The Investing for Beginners Podcast - Your Path to Financial Freedom

Recent Stock Crashes: What the 🤯 Just Happened

7 snips
Nov 13, 2025
Recent stock market turmoil is dissected, highlighting Fiserv's alarming 40% drop and the risks of 'empire building.' Chipotle's disappointing earnings reveal shifting consumer spending, particularly among younger demographics. The hosts debate whether Duolingo's selloff was due to AI fears or a misunderstanding of its strong metrics. They emphasize the importance of understanding core business strengths while keeping a cool head during market volatility. Lessons on evaluating young, high-growth companies are also explored.
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INSIGHT

Why Fiserv's Drop Was So Severe

  • Fiserv is plumbing for banks and a merchant payments player, so weak organic growth hit both segments simultaneously.
  • The market punished a company used to 8–10% growth after guidance showed near-term softness and a 1% quarter.
INSIGHT

Empire Building Harms Returns

  • 'Empire building' occurs when management chases new lines and loses focus on core strengths.
  • Watch revenue, margins, and ROIC sliding as red flags for overexpansion.
ADVICE

Use Three Metrics To Spot Risk

  • Monitor revenue trends, margin direction, and ROIC to detect risky diversification moves.
  • Use these metrics to judge whether new segments are diluting the firm's profitability.
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