you can do in space. I'm going to take the under on the databases in space, at least for the foreseeable future. A lot of the exotic things, but there are a lot of ways that companies can benefit from the data you can get from space, the incremental positives, the government, militaries are increasingly interested there. There's a lot of revenue potential there. Just like every other market excitement, there are winners and losers here. Not everyone is going to make it. Valuations are all over the place, but they're mostly high. It's the Wild West. It's early days, just like all of these markets go, but there is a real path towards revenue growth on both the global government and commercial side, and that is what SpaceX as a leader here, and given credit, they are a leader here. That's what they're leaning into at the IPO. Dan, the other piece of this is you have a social media and AI business attached to SpaceX.

17:58That seems like, you know, it's like a the new version of a conglomerate. Yeah, and kind of the negative version of the conglomerate. I mean, space stocks are hot, but boy, social media is kind of taking it on the chin lately. And so putting X Twitter in with SpaceX seems like the negative side of putting things together in a conglomerate. At the same time, you also have XAI, which, you know, I think that there's probably some investors who would have preferred that the AI side be a pure play and be divorced from the space stuff, because they share lose confusion about, okay, well, what is the space economy? What is SpaceX really focused on if you mix those two in was kind of like, well, AI is not just a space data center play. AI is much more than that. And so the the combination here, I'm not sure what Musk gets out of it. It seems to complicate things, but like Lou said, we have to wait for the paperwork before we actually know what this thing is going to look like for investors.

18:59You know, I'll just say I'm kind of pro just one ticker to invest in Elon Musk's vision. If anything, that's not argument. They just just merge with Tesla too, but I can't. We're not going to do that. Elon Musk doesn't need my advice yet. Yeah. Every banker is already on this deal. But Elon, I might say, you know, we talked to the beginning. They're only selling a small number of shares to get a massive valuation. That's impressive on paper. Given the XAI need, maybe though, get a lower valuation somewhere shares and actually, you know, fill the cash coffers. I don't know. Just an idea. I know it wouldn't be as cool as a one is a two trillion, but maybe they're making the wrong move here, Travis. When we come back, we're going to talk about the stocks we like in the market right now. You're listening to Motley Fool Money. Welcome back to Motley Fool Money. And this thing we like to have a little bit of fun, and so I thought today we could all draft a little mini portfolio. So we got a lot of concerns

20:03what's going on with with the market dropping a little bit in 2026. We talked about oil and the economy. There's always opportunities in the market. So where are we seeing those opportunities? We're going to each pick five stocks. I mean, we're going to play along this week. Lou, you were up first. Who's the first stock you're putting in your little five stock portfolio? So I'm going to play the hits here. I'm going to play my hits. And I'm going to start out with one of my one of my oldest investments. And I think it's just a great opportunity today. Transdyne, ticker TDG, this aerospace parts manufacturer that somehow over time has managed 45% plus gross margins and continuously. They do it in a neat way. This is a stock. This only up 2,360% in the last two decades, Travis. So not bad. Not bad. They're right now trading near 52 week low. They are sort of not exposed to the right part of the cycle right now, which has kind of been holding them back. But this has always been a private equity firm masked as an operating company. They're very good at deal making. They have 10 billion dollars

21:08in M&A firepower at the disposal. Now it's a reasonable valuation. I just hold this company as long as I can and now looks like a good time to add. Dan? First up from a booking holdings ticker BKNG. This is the online travel agency that has the namesake booking. It has price line. It's got kayak. It's got a whole bunch of different properties underlying there. And it has been slurred under attack lately because people are worried that artificial intelligence is going to get good enough that you're just going to ask your favorite chatbot to set you up with a trip with the hotel and the airfare and rental car, whatever else you need. And it's going to take care of everything for you. That they say is going to hurt booking. But I'm skeptical. I think that AI users are going to end up appreciating the customized AIs that these legacy companies have put together booking working hard to make sure that its AI

22:09capabilities are up to snuff. And I think that with proprietary data, they will be able to do a better job than all-purpose models will be able to do. Booking also about to do a stock split. Its shares have been over $4,000 a share. And that's going to change. I think that stock splits don't add any value, but they do attract investor attention. And that is why I am suggesting that as the first stock I'm talking about today. The forward price earnings multiple for booking is 15. I don't remember ever seeing it that low. So I haven't looked at them in a while, but I like it. The growth has slowed by not to the extent that you would expect a sub-20 forward PDE for sure. I'm going to stick with the theme of AI is not going to disrupt the way that people actually use technology alphabet. Look, this is an AI play in a lot of different ways. It's also a play on when my wife uses AI, she's just using the Google search bar. That's the way that most

