Mmining companies are bringing manufacturing jobs back to the US after so much uproar in global supply chains over the past two years. In this segment of “The 5” on Motley Fool Live, registered on 23 november, Fool Taylor contributor Carmichael and Jason Hall explain why Taylor thinks the online recruiting firm ZipRecruiter (NYSE: ZIP) could be a winner from such a change.
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Jason Hall: We’re just getting to the second question because we’ve had a really long first with some two games there. This is the one I wanted to talk about the most, maybe the second. But it’s semiconductors, which is basically what is going on. Supply chain, what happens in general. I read The Wall Street Journal today that Samsung is about to announce as if it was going to be five o’clock. I think the governor of Texas was about to make a big economic announcement. But indications and insiders apparently say the announcement was going to be that Samsung was planning to build a semiconductor plant in Texas, Arizona, and I think New York was the top three vying for it. . But that’s a $ 17 billion deployment for that particular plant. Intelligence (NASDAQ: INTC) has already announced plans to spend tens of billions of dollars in the United States. It is estimated that Intel could spend between $ 16 billion and $ 120 billion in the United States on deployments. Here’s the thing, guys. We know that the need to expand global capacity goes far beyond semiconductors alone. Many companies plan to spend a lot of money making more products in the United States, putting more products in the supply chain, distribution and warehousing, e-commerce execution, like all of that. It’s a response to what we are facing right now, but also everything that happened during the first part of the global pandemic. We couldn’t get goods out of China. China has been on lockdown and only the global supply chain has spent most of the last year on lockdown and now we can’t get everything we need due to demand. Here is the question. Taylor, I’m going to ask you to kick us off here briefly if you can. What is your favorite action that you think will win the big movement of supply chain reshuffle and much more back to North America?
Taylor Carmichael: That was a really tough question for me, Jason, because I’m not a semiconductor guy, I’m not a hardware guy, and I avoid anything that looks like a factory as an investor. But one idea that came to my mind is ZipRecruiter. This is the ZIP postal code. It is an Internet company. He helps people find jobs. They have an AI solution. Anytime you have mass movements in the job market and more and more people are changing jobs all the time. ZipRecruiter, I think they’ve got a really strong brand now and they’ve got really powerful revenue growth, 100% revenue growth. It is a small-cap company, with a turnover of around 600 million euros. They are already five percent profitable and their price per sale is PS 7. That’s cheap for a growth story. They have just been made public. They are under the radar.
Room: This company has been around for a long time, but it has played a secondary role compared to many big names.
Carmichael: Well yeah. The whole job search is huge. I mean, you think of LinkedIn and you think there are a lot of different ways to play job hunting and the way you network. I think it’s really interesting to use AI to connect people with this wonderful work that they maybe can’t find on their own or that they don’t know and so they are very successful with companies that hire them or pay for their solution to help them find a better class of hires. It’s an interesting business. I have a small investment here. It’s a light business that I like. I cheated a bit on your question.
Room: Not at all. I think this fits perfectly with the main mission of this question. Taylor, I think you took him out of the park.
Jason Hall owns shares of Intel. Jeremy Bowman has no position in the stocks mentioned. Taylor Carmichael owns shares of ZipRecruiter, Inc. The Motley Fool owns shares and recommends Intel. The Motley Fool recommends the following options: long January 2023 $ 57.50 calls on Intel and short January 2023 $ 57.50 puts on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.