Skip to main content

tv   Closing Bell  CNBC  November 10, 2021 3:00pm-5:00pm EST

3:00 pm
it's below a hundred right now it's even below 99 >> i was looking at microsoft and apple, both down session lows 1.5 to 2% it might be interest rates, might be something else. still, "closing bell's" got a lot to talk about. >> thanks for watching "power lunch," everybody. "closing bell" starts right now. a lot to talk about. welcome, everyone, to "closing bell." i'm sara eisen here at the new york stock exchange. red hot inflation translating into red screens on wall street. losses are accelerating throughout the session the nasdaq seeing the sharpest declines as we head into this final hour of trade. down 2%, tech is getting crushed today. >> it is indeed. good afternoon, i'm wilfred frost. let's have a look at what is driving the action rising 6.2% in october versus last year. the fastest pace since 1990. fuel oil prices were up more than 12% for the month
3:01 pm
speaking of fuel, energy, the worst performing sector today as oil and natural gas pull back, tech also falling hard and evs are a bright spot. rivian surging on its first day of trade after pricing above its initial price range. 59 minutes left of this session of selling >> we are going to be all over the market pullback throughout the show also coming up, is inflation impacting the travel sector? the ceo of air bnc joins us to discuss what he's seeing ahead of the holiday season. plus, streaming, parks and the box office will be top of mind when disney reports earnings after the close we'll find out whether today's results can bring some magic back to the stock. let's start with the big stories we're watching mike santoli is tracking the market action and looking at the impact of today's red hot inflation rate and phil lebeau has details of rivian's blockbuster ibo start us off with the broader markets not far from the session lows as we stand >> market tried to kind of
3:02 pm
absorb the hot inflation number with some equanimity that allows a 30-year treasury auction we do have bond yields lifting also keep in mind in market that was primed as we came into the week to probably cool off if it wasn't just going to go into a more wild, unstable tightened belt we are a little more than 1.5 below the intraday high. we set that about an hour and a half after that great jobs report on friday morning so that was about 4718 you can see we're still just kind of curling lower from the upper end of this six-month range. if you wanted to talk about what the bottom end of that six-month range is it's right there. you're talking about still pretty routine but it is being driven by some of the biggest names and some of the ones that were up the most in the nasdaq. we'll get to the tech stock impact take a look at the effect of the cpi number today continuing that bid in what you would call inflation protection so this is the market implied
3:03 pm
five-year inflation rate going out those five years so this is essentially 315, it's basically the high for the last 15 or 20 years or so always want to point out, this is the high previous to that this is after the 2009, 2010 kind of period where we had that recovery, and oil prices were still going up this was not an accurate prediction of what was going to happen over the next five years. the point is this is not some kind of, you know, clairvoyant expectation of what inflation's going to do, but it shows you that people are worried that in fact we could overshoot. why might inflation data continue to surprise the upside or at least have a bias in that direction? this is the monthly change in the core cpi going back a year so here we are next month we're going to go against that one and then for the following three months you go against these very low numbers, which is why there's probably a tilt toward those year-over-year increases
3:04 pm
looking pretty gaudy and that's why probably you're talking about getting into next march when we're going against these hot numbers before you just have that natural mathematical restraint on cpi, and probably also why the fed is going to wait to feel like they have a clear sense of what the trend is right now, guys >> i just want to zoom in on the nasdaq it's down 2%, it's bearing the brunt of selling today technology underperforming across the board you can see where the pain is. it's widespread. it's in names that have been hot lately, nvidia, biggest drag on the triple qs, which is the ev amazon, apple under pressure microsoft, google, facebook, amd. these are all the winning stocks lately if you see the green on the screen, some strength in immediate names. comcast our parent company is holding up pretty well pepsi, regeneron if you're in big tech, it's either been overheated or stands to lose from these really hot inflation prints and the potential for the fed to raise
3:05 pm
rates earlier. >> yes >> now priced in earlier in the year >> that is the reflextrade is to just skim some off of the big expensive growth stocks. the average stock in the s&p is down let's say two-thirds as much as the s&p itself is because of the impact on the big tech stocks. i would resist, though, looking at the absolute moving yield and saying that fully explains what's going on in the nasdaq. because the 10-year yield, 154 today. we were at 154 october 5th i think and the nasdaq's up 9% since then so clearly it's not a one-to-one relationship but you'd rather kind of hold onto your cyclicals and study your expensive growth stocks >> kudos to doordash holding onto 13% of gains today in light of the broader tech selloff. let's get to the big ipo news of the day. it's a bright spot in this down market ev company rivian soaring on its trading debut. phil lebeau's got the details for us hi, phil
3:06 pm
>> hey, wolf rivian shares trading just under $100 right now now, that is down from earlier when they started trading today but up from $78 which was the ipo price. and the market cap roughly in line with where general motors is right now they haven't even turned a profit in the third quarter they expect to lose up to $1.28 billion revenue in the third quarter and they've said it could be anywhere between zero and a million dollars. they're just starting to deliver vehicles right now those vehicles are part of the optimism that's out there with investors right now. they have an order for 100,000 electric delivery vans that they plan to sell to their chief shareholder, which is amazon so those deliveries start this quarter. and, again, the 100,000, that's the order now. but i've been told that's likely going to grow over time. then there is the electric pickup truck and the electric suv. the r1t deliveries have already
3:07 pm
begun. the r1s orders will begin this order. that's a small order bank compared to what others are saying you should see in the electric vehicle space but, again, they're just starting out nonetheless when you take a look at market caps right now, rivian versus tesla, general motors and ford, there you see they're basically at the same level as gm right now, way, way, way far behind where tesla is. and nobody's sure what will happen in the future will their market grabcap grow e day to rival tesla's you've got two shareholders who have had a very good day in terms of this stock. one of them amazon which has a 20% stake in rivian. that stake now worth about $17 billion. then you've got ford, right now comes out to around $10 billion for ownership. rivian big day today, now trading just a little over $101. guys, back to you. >> and, phil, clearly, relative
3:08 pm
to all sorts of traditional metrics day one's market cap is just enormous. that said compared to the sort of tesla and other ev stocks of this world, you can start to justify it when you talk about those orders relative to a lot of the other long-tailored names. those orders feel very real given that they come from amazon, a shareholder, not just from people putting small deposits down, as was the case with tesla four, five, six years ago. >> correct and that's why people are looking at the electric pickup and the electric suv and they're saying, wow, they only got $55,000 yes, but they have 100,000 orders from amazon, which is the largest shareholder in the company or of the institutional shareholders and they're going to order more. i've heard this from numerous people i mean, i would be stunned if we do not see more orders from amazon in the future that's a lot of where the optimism is coming from when
3:09 pm
people look at rivian right now. >> phil lebeau, thanks so much rivian touching $100 billion in market cap earlier, about 85 billion as phil showed after the break upstart's downturn the lending company has been on fire this year but falling sharply despite strong earnings. we'll speak with the company's ceo about the pullback and the demand he's seeing for loans you're watching "closing bell" on cnbc. ♪
3:10 pm
the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility.
3:11 pm
join the pursuit of outperformance at pgim. the investment management business of prudential. november 10th join cnbc's "your money. register now at
3:12 pm
it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. welcome back the nasdaq getting slammed today
3:13 pm
and fintech company upstart is among the biggest decliners. the company posted a beat on the top and bottom lines and gave better than expected guidance for q4 the stock has skyrocketed this year rallying more than 500% joining us now for a first on cnbc interview is upstart's ceo dave girouard. thank you for joining us here a big picture question just to remind everyone exactly what you do and that is to sort of partner with banks as opposed to challenge them and help them deliver more loans at better prices and better profitability. >> yeah. we describe ourselves as an artificial intelligence lending platform so we're a fintech company that has chosen to cooperate and partner with banks rather than to compete with them so we use sophisticated risk models and a lot of technology and automation to create a better consumer product but one that's also more inclusive and more profitable for banks.