23:14people are going to use artificial intelligence in the future. I don't think that we're going to be wearing some sort of AI pin or anything like that. It's going to look a lot like it looked in the past. Guess what? The winners are going to keep winning. Alphabet is going to be the biggest of those. The capex numbers are insane right now, and I think they will eventually come down. But guess what? If they come down, you get more cash flow from Alphabet. I love where they're sitting. YouTube is undervalued. I think Waymo is probably hiding a ton of value in there. So this is the easy button in AI alphabet, my first pick. Lou, you're up. All right, so I'm contractually obligated to have at least one bread, Jacob's, because I got to do my stick. The one I chose is QXO, the newest one. Jacob's for those who don't know yet, that's a serial entrepreneur behind United Brentles, United Waste, XPO, two of the three biggest winners in the Fortune 500 over the last decade. QXO is a roll-up of building product

24:15distributions. They just did their second acquisition, Kodiak, distributor of construction supplies, lumber, windows. If I'm honest, it's fairly valued for what it is today. It's a 13 billion dollar or so company, but they are hoping to, or they are, if their plan is to get to 50 billion in sales in a year to come, tons of risk. Very much an M&A story, but no one is better at M&A. I like this as a growth story. Dan? Up number two for me, Moderna, ticker MR and A. Everybody wrote this stock off. This is one stock. This is like the one time that I have been successful in averaging down. I was a big loser on a small portion that I bought above $200 a share. It ended up getting down below or almost to $20 a share at one point. Obviously, the company, famous for its COVID-19 vaccine, but I saw the COVID-19 vaccine not as a long-term producer in itself, but as a proof of concept for the MRNA technology, which the company would

25:17then apply to other diseases, other treatments, I think that that plan is kind of on track, really. Investors are starting to see it. That stock price has gone up from $20 to, it was recently up to about 50 or so. I think there's more upside ahead and the stock and the company have been kind of unexpectedly resilient in the face of a hostile environment from the federal government at this point for the core COVID stuff. Just kind of proves that I think the company is making big strides towards diversifying its portfolio and kind of proving the value of its technology in being able to treat a wider variety of diseases and health conditions. Yeah, while the stock is still in a 90% drawdown from its peak during COVID, but it has almost doubled in just the past, I guess, four months or so, so wild run here for over the last few years

26:18from Moderna. I am going to go with another easy button stock that is Uber. Look, self-driving vehicles, particularly Tesla, we're supposed to destroy businesses like Uber. I think we're seeing now with all of the announcements that they have, all of the companies that are putting fully autonomous vehicles, a lot of them still have safety drivers. We're starting to get to the point where they're pulling those safety drivers. Uber is going to be the app that we interact with, whether you're looking for a ride, whether you're looking for some food, or even order physical products. I think you can buy a TV from Best Buy and get Uber to deliver it to your house. This is just one of those businesses I think is going to be much bigger a decade from now than it is today, so that's why it's number two on my list. Lou, you're up next. All right, next up, I'm going to go and nail net a silly little company with a weird name, but they are all over the place and student loans servicing payments, school software. They have a venture capital arm, including Huddle, which is

27:19very, very popular among high school athletes, expanding its banking and financial services. This company has quietly beat the S&P 500 over the last five years and even longer. I think that they are just now hitting its try, gaining momentum. I really, really like this company, which they bring name it, so maybe investors would get more interested, but really, really solid under the radar over performer. Dan, what do you got? So I'm taking a page from Ray Dalio's playbook over at Bridgewater Associates and trying to incorporate some inflation hudge commodity exposure. My pick here, Freeport Mac Marantica FCX major copper and gold producer, big copper producer. It has had its share of operational challenges. It's biggest copper mine in Indonesia has faced some operational issues, but we all know what the gold market has done over the past year or so. It has been an effective diversifier for portfolios. That's the whole Dalio approach, is basically

