23:59:59

Of Today, I'm not the full money, a reminder, that not all Cloud stocks are the same that betting against Tech Behemoth is not for the faint of heart that and more coming up right now. Cypress Hill joint by Motley Fool. Senior analyst Tim Byers. Thanks for being here, and A a Renewed partnership for two well-known consumer Brands, but let's start with Microsoft and we have video channel for members of Motley Fool Services. If you're member of any of our you have access to all kinds of video content every day. And and what are the shows the video channel is called beat and raised. And that's what this was for Microsoft. Another beat and raise kind of quarter 2nd, quarter profits were higher than expected, the revenue to the raised guidance the revenue. Robin, it was just under sixty two billion dollars to him L. A. now, and else there there's really only one word to describe this. It would be bananas.

1:15

I mean it is so much less

1:17

hit us some of

1:20

the. the highlights here so overall

1:22

revenue just the is hitting

1:25

it from the very top line fifty one

1:27

point seven billion dollars in

1:29

dollars billion with a be increased twenty

1:31

percent and please recognize

1:33

that this is two point two trillion dollar companies

1:36

how hard is it to grow

1:39

Hey, and you know it. Two. Fifty

1:42

plus billion dollars and actually grow

1:44

at twenty percent, just like

1:46

do the math on that, you know,

1:48

so you added what ten

1:51

billion dollars little more than ten billion

1:53

dollars. Year over year does

1:55

looking at it now so total revenue flits

1:57

called fifty one point, seven to eight billion

1:59

dollar. There. Is year over year

2:02

that's up from forty three point zero, seven

2:04

six, so I guess or I'm not

2:06

quite ten billion, but eight billion dollars,

2:09

mean, that's a lot. Of might there are companies

2:11

that wait lifetime to grow

2:14

that big, and some of the numbers

2:16

here Chris, we're truly

2:18

outstanding, I'll highlight just couple

2:20

of them but.

2:22

The overall Cloud business

2:24

unit, which is their commercial

2:26

Cloud, but also the Azure a

2:29

public cloud computing business, which had been

2:31

growing at right

2:33

around 50% to 46%

2:35

again this year

2:37

that is astounding, you

2:40

know, 46% So

2:42

I guess that's slowing

2:44

slightly. But

2:46

boy, is it not slowing

2:48

much and that's kind of

2:50

just let me pause it there, but there's

2:52

a lot more to dig into here because

2:54

there was growth across all of Microsoft

2:56

business units here, Chris?

2:58

Want to get to the gaming and just a minute because

3:00

lot of people's zoo and I included

3:02

were. The eager

3:05

to hear from.

3:06

The in Adela about last,

3:09

week's acquisition and of activision

3:12

blizzard it's. a but Aside

3:15

from the gaming, what stood out to you?

3:17

Well, would sit out to me, is that this?

3:20

This is very consistent

3:22

growth and when growth

3:25

is consistent it tells you something so

3:27

let me tell you what I mean total. revenue

3:29

up to twenty percent rights operating

3:31

income Twenty two

3:33

point, two billion dollars that increased twenty

3:36

four percent total net income,

3:38

so take out all the taxes take out all the interest,

3:40

everything else that was eighteen

3:42

point, eight billion that increase twenty one

3:44

percent. And let the

3:46

looting deluded earnings per share

3:49

was up to two dollars and forty eight

3:51

says that increased twenty two percent

3:53

when you see that kind of symmetry, Chris.

3:56

Not to over use a run

3:59

gross phrase. That that

4:01

literally is. firing

4:03

On all cylinders, because it means the businesses

4:05

and symmetry, it's not like what

4:08

we bought back whole bunch of share, so

4:10

our earnings per share, his through the roof

4:12

and. You know, but our revenue growth wasn't

4:14

that big know this is business

4:16

that is selling consistently.

4:19

Doing very well managing

4:22

it's expenses very well

4:24

and so it's growing across the board that

4:26

is extremely healthy,

4:29

I think it's. This is an arguable

4:31

statement, but I'll make it. Microsoft

4:34

is the healthiest business. The

4:36

U. S. stock markets today. think

4:39

you could argue that, Chris.

