00:00And right now we are two minutes away from the end of the trading day.
00:03Romain Vostick here with Katie Greifel taking you through to that closing bell with a global simulcast.
00:08Carol Masser and Tim Stenevich pop up on the screen.
00:10Welcome to our audiences across all of our Bloomberg platforms.
00:13That's television. That's radio. That's our partnership with YouTube.
00:16Parsing the most crucial moments of the day.
00:19Carol Masser, we had a little bit of a rebound rally here on the day.
00:22Some of the gains being given back, but green across the screen for all of the major U.S. indices.
00:26Yeah, bouncing around in a big way.
00:27We did get those Fed minutes earlier where we did see several officials, you know, a little bit more concerned
00:33maybe about inflationary pressures.
00:35Are you concerned about inflationary pressures?
00:37Yeah, I live with inflationary pressures every day.
00:41I was told.
00:42Don't you feel it still?
00:43The disinflation is happening.
00:44Who told you that?
00:46You feel that?
00:47Prices are not going down.
00:49Have you bought paper towels lately?
00:52The prices don't go down.
00:53Remember, the rate of acceleration changes.
00:55I know.
00:57Reusable towels.
00:58I know.
00:58I am.
00:58Actually, my husband, we've got lots of reusables now.
01:02No, thank you.
01:04Hey, I'm interested in the way that AI is affecting the companies that are reporting after the bell, especially a
01:11company like Booking Holdings, Avis Budget.
01:13You know, we've got people in the newsroom telling us they're using AI to book hotels, to book rooms, to,
01:19like, come up with incredible European vacations within 15 minutes.
01:22Go to Milan to see the Olympics or something like that.
01:23You know, I was trying to book something last night.
01:25Did it work?
01:26No.
01:26What did you use?
01:28Well, it wasn't AI.
01:29I was just doing it the old-fashioned way.
01:30With the chatbot on the travel website?
01:31That's why it didn't work.
01:33No.
01:33I don't know.
01:33You need a young to show you, Romaine.
01:35A young?
01:36On the agentic thing.
01:37One of those games?
01:38Yeah.
01:38A young.
01:40Anyway.
01:40All right.
01:41We are getting a lot of earnings after the bell.
01:43Molson Coors, Booking, Avis Budget, Occidental Petroleum, DoorDash, Cheesecake Factory, eBay, Carvana, Edison, and Omicom, just to name a few.
01:50As you get the closing bells here on this Wednesday afternoon, finishing off the highs on the day, but green
01:55across the screen.
01:56The S&P 500 up about six-tenths of one percent.
01:58The Dow up about three-tenths of one percent, a quarter of a percent, we'll say.
02:02The Nasdaq composite up about eight-tenths of one percent.
02:05And the Russell 2000 finishing out the day higher by about a half a percentage point.
02:09All right.
02:09Interesting.
02:10That's the small caps.
02:11Let's go back to the S&P 500, guys.
02:13Hey, most names actually, by the close, higher in today's session.
02:17317, Katie.
02:18Which one's your favorite?
02:18To the upside.
02:21I don't have favorites.
02:23I love them all.
02:24185 to the downside, one unchanged.
02:28We're getting results right now out of Booking Holdings.
02:30Speaking of travel here, the numbers, as they hit the wire, and this takes a while to pull up, looks
02:35like pretty much in line with estimates.
02:37EPS at 4880, pretty much in line with the average of street estimates, $2.2 billion, just a nudge higher
02:43than what the street was looking for.
02:45Excuse me, that's the EBITDA number.
02:46Revenue is $6.35 billion, just a nudge higher than the average of street estimates of $6.13 billion.
02:52And gross bookings, $43 billion.
02:54The street was looking for $41.99 billion.
02:57So just slightly above the average of street estimates.
03:00Not a whole lot of pop in the shares there, but we're going to dive deeper into it, Katie.
03:04No, you can see the shares higher by about nine-tenths of a percent aftermarket.
03:08Not too much movement, especially when you consider the magnitude to which shares have fallen so far this year, Tim.
03:14I mean, when it comes to the total return basis, down by about 20 percent or so.
03:18But you can see now starting to move a little bit more as traders digest some of these figures.
03:23Glenn Vogel trying to get ahead of the narrative that generative AI is a threat and instead an opportunity.
03:27In the press release, he says, and this is the CEO of Booking Holdings, quote,
03:31we remain focused on our key priorities, especially advancing our use of generative AI to enhance the value we deliver
03:37to both travelers and partners.
03:39There's that word.
03:39Sorry?
03:40Yeah, there's that word again, AI.
03:41Yeah.
03:42Well, look, I mean, if you're, you know, you have to change the narrative, I guess, or you have to
03:46talk about how you're embracing it or talk about how it's an opportunity, not a threat for a company.
03:52We see a lot of companies doing this right now when they, investors are scared of the effect of AI
03:57on their company.
03:58Yeah, you talk about it, but is it really, you know, going to be helpful or is it going to
04:01be more of a threat?
04:02I mean, right now you've got the stock just up about seven-tenths of a percent here in the aftermarkets.
04:06Again, some of the outlook from bookings, sees first quarter room nights up five to seven percent, sees year gross
04:12bookings, growth low double digits,
04:16and sees first quarter gross bookings up 14 to 16 percent, Katie.
04:22Yeah, you can see, again, now shares flat, so we're going to have to see, of course, maybe if we
04:27get some more clarity when it comes to the call,
04:29maybe that'll provide a more clear direction.
04:31But when it comes to the day that was, let's take a quick look at the sector level as well,
04:36because you can see there was a lot of breath for relatively small movements for the benchmark.
04:41Overall, energy was your outperformer on the day by a mile, higher by about two percent utilities, your big loser,
04:48down about 1.7 percent.
