In this podcast, Motley Fool Chief Investment Officer Andy Cross and senior analyst Jason Moser discuss: Jurassic World Rebirth ders for Comcast. CoreWeave finally gets it done for Core Scientific.
Oracle makes a deal with the federal government. Two stocks to look at if the market pulls back: Samsara and Howmet Aerospace.
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This podcast was recorded on July 07, 2025. Andy Cross: Dinosaurs roar for Comcast while CoreWeave makes an acquisition. Motley Fool Money starts now. Welcome to Motley Fool Money.
I'm Andy Cross, joined by Motley Fool's Senior Analyst and advisor Jason Moser. Jason, happy Monday. Jason Moser: Happy Monday, AC. Good to see you. Andy Cross: Good to see you. Thanks for being here.
We got confirmation today that CoreWeave is buying another AI Data Center company, and Oracle is cutting cloud prices for Uncle Sam.
We'll also talk two companies we're keeping an eye on if the price is right.
But, Jason, let's start with the summer movies, Universal's Jurassic World Rebirth reportedly brought in more than 300 million globally this weekend, giving a nice wind to Comcast, the parent owner of Universal.
This continues that strong summer at the box office that included how to train your dragon also from Universal and Apple's F1. Jason, is this good news for long suffering Comcast holders me.
Jason Moser: [laughs] It's not bad news. Most certainly it's not bad news. Now, Comcast content and experiences studio segment brought in $11 billion in revenue in 2024, along with $1.
4 billion in operating fits. This isn't something from the revenue side that is a tremendous needle mover, but maybe it's a needle mover to the extent that we would say the same thing for Disney.
This is the content space that can be very lumpy some years are better than others.
If you look at the same segment, the content and experience, the studio segment, we talked $11 billion in revenue in 2024. That was $12. 3 billion in 2022. It ebbs and flows. But this is terrific news.
I'm amazed. The original Jurassic Park came out back in 1993. They have pulled a Disney to an extent and have really expanded and stretched out this IP library.
I think that is a good sign for Comcast holders. Andy Cross: Jason, 100%. I see this again, this Comcast stock has not done that well over the past couple of years. It now yields 3.
Of course, we have the spin off, the spin out of the media perties called Versant later this year, where they're going to spin off CNBC and USA, MSNBC, the Golf Channel, and a few other perties.
I think that's got a lot of investors interested in Comcast, at least for me, those of us who own it.
But this is the seventh film franchise of the Jurassic franchise, and that franchise is worth $6 billion. It is a Disney play, Jason, because they're using that in their IP.
They're using the theme parks. I saw motions all around the world, all around the cable perties for the Jurassic rebirth movie.
They were showing older Jurassic movies on some of those cable perties this weekend.
I think from that perspective, it does help build that franchise out, and it's going to be a very competitive summer. Disney itself has its fantastic four coming out this summer.
We have the much anticipated Superman movie from Warner Brothers coming out this year, but I think it does help build out that franchise that has become more and more valuable to those universal theme parks, including the one that just opened up this year.
Jason Moser: No question. This also plays into that summer blockbuster. We always look to see what the summer blockbusters are going to be.
I just think it's noteworthy these results, particularly given the tepid reviews that the movie's gotten.
I haven't seen it, and I take criticisms with a grain of salt, but 51% on rotten tomatoes and a cinema score of B from the opening weekend audience.
That's not lighting the world on fire from a critics perspective, but ly the audience loved it.
Andy Cross: Also, Jason, interesting notes over the weekend that Netflix, with its 300 million rs, they said at the Anime Expo in Los Angeles this weekend that more than half its rs now watch Japanese anime.
I found that interesting just because it continues to show the power of the Netflix globally as a brand, and one reason why they're along with YouTube, one of the most valuable media perties out there.
Jason Moser: We've always said they do such a good job with that data.
Personally, I'm not an anime consumer, but I think this is a great example for investors, where it's not necessarily wise to extrapolate one personal taste into a potential idea, just because it's not something that you or eat or watch, it doesn't mean there isn't an opportunity there, and that 50% number globally, really does tell us something impressive Netflix's market position.