4:41

Healthy. From the standpoint of their

4:43

cash reserves because you know what's while

4:45

you were talking about you look, they're not by about

4:48

it on assaults it reminded me

4:50

of the fact of. Just how good

4:52

Nadella and his team are go

4:55

with capital allocation, which is something we talk

4:57

about from time to time, and it's

4:59

it's, you know, stock

5:01

you on whatever

5:03

industry you're investing in, you

5:05

can look at Microsoft and the Della

5:07

and his leadership and think

5:09

to yourself. Okay? Are

5:11

the companies I own. Are they as good are the

5:13

CEOs? the companies out? Are

5:15

they as good as capital, allocation? because

5:18

in, some ways that's the scary thing about.

5:20

This quarter that they're doing it without

5:23

what some people would call financial engineering

5:25

don't map it on the stock there's you know they're

5:28

not, cranking up cranking suit.

5:30

dividend to reward

5:32

shareholders i'm they are

5:34

as effective with their acquisition

5:36

strategy and executing acquisition The

5:39

eight years he's been CEO as

5:41

pretty much any company can see.

5:43

Right, what I mean by a healthy here is,

5:45

we're not just talking about cause,

5:48

and not just talking about that execution

5:51

is that they have wide variety

5:53

of businesses like all of the places.

5:56

And when we get to gaming, Will will talk about

5:59

this little bit more. But. Just to

6:01

highlight some things that are historically

6:03

businesses you really have stopped

6:05

thinking about, maybe should think about in

6:07

terms of Microsoft, so let's just, for

6:09

example, say, the windows

6:12

are. We'a business the windows

6:14

o e'm m business and Windows commercial licenses

6:16

that was up thirteen percent.

6:19

That's not nothing when you're talking

6:21

about a very large.

6:24

Business. Unit and very old business

6:26

unit that's still growing

6:29

in double digits dynamics,

6:31

three sixty five, which is the business intelligence

6:33

tools, it's more of commercial

6:37

enterprise type of software. Sale,

6:39

but it's very popular tool, and that's

6:41

up over forty per cent Chris, so

6:43

you know, server products things

6:45

like, you know, sql server that's

6:48

up from, you know, twenty. Nine percent

6:50

so what I'm talking about what I say healthy

6:53

is that there's a wide range of very

6:56

balanced growth throughout

6:58

the company And that's unusual

7:01

for company of

7:03

Microsoft size. Usually something

7:05

dominates get out.

7:07

Like there's this, there's unit

7:09

that dominates everything else and

7:12

then other are sort of being shepherded up

7:14

through that. A Microsoft does have

7:16

one. We could call that

7:18

gaming, but boys

7:21

are some upside there.

7:23

Let's go to game because Nadella

7:25

made it very clear for anyone who was

7:27

wondering, And

7:29

I'm not sure how much you could Wonder after

7:31

last week. He said, doubling down

7:33

on gaming right now and you think

7:35

about the cash that they have to deploy into

7:38

that. Second. Obviously, it'll take some

7:40

time for Activision Blizzard for that acquisition

7:42

to close. But again,

7:45

it's a little bit scary when

7:47

you think that

7:50

looks it, Microsoft gaming Division and

7:52

thinks we can be doing a lot better here

7:54

and we are going to. Yes,

7:57

so the when

7:59

you look at the Source: That's interesting

8:01

here is the. second

8:03

slow us The segment.

8:06

A that Microsoft reported the. Was

8:09

X Box gaming and content that was up

8:11

ten percent surface was

8:13

only up eight percent, by the way,

8:15

is it not, is it remarkable that we could say

8:17

stars only have eight percent? You

8:20

know like yeah I

8:22

guess all right good terrible

8:25

but you are. watching

8:27

your own microsoft headquarters hanging their heads

8:29

in shame yeah that it's only

8:32

eight percent What?

8:35

My comments. this is

8:37

from what satya nadella said The

8:39

big that rebate across content, community and cloud

8:42

over the past few years are paying off and we saw

8:44

record engagement as well as revenue

8:47

and game pass, so this is the cloud porsche.

