Motley Fool Money — "ETFs are for the Memes (again)"

Date: October 9, 2025
Host: Tyler Crowe
Guests: John Quast, Matt Frankel

Overview of Episode's Theme

This episode dives into the resurgence of meme stocks and the re-introduction of a meme-themed ETF, analyzing their place in today’s market environment. The team also discusses Ferrari’s shift in electric vehicle (EV) strategy and related financial guidance, and, as a regular segment, “stocks on our radar,” with each analyst sharing one interesting stock to watch beyond the meme hype.

Key Discussion Points & Insights

1. Ferrari’s EV Strategy & Valuation Under the Microscope

Timestamps: [00:05]–[08:37]

Ferrari’s Update: Shares dropped nearly 15% after the company lowered its EV targets (now 20% of the lineup by 2030 vs. prior 40%) and reduced its 2030 profit forecast.
- Past 12 months adjusted operating profit: $2.1B
- 2030 target: Cut from €3.2B to €2.75B.
Is Ferrari’s Premium Deserved?
- Matt Frankel:
  “If you compare it to a GM…this is trading at something like 40 times earnings…is it worth 8x the valuation? Not really.” [02:02]
  - EV reduction mirrors broader industry trends (not unique to Ferrari).
  - Ferrari's historic outperformance (“still up by 645% over the past 10 years”) fueled by the “luxury surge” of the pandemic.
  - Now experiencing a “delayed post-pandemic cool off.”
- John Quast:
  “Any stock at the wrong price can be a bad investment…Ferrari’s only expecting a 5% compound annual growth rate through 2030. That’s not a huge growth rate.” [03:32]
  - Shareholder value: growth is modest, margin improvements are minor, and planned capital returns are low on an annualized basis.
Macro Factors at Play: Luxury Pullback or Ferrari-Specific?
- Tyler Crowe: Raises the question whether Ferrari’s issues are unique or indicative of broader luxury spending trends.
- John Quast:
  “Ferrari always has more demand than it intends to supply…It’s hard to know how big is its potential customer base…world’s billionaire list increased by 8% in 2024 and Ferrari’s only expecting 5% annual growth…” [06:09]
- Matt Frankel:
  “It’s not just billionaires who buy Ferraris… a lot of people have Ferraris finance them…for Ferraris, compared to most other cars, the used Ferrari market is very strong right now.” [07:14]
  - High interest rates and strong used market influencing demand.

2. Meme Stock Mania Returns: The New Meme Stock ETF

Timestamps: [08:37]–[18:45]

Context: Roundhill Investments is relaunching their Meme Stock ETF (“MEME”), after closing it in 2023 post-mania collapse.
- Fresh basket of meme stocks — some with jaw-dropping recent returns.
Is This Time Different?
- John Quast:
  “The launch of the Meme ETF, it’s not necessarily a predictor…that the stock market’s about to crash…a lot of euphoria in the market and there’s perhaps a lot of stocks that have gone up by an astronomical amount relative to the business results.” [10:43]
  - Stresses the importance of “always be investing,” not trying to time tops and bottoms.
- Matt Frankel:
  “I almost view this ETF as being riskier than buying individual meme stocks…you know like 80–90% of them are not going to work out well.” [11:48]
  - Suggests picking winners individually may be a better risk/reward route.
  - Notes this ETF is less “reactionary” than before, but still not compelling for him.
- Tyler Crowe:
  “I find myself—this is a looking backwards sort of ETF…trying to catch the last bit of fumes rather than identifying the next big thing.” [12:52]
  - Critiques the ETF for chasing past winners instead of seeking future breakouts.
Challenge Segment: Pick a “Real” Business from the Meme ETF
- Each contributor picks one meme ETF holding and makes a genuine business case:
 
 | Analyst | Stock | Case Made | |-----------------|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | John Quast | SoundHound AI (SOUN) | - 3.4% of ETF; first mover in AI-powered speech interfaces. - Used in cars & restaurants. - 200 patents; revenue to double (to $160M). - “There is a real business here.” [14:09]| | Matt Frankel| Oklo | - Pre-revenue nuclear reactor firm (small modular reactors). - “A lookout to 2050 stock…if they could figure out how to make these small reactors viable and profitable, massive opportunity.” [15:09]| | Tyler Crowe | Bloom Energy | - Hydrogen fuel cell manufacturer. - Provides backup/on-demand power for data centers. - “Over the past 12 months it’s actually profitable on a GAAP basis…a real business and it’s actually growing.” [17:19]|

3. Stocks on Our Radar (Less Meme-y, More Business)

Timestamps: [20:15]–[24:52]

Regular segment: panelists select one stock on their radar and explain why.