3:14 pm
>> and the extraordinary overall top-line growth that you've seen over the course of last year is driven by what, you signing up more banks or loan growth taking off? it's disruption but via partnering with those banks? >> yeah. it really means more consumers getting loans and more banks and credit unions on our platform. but the primary growth driver for upstart is when our models get more sophisticated, more accurate it tebnds to mean that the funne throughput is more efficient and we grow. so that sort of fundamental driver of growth is who we are as a company and what explains our ability to both grow very quickly but also do it profitably which is a very unique combination in fintech >> the numbers crushed it. loan volumes 250% revenue growth your stock, though, david, is down 20% obviously the, what, 600 or percent run-up or so this year might do that.
3:15 pm
>> the market's not been too kind to us today but what can you say we're a business, it was our fourth public report earnings report yesterday, and we tripled revenue, we tripled bottom line. we gave an accelerating sort of guidance for the fourth quarter of the year. so our business has never been stronger but, hey, the market going to do what it's going to do. we went public just under a year ago at $20 a share in the grander scheme of things, we can't be too displeased with what's going on right now. >> david, clearly rates are at record lows and we know that is only likely to rise from here. we've seen extraordinary growth buy now pay later is one area of consumer credit as of late you say you can triple the volume of loans for certain banks without loan loss rates going up in any way. do you understand when people then say to you, sorry, is this not a bit of a warning sign?
3:16 pm
could we be in a massive bubble that's building here in consumer credit >> yeah. i mean, independent of us, certainly consumers being overweighted in credit is a bad thing. but, clearly, on the macro sense, the consumer has not been healthier. so, from that sense for sure, the consumer is in great shape due to stimulus, due to lower spending during the pandemic that's all true. the core of whatever we do more is more accurate risk models it really is independent of the macro cycle, though certainly it considers the cycle. and when you can more accurately separate good risk from bad risk, you can suddenly begin to offer better rates and more approvals to people that are credit worthy, that will pay back a loan. so it's really in some sense, it's independent of where we are in the cycle though, importantly, it is helpful for banks to navigate a complicated like we saw in the last couple years with the pandemic >> i was going to ask you if inflation makes a difference as
3:17 pm
things become pricier for consumers to afford. if you see that in a pick-up in loans, especially now that the savings rates are almost back to pre-pandemic levels. >> i think we're seeing a re-emergence of demand for credit in the end, it ends up with consumers having more debt and spending more, which is the primary sort of offer to the merchant in bnpl that ends up in eventually in people being a bit over their skis i think this is all part of what our system is designed to work well with. and we're somewhat of a rate agnostic system. as interest rates go up, our system adjusts to that but we're not overly rate sensitive like you might see elsewhere. >> dave girouard, thank you for joining us today, ceo of upstart. stock down 19%, still been a huge winner. we've got just about 43 minutes left before the bell
3:18 pm
check out the nasdaq that is where you are feeling most of the selling today. and those tech stocks, the mega cap down almost 2% we recovered a little bit. the dow is down 214 points we've come off session lows. still, a red day across the board. next, does the white house have a plan to tackle inflation we'll ask the council of economic advisers member jared bernstein for his reaction to the consumer price index these are some of the top search tickers on yields are shooting up a bit 155 there. tesla makes the list up 1.5 rebound from some of the action lately rivian with a 32% surge in its market debut coinbase under pressure after earnings we'll be right back. strengthening client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to for a prospectus containing this information.
3:19 pm
read it carefully. i'll shoot you an estimate as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at
3:20 pm
kenan! hash-tag high thryv my friehey kenan! looking good. feeling good. i just found all these cars on autotrader. wow! now wait for the best part there microwave. a dealer is gonna deliver this car to our home. never leave home, never leave home! woo, it's here! there's one thing... i can't do from home. drive! someone stop him! kenan! catch ya later, refrigerator!
3:21 pm
inflation showing no signs of cooling down. the consumer price index jumping by 6.2% last month that is its highest level in
3:22 pm
more than 30 years the record data comes as president biden is set to deliver remarks at baltimore's port in the next hour about strengthening supply chains and the benefits of his recently passed infrastructure bill let's bring in jared bernstein, a member of president biden's council of economic advisers joins us from the white house north lawn jared, welcome, nice to see you. >> you too nice to see you. >> so you guys were betting that inflation would be temporary and start to calm down it's doing the opposite. how problematic is this number for you? >> well, it's obviously a very important question today and the president started out the day by saying the following. inflation hurts americans' pocketbooks and reversing this trend is a top priority to me. now, if it's a top priority to him, that makes it a top priority for his economics team. we have a multifaceted approach that we have been implementing now for weeks. the president, with considerable foresight, weeks ago set up a supply chain task force. i'm a card-carrying member and some of the work of that
3:23 pm
task force, this stuff happens at a very granular level so it's not top-line headline news, but it's already having positive effects. we're seeing greater throughport of containers in ports of long beach and l.a. and increasing vaccinations. because the progress of the economy is the progress of the virus. and the idea that about 900,000 kids got vaccinated in the last week is also going to be helpful in getting us to the other side of this crisis >> but it's not helpful for inflation. and i understand that you guys are working to fix the supply chain bottlenecks, which are a huge problem but with today's data showing wages are rising, rents are rising, the cost of services are rising it's not just those issues at the ports. doesn't that worry you >> i think the way to look at this is you really have to
3:24 pm
diagnose at least a significant part of the current inflation. that comes from the fact that when covid hit, there was a massive shift from goods demand -- i'm sorry, from in-person services demand to goods demand people stopped eating out, they stopped going to hotels so then their savings went up. and relief helped lower and middle-income families be able to get through the crisis and their businesses as well and that helped clog up the ports. so i just don't think there's a coherent story about the inflation without recognizing covid. it's not just our forecast it's every forecast i've seen has this settling down toward the second half of next year based on precisely these kinds of constraints and stressors pulling out of the system. but what i don't want to lose sight of is that as things return to normal, we're not comfortable with just getting back to where we were. this is the build back better agenda, the infrastructure agenda and that's what the president is talking about in baltimore today to make sure that we build
3:25 pm
resiliency into our supply chain so we're not back here again in a few years. >> of course, jared, most of those same forecasters had inflation calming down more already than it has done, too. so we'll see if they're right or not. i wanted to ask, though, about the infrastructure bill. how concerned are you that throwing an extra $1 trillion of stimulus will just fuel this steep inflation? >> yeah, thank you for that question because we actually have a blog on our cea website today which precisely tackles this point let me tell you what the spendout from the infrastructure bill is in its first year 2022 it's 16 billion gross, which is 0.06% of gdp less than 0.1% of gdp. that is more than paid for in the first year so in the first year, infrastructure spendout is actually deficit reducing. so there's just no way that kind
3:26 pm
of spendout pattern has inflationary impacts from the infrastructure bill. i think the challenge here is not to conflate the timing and the spendout of a bill that ramps up over time helping to fix our mass transit, our water systems, electric vehicles, broadband, our grid, builds resilience into the supply chain but does it over time. >> some are linking the pronounced inflation with disappointing results for the democratic party last week at various elections. the if inflation does persist higher than you're hoping over the next year or so, whose fault is that? >> look, i think all we can do is everything we can to follow the president's mandate, which is to take this very seriously
3:27 pm
as the constraint that it is on families' budgets while continuing to develop this ongoing robust recovery. i know that it's inflation day everywhere here today. but let's not lose sight of our labor market we also learned this morning unemployment claims are down 70% since the president took office. the unemployment rate is falling faster in 2021 through october than in any year since 1950. 620,000 jobs per month 5.6 million jobs since he got there, an historical record. one variable and it is a problematic one and i've been talking to you about what we're trying to do about it throughout our conversation today and the president's at baltimore talking about long-term resiliency fixes for that does not capture this whole economy. it was interesting in the last conversation you were just having with someone who talked about how the consumer is in good shape that has a lot to do with solid balance sheets that has a lot to do with the relief from the rescue plan. >> yeah, it has a lot to do with fiscal stimulus too, though, and
3:28 pm