28:22put yourself in a situation where you can benefit from growth, but you're not overexposed to recessionary conditions. You can benefit from stable pricing, but you are able to fend off inflation. I think that Freeport Mac Marant gives you that commodity exposure in the form of a stock, so you don't have to deal with all those futures markets that we were talking about earlier in the show. It gives you an ability to kind of count a little bit as an allocation to gold, which a lot of people have been wondering, okay, well, how do you do that? Is that something that you should do when the price has already gone up so much? I think it's a good balance with Freeport Mac Marant because they're a big thing. It's more copper than it is gold, but you still get the gold exposure as kind of a icing on the cake. I'm going to go with another unloved company in the market. I like the trading plays Disney. Disney gets a lot of flak right now, but shares are trading for 14 times earnings, basically on a forward and a trailing basis. I was talking with a friend last night about who is just a Disney world, about the run that they've been on. We talked about not

29:26having original IP. In the last 13 years, we have Frozen, Moana, and Conto, Zutopia. Is there a better 13-year run for Disney? I don't know. You could maybe say the 90s, the 94-year runner, so that they had in the 90s, but for original IP, this is actually kind of a boon for Disney, and they don't get credit for that. They're investing $60 billion in the parks. The parks alone are generating a $10 billion a year in operating income. Guess what? They're all under construction. So they're going to be bigger. They're going to be getting more people in. They're going to be charging more money in the future. I think we're going to look back at this as one of those opportunities with Disney, just one of those companies that, if you think of what things are going to be disrupted by artificial intelligence, one thing that isn't those real world experiences, like going to Disney World, so Disney, add it to your watch list. Let's wrap it up here. We got two left for each of us in a couple of minutes. So, Lou, why don't you drop two on this?

30:30Lou, this is my, I'm just taking over my weird name portfolio here, I guess, but two more real quick, truest financial, TFC. I really, I mean, regional banks are out of favor. They might remain out of favor for a while, but you get truest financial, a good company in the southeast and mid-Atlantic of a decently run bank trading below book value and with almost a 5% dividend yield. These are the times to kind of ride through the headwinds and find good banks. Last one, we talked about space economy. I have to have my rocket ship rocket lab is my pick for this space economy I like it better in SpaceX even if they're both public. 38 billion today, I can't justify it today, but if they do what they hope to do, 38 billion is going to look cheap, so high-risk car reward. Travis, my last two, I'm going with one Microsoft, it's in the same category as you put alphabet in kind of the beaten down mag seven, unappreciated company. I had good experience with alphabet, when alphabet was out of favor, alphabets now in favor and Microsoft has moved out, people are

31:33concerned. I think concerned about open AI status in AI adoption, concerned about Microsoft's ability to get its users to use its co-pilot AI program, but I believe Sachin Adela has been you know, has established himself as being able to recognize these cross currents and navigate them and find a way through. So I think that if you're looking at a mag seven stock, Microsoft's one I'm looking at, and then Berkshire Hathaway, ticker BRK, it's the biggest holding in my portfolio, it kind of never goes out of season, it has some energy exposure which I like, and we have recently gotten word that there is sort of a Greg Able put in the form of stock repurchases, the company said it started making stock repurchases earlier this quarter for the first time in quite a while, and so that kind of reassured shareholders that the transition away from Warren Buffett as CEO may, it may not have the price disruption in the stock that people were worried about.

32:37I'm going to throw it into it, a couple of companies that I don't think are going to be disrupted by artificial intelligence in the way that a lot of investors currently do into it, we're going to have to do our taxes somewhere, you know, counties got to happen somewhere, I don't think we're just going to throw it into a chatbot, they're trading for 16 times forward earnings, nobody likes paying that bill to into it when you got to do your taxes, but, you know, in the next couple of weeks, a lot of us are going to be paying them a little bit of money to help file their taxes, the other one is work day, guess what, all these AI companies use work day, so why not own work day, 12 times forward earnings, I just think another one disruption, probably not on their horizon, possible, but definitely like the pricing there. When we come back, we're going to need to the stocks on our radar, you're listening to Motley Gwalmoney.