| Analyst | Stock | Rationale / Notable Points | |-----------------|----------------------|---------------------------------------------------------------------------------------------------------------------| | Matt Frankel| Target | - Trades at 10.5x earnings; yield 5.1%. - “I do not think Target is Kmart 2.0. I think this company sells a very bright future.” [20:28] - Dividend king, strong at omnichannel, currently out of favor but poised for turnaround.| | Tyler Crowe | First Solar | - “AI needs electrons”—theory. - Fastest to deploy among energy sources; biggest player in U.S. utility solar. - “If there’s somebody that’s going to deliver power to these AI data centers, I think First Solar’s going to be a big winner…” [21:36]| | John Quast | Floor & Decor (FND)| - “This is a money where my mouth is stock.” - Focused on pro customers, led by ex-Home Depot exec. - Room to double in size with store buildouts; cheaper than Home Depot. - “I think Floor & Decor has the most long-term upside.” [23:32]|

Notable Quotes & Memorable Moments

Opening on meme stocks:
“Looks like meme stocks are back on the menu, boys.” – Tyler Crowe [00:05]
On Ferrari’s valuation:
“Any stock at the wrong price can be a bad investment.” – John Quast [03:32]
On Meme ETFs:
“I almost view this ETF as being riskier than buying individual meme stocks…” – Matt Frankel [11:48]
On Soundhound AI’s business:
“There is a real business here.” – John Quast [14:09]
On Target’s downturn:
“I do not think Target is Kmart 2.0. I think this company sells a very bright future…” – Matt Frankel [20:28]
Humor break:
“I once saw a used Ferrari for $19,000 in a used car lot, but I’m pretty sure it had a Honda Civic engine in it, so I don’t know if that would still count as a Ferrari.” – Tyler Crowe [08:37]

Segment Timestamps

[00:05]–[08:37]: Ferrari’s EV plans, premium, and consumer dynamics
[08:37]–[18:45]: Meme stock ETF relaunch, panel debate, business case challenge
[20:15]–[24:52]: Stocks on our radar—Target, First Solar, Floor & Decor

Conclusion

The episode delivers a thoughtful mix of market skepticism and recognition of potential amidst the meme stock resurgence, while providing grounded stock ideas. The panelists urge caution with meme-driven investments, instead favoring businesses with true operating strength and tangible growth potential.

Note:
Skip any buy/sell action based solely on this discussion. For full disclosures and standards, see the show notes or Motley Fool’s policies.

Motley Fool Money — "ETFs are for the Memes (again)"

Date: October 9, 2025
Host: Tyler Crowe
Guests: John Quast, Matt Frankel

Overview of Episode's Theme

Key Discussion Points & Insights

1. Ferrari’s EV Strategy & Valuation Under the Microscope

Timestamps: [00:05]–[08:37]

Ferrari’s Update: Shares dropped nearly 15% after the company lowered its EV targets (now 20% of the lineup by 2030 vs. prior 40%) and reduced its 2030 profit forecast.
- Past 12 months adjusted operating profit: $2.1B
- 2030 target: Cut from €3.2B to €2.75B.
Is Ferrari’s Premium Deserved?
- Matt Frankel:
  “If you compare it to a GM…this is trading at something like 40 times earnings…is it worth 8x the valuation? Not really.” [02:02]
  - EV reduction mirrors broader industry trends (not unique to Ferrari).
  - Ferrari's historic outperformance (“still up by 645% over the past 10 years”) fueled by the “luxury surge” of the pandemic.
  - Now experiencing a “delayed post-pandemic cool off.”
- John Quast:
  “Any stock at the wrong price can be a bad investment…Ferrari’s only expecting a 5% compound annual growth rate through 2030. That’s not a huge growth rate.” [03:32]
  - Shareholder value: growth is modest, margin improvements are minor, and planned capital returns are low on an annualized basis.
Macro Factors at Play: Luxury Pullback or Ferrari-Specific?
- Tyler Crowe: Raises the question whether Ferrari’s issues are unique or indicative of broader luxury spending trends.
- John Quast:
  “Ferrari always has more demand than it intends to supply…It’s hard to know how big is its potential customer base…world’s billionaire list increased by 8% in 2024 and Ferrari’s only expecting 5% annual growth…” [06:09]
- Matt Frankel:
  “It’s not just billionaires who buy Ferraris… a lot of people have Ferraris finance them…for Ferraris, compared to most other cars, the used Ferrari market is very strong right now.” [07:14]
  - High interest rates and strong used market influencing demand.

