Motley Fool Money – Episode Summary: "Amazon Wants More Power"

Release Date: June 27, 2025
Hosts: Dylan Lewis, Ricky Mulvey, and Mary Long
Participants: Matt Argersinger and Jason Moser

Introduction to Today’s Episode

In this episode of Motley Fool Money, hosts Ricky Mulvey, Matt Argersinger, and Jason Moser delve into significant business and investment stories shaping the landscape in 2025. The episode covers Amazon's expansive data center projects, the booming yet potentially frothy REIT market, the turbulence surrounding Hims & Hers, an analysis of overrated and underrated business narratives, insights into Progeny's growth in fertility benefits, and a look at promising radar stocks like Uber and Otis Worldwide.

Amazon's Project Rainier and Data Center Investments

[00:25] The discussion kicks off with a deep dive into Amazon's substantial investments in data centers, specifically focusing on the New York Times' coverage of Project Rainier. Ricky Mulvey highlights the scale of Amazon's commitment, noting that Indiana's JAMO facility alone requires enough electricity to power one million homes.

[02:11] Jason Moser elaborates on Project Rainier, describing it as "a massive one of a kind machine" designed to support the next generation of AI. The project involves connecting hundreds of thousands of Amazon’s Trainium 2 chips across multiple U.S. data centers, positioning data centers as the new "AI factories." He references Nvidia CEO Jensen Huang’s vision, emphasizing that "data centers are AI factories processing massive amounts of data to train and refine AI models" ([02:24]).

[03:29] Ricky Mulvey adds that Amazon’s investment is not solely for internal use but also to serve customers like Anthropic, which is developing the LLM Claude. Moser explains that this cluster will provide five times more computing power than Anthropic's current largest training cluster, aiming to build AI systems that match the complexity of the human brain ([03:50]).

Real Estate and REITs in the AI Era

Transitioning to real estate, Ricky Mulvey raises concerns about the REIT (Real Estate Investment Trust) market, particularly focusing on Digital Realty Trust. He points out the company's high earnings multiple of 150 times, questioning the sustainability of such valuations.

[07:13] Matt Argersinger counters by explaining that REIT valuations often include depreciation and non-recurring expenses, suggesting that Digital Realty's true earnings multiple is closer to 25 when adjusted for "funds from operations" (FFO). However, he remains cautious, noting the potential for an oversupply analogous to the Sun Belt apartment boom during the COVID-19 pandemic ([08:05]).

[08:40] Matt Argersinger expresses concerns about the frothy nature of the data center REIT market, drawing parallels to the oversupply issues seen in the apartment sector post-COVID. He also questions the longevity of current investments, pondering whether future advancements in chip technology could render existing data center infrastructures obsolete ([09:44]).

Hims & Hers Partnership Fallout

[10:18] The conversation shifts to Hims & Hers, an online healthcare company. The company's stock plummeted by over 30% after Novo Nordisk accused it of illegally selling knockoff versions of Wegovy. Hims & Hers CEO, Andrew Dedum, responded on Twitter, stating that Novo Nordisk's team pressured them to prioritize Wegovy over clinically best practices ([11:19]).

[13:00] Ricky Mulvey questions the investment outlook for Hims & Hers, citing its recent revenue growth and the potential impact of the fallout with Novo Nordisk.

[13:21] Jason Moser expresses caution, highlighting the reputational risks associated with selling non-FDA approved compounded drugs and the importance of maintaining trust in healthcare services. He emphasizes that while Hims & Hers has seen impressive revenue growth, recent developments warrant careful consideration by investors ([14:08]).

[14:15] Matt Argersinger adds that comparisons to successful platforms like Netflix or Spotify are often misleading, using examples such as Nikola being likened to Tesla. He advises investors to be wary of overstated claims and to focus on proven performers ([14:46]).

Overrated and Underrated Business Stories of 2025

Overrated Stories:

• [15:37] Matt Argersinger labels the Department of Government Efficiency (Doge) as the year's most overrated story. Initially promised to save $2 trillion, it achieved less, reportedly cutting under $100 billion and sometimes increasing costs due to inefficiencies ([15:42]). The project, previously managed by Elon Musk, has been criticized for overpromising and underdelivering, turning into a "nothing burger" ([16:24]).

