The Compound and Friends
00:02:06 · Josh Brown, Michael Batnick
[00:02:06] S0: You don't look you don't look vampiric to me. Alright. We have a sponsor tonight before we get into it. Who's sponsoring the show? [00:02:12] S1: It's Fidelity. Maybe you've heard of them. That's, this message is brought to you by Fidelity Investments. When timing is everything, you need powerful tools and research that can meet you in the moment. With the all new Fidelity Trader Plus platform, your charts and preferences show up consistently, synced up across all your devices so you can act fast whenever and wherever you're trading. You can save an order on your desktop at home, get a mobile alert when you're at work and complete the trading from the Fidelity app without starting over. And with a downloadable Fidelity Trader Plus desktop platform, you have more control with multi monitor views, enhanced tools, and customization options, and integrated screen sharing with with Fidelity trading specialists. Try Fidelity's most powerful trading platform yet at fidelity.com/traderplus. Fidelity Investments and The Compound are not affiliated. Views, opinions, products, services, and strategies discussed are not endorsed or promoted by Fidelity Investments. Fidelity Brokerage Services LLC member NYSE SIPC. [00:03:08] S0: Well done. What a read. What are you... I mean, you really took our breath... Our collective breath away with that. People... People in the chat say you look more like powder than a vampire. I don't know how many people know that movie or get the reference. [00:03:21] S1: I've heard that. Made that
00:03:21 · Michael Batnick, Josh Brown
[00:03:21] S1: I've heard that. Made that [00:03:22] S0: to you years ago. It's not even I've [00:03:26] S1: never seen the movie. I never will. [00:03:28] S0: A friend of mine who I guess, he's like on Twitter. He's like, yo. They're saying that you were wrong about Amazon and your hair looks bad and you need to take the fat shot. Thanks. [00:03:43] S1: Thanks for letting me know. [00:03:44] S0: This is either yesterday or the day before. So I said send me Who's the this? JC Potts? Send me those... No. Send me those tweets. He goes, no. No. No. It's one guy. It's all one tweet. First of all [00:04:01] S1: Your hair looks great. Amazon is back. [00:04:04] S0: My hair looks great. Amazon recovered. The... Amazon has ripped 19 points off the low, [00:04:09] S1: so go fuck yourself. Point? What was the third point? [00:04:12] S0: I need to take the fat shot. Thank you. [00:04:14] S1: Well, he's got you there.
00:04:14 · Michael Batnick, Josh Brown
[00:04:14] S1: Well, he's got you there. [00:04:15] S0: Appreciate it. He's got me there. Alright. Toast reported tonight. It's actually a great report. So, of course, the stock is down a dollar and 0.5. But we've talked about it a bunch on the show. So I just feel like we should nod to it before we get to the official rundown. Sean was nice enough to crank out a couple of illustrative charts. For those that are unaware, Toast is becoming, rapidly becoming the most important platform in the hospitality industry for payments and vertical software for the owners of not only restaurants now, but takeout businesses, retail stores. And they just launched a gas station vertical. It's not just a US business. It is international. Let's put up this first chart. After hours, little bit of a round trip. Listen, I don't get carried away with these types of after hours reactions. The one thing I could tell you is I [00:05:17] S1: almost This is never the dumbest chart I've ever seen. I mean, come on. Are we doing here? Let's take a look.
00:05:17 · Michael Batnick, Josh Brown
[00:05:17] S1: almost This is never the dumbest chart I've ever seen. I mean, come on. Are we doing here? Let's take a look. [00:05:22] S0: For it. I asked for it. This one's more important. Let's put up the earnings per share. So they're almost doubling their earnings per share, GAAP earnings, year over year. And the ARR numbers are really impressive. I think they're at $2,500,000,000 quarterly run rate, which would be like $10,000,000,000 in annually recurring revenue. Put up the next one, free cash flow. So it's not a steady stair step. It doesn't look like a hyperscaler, but they fixed some of the issues from two quarters ago when the stock got crushed back down to the low twenties. Here's the ARR number I was talking about. This is... So this is the the annualized. And if this if this company can hit that $10,000,000,000 goal over the long term and they can continue to progress at this rate, just feel like the market cap is too small for the size of the business. I know people aren't excited about SaaS and they are decidedly unexcited about vertical SaaS, which is what Toast is. But they sort of own this vertical. They have competitors like Clover, which is owned by Fiserv. [00:06:44] S1: Fiserv actually reported... I don't know if... I'm guessing they had a good quarter. The stock was up 14% or so today. [00:06:50] S0: Yeah. And then the other one is Block, which is Square, which I guess is a competitor. But I don't know. [00:06:56] S1: They just reported...
00:06:56 · Michael Batnick, Josh Brown
[00:06:56] S1: They just reported... [00:06:57] S0: Everywhere you go is toast. And the revenue growth is here. They are now... They're telling The Street Tonight, they're at 189,000 global locations that are using Toast for at least one thing, most likely payments. And then the other part of the business is once they have you as a payments customer, then they're cross selling you all these other horizontal services that you would need to run your business. So anyway, I guess the message is nothing because the stock's not doing much, but I remain long and I still think this is a great long term opportunity. So that's my spiel on toast. All right. Michael, why aren't we covering the midterms or stay Because on we're focusing on the midterms. [00:07:45] S1: Because we're doing it on Thursday. [00:07:48] S0: Okay. That's a really good answer. We have an amazing guest who's going to come on and break down everything that the stock market and bond markets are reacting to after we get the results. I guess tonight, we'll get some results. And then some of these things are going be contested. Do When want to share [00:08:05] S1: do we cover the midterms? I mean, is very much not our beat. There's a lot
00:08:05 · Michael Batnick, Josh Brown
[00:08:05] S1: do we cover the midterms? I mean, is very much not our beat. There's a lot [00:08:10] S0: of people talking about what's on the ballot and they think data centers are on the ballot. And I would just say, you could count the number of people that put on their shoes and went to the polls to vote specifically on data centers on maybe two hands. Nobody gives a shit about that. I know it's on the ballot and in Texas, it's a battleground issue. But in real life, this is just affordability. No one else is voting really on anything else in some parts of the country. And then, yeah, there's a little bit of Israel stuff and there's a little bit of migrant stuff. [00:08:49] S1: All right. That's enough comments. We'll do some shit on Thursday.