The Investing for Beginners Podcast - Your Path to Financial Freedom

Recent Stock Crashes: What the 🤯 Just Happened

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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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ADVICE

Be Cautious Buying Turnaround Stories

Don't rush to buy deep-value names that are losing share; wait to see turnaround evidence under new management.
Watch several quarters for improving operational results before adding to positions.

insights

INSIGHT

Chipotle: Demographics And Guidance Hurt

Chipotle blamed lower visits from households under $100k and higher labor costs for weaker comps.
The market punished the company for low comps and cautious guidance despite solid revenue growth.

insights

INSIGHT

Beef Prices Aren't Always Immediate Pain

Food-cost excuses can be overstated because large chains hedge or contract protein prices.
Menu pricing and long-term supplier contracts blunt immediate commodity shocks.

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Why are stocks crashing after earnings?

02:48 • 47sec

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What happened with Fiserv's 40% drop?

03:35 • 2min

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How Fiserv's core banking and Clover work

05:23 • 46sec

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Why Fiserv's guidance and growth disappointed

06:08 • 2min

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Is this 'empire building' or necessary restructuring?

08:09 • 3min

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What signals warn of empire building?

11:00 • 3min

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Should value investors buy Fiserv after the drop?

Why did Chipotle fall 20-25% after earnings?

23:00 • 1min

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Is consumer spending at restaurants weakening?

24:23 • 2min

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Are Chipotle's issues company-specific or industry-wide?

26:31 • 2min

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Are supply-cost excuses valid for Chipotle?

28:17 • 5min

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How to evaluate restaurant KPIs and TAM

33:09 • 4min

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Why did Duolingo drop despite strong quarter?

37:20 • 2min

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Is Duolingo profitable and still growing?

38:51 • 2min

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Are investors fearful of AI disrupting Duolingo?

41:15 • 4min

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Can AI replace niche apps like Duolingo?

45:12 • 5min

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Is the AI narrative overblown for some businesses?

You can find more resources and tools at einvestingforbeginners.com.

In this episode, Andrew and Dave break down the recent volatility in the stock market, focusing on why certain stocks are crashing after earnings releases.

They dig into the stories behind big drops at companies like Fiserv, Chipotle, and Duolingo, exploring whether these moves are justified and what investors can learn from them.

They also debate the impact of AI on business models, the importance of understanding a company’s core strengths, and why sometimes the market’s harsh reaction is warranted.

Topics Covered:

Why stocks are crashing after earnings releases
The story behind Fiserv’s 40% drop
How to spot “empire building” and why it’s risky
Lessons from PayPal’s struggles and turnaround attempts
Chipotle’s earnings miss and the restaurant industry landscape
What’s really happening with consumer spending at restaurants
Duolingo’s growth, profitability, and AI “threat”
How to evaluate young, high-growth companies (and their management)
The role of “moat” and competitive advantage in long-term investing
Is the AI narrative overblown for some businesses?
How to keep your cool when stocks drop 20%–40%

Timestamps: 00:00 Introduction: Why are stocks crashing?
01:39 Fiserv’s 40% drop and business breakdown
04:10 What Fiserv actually does (banking tech & payments)
09:00 Empire building, PayPal parallels, and management mistakes
12:00 Key metrics: revenue, margins, ROIC
17:00 Excuses vs. reality: beef prices, consumer spending
24:00 Broader economic signals: layoffs, Visa/Mastercard data
30:00 Duolingo: growth, profitability, and AI worries
33:00 Capital allocation and management track record
36:00 AI: threat or opportunity for niche apps?
42:00 How to evaluate conviction, moats, and long-term outlook
45:00 Wrapping up: learning from market reactions and avoiding panic

Resources Mentioned: Visit einvestingforbeginners.com⁠ (for calculators, tools, and more)

Have questions or want your story featured? Email the show or comment below. Your feedback shapes the podcast!

Remember, invest with a margin of safety—emphasis on the safety. Have a great week, and we’ll talk to you next time.

Timestamps are generated by artificial intelligence, and are not 100% accurate depending on the platform used for listening.

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