8:50

Gamepasses you go in

8:52

and you get your Xbox game pass have

8:54

access to a lot of subscribers.

9:02

That's across PC and console. and,

9:05

the beauty of microsoft gaming

9:07

division chris division that there's that lotta pc

9:09

gaming and there's and lot of count console gaming

9:12

and what can serve both the

9:14

azure cloud Then. Azure Cloud can serve

9:16

both very skillfully, so they already have

9:18

twenty five million going into this, they

9:21

are going to bake

9:23

big bets on bringing

9:26

activision blizzard into that, they

9:28

say. We're investing to make it easier for people

9:30

to play great games wherever, whenever,

9:32

and, however, they wants that to me

9:34

signals Chris that. Get

9:37

ready. There's gonna be lot more

9:39

calming. From the X Box

9:42

cloud gaming segment.

9:44

Especially with all of that activision

9:46

contest.

9:47

Mattel's partnership with Disney

9:49

started in 1955.

9:52

When Mattel sponsored Disney

9:54

television show The Mickey Mouse Club, the

9:56

partnership continued until 2016

9:58

when has wrote. the.

10:00

Mattel. For the rights to Disney

10:02

Princess line up of toys today,

10:05

Mattel one those rights back, of

10:07

the end the rights to Disney's frozen

10:10

franchise and other Princess brands the. Financial

10:12

terms were not disclosed but the deal starts

10:14

in two thousand and twenty three and when you look

10:16

at shares of Mattel on the. rise

10:19

even without knowing the financial terms

10:22

We see the power of brand, we

10:25

see, we see the power of

10:27

the Disney brand and what

10:29

that partnership means in this industry.

10:32

There's two things that a from this.

10:34

Boy. Talk about people hanging their heads that are might be

10:36

some people at Hasbro hanging their heads today,

10:39

not great, not great, but

10:41

Hasbro does have others, you know, good

10:44

franchises. So remember they're just

10:46

losing the be princess,

10:49

you know, lives here, but that's still very meaningful

10:51

in the fact that it's done something for Mattel

10:53

should tell you something that Mattel. Has

10:55

not done nearly as well in terms of

10:58

it's own. It's own brands here

11:00

so to be very interesting to see and very interesting

11:02

to see what kind of toy line

11:04

ups and what how creative they get around

11:07

merchandising here, but I think

11:09

the thing that. don't know what's more

11:11

important, Chris, but it's equally as

11:13

important. Whenever you look at the

11:15

licensing data, the number one licensor

11:18

in the world for years.

11:21

haven't checked his recently, should have checked it this

11:23

morning, foot four years, when

11:25

the twenty one data as out we should

11:27

check this usually license magazine

11:29

has this. The be is.

11:32

Far and away, far

11:34

and away. Then. Biggest

11:36

licensor of merchandise in the

11:38

world and they command a premium,

11:41

so as good as this deal is for mattel Chris,

11:44

I'm betting it is sweet,

11:46

sweet deal for

11:49

Disney. And it says something

11:51

that they can portion off like

11:53

when hasbro one the original

11:56

Disney license. They won'the

11:58

the this be license.

12:00

They. Didn't win the Princess license, the

12:03

one that Disney license right so

12:05

if a B. I. and, and if somebody needs to

12:07

correct beyond that, please do, but if I recall correctly.

12:10

That was the Disney license, so

12:12

the fact that this gets a Porsche and off is

12:15

fascinating to me Chris. Any

12:17

it?

12:18

It's worth remembering that at the time

12:21

the Disney paid for billion

12:23

dollars from Marvel. How

12:25

do you look at what they paid for

12:28

Pixar for Lucasfilm

12:30

and all of the Star Wars South?

12:33

There were people particularly in the Marvel deal who

12:36

were saying, "boy, their really overpaying here"

12:39

The I did made this,

12:41

know you weren't one of them bugs.

12:44

but there were people saying they're overpaying

12:47

and you know you as you

12:49

just reminded us

12:52

There are so good.