monetary stimulus. and both have been overly generous and have stoked inflation. my question is what are you going to do about fuel prices? how active are the conversations inside the white house right now about doing something like releasing from the strategic petroleum reserve? >> well, those conversations are ongoing so i don't have any policy announcements for you there or even any readouts, other than if you look at the president's statement this morning he specifically referenced fuel prices and has told his team to look at whatever we can to help ameliorate that. one of the things he's talked about in the past is making sure there's no price gouging out there and making sure that some of our more concentrated industries are not moving prices in any way that's inconsistent with competitive markets >> and some of the key positions on the fed my question, jared, is isn't the
3:29 pm
president -- isn't the administration stoking the uncertainty here at a time where we have a multi-decade high in inflation, which is really the fed's job to do something about, not announcing who the next fed chair is going to be what's taking so long here >> yeah, look. i'm sympathetic to your point, sara but we've got a lot of balls in the air right now, and the president has been working really hard to make sure that these two plans get into place his job is to deliver quality jobs for the american middle class and make sure that people can take advantage of the opportunities that this robust job market isoffering to them. at the same time he told you last week i think that he is working on that, he's meeting on that, and announcements will come when he's ready to make them >> jared, thanks so much for joining us good to see you, as always >> my pleasure for more on inflation and a deeper dive into which stocks can increase profitability in this environment, head over to
3:30 pm time for a cnbc news update with rahel solomon. >> federal judge handing down the strongest sentence we've seen yet for the assault on the capitol. a 44-year-old new jersey man has been sentenced to 41 months in prison he pleaded guilty to punching a police officer the judge told him the plea was a good idea because no jury would've acquitted him after being video of the incident. he says he takes full responsibility for what he did and has nothing but remorse. lawyers for kyle rittenhouse are asking for a mistrial with prejudice after the judge sharply criticized a prosecutor's line of questioning when rittenhouse took the stand in his own defense with prejudice meaning that if the motion is granted, rittenhouse cannot be tried again. the judge has not ruled yet, saying that he wants to give prosecutors an opportunity to respond. and the u.s. postal service is asking regulators for permission to raise its price for priority mail by around 3.1% it says that the new rates will keep it competitive while also providing money to enhance
3:31 pm
reliability and expand its offerings. wolf, i'll send it back to you >> rahel, thanks so much still to come, will disney deliver a blockbuster? streaming will be center stage we'll bring you the numbers and expert analysis as soon as they cross. and later don't miss our exclusive interview with the airbnb ceo brian chesky. here's a check on yields the 10-year up to about 156. the 30-year really moving the most up to 192 following a disappointing auction. we'll be right back.
3:32 pm
what's strong with me? what's strong with me? what's strong with me? what's strong with me? what's strong with me? me? with me! hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing customers our best deals on every iphone, including up to $800 off the epic
3:33 pm
iphone 13 and iphone 13 pro. tonight, kyle rittenhouse takes the stand. the dramatic testimony in his
3:34 pm
own defense. what he told the courtroom about the deadly
3:35 pm
selloff today on wall street tech is the hardest hit on fears of rising inflation and higher interest rates the nasdaq composite down 1.65%. 263 points i will note it's off session lows which were down 343 points. if you look at where the pain is, it's in the popular big cap tech names like amazon, apple, nvidia, microsoft, facebook, amd and qualcomm some strength in tesla which is actually up today for a change it's had a tough week. comcast our parent company, regeneron, and mond least. up next we're going to talk to beauty health's ceo. plus, disney headlining a huge hour of earnings. we'll break the numbers as soon as they cross, 24 minutes left
3:36 pm
of trading we'll be right back. yeah... uhhh... doug? [children laughing] sorry about that.'s uhh... you alright? [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. get e*trade and start trading today. i promise - as an independent advisor - get e*trade to put the financial well-being of you and your family first. i promise to serve, not sell. i promise our relationship will be one of partnership and trust. i am a fiduciary, not just some of the time, but all of the time. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit
3:37 pm
♪ feel stuck and need a loan? move to sofi and feel what it's like to get your money right. ♪ ♪ ♪ ♪ move to a sofi personal loan. earn $10 just for viewing your rate — and get your money right. ♪
3:38 pm
when you hear the word healthy it always feels a little out of reach. but it's all about the baby steps. maybe it's a jump or eating something green. or taking mom to get that vaccine. ♪ healthier means bringing stuff to the folks ♪ ♪ that really need it. ♪ ♪ like help at 2 am or care that's right at home. ♪ ♪ believe it. ♪ ♪ and caring for them all means ♪ ♪ we're doing healthier right. ♪ ♪ so, let's do it all together people, ♪ ♪ 'cause this is what healthier looks like. ♪
3:39 pm
shares of the beauty health company ticker skin, skin, falling today 12% despiting beating revenue expectations it saw net sales rise 97% from last year. but investors are focusing on the change in the c-suite. the ceo will step down at the end of the year, and beauty health executive chairman brent saunders will take over until a successor is named brent took the company public back in may. he joins us now in a first on cnbc interview brent, good to have you back welcome. >> thank you, sara it's great to be with you. >> can you clarify this
3:40 pm
leadership change, which is clearly unnerving investors today? >> yeah, sure. look, i always get investors don't like surprises but this is really business as usual as beauty health we have a very strong management team i've been involved since the dspac almost a year ago. this is a long-term game, and we're in this for the long term, and we're investing for the long term and i look forward to finding a great co to add to the team. but it's business as usual and we're focused on execution, as you can see in the quarter >> yeah, no, you were supposed to -- you weren't supposed to be the ceo, brent so how long do you anticipate this will take >> yeah. there's no rush. i love being a ceo i love being an executive chairman i'm 100% committed to the company. i think the future is incredibly bright so we're going to find the right person, we're going to find someone who really adds to the
3:41 pm
current depth of our management team, who adds to the culture of our company, who fits in and really has expertise in marketing and perhaps international growth in sales, since that's such a key component of our future growth but i'm very comfortable sitting in the ceo chair i'm very comfort as the executive chairman i'm just excited about our future >> on that point about the international growth, brent, the apac growth really stood out particularly in light of some covid spikes over there. will talk us through why that was so strong. >> yeah. well, you're exactly right we have seen tremendous growth outside the u.s., asia, particularly china is such a terrific market. like you said, we see record growth there despite some draconian shutdowns because of the delta variant and covid. we can't wait to see the world continue to normalize and open up and we think that's going to happen certainly as we go into next year.
3:42 pm
great news for the pharmaceutical industry like pfizer with the antiviral. we're in good shape. cons consumers really love this experience they love this product it's 30 seconds of the best skin of your life it's ubiquitous. it works every skin type, male, female, it doesn't matter. people love it, they feel good instantly and they look great instantly. >> so with all the demand, brent, obviously the theme of the day has been inflation we are seeing such strong reads across the u.s. do you have pricing power? are you able to charge higher prices i think asp's average selling prices are a positive note in the report >> they are. and we do have pricing power we have probably one of the most democratized and affordable services in the beauty aesthetic arena. we do have pricing power we want to do that responsibly but that is something we can absolutely exercise. we did see some higher costs,
3:43 pm
particularly shipping costs impact our costs so we're going to work with our consumers and our customers to figure out a balance of how to raise those prices but i do see that happening. >> finally, brent, just because of your knowledge of the industry and your time, and i know you're observing everything going on in the pharmaceutical space around covid i was curious whether you had a take on this new moderna battle with the nih, with the u.s. government over its patents, which obviously has multibillion dollar stakes in terms of profit for moderna if the u.s. government does claim credit there. just curious what your take was. >> yeah. obviously we've been busy this week with earnings and some of the announcements we've made it's hard to weigh in specifically because it's so fact dependent, sara, of exactly what happened and who did what i'm all for credit being shared and shared appropriately but if it's a land grab, then i think the government should back
3:44 pm
off. but i don't know all the details, to be fair. >> brent, thanks so much for joining us much appreciated >> thanks, wilfred shares of affirm are lower as the company gets ready to report results after the bell. and later airbnb's ceo brian chesky will join us to discuss if he thinks inflationary pressures could impact the holiday travel season. he joins us in c anbc exclusive interview, later ♪♪ ♪♪
3:45 pm
tonight, kyle rittenhouse takes the stand. the dramatic testimony in his own defense. what he told the courtroom about the deadly shooting. >> the facts, the
3:46 pm
it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.