33:48As always, people in 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 yourself stocks based solely on what you hear. All personal finance content follows the Motley Fool's editorial standards and is not approved by advertisers. Advertisements are a sponsored concert provided for informational purposes only. You see our full advertising disclosure, please check out our show notes. All right, I wanted to touch on brands a little bit here before we get to rate our stocks, and the news this week was that Nike had a pretty weak earnings report, their sales are down on a constant currency basis. Dan, are we at the point where these brands, Nike has been an outlier, you think about the rise and fall of Reebok, Fubu, Jibbo, if you go back to my youth, was this just inevitable that Nike would hit this wall eventually, and this is just what happens to brands? It often happens. I don't think it's inevitable.

34:51You can find some outliers out there. I mean, chocolate bars are boring, but so Hershey and Nestle went beyond that. They brought in KitKat. They got 8,000 different KitKat flavors, and now people care about it again. Yeah. When you and I remember when I was kids, when Lew and I were kids, you know, you got the Lego sets that you had to like build it yourself, you had to come up with what you were doing. We had the bucket. Now it's like you buy the F1 car set, you charge an I-100 bucks for it. There's like sophisticated instructions and stuff. So, you know, some brands survive, but a lot aren't able to make that disruptive move. You know, I mean, look, Nike is what it is. I don't find it an attractive investment, but this is still a massive company that is profitable and is kind of growing. At least we're getting benefit down. I think this is like one of these cases and I see it so much. I'll even be controversial throughout like Starbucks and Lulu Lemon. As investors, there's a difference between the company is fine and I want to invest in it. And I think Nike's just at the point

35:52that yeah, there are better investments out there at least to Maya. Yeah. We'll likely see their shoes for a long time to come. Doesn't necessarily mean it's going to be a great stock. All right. We like to end the show with stocks on our radar. We'll bring in Dan Boyd from behind the glass. Dan Kaplinger, you're up first. What's on your radar this week? All right. Dan, the stock I'm bringing to you today, York Space Systems ticker Y SS. It just went through its IPO in January. This is a company. It's a pure play in this new space economy and what it's trying to be. It's trying to be sort of the cost conscious provider of a lot of these services satellite launches and things like that. They are using modular manufacturing to try to keep costs down. This is something that the Department of War has really liked to see and it is gaining acceptance in the US government and with other providers as well. The stock did lose half its value after its IPO, but it has started to bounce back. It's regained almost all of that

36:54Artemis 2's launch that a big day the day after that. I do think the SpaceX IPO is going to initially pull away capital from investors who are interested in these space stocks, but if it is helpful for space overall, York should benefit from it at some point eventually. Dan, what do you think about York Space Systems? I mean, it sounds like Mr. Kaplinger is telling us to get in on the ground floor here for York Space Systems, but such a recent IPO, I'm a little bit wary. Lou, what's on your radar this week? Dan, JMo couldn't make it, so I feel it's my responsibility to talk about McCormick ticker and KC. It was a big week for our favorite spice maker. They delivered top and bottom line quarterly beat, also announced a massive merger. McCormick is going to combine with the food assets of Unilever in a deal valued at more than $40 billion, and Dan finally, someone has the courage to combine French Red Hot with mayonnaise,

37:55right? We've all wanted it, right? Yeah, I don't know. But look, the market didn't react well at this deal. It's huge and failed combinations like Kraft Heinz spring to mind, and I'll concede. McCormick management has a full plate here. You see what I did? JMo would like that, but I think scale matters in this business, and I think McCormick has better managed than Kraft Heinz. I am at least intrigued here, kind of watching this. A lot of risk, but a lot of potential rewards here as they kind of fill up the shopping cart. Dan, we didn't make any spice must-flow puns during the oil segment, but what do you think about the spice flowing with McCormick? You know, mixing hot sauce and mayonnaise there, Lou. Did I leave you there? Did I rest? No, no, it's a restaurant staple for decades at this point. Any like tangy, spicy sauce that you're going to find next to your cheeky tandys at the restaurant is probably just a mayonnaise and hot sauce mixture. And McCormick's got them both, the big ones, Cholula and Frank's Red Hot, which is saying something about their catalog. All right, Dan, which one is going on your

38:58watch list? I like it spicy today, Mr. Travis, so I'm going to go McCormick. There you go. Sorry, Dan. Next time, there was a lot of space, space stocks today, so if you are interested in space, hopefully we give you some good ideas to research. Dan Pro Tip, you might have done better with the York pepper and the patty. I know, as well as thank you. How we're talking. All right, thanks to Lou and Dan and Dan Boyd behind the glass. I'm Travis William. We'll see you here next time.