12:54

This move there so good

12:56

as Duchess content creation,

12:58

creating the movies and television

13:00

shows and experiences in the parks,

13:03

there's they're so good at that, but they are

13:05

so good at the licensing business.

13:07

And so the ability to leverage

13:10

out future dollars off

13:12

of what they're paying in the moment

13:14

to acquire this intellectual property

13:17

A., you know maybe someday people will

13:20

stop doubting their ability to do this but

13:22

i'm i doubt it let me give you

13:24

one other saw it on it so bear in mind

13:26

i'm at disney shareholder so i'm pretty biased

13:28

on this one i've been to disney shareholder

13:31

for shareholder very long period of time the reason

13:33

you should never tout disney amongst

13:35

other things is that they have a history

13:38

of doing really good job

13:40

of taking small things

13:42

The making something of them, so let me

13:45

give you another example. Look

13:47

at the way Disney Plus has

13:49

done very small things, taking

13:52

really small parts of the universe and

13:54

done something with it: the Mandalorian

13:57

like who knew we can take one character, Boba

13:59

Fett and the. Internet into a major

14:01

franchise now you've got

14:04

this other you know there was short

14:06

series and rid of like literally

14:08

Chris was short run of

14:11

comics that the writer Matt fraction did

14:13

reinventing the character Hawkeye

14:16

and. it was great run it was really interesting

14:19

i've interesting say it'll be fascinating

14:21

if they ever in that show get to like

14:23

the pizza dogs story line which

14:25

was crazy and really fascinating

14:28

but it would be as think they ever got to that

14:30

but that's another thing like take the small

14:32

little things and turn it into something

14:34

and now What do they got another

14:37

minor character, this little thing

14:39

called Moon Knight? And you got Oscar

14:41

isaac starting A is starring

14:44

in that'so so Disney. It

14:46

takes really small things

14:49

and turns them into things that are bigger and more

14:51

interesting and so that's

14:53

why they can take something like the Princess Line.

14:56

The just sell the those rights

14:59

than the tell em probably get a pity. The

15:02

cash for it.

15:04

Real. Quick before I let you got a gonna

15:06

ask you about as five because and be

15:08

we're saying this morning as of this is not the typical

15:10

cloud business outside their

15:13

first. Quarter results were overshadowed

15:15

when they sat there for your

15:18

guidance armed as pet dogs

15:20

for the current quarter shares.

15:22

down more than ten percent today but you know compared

15:25

to what we've seen from lot of other businesses

15:27

yeah i'm in that are

15:29

that to if not straight up flood businesses

15:31

at least cloud adjacent to have finite

15:34

seems like it's holding his home It,

15:36

I mean, it's been a winner.

15:38

It's it's been a winner and this is an old

15:40

rule breaker this is one that I gave

15:42

up on to quickly ah

15:44

many years ago

15:47

long. before it was cloud

15:49

transitioning or as you put a cloud

15:52

ah adjacent so as

15:54

five is one of those companies

15:57

that are you The earnings

15:59

report with Rabbit. Was up and percent year

16:01

over year this is an old have any

16:03

so that shouldn't be surprising. There

16:06

are lot of these companies, Chris, we

16:08

have I don't love the term cloud

16:10

native, but it's a thing and

16:13

Cloud native means this is company

16:15

that was born. In

16:17

the cloud, all of its services or cloud,

16:19

it's always been clouded, never had

16:21

to be something else and become cloud

16:24

as five is the ladder, it was something

16:26

else at how to become cloud and.

16:29

It is still something else and the reason

16:31

that guidance is low is because

16:33

it's. it's important to remember This

16:36

is there's lot of tech companies are getting thrashed

16:39

and, so i'm getting ass lot of questions

16:42

Like, how do you know which one

16:45

is? A cloud

16:47

company that has a

16:49

better long term outlook and has,

16:52

you know, like, it has lot more steam behind

16:54

that. As. Five

16:57

for all, it's recent performers Chris is

16:59

the kind of cloud company I'm concerned

17:01

about because it's a transitional

17:04

company and it's still sells lot

17:06

of hardware and lot. Of it's hardware is

17:08

the original Big I & line

17:11

of hardware products, which originally load

17:13

balancers and what a load balancer is Chris

17:16

just for his veto, basically it's

17:18

you're. Crossing guard, is your traffic cop

17:20

it? You know, hey, you

17:23

come, you stay like it,

17:25

it manages the load

17:28

on network which is important.