Andy Cross: 100%. When Motley Fool Money returns, CoreWeave goes shopping. AI infrastructure company CoreWeave announced that it will buy Core Scientific for around $9 billion in an all stock deal.
That's $20 per based on CoreWeave stock. Now, s of Core Scientific Jason are down around 20% today to 15, so the market's sensing something here.
Jason Moser: This is an arms race we haven't seen in some time. Companies are just rushing to build out their AI capabilities, and this is just another sign of that.
But I think it's really noteworthy that Core Scientific s being down so much today. There can be a number of reasons why something that might happen.
Investors don't think that it will go through, perhaps another bidder comes in.
But, AC, I wonder if this doesn't have something to do with the deal structure itself and what it's saying the market's perspective on CoreWeave, because that nine billion number that's being bandied, let's make sure we understand.
That's just based on the July 3rd price. Core Scientific holders are going to receive 0. 1235 s of CoreWeave for each of Core Scientific that they hold.
But as noted in the release, and this is important. The final value will be determined at the time of the transaction closed. That's not until later in Q4, so I don't know.
Do you think this is a glass half empty view on CoreWeave and whether they can hold their valuation. Because the stock has been on fire since it went public.
Andy Cross: It went public just this year, and the stock's done just fantastically well, and Core Scientific has done very well, although it has a little spotted history.
It's one of those sparks back in 2021 that when it came public out there was $4 billion, and it basically lost almost 100% of its value, had to declare bankruptcy, defile from the, came back to the public in January 2024.
Actually, CoreWeave tried to buy them last year for $6 per. Now they're paying far more for that. It does give CoreWeave the vertical integration, Jason, that I think that they need to build out.
They're going to add 9 or 10 AI data centers of Core Scientifics give them massive gigawatts of capacity.
As CoreWeave is trying to build out its own AI data centers, it does need to continue to build out that capacity.
CoreWeave is Core Scientific's largest tenet, so it makes sense from a vertical integration perspective.
But I think the market is just saying with a issuance, so soon after CoreWeave became public, there are some doubts at what price they're going to have to get Core Scientific into the CoreWeave family.
Jason Moser: Exactly. I certainly understand the market's enthusiasm around CoreWeave. When you're selling yourself as the AI hyperscaler.
There is something to that, and this is ly a company that's playing a big role in the space. They just reported revenue growth, 420% in this most recently reported quarter.
But again, and you're right, vertical integration, this is going to be something that really gives CoreWeave more power over its platform and to that power. This is a power play.
Through this acquisition, CoreWeave is going to own apximately 1. 3 gigawatts of gross power, along with the opportunity of one plus gigawatts of potential gross power available for expansion.
A gigawatt is a lot of power, AC. That power is a medium sized city, and you think the Hoover Dam. Hoover Dam, one of our biggest hydroelectric generators here in the country.
That's responsible for two gigawatts of capacity. You can see how this could really impact CoreWeave if it goes through. Andy Cross: Prediction time, do you think it's going to go through.
Do they have to lower the price, readjust the deal terms. You think, Jason. Jason Moser: I think it's going to go through. I think that bably the market's enthusiasm is going to remain for Core.
You think the stock will ebb and flow here a little bit. My suspicion is it'll go through.
Bably not going to end up at that $9 billion valuation at the end of the day because that is pretty extreme for a company Core Scientific. That's 18 times full year revenue in 2024.
We might see some change in the price there, but my suspicion is it'll go through.
Andy Cross: There's definitely some synergies there and some cost savings, but I think it'll go through, too, but I do think they'll have to readjust the terms. Jason Moser: [laughs] Exactly.
Andy Cross: Next up on Motley Fool Money, Oracle gives Uncle Sam a deal.
Let's move over to news that Oracle is cutting cloud service prices for the US government by as much as 75% as reported this weekend by the Wall Street Journal. Jason, who's a winner here.
Is this an Oracle beneficiary, a US federal government beneficiary or a little bit of A, a little bit of B. Jason Moser: I'm going to walk the fence here and say a little bit of A, a little bit of B.
It does feel both win somewhat here. This feels a bit taking a page out of the book of Bezos. He was always known for driving down those prices in so many cases.