2. Meme Stock Mania Returns: The New Meme Stock ETF

Timestamps: [08:37]–[18:45]

Context: Roundhill Investments is relaunching their Meme Stock ETF (“MEME”), after closing it in 2023 post-mania collapse.
- Fresh basket of meme stocks — some with jaw-dropping recent returns.
Is This Time Different?
- John Quast:
  “The launch of the Meme ETF, it’s not necessarily a predictor…that the stock market’s about to crash…a lot of euphoria in the market and there’s perhaps a lot of stocks that have gone up by an astronomical amount relative to the business results.” [10:43]
  - Stresses the importance of “always be investing,” not trying to time tops and bottoms.
- Matt Frankel:
  “I almost view this ETF as being riskier than buying individual meme stocks…you know like 80–90% of them are not going to work out well.” [11:48]
  - Suggests picking winners individually may be a better risk/reward route.
  - Notes this ETF is less “reactionary” than before, but still not compelling for him.
- Tyler Crowe:
  “I find myself—this is a looking backwards sort of ETF…trying to catch the last bit of fumes rather than identifying the next big thing.” [12:52]
  - Critiques the ETF for chasing past winners instead of seeking future breakouts.
Challenge Segment: Pick a “Real” Business from the Meme ETF
- Each contributor picks one meme ETF holding and makes a genuine business case:
 
 | Analyst | Stock | Case Made | |-----------------|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | John Quast | SoundHound AI (SOUN) | - 3.4% of ETF; first mover in AI-powered speech interfaces. - Used in cars & restaurants. - 200 patents; revenue to double (to $160M). - “There is a real business here.” [14:09]| | Matt Frankel| Oklo | - Pre-revenue nuclear reactor firm (small modular reactors). - “A lookout to 2050 stock…if they could figure out how to make these small reactors viable and profitable, massive opportunity.” [15:09]| | Tyler Crowe | Bloom Energy | - Hydrogen fuel cell manufacturer. - Provides backup/on-demand power for data centers. - “Over the past 12 months it’s actually profitable on a GAAP basis…a real business and it’s actually growing.” [17:19]|

3. Stocks on Our Radar (Less Meme-y, More Business)

Timestamps: [20:15]–[24:52]

Regular segment: panelists select one stock on their radar and explain why.

| Analyst | Stock | Rationale / Notable Points | |-----------------|----------------------|---------------------------------------------------------------------------------------------------------------------| | Matt Frankel| Target | - Trades at 10.5x earnings; yield 5.1%. - “I do not think Target is Kmart 2.0. I think this company sells a very bright future.” [20:28] - Dividend king, strong at omnichannel, currently out of favor but poised for turnaround.| | Tyler Crowe | First Solar | - “AI needs electrons”—theory. - Fastest to deploy among energy sources; biggest player in U.S. utility solar. - “If there’s somebody that’s going to deliver power to these AI data centers, I think First Solar’s going to be a big winner…” [21:36]| | John Quast | Floor & Decor (FND)| - “This is a money where my mouth is stock.” - Focused on pro customers, led by ex-Home Depot exec. - Room to double in size with store buildouts; cheaper than Home Depot. - “I think Floor & Decor has the most long-term upside.” [23:32]|

Notable Quotes & Memorable Moments

Opening on meme stocks:
“Looks like meme stocks are back on the menu, boys.” – Tyler Crowe [00:05]
On Ferrari’s valuation:
“Any stock at the wrong price can be a bad investment.” – John Quast [03:32]
On Meme ETFs:
“I almost view this ETF as being riskier than buying individual meme stocks…” – Matt Frankel [11:48]
On Soundhound AI’s business:
“There is a real business here.” – John Quast [14:09]
On Target’s downturn:
“I do not think Target is Kmart 2.0. I think this company sells a very bright future…” – Matt Frankel [20:28]
Humor break:
“I once saw a used Ferrari for $19,000 in a used car lot, but I’m pretty sure it had a Honda Civic engine in it, so I don’t know if that would still count as a Ferrari.” – Tyler Crowe [08:37]

Segment Timestamps

[00:05]–[08:37]: Ferrari’s EV plans, premium, and consumer dynamics
[08:37]–[18:45]: Meme stock ETF relaunch, panel debate, business case challenge
[20:15]–[24:52]: Stocks on our radar—Target, First Solar, Floor & Decor

Conclusion

Note:
Skip any buy/sell action based solely on this discussion. For full disclosures and standards, see the show notes or Motley Fool’s policies.

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ETFs are for the Memes (again)

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Summary

Motley Fool Money — "ETFs are for the Memes (again)"

Overview of Episode's Theme

Key Discussion Points & Insights

1. Ferrari’s EV Strategy & Valuation Under the Microscope

2. Meme Stock Mania Returns: The New Meme Stock ETF

3. Stocks on Our Radar (Less Meme-y, More Business)

Notable Quotes & Memorable Moments

Segment Timestamps

Conclusion

Summary

Motley Fool Money — "ETFs are for the Memes (again)"

Overview of Episode's Theme

Key Discussion Points & Insights

1. Ferrari’s EV Strategy & Valuation Under the Microscope

2. Meme Stock Mania Returns: The New Meme Stock ETF

3. Stocks on Our Radar (Less Meme-y, More Business)

Notable Quotes & Memorable Moments

Segment Timestamps

Conclusion