17:31

In world of tag, it's little

17:33

more commodity. You can do lot

17:35

of that and software. Five

17:38

trying to do more of that and software, but

17:40

I and get nervous about companies

17:42

like this. Supply chain

17:45

issues heard of five this quarter could

17:47

hurt in the future to there's a subject to

17:49

different things than the other cloud

17:51

native companies are so

17:54

in answer to the question of what kind

17:56

of cloud company is gonna survive this and

17:58

thrive vs. There is I

18:00

think the ones that are a little more cloud native

18:03

or once you should look out so that's more like

18:06

Snowflake Margot DB companies

18:08

like that and last

18:11

hardware companies that are trying to be

18:13

fired companies which is for like five

18:16

timbers. always great to have anything to name

18:18

her thanks man preceded it

18:29

Irina and Pfizer have generated

18:32

tens of billions of dollars in sales

18:34

related to cope with nineteen so,

18:37

how are they investing that money, and

18:39

it wasn't doing wasn't better job than the? others

18:41

for more serious libya as it gets

18:47

Hello, force, I'm on with the

18:49

Spice, the healthcare analyst here

18:52

at the Motley Fool Keith, it is great to be

18:54

with you thanks for. The inherit say to be with

18:56

you to Libya. I. Have! Keep

18:58

here today because he's been following Kobe

19:00

nineteen stocks very closely, really

19:03

since we've dubbed them cope and nineteen

19:05

stocks I'm and keeps today I don't

19:07

want to talk so much. About the intricacies of

19:09

vaccines and boosters are treatments, but

19:12

rather what the companies who sell these

19:14

products are doing with the windfall of cash

19:16

they've received from their sales and

19:18

I'm. Particularly curious about how Pfizer

19:21

Madonna and Abbott laboratories

19:23

are spending their money on research and development

19:26

and building up their pipelines, so

19:28

will briefly set the stage and

19:31

it's recent. Quarter Pfizer's revenue from

19:33

Community and boosters was responsible

19:36

for eleven point, one billion dollars of

19:38

twenty four point, one billion dollars in overall

19:40

revenue. During his revenue

19:42

from spike facts and it's boosters

19:44

was five billion right now that vaccines

19:46

vaccine is it's only revenue

19:49

source and,. abbott labs

19:51

revenue from it's testing business is driving

19:53

more than half it's organic sales growth in

19:56

the recent quarter abbott's covert testing related

19:58

sales totaled about one Point

20:00

nine billion dollars led by an

20:02

Axe Now Pan Bio and

20:04

the Id Now Rapid Testing

20:06

Platform. About?

20:08

Ten point: Nine billion dollars in total revenue

20:11

now all three of these companies

20:13

are using their newfound covert related

20:15

revenue define pipeline projects

20:17

and are indeed but investors

20:19

are rightfully curious. About who's spending

20:21

most wisely and who's prospects are

20:24

brightest so kids

20:26

let's start with a big question: What

20:28

areas of our India are just beginning

20:30

to be funded with this kind? Of.

20:32

Although maybe I think it's helpful to look at

20:34

the research and development areas that these

20:36

three companies are already prioritizing,

20:39

Ah. Those are the biggest and of the bison

20:41

and has the most cash to embarrass themselves

20:44

as you more devices pipeline. They're

20:46

investing heavily and on. The allergy. Well.