3:47 pm
power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools, and interactive charts to give you an edge, 24/7 support when you need it the most. plus, zero-dollar commissions for online u.s. listed stocks. [ding] get e*trade and start trading today. never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. get e*trade [ding] and start trading today. the "market zone" is sponsored by etrade. trade commission-free today with no account minimums. welcome back we have a huge lineup coming your way in the second hour of coinbase we'll get disney's earnings and
3:48 pm
instabt analysis we'll also speak exclusively with airbnb's ceo brian chesky. today we've got risk reversal advisers principle dan nathan to us let's kick things off. stocks under pressure for the second straight day after cpi data from october showed a jump in inflation the nasdaq is the worst performer of the major averages, now trading 3% from its all-time high mike, some high-profile big decline once again and we are getting stock-specific reactions continuing throughout this earnings season. but that broadened out through the day. >> i think the backdrop is the
3:49 pm
market was wound pretty tight coming into this year. we talked about all the streaks, how much it was up, the fact it was overbought, and the fact that you had this high-momentum segment of the nasdaq that really was kind of driving higher in this fairly aggressive way. there was the teslas, the nvidias and the aof cmds. bond market volatility has been elevated for weeks, and it has not really disturbed the equities very much but it was a little too much today probably to shake off entirely we have this sort of little anxious pull-back but nothing much in terms of magnitude at the index level. >> i think it's worth mentioning we did have a late afternoon treasury sale, the 30-year treasury auction and our cash actually called it a bit of a car crash investors demanded higher yields, and we saw the market react to that, the 10-year going up to 156, maybe a little less pressure there now, which is helping equities recover
3:50 pm
dan, are you worried about the action in bonds, the inflation story, what the fed's going to do >> i'm worried about the inflation story. i'm not worried about this volatility that we're seeing in the 10-year yield as it's kind of banging around. if you look at that chart i know that mike santoli's been taking a look at this it's really making this kind of triangle pattern here. there is tension building it's going to break one way or the other. i suspect breaks lower i think that first reaction to the fed's taper announcement last week was the tell here. so, fine, we have a hot cpi reading, everyone expected that. that's suggesting that maybe the fed is kind of behind the eight-ball a little bit. that's why we have this bounce but we are right back to where we were when the fed made that taper announcement just a few days ago i'm not particularly worried about the volatility as it relates to stocks, yes, if bond yields were supposed to go up meaningfully and growth doesn't materialize, that's the worst possible scenario, in my opinion. near term for stocks with the s&p up 23% and the nasdaq up 20%
3:51 pm
on the year. very near all-time highs with valuations getting extremely stretched. >> largest ipo of 2021 hitting public markets this afternoon. rivian making its debut on the nasdaq it is currently trading above its ipo price of 78 bucks. but below its opening trade of $106.75, it's still a stellar day. valuation equivalent to general motors greater than ford at these levels rivian joins a slough of largely unprofitable evmakers to go public in the recent years rivian said it will lose up to $1.28 billion in q3. do you think this is crazy, dan? or is it a buy could it be the next tesla >> i think it really is -- it says so much about themarket that we're in, in the stock market and crypto markets that you can be anointed at the opening today a $100 billion market cap essentially prerevenue if you think about what the
3:52 pm
total addressable market is for evs, fast forward it a little bit, we got rid of those first five years as tesla as a public company, all the fits and the starts and the palpitations of that i don't blame the bankers and i don't blame the company. this one is on investors the first indication on price was somewhere around 50 bucks. so here it is. and this is weeks ago when the s1 came out. so it's investors that are clamoring for this i think when we look back a few months or years from now, it'll be on investors. it's not going to be on the company's projections which are actually pretty reasonable as far as deliveries. >> mike, tesla, which of course has had a tough week, got almost negative around lunchtime when the market hit its session lows. now bouncing 3 to 4% >> sure. still a couple hundred bucks in the last couple days i think the fact that it sort of front loaded the weakness, people making room in their head space and their portfolios for another name there's a tremendous amount of urgent, aggressive money it
3:53 pm
feels it needs to participate in this massive new market segment, industry segment and there's only a handful of names that you're going to be able to force through. that's why you get these monster valuations it's very much frontloading a lot of the credit for them ultimately being successful. >> fintech stocks today, though, under pressure ahead of earnings from affirm and sofi >> they are both down big today. but also take a look at coinbase that stock is still down 7%. it's seen a bit of a hangover from yesterday you saw for the quarter, the big thing for sofi and affirm, though, to watch today, can these fintech firms live up to the valuations and some of the future growth that's been priced in since these companies went public gmc, importantly, that gmv number excluding peloton
3:54 pm
how many times people are using affirm per year. and is it able to move to more of an everyday payments app versus just that big purchase? some of the more qualitative info we're looking for some of the partnership information with amazon and shopify, for example. over to sofi, the numbers on members of the app are huge. they've ramped up advertising. so some are wondering if that has paid off also the number of products per user and the galileo acquisition. analysts are watching growth in that segment also any updates on sofi's national bank charter application that could improve some satisfy the economics on the lending side back to you guys >> kate, thanks so much for that one. dan, what do you think's triggered this affirm slide ahead of numbers and what do you think more broadly about the fintech space? >> i think the fintech space is really interesting you also have the decentralized finance part of the crypto space that's kind of nipping at their heels a little bit these are disrupting the large
3:55 pm
incumbents but then you have defi that's set to disrupt these guys. when you look at affirm right here, the stock is up more than 100% from the announcement of the deal that kate mentioned in august that they're going to do a buy now pay later on amazon. i didn't get that. listen, amazon already has the buy now pay later. maybe it was the valuation that they paid for in the same space. but i don't get the move that it's had based on the news we're expecting. i think that's why the stock is it down right now. sofi, on the other hand, has had a big run into its earnings. they are trying to democratize ipo access for retail investors. i'm going to be listening to more about what they have to say there for sofi >> coinbase down 7.5%. disappointing earnings bitcoin is also down 2.5%, which may come as a surprise if you think it is a very good hyperinflation hedge, as jack
3:56 pm
dorsey and others do >> it's up thousands a percent it's a risk asset. coinbase had a really good run into the numbers i think it's kind of fascinating. the big question is just how much of this emerging area, assuming crypto continues to be a feeding frenzy in general for capital and for eyeballs and investors, how much they're going to be able to claim. they're a profitable company robinhood down 6% today. didn't have earnings and it's pretty much at its post ipo low. in general, massive valuation judgment a lot of these groups were crowded and owned by the same people so when one of them basically gets smoked, you sometimes have to sell something else as well >> disney, biggest name in today's after-hours movers for earnings, julia boorstin with a preview. julia? >> well, sara, the big number that a.m. lists are focused on is streaming subscribers for disney plus. the ceo warned that the additions would slow to the low single-digit millions. but analysts' consensus more
3:57 pm
than 9 million subscribers projected to be added in the quarter. disney itself doesn't give guidance, but investors will be looking for any insight into the rebound at the theme park division and booking trends for next year. we're also keeping an eye on espn growth of the streaming service and also growing cost of sports rights and anything we can learn about nfl sunday ticket rights that are up for grabs. make sure to tune into "fast money" tonight where i will be sitting down with disney's ceo on a first on cnbc interview >> we look forward to that julia, thank you dan, the setup here for disney, how low are expectations for disney's subscriber numbers? what do you do with the stock? >> yeah, i think you go back to that soft announcement, it went down to 170 bucks. the stock has been trading sideways for six or seven months right now and saying that they're not particularly high that being said, we're in a market, and i know that you guys have been seeing this right after the close for weeks now.