04:50Well, let's go back to the travel space and take a look at rental car company Avis budget.
04:53Those shares down about seven and a half percent.
04:55The company missing on revenue in the most recent quarter, 2.66 billion.
04:58The street was looking for $2.74 billion, a net loss as well, with the company saying that reflects a
05:05$518 million asset impairment.
05:08The company, though, did say it's per unit fleet cost down about 21 percent.
05:12But here's your forecast for the full year.
05:14The company says adjusted EBITDA, a range of $800 million to $1 billion.
05:18The top end of that range is below the average of street estimates.
05:21All right, let's get a read on the advertising and marketing world.
05:24Omnicom out with their latest results.
05:26We're seeing the stock move a little bit here in the aftermarket.
05:28Fourth quarter revenue, folks, that was a beat, $5.5 billion versus the street estimate of $4.52 billion.
05:35Fourth quarter adjusted EPS a little bit light by two pennies, $2.59 a share versus an estimate of $2
05:41.61.
05:42And you can see shares of Omnicom, they are down about 1.25 percent here in the aftermarket.
05:48All right, let's go to some specific stocks on the move.
05:51In fact, this one, we were breaking down the earnings after the close yesterday, and this was a top gainer
05:55in both the S&P and the NASDAQ 100.
05:57We're talking about cadence design systems, finishing the day up about 7.6 percent.
06:03The company reported fourth quarter results that beat expectations.
06:06They gave an outlook that is seen as positive.
06:08Wall Street's been weighing in throughout the day.
06:11Morgan and Piper Sandler, Morgan Stanley, that is, and Piper Sandler lowering the price targets on the stock.
06:16Rosenblatt upgrading the stock to a buy and raising its price target to $3.60 from $3.35, stock closing
06:21at about $305 a share.
06:24Let's move on over to Wingstop because that one.
06:27Oh, I love this.
06:29So that's my gift to you.
06:30Okay.
06:31You're welcome.
06:32All right, Wingstop up about 10 percent.
06:34It was up as much as 20 percent intraday.
06:37This is, of course, the restaurant chain specializing in chicken wings, reported adjusted earnings per share, and total domestic comp
06:43sales growth for the fourth quarter.
06:45That beat consensus estimates.
06:47The result's kind of a welcome surprise, if you will, after analysts had warned that the chain's heavy exposure to
06:52lower-income Hispanic and younger consumers groups that have pulled back the most on dining out could weigh on results.
06:58But this one, definitely an outperformer.
07:00And, guys, we have some more earnings.
07:02We do.
07:02Two notes.
07:03So Wingstop just opened in Hoboken, so that's huge.
07:05Also, we're getting DoorDash earnings right now.
07:08They see first quarter marketplace gov between $31 billion to $31.8 billion.
07:15That is a red headline on the Bloomberg terminal.
07:17The estimate had been for $30.75 billion.
07:21When it comes to their fourth quarter EPS, it looks like that did miss estimates pretty materially.
07:26$0.48, that was the figure for EPS for the fourth quarter.
07:30The estimate had been $4.55.
07:32When it comes to revenue, also a slight miss there.
07:36When it comes to the first quarter outlook for adjusted EBITDA, $675 million to $775 million.
07:44That is a big range, and it's actually below the estimate of about $800.1 million.
07:49You can see the shares reacting right now, currently lower by about 5%.
07:53Okay, I'm looking at shares of eBay.
07:55They're higher by about 3.4%.
07:57The company out with its latest results, but also some news.
08:00It will buy Depop from Etsy for about $1.2 billion in cash.
08:06In addition to that, fourth quarter net revenue coming in at $2.97 billion.
08:10That's above estimates of $2.87 billion.
08:13Fourth quarter gross merchandise volume coming in above estimates.
08:16Fourth quarter active buyers coming in above estimates.
08:18Fourth quarter adjusted EPS coming in just above estimates.
08:23The company did raise its dividend, and it matched Bloomberg projections.
08:27Once again, fourth quarter EPS from continuing operations beating estimates.
08:31Shares higher in the after hours ever so slightly.
08:34The company sees first quarter net revenue, $3 billion to $3.05 billion.
08:38That did beat estimates of $2.79 billion.
08:41And once again, the company is going to buy Depop from Etsy for about $1.2 billion in cash.
08:46At some point, we've got to go back and talk about what the heck's going on with Etsy.
08:49But I do want to talk about Molson Coors, the beer maker out with its earnings right now.
08:544Q net sales, $2.66 billion, relatively in line with estimates.
08:58Maybe a smidge light from the $2.7 billion average of analysts' estimates.
09:02But underlying EPS did beat at $1.21 a share.
09:06The street was looking for $1.15.
09:08I mean, overall, though, we should point out net sales were actually down by about 3% year over year
09:13in line with expectations.
09:14But, of course, this is a company that's been struggling a little bit here with a decline in alcohol consumption,
09:19particularly in certain sectors of the beer market.
09:22All right, guys, let's go to Carvana, which was on fire last year.
09:25But we've seen a bit of a different trade this year.
09:27And I see the stock down about 15% in the aftermarket.
09:31Yeah, exactly.
09:32Fourth quarter adjusted EBITDA, $511 million.
09:35That's a miss.
09:36Street was looking for $535.7.
09:39And fourth quarter revenue, $5.6 billion.
09:42That is above street estimates.
09:45And fourth quarter adjusted EBITDA margin, 9.1%.
09:47That's a miss.
09:48The street was looking for 10.4%.
09:49We'll look for some outlook on this one.
09:51But investors not pleased.
09:52A lot of short interest on this stock, too.
09:54Right, right.
09:55So we're definitely going to see some movement there.
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