Jon Quast

All of these things have been weighing on Crocs' financials for multiple years now.

But you look at it, and the Crocs brand itself is still growing internationally.

It's taken a breather in domestic markets.

They're down slightly, sales overall, but it's nothing troubling.

The margins are still really good.

The valuation is incredibly cheap, as you point out, Travis, less than seven times its free cash flow.

As you look at what it does with its profits,

It's repurchasing shares.

The share count is down about 16% over the last three years.

It's doing shareholder-friendly things with its ongoing profits.

You put it all together, and I believe Crocs does have a comeback in store.

I think it's a market beater over the next five years.

Oh, you mean the shoes.

I thought you meant the stock.

No, I do not personally own any Crocs shoes.

However, there are several pairs of Crocs shoes in the Quast household.

I want to point out that the CEO of Anthropic recently said some AI giants are taking reckless hundreds of billions, spending risks on data centers and chips.

He didn't name names, but I think that we're all knowing who he's talking about, his former employer, OpenAI.

These companies are spending a ton of money.

To Matt's point, yes, they're making revenue, they're generating revenue, but they do need money because they are burning cash.