3:58 pm
if you disappoint, there is no level that's low enough to sell the stock. so a stock like this that's underperforming in the broad market, it's underperformed many of its peers, they just got it down really one of the main pillars, i'd say this thing is stuck for a little bit the stocks are going back towards those january 2021 lows. probably near -- >> we may have lost connection there briefly with dan we'll get it back. two minutes left in the session. we are after session lows but still down significantly >> yeah, a little bit of profit taking just across the board if you look at the internals, the new york stock exchange advancing versus declining volume is sort of one to two, not quite that negative in terms of declining volume outpacing advancing. it is the average stock coming in a little bit, but it's not necessarily overwhelming take a look at some commodity indicators, the sort of general commodity index etf as well as the energy sector of the s&p
3:59 pm
they haven't made a new high in the few weeks. so it looks like if it's moderating, rolling over, in theory that takes the pressure of headline inflation, maybe one reason that even though the bond market's got yields up today, they are down from where they were a couple of weeks ago really not reacting too dramatically today to the little kind of 1% drop at the max you do see it up near 19 mentioned bond market volatility has been pretty elevated it's making itself felt at least in margins >> consumer prices shooting up 6.2% from last year. that is the strongest and fastest read since 1990. you're seeing a selloff and reaction the dow is down 0.6% utilities, steak holds and healthcare are strong. that's a defensive set there energy, the weakest link technology, communication
4:00 pm
services, the nasdaq also for its worst day in a little over a month, down 1.64%, off the session lows but still getting -- [ closing bell ringing ] concerned potentially about valuation after this has been a very strong part of the market there goes the close all four major averages in the red. small caps down 1.2% >> welcome to the "closing bell," everyone. i'm wilfred frost along with sara eisen and mike santoli, cnbc commentator we'll also have instant analysis and results from affirm, sofi, bumble, and the honest company dan nathan is still with us. and we have a senior strategist also in terms of this market action today, tesla intraday kind of really tells the whole story,
4:01 pm
which started okay selloff around 2:00 p.m., but quite a remarkable rally into the close there, closing up 4 or 5%. >> i don't think anything too radical had changed. a hot inflation number hitting a market that really probably needed to cool off a little bit. that is all it's doing so far is cooling off. you're not seeing a lot of signs of real stress flowing through, especially the cyclical areas of the market, you know, financials holding up fine. there could very well be more to go we're about 1.5 below, a little more below the friday intraday high we all celebrated the job number and now we get the offset of inflation. i wouldn't consider there to be much going on except for the lead momentum names in the nasdaq really coming off the boil >> today was an inflation day. five-year break even the market expectations at a record high. the dollar strengthened. the yield's backed off across the board. what do investors need to know if this is continuing to look like not a transitory or a
4:02 pm
temporary story on inflation, continuing to get these hot numbers? how do they protect themselves >> yeah. you know, it's certainly an inflation day, as you said keep in mind we may be towards a peak if we're not already there on inflationary pressures. we do think going forward what we'll see is parts of inflation are that t-word. they are transitory, to some extent think about energy prices, probably not going to see a repeat of the rises we've seen this year. think about areas like the auto inflation that we've been seeing could ease once these supply chain issues ease up next year as well. but there are parts of inflation that are stickier than we expect as well or perhaps than markets expect areas like wages, areas like shelter, rent, home prices, a little bit more stickier parts of inflation so net, net, we see inflation over time easing but probably remaining elevated versus pre-pandemic levels. that has some implications maybe for the fed but certainly from a sector perspective, areas like
4:03 pm
the value sectors, financials continue to look attractive. >> dan, early you mentioned the rivian's valuation seems somewhat crazy relative to traditional valuation metrics. does it scare you that broader markets are about to collapse when kind of people start to realize that or in fact the opposite? you kind of just have to start to buy into these new things >> i'd focus more on tesla north of $1 trillion market cap because that's a company that to me, i've been wrong on this the whole way up, to be frank with you. i can't get my arms around what is the fundamentals divorced from what's going on in the stock market that stock poses risk to me. rivian doesn't listen, there might be some fast money who are coming into it after the ipo. but listen to this, man. tesla has gained a half a trillion dollars in market cap in a month microsoft has gained a half a trillion market cap in a month
4:04 pm
and then stocks like nvidia, $300 billion something's broken here. so if you're talking about systemic risk, the risk is that you're seeing crowding in these names and you've just seen these parabolic moves. if you're telling me that interest rates are going to continue to go higher, think back to what the nasdaq did in q1 of this year when the ten-year u.s. treasury yield was making highs at 1.77%. the nasdaq almost went unchanged on the year after a big rant if that's what today is signaling that we are about to start that because rates are going to go higher here because of inflation worries and the dollar is going to go higher here, even if you do see crude and some of these industrial commodities come in, that can be very bad for the stock market. and if we get weak growth readings plus higher rates, then it's really bad for the stock market >> but we haven't seen that really besides today the story was that the yield curve was flattening and that treasury yields were very low. it was sort of painting a more
4:05 pm
s s stagflationry scenario >> well, that was clearly the story every time rates had come in but today you see the 10-year yield, look at it right there up 11 bits. i'm looking at amazon down 2%, google down 2%, facebook down 2%, apple down 2%, microsoft down 1.5%. my point is if you do see tesla break and you have the sort of dynamics going on in the market right here across multiple risk assets, and i think mike santoli called the vix a little perky at 19, we could be ready for a little bit of a selloff here that's kind of what i'm saying >> first of all, all those nasdaq stocks are up and nasdaq itself is up since the 10-year was at 117 and here we are at 150 we can talk about on a day-to-day basis, it seemsit's a push tall. in terms of the long end staying suppressed relative to short end and saying if in fact the fed has to move sooner than later, it's going to work, and it's going to actually restrain
4:06 pm
inflation. we don't have the stag part, we don't. it's not like it's runway growth stag was, like, high unemployment we're not going to have high unemployment so it is more about moderating growth perhaps but not necessarily kind of anything that's doom and gloom it's going to undercut the overall economic path >> mona, do you agree there's no reason to fear major economic slowdown, and it's just a case of inflation will remain hot or not? >> yeah. generally we're in line with kind of what mike just outlined there. look, we have covid cases coming down we have earnings picture that has well exceeded expectations we have a new tax regime that maybe doesn't include corporate tax hikes anymore. all this is net positive for the economy, then markets broadly. when we have to worry those bear markets, the 20% plus type selldowns, those don't usually occur unless you're in a recession or just entering a
4:07 pm
recession or when the fed is perhaps at the end of its rate hiking cycle none of those are in place, certainly not this year, certainly probably not next year as well. we still believe we're very much in the middle innings of this economic expansion so in that type of market environment, can you get volatility can you get pullbacks? yes, we haven't gotten many this year maybe next year will will be different. but those pull-backs tend to be opportunities to either position, add to risk if you haven't, diversify, et cetera. and, so, that's really the market environment we're looking at better growth moderating from current levels, returns still positive but moderating from current levels, and opportunities for pullbacks. >> we got to get to disney shares under pressure. julia boorstin with the numbers. >> sara, disney missing analysts' expectations on the top and bottom line and also in terms of those streaming subscriber numbers earnings coming in adjusted 37 cents per share versus
4:08 pm
51 cents estimated revenue's coming in at 8.53 billion total disney plus subscribers 118.1 million. analysts had been expecting 125.4 million. just to dig a little bit more into that disney plus number, subscriber growth was warned that it was going to slow. and the company added 2.1 million disney plus subs one area that was better than expected in terms of subscribers for the streaming services was espn plus. they added 17.1 million subs versus the 16.4 million estimated. and in terms of average revenue per user, disney plus average revenue coming in a little bit less than anticipated. though espn better than expected seeing a little bit of strength there in espn plus to look at what was behind that shortfall in earnings, disney
4:09 pm
parks, experiences, and products, that operating income 640 million. it was expected at more than 900 million. so it appears that in this first quarter that all the parks were open and operating those costs higher than analysts had been anticipating though we did see a 99% increase in revenue at the parks. so, looking at the comment here from bob saying this is the two-year anniversary of disney plus, that they are pleased with the success of the streaming about iz and they've seen 60% subscriber growth year over year for disney plus. they continue to manage our dtc business for the long term so i think that's going to be something we're going to be hearing a lot of questions about on the call. we do see the stock is down in after hours. guys, back over to you >> julia, very thorough. thank you so much. we look forward to your interview later. i guess expectations were not low enough when it came to those subscriber numbers and the overall earnings >> it's rare to have this company miss two quarters in a row, which is what it did. i think that the leaning of the
4:10 pm
street was that it actually would be a modest because those estimates had come down so much. parks is just a big hole right now. and i think the market's willing to give it some space on that but i'm not sure for how long. >> wouldn't we expect a bigger share price pull back? that's quite a big miss. >> it wasn't as much of a miss as julia's been pointing out relative to what the company has been saying, although maybe we didn't have an updated number, it's a stale number perhaps relative to what we expected average revenue numbers look okay, things like hulu and espn plus is a little bit of a bright spot >> down 3% is disney let's get to affirm. kate rooney's got the numbers. >> affirm with a beat on revenue and better than expected guidance also some new details on that amazon partnership let's start with first quarter revenue coming in at about 269 million. it was about 21 million above consensus estimates. earnings per share, this was a loss of $1.13. and the net loss compared to a
4:11 pm
year ago, it was 306 million and a year ago it was only about 4 million. so a wider net loss there. they say this was based on stock-based compensation and a pay break acquisition. but a very strong outlook for revenue. q2 revenue and the outlook coming above estimates the full-year revenue looking for a range of about $1.2 billion much better than expected. total merchant number here it grew from 6,500 to more than 100,000 merchants on the platform that appears to be thanks to that shopify partnership. active customers up 124% year over year. transaction per active customer was only up about 8% it looks like affirm really still just for those big purchases, gross merchandise volume gmv for the first quarter up about 84% excluding its largest merchant, which of course is peloton, or excluding peloton, it was up 138%.