20:48

As one has roughly thirty programs that's around

20:50

one third of its entire pipeline focused

20:53

on cancer, of course cancer remains one

20:55

of the leading causes of death worldwide, despite

20:57

the significant. Progress that has been

20:59

made in recent years, it's also a potentially

21:02

lucrative area for Pfizer to target and

21:04

type visors already big player in this

21:06

market with several blockbuster cancer. Drugs

21:08

unless it also investing heavily on surprisingly

21:11

in vaccine research, Pfizer has seventeen

21:14

the vaccine programs in its pipeline

21:17

I'm especially interested in the company's

21:19

messenger or in efforts A. Pfizer

21:21

has an experimental flu vaccine

21:23

that's an early stage testing that's one

21:25

to really keep your eyes on, of

21:27

course the company has been working with his partner by

21:29

an attack. On the Kobe nineteen

21:31

vaccine community, the visors looking

21:33

to go at all on its own somewhat and messenger

21:36

are in so that'll be an interesting area for. Does?

21:38

Your to keep their eyes on buses also investing

21:41

lot and inflammation and immunology,

21:43

the company has sixteen pipeline

21:45

programs not to have those recently one

21:47

FT approvals as into. Back that number

21:50

out of us are also has promising

21:52

experimental drugs tar to get targeting topic,

21:54

dermatitis, lupus and lot more.

21:57

There is also looking at

21:59

beeping up. Then. Portfolio and rare diseases,

22:02

genetic diseases and the company has several

22:04

pipeline count on that fry, and

22:06

then finally one area that I think as in treating

22:08

his non alcoholic Seattle

22:11

hepatitis. Or Nash, this is a

22:13

liver disease that doesn't have

22:15

any really attractive approved therapies

22:17

and is big potential market is

22:20

drug maker can come along and have successful. Product

22:22

so far that hasn't been the case release supplies

22:24

or has some candidates targeting national

22:26

or thinker interesting to watch. Let's

22:29

turn to Madonna. There are no

22:31

course is big player and messenger or in

22:33

vaccines, and that's the main area to

22:35

watch with modern of the companies as pipeline

22:38

that focuses exclusively on M.

22:40

R. and A. Companies lead candidate

22:42

outside of coded Nineteen

22:45

is on the cytomegalovirus or CMB

22:47

vaccine, there aren't any approves the image,

22:49

see, be back seat right now, so this is it's an

22:51

interesting tend to watch. There

22:53

is also developing combination coded.

22:56

Blue. And R. S. B. vaccine

22:59

and the company says it could be ready

23:01

and best case scenario anyway with

23:04

this vaccine by the winner of Twenty Three,

23:06

so combination. vaccine like this could have lot

23:09

of potential if it's successful with is

23:11

both safe and effective, so that's definitely

23:13

want to watch Madonna's also developing

23:15

some personalized cancer vaccines

23:18

using. It's R & A. M. R. in a technology,

23:20

and the company has preclinical HIV

23:23

vaccine. One. With one program

23:26

are targeting edge of potentially soon advancing

23:28

into clinical testing, so modern as lot

23:31

of EM are in vaccines and hopper,

23:33

but it's also boxing on. M. R. and A

23:35

therapies, and it's targeting auto

23:37

immune disorders, cancer and rare

23:40

diseases there. And how about

23:42

Abbott Lab? The other been tweeting

23:44

area to watch with Abbott is

23:46

it's investments in developing consumer

23:49

bioware, a bull's amateurs

23:51

developing several consumer bar wearable

23:53

that tracks glucose for

23:55

diabetics for it tracking tetons,

23:57

which are chemicals made and the liver.

24:00

Important for diabetes monitoring. Tracking

24:02

lacked these are high levels that. Then.

24:05

Because my dehydration or naimi or even

24:07

leukemia be symptoms of that are

24:09

and it could also be lot happened devices

24:12

at want to attract alcohol levels

24:14

of it's also. Focusing on connected

24:16

help technology, including remote heart

24:18

month for him, so Abbott has lot of

24:20

intriguing development to our

24:22

efforts underway on the medical devices.

24:25

That's a great been down Keith and I hate

24:28

to ask for you to pick a favorite, but as an

24:30

investor are you more excited about one of

24:32

these three companies over the others based

24:34

on their pipelines?

