Summary of Motley Fool Money Episode: “Breaking Up is Hard to Do: It's Not Me, It's You”

Released on June 24, 2025, Motley Fool Money is a daily podcast tailored for stock investors, offering in-depth analysis and long-term perspectives on business news. Hosted by Dylan Lewis, Ricky Mulvey, and Mary Long, this episode delves into significant corporate partnerships dissolutions, advancements in autonomous vehicle technology, proposed tax legislation, and highlights a noteworthy stock in the financial sector.

1. Market Overview

Jason Moser kicks off the episode by providing a snapshot of the current market sentiment:

• Middle East Tensions: Despite ongoing uncertainties about a ceasefire, the potential for negotiations is fostering a sense of optimism among investors.

• Starbucks in China: CEO Brian Niccol has clarified that Starbucks is not contemplating a full sale of its Chinese operations but remains open to exploring partnerships within the country.

• Federal Reserve Stance: Last week, the Federal Reserve decided to maintain steady interest rates. However, recent updates to the dot plot indicate a possible shift in sentiment, with nine out of 19 officials favoring zero or one rate cut this year, eight anticipating two cuts, and two expecting three.

2. Novo Nordisk and Hims & Hers Partnership Dissolution

[00:05 – 05:51]

The episode delves into the breakdown of the partnership between Novo Nordisk, the manufacturer of the weight loss drug Wegovy, and virtual healthcare provider Hims & Hers.

• Partnership Details: Novo Nordisk had previously partnered with Hims & Hers to distribute Wegovy, opting for this collaboration over relying on its own compounded, non-FDA-approved version of the drug.

• Reasons for Dissolution:

  • Matt Frankel explains, “The partnership only lasted a few months... Hims & Hers was still pushing people towards its own compounded version at every step of the way” ([02:05]).
  • The divergence in business strategies, particularly Hims & Hers prioritizing their higher-margin products over the agreed partnership, led to the partnership's end.

• Market Reaction: The announcement sent Hims & Hers shares plummeting by nearly 35% on the day of the news.

• Legal Implications: The cessation of the partnership raises significant legal risks for Hims & Hers, as continuing to sell non-approved versions could invite lawsuits. Frankel emphasizes, “Legal risk is one of the things that I won't go near a stock for” ([05:18]).

• Perception and Ethics: While some might argue that Hims & Hers is acting in patients' best interests by offering more affordable options, Frankel remains skeptical about the ethical implications of selling compounded, non-FDA-approved drugs ([04:25]).

• Valuation Concerns: Despite the sell-off, Hims & Hers maintains a high valuation at around 60 times earnings. Frankel cautions against investing due to the substantial legal risks involved.

3. Waymo and Uber's Robo Taxi Launch in Atlanta

[05:51 – 11:49]

The discussion shifts to the launch of Waymo’s autonomous taxis in Atlanta through a partnership with Uber.

• Launch Details: On Tuesday, Waymo introduced its robo taxis to Uber users in Atlanta, operating within approximately 65 square miles and currently limited to surface streets. The initial rollout includes a dozen vehicles accessible via the Uber app.

• Market Reception: Uber shares saw an uptick of about 8% following the announcement, indicating a positive market reception.

• Competitive Landscape:

  • Frankel highlights Waymo’s first-mover advantage and robust safety record, contrasting it with competitors like Cruise and Uber's previous autonomous ventures that faced significant setbacks, including accidents ([07:49]).
  • Tesla's Entry: Although Tesla has yet to make a significant impact in the autonomous taxi space, Frankel acknowledges their potential advantages, such as extensive charging infrastructure and in-house vehicle manufacturing.

• Future Prospects: Despite the current limitations and high costs associated with Waymo’s technology, Frankel remains optimistic about the long-term potential of autonomous vehicles, estimating that the “golden age” of self-driving cars is still a few years away ([09:43]).

• Investment Perspective: When comparing Alphabet (Waymo's parent company) and Uber, Frankel expresses a preference for Alphabet as a more attractive long-term investment, viewing it as a value stock with the Waymo business integrated into its broader portfolio ([11:20]).

4. Proposed Tax Deduction on Auto Loans

[11:57 – 15:05]

Jason Moser introduces the topic of a proposed $10,000 tax deduction on auto loan interest, scrutinizing its actual impact on consumers and potential investment implications.

• Proposal Details: House and Senate Republicans are advocating for an above-the-line deduction allowing up to $10,000 in auto loan interest to be deductible annually, irrespective of itemizing.

• Impact Analysis:

  • Frankel notes that the average car buyer is unlikely to benefit significantly from this deduction, as most may not pay more than $1,000 in interest annually.
  • Even wealthier individuals purchasing high-end vehicles may not qualify due to income phase-outs and specific requirements, such as final assembly of cars in the United States ([12:51]).

• Economic Implications:

  • The deduction could serve more as an offset to existing auto tariffs, particularly the 25% tariff on imported auto parts, which has adversely affected US-built vehicles.
  • Investment Opportunities:
    • Automakers in the US: Companies like General Motors, which are shifting more production to the United States in response to tariffs, could benefit from increased sales incentives.
    • Auto Lenders: Firms such as Ally Financial, which specialize in auto lending, might see a surge in loan activity if consumers are incentivized to purchase new vehicles ([14:30]).

5. Stock Spotlight: Rocket Companies (RKT)

[15:05 – 16:43]

The episode concludes with Matt Frankel highlighting Rocket Companies as a notable stock in the financial sector.

• Recent Developments: Rocket Companies has been actively acquiring key players to bolster its position in the real estate and financial markets:

  • Redfin Acquisition: Rocket's all-stock acquisition of real estate platform Redfin has been approved, allowing Rocket shareholders to receive Rocket stock in exchange for their Redfin shares. Frankel praises this move, stating, “I love this acquisition... they're really doing the best job in the market of becoming the all-in-one real estate platform” ([15:26]).
  • Innovation in Financial Products: Rocket has introduced bridge loans aimed at facilitating cash offers on new homes, eliminating closing contingencies and streamlining the buying process.

• Strategic Vision: By integrating Redfin and Mr. Cooper, a major mortgage servicer, Rocket is positioning itself as a comprehensive, technology-driven real estate platform. Frankel expresses strong confidence in Rocket’s strategy and innovative approach, highlighting its potential to transform the housing market ([15:26]).

Conclusion

In this episode of Motley Fool Money, Jason Moser and analyst Matt Frankel dissect significant developments in the healthcare, automotive, and financial sectors. From the unraveling of a high-profile pharmaceutical partnership to the advancements in autonomous vehicle technology and legislative proposals affecting the auto industry, the discussion provides valuable insights for investors. The spotlight on Rocket Companies underscores the importance of strategic acquisitions and innovation in achieving market dominance. Investors are encouraged to consider the nuanced implications of these developments and to approach high-risk stocks with caution.

Please note that while this summary provides an overview of the key discussions from the episode, it is advisable to listen to the full podcast for comprehensive insights and analyses.