• [16:45] Jason Moser criticizes Tesla's robo-taxi initiative, describing it as overhyped and underdelivered. Despite ongoing developments, issues like the necessity for human supervisors and limited rollout to a biased audience highlight significant challenges ([17:40]).

Underrated Stories:

• [18:16] Matt Argersinger surprisingly underscores Robo Taxi technology as underrated despite its current setbacks. He believes the concept will be transformative for urban transportation, envisioning a future where autonomous vehicles dominate taxi services, thereby revolutionizing the economy and daily life ([18:20]).

• [18:53] Jason Moser identifies the IPO market as an underrated story, anticipating increased activity in technology, healthcare, and fintech sectors. Factors like private equity cashing out, stabilizing interest rates, and strong market performance are poised to drive demand ([19:34]).

Additional Insights:

• [19:26] Ricky Mulvey mentions the resurgence of speculative bubbles in 2025, drawing parallels to the speculative fervor seen in 2021 ([19:58]).

Progeny: Solving Fertility Benefits Issues

In an exclusive interview, Pete Anewski, CEO of Progeny, discusses the company's mission to address fertility benefits, especially for self-insured companies. Progeny focuses on women's health and family-building solutions, targeting areas overlooked by managed care.

[21:08] Pete Anewski emphasizes the importance of fostering awareness and understanding of fertility benefits among employers, particularly as Millennials become the largest workforce demographic. He highlights Progeny's 99% retention rate and the company's strategy of expanding service offerings to include egg freezing, adoption, surrogacy, menopause support, and more ([29:34]).

[22:16] Holly Anderson, a benefits team member, shares personal anecdotes about Progeny's impact, underscoring the company's value in employees' lives and its role in enhancing employer benefit packages. She highlights the need for continuous education and promotion to maximize Progeny's adoption and utilization within organizations ([27:09]).

[30:05] Pete Anewski discusses Progeny's unit economics, explaining that client retention and product expansion drive increased margins over time. As clients add more services, Progeny's recurring revenue strengthens, ensuring sustainable growth and financial health ([29:34]).

Radar Stocks: Uber and Otis Worldwide

Uber (Ticker: Uber):

[37:03] Jason Moser puts Uber on the radar, citing its partnership with Waymo to offer robo-taxis in Atlanta. Unlike Tesla, Uber collaborates with established tech firms, positioning itself as an active participant in the autonomous future rather than a company being disrupted. Recent financials show Uber's bookings grew by 18%, trips by 18%, and revenue by 17%, indicating robust performance ([38:33]).

[38:42] Jason Moser adds that Uber's acquisition of an 85% stake in Turkish food delivery platform Trendy for $700 million demonstrates its global ambitions and diversified strategy, further solidifying its market presence.

[38:58] Matt Argersinger counters with Otis Worldwide (Ticker: Otis), the leading manufacturer and maintainer of elevator and escalator systems. Spun out of United Technologies in 2020, Otis boasts a 20% market share in new equipment sales and manages a 2.4 million unit maintenance portfolio. The company's recurring revenue from maintenance and modernization, coupled with steady dividend growth (110% over five years), makes it a compelling pick ([39:58]).

[40:10] Jason Moser humorously suggests Otis's critical role by noting that if Otis were to disappear, its impact would exceed even that of Uber, emphasizing its foundational role in building infrastructure ([40:10]).

Conclusion

This episode of Motley Fool Money offers comprehensive insights into major investment themes, from Amazon's strategic AI infrastructure investments to the nuanced dynamics within the REIT and healthcare sectors. The hosts provide balanced perspectives on current overrated and underrated business stories, spotlighting emerging opportunities and cautionary tales. Additionally, the Progeny interview sheds light on a vital segment of employee benefits, while the radar stocks section highlights promising investment avenues in Uber and Otis Worldwide. Whether you're an investor seeking growth opportunities or navigating complex market landscapes, this episode equips you with valuable knowledge to inform your strategies.

Note: All timestamps correspond to the transcript provided and are intended to guide listeners to specific segments discussed in this summary.