4:12 pm
so, that is a key number for analysts i mentioned amazon at the top. we've got some new details about that tie-up. we knew it was the first buy-now-pay-later partner. but affirm signed a deal to be the exclusive buy-now-pay-later partner. and affirm will also be integrated into amazon's digital wallet looks like that deal goes till 2023 and as part of this, amazon is also getting certain affirm stock options. so amazon will get some of these stock options up front it looks like there are certain tranches here. they are subject to certain price targets. looks like the stock is reacting nicely here to that news, up more than 11% after hours. back to you. >> thank you so much for that one. and, mike, nice confirmation >> we asked max last time about that, and they had not signed an exclusive deal, which investors paid attention to.
4:13 pm
>> absolutely. but it is interesting how quickly could these roll off if brilliant tech companies like amazon develop the service on their own. they've got to really embed themselves in the 18 months that they have. though this is a positive announcement what i was going to say, mike, is that this is a nice jump in share price. >> it just doesn't even get you back to yesterday's close. >> we've got more earnings beyond meat just out >> a tough quarter so far for beyond meat for q3 lost per share adjusted 87 cents that is much more than analysts were projecting, a loss of 39 cents revenue coming in at 106.4 million. i will note, though, that beyond did lower its guidance a few weeks ago. it did say it would have revenues of about 106 million for the quarter. increased 143% for international. but it was offset by decreased u.s. revenues. the operating environment of course continues to be affected by near-term uncertainty related
4:14 pm
to covid-19, and it's also noting potential impact on demand levels, labor availability, and supply chain disruptions. so net revenue guidance now for the fourth quarter will will be in the range of 85 million to 110 million. that is also below what analysts were expecting and as you can see the stock now down around 9% it was lower by nearly 11% earlier. >> big miss on margins, on food service, which you would expect to be strong as restaurants open up kate, thank you very much. dan nathan, take your pick beyond meat is down 10%. disney down 3.6% on a few misses there. which one is notable for you >> well, disney is notable i think it will obviously have a greater impact on the broader market, just given the size. they missed across the board there was a couple bright spots that you mentioned espn plus. but if you look at the average revenue per user, this is one of the bear cases about disney plus in general it just doesn't compare to some
4:15 pm
of its competitors you're going to see a greater reliance on new content, it's going to be a hard one here. i like the story here. i think if you did see this thing somewhat, you know, you said that the expectations were obviously not low enough you get a lot of this bad news out of the way now you have worse than expected maybe you have an opportunity to buy this thing, filling in that gap from last december maybe near 160 or so i don't think you have to buy it here it probably comes your way >> 166 we're just under 167 right now on shares down 4%. sofi results also just out we bring back kate rooney for that kate >> hey, sara sofi with a beat on earnings and revenue here adjusted revenue coming in at 277 million versus estimates of 251.6 million. sofi also with a loss of 5 cents on eps that was still much better than expected wall street was looking for a loss of 14 cents an increase of 377,000 members
4:16 pm
to 2.9 million that was up 96% from a year ago. total products also more than doubling from last year to 4.3 million. galileo also with a strong quarter, up 80% year over year looks like they are looking for net revenue growth of about 49 to 55% year over year. stock up more than 4% here after hours. back to you guys >> kate rooney, thank you very much sofi up 4.6%, as she mentioned disney's now down 5% after hours. that's going to hurt >> well, it's going to -- there's a little bit of a valuation premium that's still in the stock, as we'll talk about in a little while, and that's been the thing you've been waiting for the numbers to improve faster it's not too surprising that there's a little more softening in the share price here because it has really stabilized in this
4:17 pm
area i think it was 159 as dan was saying several months ago. >> boy, some big moves affirm now up 14%. sofi up 6.5% we got to run, thank you for joining us up next we've got much more reaction to disney's earnings miss we're going to ask an analyst whether investors should be buying the stock on the weakness plus, the ceo of airbnb on whether increasing inflation fears could force consumers to cut back on their travel spending we're back in just two minutes here on "closing bell. at pnc bank, we believe in the power of taking steps forward. moving ahead. whatever the pace. and whatever the size. that's why we set out to help make it easier for everyone to move forward financially. with small business,
4:18 pm
personal banking, wealth, and corporate solutions that help you reach your goals and plan for the future... it's a girl! ...we're doing everything we can to help you get where you want to be. because sometimes a little help is all you need. see how we can make a difference for you at pnc bank.
4:19 pm
it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. welcome back another one crossing, bumble >> shares of bumble down more than 3% after reporting a beat on revenue but a pretty big miss on eps the estimates were for break-even bumble reported a loss of 6 cents. definitely a wider loss than expected total paying customers, that number came in at 2.9 million. that was a bit below the
4:20 pm
estimate of 3.05 million 208 to 211 million compared to estimates of 206 million shares of bumble down now 4% after a beat on revenue but a miss on eps, a loss of 6 cents where the street expected it to break even back over to you >> thanks so much for that one, frank. shares of disney are down about 5% that missed on both the top and bottom lines joining us now does this 5% pullback make sense to you >> i think it does i think for me, though, the focus should be less around disney plus. it actually came right in line with mr. chapeck's guidance in september certainly at the lower end of that mid-single digits. but optically it looks worse
4:21 pm
because consensus hadn't brought numbers all the way down so that was up 2 million if you take a step back, the last quarter that we had, they had a very strong content slate. "squid game" was obviously very disruptive netflix will have another strong content slate. disney, really for the first time this year, at least it's earlier this year, is going to have a pretty strong slate itself so, i think they will be stacking the deck a bit with some new content here with spider-man and some content around the disney plus day coming up here on friday then they have a couple interesting promos, one being the two-dollar sort of one-month
4:22 pm
trial teaser sort of promo that i think will also boost. and then also we have to remember that hot start india had a little bit of a lapse in 4q, which was talked about just given big renewal of a large cohort there the extent of that could certainly be one time in nature. and we could see what we expect to be a really strong bounceback here in their fiscal fourth quarter in december. >> how do you expect them to express that how do you expect them on the call to talk about the guide and the expectation, especially around those subscribers, which were disappointing >> sure, sara. i think, again, they'll highlight sort of the impact that they saw with hot star in india. what we'd like to hear from them is how they have seen that since sort of progressing into this fourth fiscal quarter for them i'm sorry, the first fiscal
4:23 pm
quarter for them, the december quarter. that's an important point. as you know, india or hot star in general has been about 40%, at least by our estimates, of their total disney plus mix. then i think we probably would like to hear a little bit about the uptake of that two-dollar promo, which it's only been a few days fresh here. but it'll probably get a lot more play on disney plus day but i think that's an interesting one. and then of course you have new markets that'll be opening here after disney plus day in south korea, taiwan, and hong kong, which are all great opportunities that should lend to a nice rebound, if you will, in the sub count next quarter. >> well, clearly you like the stock. 220 price target mike, thank you for joining us with your first reaction disney down 4.6 after hours.