He's got that quote, "Your margin is my opportunity. " He's taking that Uber long-term view.
AC, I think for federal agencies, they're under this mandate to modernize while also managing tighter budgets at the same time.
So the old saying cash is king, I think, in this case, it seems maybe cost is king, and we're seeing other cloud viders the same lead, Salesforce has done the same thing in regard to Slack, Google, Adobe.
This isn't anything necessarily new. But then I think for Oracle, these discounts can help lock in really multi year contracts. That offers more stability for their model and revenue prediction.
If they can extend those relationships, then you can start talking a bit maybe exercising a little bit more pricing power down the road if they do a good job.
I can see both parties benefiting from that. Andy Cross: I thought this was a little bit more beneficiary for Oracle when I first started studying it.
But then I think the GSA, the General Services Administration is starting to shake their big stick here to try to get some pricing out of some of these big players.
It is interesting to me that this is for the licensees, not really for the subscription, and it goes through November. The pricing option goes through November of this year.
It does give Oracle a foot in.
It's really the first deal the GSA cut for government wide solutions, including lots of areas where Oracle and other cloud titans vide some of those services and compete very heavily.
I think it's just more evidence of CFO Safra Catz, becoming more and more competitive, trying to push Oracle into.
Ly Oracle has had some nice beneficiaries here in the and in their as the stock is gone really well. It's up 60% the past year or 40% year to date, Jason. It's north of a $600 billion company.
Thirty five times earnings. That's almost two times its five year average. What do you think Oracle, the stock going forward. Jason Moser: I'm glad you brought that up.
It does seem a little bit of a richer valuation, but going back to Safra Catz, he's looking at fiscal 2026 targets here, cloud revenue growth jected to grow from 24% to over 40%.
Then that IAAS, that infrastructure as a service. That growth there is jected to hit 70%. Anytime you see valuations that, you have to just step back and say, why is the market doing that.
Where's the growth. I think that's where they're seeing some of that growth. Now they just have to der. Andy Cross: I think so, too.
I do, again, this licensing play because as they continue to push more subscription, this does get into the core part of what Oracle has done for so long and done so well for so many years.
I think it is a nice foothold for Oracle.
I guarantee that GSA is going to be issuing lots of different pricing asks of lots more viders as they continue to manage their own foot as they push toward to be a little bit more nological savvy at the federal government.
Finally, today, Jason, stocks are down a little bit, but passed through all time highs last week. Let's end things with two stocks that we're keeping fresh on our watch list if the prices are right.
What are you looking at. Jason Moser: Everybody loves stock ideas, AC. Andy Cross: Of course. Jason Moser: One that I just continue to keep my eye on is a company called Samsara. Ticker is IOT.
It's now a $22 billion company, and Samsara operates its Connected Operations Cloud, which is a software platform that connects all of the devices that a company has and its buildings, its equipment, its cards, and other facilities.
The platform then establishes this massive network of data and information specific to that company. Now the company's still working its way to fitability.
Nically, it's cash flow positive, but stock-based compensation more than eats that up, which isn't uncommon for a company at this stage of its life cycle.
It's around 14 times forward sales jections today. Now, when I wrecked this company in the trend service back in the beginning of 2023, it was at 13 times.
It's been a bit of a bumpy ride, and the stock has pulled back a little.
But when you look at the fundamentals of this, they just reported first quarter results that exceeded all targets that leadership set a quarter ago, revenue up 32% annualized recurring revenue up 31%.
They have 2,638 customers with ARR over $100,000. That's up 35% from a year ago. It is a company that continues to grow and establish a fairly dominant position in its market is what it seems.
It really does seem this is becoming the top dog at its space. I think it's also a company that possesses a lot of those hidden gems traits.
Those principles that our CEO Tom Gardner loves, he's so fond of. You get reasonable, remarkable growth into expanding, check. Led and owned by true long-term believers in the company, check.
This is a company that is led by co-founders Sanjit Biswas and John Bicket. They own almost 70% of the voting power in a relentless curiosity toward bold nical exploration.
That is a double check for a company.