24:36

I. Will say: olivia I'm excited about the development

24:38

efforts for all three of these companies, I

24:40

think they have a lot of good things in the works",

24:43

Abbott is one of the. Really, one of the best

24:45

rhine and most innovative companies around

24:48

Madonna has an absolutely huge opportunity

24:50

over the long run with his messenger or

24:52

in technology as an investor,

24:55

though. I see that Bizer is probably

24:57

the most attractive all around right

24:59

now either is poised to

25:01

continue making billions of dollars

25:04

with it's cold night team back seems

25:06

company also has. A highly effective Colby til

25:09

that will also undoubtedly

25:11

be as huge money makers and applies already

25:13

has contract to supply doses

25:16

that will make billions of dollars from this

25:18

are coated. Feel cold packs limited as

25:20

are also several strong products and it's lineup including

25:23

blood thinner eloquence and real heart disease

25:25

drug called them to kill somebody.

25:27

has an incredibly robust pipeline

25:30

across all of areas we've already talked about

25:32

oncology rare disease vaccines

25:34

inflammation and immunology And

25:36

it doesn't hurt. The adviser also

25:39

offers a solid dermody and at

25:41

the yield right now is around three percent

25:43

so investors who were looking for. Really

25:46

solid growth prospects for such huge

25:48

company, as well as an unattractive dividends,

25:50

eyes or is great one to take look.

25:53

Yeah, Madonna and Pfizer in particular are

25:55

a pretty different stages in their life cycle,

25:57

so it's interesting that we often talk about.

26:00

In. Tandemon, because of covert right

26:02

from the during research and development expenses, were

26:04

five hundred and twenty one million dollars for

26:06

the three months ended September, thirtieth

26:08

of last year compared. To three hundred, forty four

26:10

million for the same period in the year prior, that's

26:12

fifty one percent increase, but Pfizer,

26:15

longer tenured large cap healthcare

26:17

company, also up to. R and D spending

26:19

fifty percent through two three point four

26:21

billion dollars, just a mammoth increase

26:24

in spending for company that's already doing well,

26:26

I'm in just hide drugs on. "The market for really long

26:28

time and that brings me

26:30

to my final question: I'm

26:33

these are big profitable businesses

26:35

if we turned toward valuation who has

26:37

the most room for" A run up and share price.

26:40

Good question: Olivia, if you look at the start

26:43

chart, Madonna shares are down

26:45

one is sixty percent from the highs last year

26:47

so distant is really been beaten down quite a bit,

26:50

however this assault is to be made that Madonna's

26:52

valuations really became to frothy

26:55

Last. Year and is now getting close to more

26:57

of reasonable and fair evaluation, both

27:00

Abbott and Bizer are around

27:02

ten percent below their highs, made little more than

27:04

that. Now, between these two, though,

27:06

I think buys or appears to be the better bargain

27:09

right now. His. Former stock

27:11

trades it only around nine and a half

27:13

times expected earnings there

27:15

are two big questions for Pfizer, though number

27:17

one what's the demand going to be for

27:20

Kobe vaccines? And therapies beyond

27:22

twenty twenty, two twenty three, when

27:24

we don't know the answer, that question just yet. Then.

27:27

Son of question for visors how the company's

27:29

bear with the pan clear that it faces

27:31

in the second half of this decade either

27:33

has several of his top selling drugs. That

27:35

lose patent exclusivity

27:38

starting and twenty six twenty seven

27:40

time frame. I. Do think, though,

27:42

that buys her's pipeline and acquisition strategy

27:45

will help it address the second issue

27:47

relatively well, I think was gonna be able

27:49

to handle losing a patent

27:51

exclusivity. For some of the stop drugs because

27:54

it has strong pipelines and it has quite few

27:56

newer drugs that will be really. Gaining

27:59

momentum over the next. There are more years and

28:01

then on the first question about whether or not

28:03

the demand is going to be there for to the back season therapies.

28:06

Over. The next several years, I think if new

28:08

barriers emerge or Kobe continues

28:11

to be problematic, even as it transitions

28:13

from pandemic to endemic pfizer stock

28:16

could still have plenty of room. To run a

28:18

and at his current valuation, I think this dog was

28:20

pretty attractive.

28:21

Fabulous Keith, it is always a pleasure

28:24

talking with you, thanks so much for sharing

28:26

your insights with us.

28:27

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