4:24 pm
don't miss an interview with disney ceo bob chapek. much more analysis of today's after-hours earnings movers. results from affirm and sofi both surging on their results. affirm is now up 23% plus, airbnb's on the outlook for travel demand and whether inflation fears could impact vacation spending we'll be right back.
4:25 pm
thanks for coming. now when it comes to a financial plan this broker is your man. let's open your binders to page 188... uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab.
4:26 pm
4:27 pm
the honest company also just out with results with rahel solomon. >> this is the baby and beauty company founded by actress jessica alba results were in line or better than expected. eps came in at a loss of 6 cents. that pretty much was expected. shares are up almost 7%. revenue came in at $82.7 million. the expectation here was 80.8 million revenue grew 6% from the quarter a year ago those gains led by diapers and wipes, skin, personal care, which grew 20% compared to the third quarter of 2020. no guidance here, but the call does begin in about 30 minutes we know they mentioned last quarter during the earnings call supply constraints that the company did expect to continue this quarter, likely to be
4:28 pm
another question in about 30 minutes. shares were up about 6%. >> they're faring better than some of their competitors in the diaper space rahel solomon, thank you airbnb announcing new service features and new products on its platform, including air cover insurance, which is a new insurance for hosts. a translation engine on its app, reviews of a host's accessibility amenities. joining us now for an exclusive interview on this and more is airbnb's ceo brian chesky. brian, welcome back. good to see you. so, you announced, i think, 50 new updates here to your product. what are you responding to from consumers and hosts as it relates to the way travel is changing as we come out of this pandemic >> well, what we're responding to is a revolution in travel millions of people are no longer tethered to an office. zoom allows us to work from home airbnb allows us to work from any home and we're seeing millions of
4:29 pm
people with new-found flexibility. they can travel anywhere, any time when they travel, they can stay longer in fact, a fifth of our business are for stays of 30 days or longer i think we're aboutto experience a new golden age of travel because we're above 2019 levels and this is before borders had been broadly opened. with borders opening, people going back to cities, we're really excited and i think it's going to be a boom >> do you think you're taking share from hotels? i know it's an age-old question for someone like you and i asked the ceo of hilton this earlier in the week because you have recovered faster than that industry. he said there's plenty of room for both and they're seeing outstanding bookings as well but i'm curious your take. >> i agree with the ceo of hilton there's plenty of room for growth with the rise of airbnb, hotels also rose and had record profits. a large percentage of our growth, 50% of our stays are longer than a week very few people can even afford to stay in a hotel longer than a week many of our stays are outside of
4:30 pm
cities or towns that even have hotels so i think that there is some overlap. but i think people would be surprised that nearly half our business is over a week. many of the places are outside of centers that have hotels. so i think there's a lot of differences in our business and i think there's room for growth. >> what does inflation do to your business model? are you seeing rents go up as well or is there kind of an adverse effect of gas prices going up and people are pressured to travel less and you're going to have to lower your rents and prices >> certainly i'm not an economist, but i don't think inflation plays a really big part in airbnb we don't have a lot of variable costs. most of our variable costs are not affected by inflation. our hosts set their own prices and if people feel uncomfortable flying they typically drive to nearby destinations. when people didn't fly last year they drove to airbnbs. we have a very adaptable business model we have nearly every type of space, nearly every type of
4:31 pm
community, at nearly every price point. so whatever happens to the economy, whatever happens to travel, i think we can adapt this company was started in a recession of 2008. i think we're pretty adaptable to however the economy changes and i don't think our cost structure is affected very much by inflation >> but are prices rising for people who book airbnbs? they're going to be paying obviously more than a year ago when demand dried up but is that sequentially rising with inflation >> yeah. we are seeing price appreciation people are booking larger homes because they're traveling with friends and family, and they're not just booking small veterans. but there is some appreciation and we talked birthdabout that quarterly earnings a week ago. >> did the re-opening of trans-atlantic travel or when it was announced a few weeks prior make a big difference to you >> massive let me put it this way before the pandemic, half of our business was cross-border.
4:32 pm
and beginning of this year, it was only 20% of our business in q3, we got back above 2019 levels and only a third of our business was cross-border. president biden announced the re-opening of american borders to international tourists on october 15th in the subsequent week after that announcement, we saw bookings rise 44% for travelers coming into the united states november 8th on, which was two days ago so the answer to your question, a lot of our travel company has been before borders re-opening we expect another boom >> some of your announcements today have to do with pets we know a lot more people have pets as a result of the pandemic the adoption trend was a craze but also presents a risk for some of your owners i think and the damage there so how do you deal with that >> two points. number one, more and more people are traveling and staying longer the longer you stay and travel, the more you want to bring your
4:33 pm
whole family with you including your pet you don't want to board your pet for weeks at a time. we're seeing more people bring pets because of that a popular request for hosts was to provide protection for pet damage. we have introduced air cover air cover is top to bottom protection it's a million-dollar liability insurance and a million dollar property protection insurance for every host free on airbnb. it includes pet damage protection and you can charge more for pets as well. >> it sounds like a great extra service and keeps you asset light in the process i mentioned that because we had rich barton on recently on zillow do you always want to remain asset light? obviously they flirted with going asset heavy and it didn't really work. is that something you'd never go and do yourself? >> you know, i think for the foreseeable future we're going to stay asset light because asset light is really empowering the community.
4:34 pm
and i think that in a sense airbnb was one of the original decentralized platforms that empowered community. and you can't possibly pour enough concrete to get to scale. we have nearly 6 million homes to build 6 million hotel rooms would probably cost a few trillion dollars >> brian chesky, thanks for joining us we really enjoyed you. >> thank you we've got a market flash on amc. >> they are down about a percent right now after about half of the 1.2 million shares were sold that stake worth just about $48 million as of today's close according to's sara witton he reiterated those plans on the earnings call on monday. although the shares of the theater chain in what's become a meme stock he said he will still own just about 2 million shares of amc. the sales are expected to take place over the next few months
4:35 pm
it's big news for retail traders especially those who call themselves the amc apes. they've pushed the stock 1,700% higher after year-to-date. back over to you >> okay, frank thanks so much affirm and sofi are reporting better than expected results. up next we will discuss with a top analyst. we'll be right back. ♪ music ♪
4:36 pm
♪ dream, dream when you're feeling blue ♪ ♪ dream, dream that's the thing to do ♪ ♪ music ♪ when you see value in all directions, you add value in all directions. accenture. let there be change.
