Motley Fool Money Episode Summary: "Dinosaurs Roar for Comcast and CoreWeave Goes Shopping"

Release Date: July 7, 2025
Hosts: Andy Cross and Jason Moser
Podcast: Motley Fool Money

1. Comcast’s Box Office Triumph with Jurassic World Rebirth

The episode kicks off with a discussion on Comcast’s recent success at the global box office, attributed to the release of Universal’s "Jurassic World Rebirth." Andy Cross highlights the impressive revenue figures, noting that the film grossed over $300 million worldwide within its opening weekend, contributing positively to Comcast's financials.

Key Points:

• Revenue Impact: Comcast’s Content and Experiences studio segment reported $11 billion in revenue for 2024, with an operating profit of approximately $1.4 billion. While not a game-changer year-over-year, the success of the "Jurassic World Rebirth" adds significant value to Comcast’s content portfolio.

• Franchise Expansion: The longevity of the Jurassic franchise, which dates back to the original 1993 film, showcases Comcast’s strategic expansion of its intellectual property (IP) library. This move mirrors Disney’s strategy with its own franchises, enhancing the value and competitiveness of Comcast's offerings.

• Market Positioning: Andy Cross emphasizes the strategic advantage of leveraging long-standing franchises to maintain a competitive edge in the content space, which can be volatile and "lumpy." The recent performance counters the cyclical nature of revenue fluctuations in content-driven segments.

Notable Quote:

"This is terrific news... the original Jurassic park came out back in 1993." – Andy Cross ([02:03])

2. CoreWeave’s Strategic Acquisition of Core Scientific

A significant portion of the discussion centers on CoreWeave’s announcement to acquire Core Scientific for approximately $9 billion in an all-stock deal. This move signifies CoreWeave’s commitment to scaling its AI infrastructure capabilities.

Key Points:

• Acquisition Details: CoreWeave is set to purchase Core Scientific at an estimated $20 per share, though Core Scientific’s stock had fallen by about 20% to $15 at the time of the announcement, indicating market skepticism.

• Strategic Benefits: The acquisition will provide CoreWeave with about 1.3 gigawatts of gross power capacity, plus an additional gigawatt available for expansion. This vertical integration strengthens CoreWeave’s position as an AI hyperscaler by significantly expanding its data center capacity.

• Market Reception: Andy Cross speculates that while the deal is poised to proceed, the final valuation may adjust due to the aggressive initial price. Jason Moser echoes this sentiment, suggesting potential readjustments to the deal terms to align more closely with market valuations.

Notable Quotes:

"It's a power play. Through this acquisition, Core Weave is going to own approximately 1.3 gigawatts of gross power..." – Andy Cross ([08:18])

"I think the market is just saying with the share issuance so soon after Core, we became public, there are some doubts..." – Andy Cross ([08:32])

3. Oracle’s Cloud Service Price Cuts for the US Government

The conversation shifts to Oracle’s strategic decision to reduce cloud service prices for the US government by up to 75%, as reported by the Wall Street Journal.

Key Points:

• Dual Benefits: Andy Cross interprets the price cuts as beneficial for both Oracle and the US federal government. The reduced costs align with government mandates to modernize IT infrastructure while adhering to tighter budget constraints.

• Competitive Landscape: This move mirrors similar strategies by other cloud providers like Salesforce, Google, and Adobe, indicating a broader industry trend towards aggressive pricing to secure long-term governmental contracts.

• Valuation and Growth: Jason Moser points out Oracle’s substantial market valuation, noting its stock has surged over the past year and is trading at 35 times earnings, nearly double its five-year average. Despite the rich valuation, Andy Cross underscores Oracle’s ambitious growth targets, especially in cloud revenue and infrastructure as a service (IaaS), projecting significant expansion by 2026.

Notable Quotes:

"I think that’s got a lot of investors interested in Comcast at least for me, those of us who own it." – Jason Moser ([02:13])

"They have to deliver." – Andy Cross ([14:18])

4. Stock Watch List: Samsara (IOT) and Hammet (HWM)

In the final segment, Andy Cross and Jason Moser share their top stock picks to watch, focusing on Samsara and Hammet.

a. Samsara (Ticker: IOT)

• Company Overview: Samsara operates a connected operations cloud, integrating various devices within a company's infrastructure to generate actionable data. The platform connects equipment across buildings, vehicles, and facilities, creating a comprehensive data network for businesses.

• Financial Performance: Despite being cash flow positive, Samsara continues to invest heavily in growth, with significant stock-based compensation impacting profitability. The company is valued at approximately 14 times forward sales projections.

• Growth Metrics: Recent first-quarter results exceeded expectations, with a 32% increase in revenue and a 31% rise in annualized recurring revenue (ARR). The customer base has grown to 2,638 customers with ARR exceeding $100,000, marking a 35% year-over-year increase.

• Investment Rationale: Samsara’s leadership, driven by co-founders owning significant voting power, exhibits a strong commitment to long-term growth and innovation. Andy Cross highlights Samsara’s dominant market position and growth potential as key reasons to consider it for investment, especially during market pullbacks.

Notable Quotes:

"It is a company that continues to grow and establish a fairly dominant position in its market." – Andy Cross ([16:55])

"It really does seem like this is becoming kind of the top dog at its space." – Andy Cross ([16:55])

b. Hammet (Ticker: HWM)

• Company Overview: Hammet, formerly part of Alcoa, specializes in high-precision metalworking, supplying 90% of all structural and rotating aero engine components for the aerospace, transportation, and energy markets. The company produces high-end precision airfoils, forged wheels, and chassis for commercial trucking and automotive sectors.

• Performance: Hammet’s stock has doubled over the past year and surged nearly 50% since being recommended by the Motley Fool’s Stock Advisor team. The firm boasts robust competitive advantages, including patented technologies and a strong client base.

• Opportunities: The energy sector presents significant growth opportunities for Hammet, particularly in supplying blades for engine turbines that power data centers.

• Investment Considerations: While Hammet’s current valuation is steep, Andy Cross expresses confidence in its long-term potential, suggesting that a market correction could provide an attractive entry point for investors.

Notable Quotes:

"It's a nice business, it just has to go though the rule breakers team over in Stock Advisor." – Jason Moser ([17:30])

"I just want to see, I'm not going to criticize anybody for adding this great business to his portfolio." – Andy Cross ([18:00])

Conclusion

Andy Cross and Jason Moser wrap up the episode by reiterating their positive outlook on the discussed companies despite market volatilities. They emphasize the importance of strategic acquisitions, competitive pricing, and robust growth metrics in driving long-term investment success. Listeners are encouraged to consider Samsara and Hammet as potential additions to their portfolios, especially during market downturns.

Final Remarks:

"Patience tends to pay off 100%." – Andy Cross ([19:01])

Disclaimer: The hosts remind listeners that the Motley Fool may hold positions in the stocks discussed and recommend conducting personal due diligence before making investment decisions.