4:37 pm
4:38 pm
> some big movers there after hours. we'll be diving into all of those in more detail shortly but first it's time for a cnbc news update with shepard smith hi, shep >> hi, wolf. thank you for the news on cnbc the white house says roughly 900,000 kids age 5 to 11 now have their first covid vaccine shots. and hundred thousand others have their appointment scheduled. nationwide 28 million kids in that age group now are eligible
4:39 pm
for their first dose the department of justice is suing uber the rideshare company accused of charging wait time fees to customers with physical disabilities, meaning they're paying for the extra time it takes them to get into the car uber says it disagrees with the doj that the company's policy's always been to refund wait time fees whenever alerted. but now any rider certified as disabled will have those fees automatically waived and the countdown is on now to tonight's spacex launch. the four astronauts on board headed to the international space station. they're replacing a crew that returned to earth just yesterday. they're expected to spend about six months in space. tonight kyle rittenhouse takes the stand in his own defense he's the now 18-year-old charged with killing two people and wounding another last year at a demonstration in kenosha, wisconsin. and the judge is now considering a motion for a mistrial with
4:40 pm
prejudice. we're live in the courthouse, on "the news" right after jim cramer >> shep, thanks so much. two fintech names reported results moments ago. affirm surging and beating confirmation that it will be the exclusive buy-now-pay-later option on amazon until 2023. and sofi also jumping after a revenue beat dan, thanks so much for joining us let's start with affirm, if we can. is it the amazon detail that's driving this jump or the numbers? >> hey, wilfred. always great to be on the show there's a lot of anxiety heading into the quarter because the stock has been up so much. i think that's why you saw the move today but this is not just amazon. of course, amazon is a huge thing. but you're seeing, like, the number of active customers move up dramatically. actually going from 7.1 to
4:41 pm
8.7 million. you're seeing the aob continuing to come down, the average board value. the thesis is the lower the average order value, the higher the number of engagement and transactions they want to be smaller ticket item all these things are very positive, and the cherry on top of the cake is very, very strong guidance above the street, above the prior guidance in both gmb volumes and revenue. >> also slower than last quarter, peloton growing 138%. obviously very strong. obviously it's a hypergrowth company, dan what sort of growth numbers should we expect incrementally here from affirm >> i was this having the same thing. great observation. so it grew including peloton actually decelerated. you're looking at numbers becoming ever higher and higher. you can't just have bigger and bigger numbers and expect growth
4:42 pm
accelerate they're growing well above 100% on a year-over-year basis. we're starting to see the fruits of the amazons and the full shopify partnership. what we're seeing today is nothing compared to what the fundamentals are going to look like in a year's time. so i think that's the reason to kind of stay really, really bullish on affirm on top of these really strong results. >> let's pivot to sofi what's your take there >> this has been, again, an amazing kind of stock performance. look where it is today it's going to go much higher we've long said this is one of the best plays in fintech. this is sort of the next new they're actually accelerating the number of members. you're going from about 280,000 more members sequentially in the second quarter to 377,000. so it's 2.9 million. the actual product per member, that's the key kpi how many products can they sell
4:43 pm
per member that actually moved up for the third consecutive quarter. so now they're almost at 1.5 products number member that's higher than low 1s only a year ago the cherry on top of the cake here is that the guidance is really strong, and it's above the street and it's above expectations so i think that one is actually on its way up and we're going to start to see more and more kind of sofi becoming your go-to bank for a lot of people. >> you are super bullish today, dan. of the two, which one do you like better, if you had to choose >> i actually -- i like them both i think sofi is just more attractively priced. but they're both great names and they both have, like, very, very strong growth trajectories for different reasons. >> you're at 28 on sofi. 150 on affirm. dan, thank you very much for joining us >> it was a pleasure when we come back, mike santoli back to break down disney's valuation and how it's starting to compare with netflix. plus, find out what "new
4:44 pm
york times" columnist jim stewart wants to hear. hero a wte book on disney. we'll be right back.
4:45 pm
what's strong with me? what's strong with me? what's strong with me? what's strong with me? with me! with me! what's strong with me? with me! with me. i'll shoot you an estimate as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv!
4:46 pm
post on social media? hash-tag high thryv my friend! get a free demo at disney shares moving south after hours and after earnings let's send it over to mike santoli for a closer look at the stock after just reporting a miss on both the top and bottom lines. >> obviously disney down after hours. it's still probably going to be able to preserve this slight
4:47 pm
market cap advantage over netflix. this is a ten-year history of netflix relative to disney in terms of overall equity market value. it's crossed a couple of times they've come into parity and are again here this is where disney closed the acquisition of those fox assets. that's a $70 billion jump, actually more than that with debt to enterprise value that was also when the company detailed its disney plus strategy so you have a big tailwind there. and then you're piling on disney plus subs into the pandemic. so, what you see here, to me, is the market has decided that these two companies are the understood scale winners in this area it's not an either/or market between them you can argue about exactly how much to pay for each one of them but it's not about one over the other all the time this is the valuation on enterprise value to cash flow basis, also almost in parity disney has lots of exposure to things like parks, which is not earning much right now, as well as linear tv and advertising right now the market's giving
4:48 pm
disney credit for having figured this out even if they're having a bit of a slowdown in their growth rate in terms of digital subs >> 40 times ebitda that shows there's room for pullback for sure. as we're seeing right now for disney mike, thank you. up next, what can investors expect to hear from ceo bob chapek on the company's earnings call we'll discuss with a columnist who wrote the book on disney, coming up next
4:49 pm
your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit retirement income is complicated. as your broker, i've solved it. matching your job description. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to wealth management.
4:50 pm
tonight, kyle rittenhouse takes the stand. the dramatic testimony in his own defense. what he told the courtroom about the deadly shooting. >> the facts, the truths, "the in business, setbacks change everything. so get comcast business internet and add securityedge. it helps keep your network safe by scanning for threats every 10 minutes. and unlike some cybersecurity options, this helps protect every connected device. yours, your employees' and even your customers'. so you can stay ahead. get started with a great offer and ask
4:51 pm
how you can add comcast business securityedge. plus for a limited time, ask how to get a $500 prepaid card when you upgrade. call today. disney shares are falling though they recovered a bit on the back of missed expectations on earnings, including subscriber numbers the stock was down more than 5% at one time after earnings and has come back a little bit the conference call is going on now. jim joins us he wrote a book on disney. >> the book. >> the book i should say i wanted to start with disney plus it looked like the ceo on the earnings call continues to repeat the idea that they are
4:52 pm
managing it long-term and not quarter to quarter, but if you look at the quarterly subscriber numbers, only 2 million, after the last quarter growing 12. >> i agree streaming is probably a long-term proposition. i would like to hear him comment on some of these trends which are not looking so good. one of the things important about this is it's a window into what post pandemic disney is going to look like there are very few companies more impacted than disney. at the same time it was pivoting into the streaming world talk about a perfect storm i give credit for keeping things steady, but there is the disappointing subscriber growth which is perhaps beginning to suggest in a post pandemic world people don't want to stay home as much and watch streaming on
4:53 pm
tv i think that has been a big question i would like to hear him comment. are they seeing subscribers dropping out is it proving more difficult to replace them i think that's an important number also in the results is the decline in the revenue and subscriber number. that at some point has to move in the other direction as well they are only getting a little over $4 per subscriber that's not a very big number finally, you have the cost number it's disappointing to see that the loss at disney plus went up. would you expect to see it narrowing, not necessarily making money it went up why is the loss going up there has been a lot of investor anxiety about the streaming industry what it's costing for directors,
4:54 pm
producers, content there is a bidding war and it is making it expensive to fill the streaming platforms. >> should they embrace sports or chop it off as some have floated out there as a conversation point? >> everybody got so dazzled by espn they stopped looking at disney plus which is a mistake it's a big moneymaker but locked in the old cable model they didn't provide specific espn results they did say it contributed to the weak linear program which they called broadcasting cable network. again, they benefited a little bit when sports programming went away they didn't have to pay for it now they are getting hit by the ever rising cost of sports programming. there are a lot of other competitors bidding up these properties even as the model is
4:55 pm
deteriorating. they will have to come up with a plan for espn at some point. if they just stick to the old cable model, it will wither and they will lose out to streaming competition. >> to your expertise, jim is on management and leadership. you did give bob chapek a little bit of credit, but i wonder if it's just the external environment is challenging or are there execution issues this is the second quarter in a row. >> he is still new in the job and stepped in in an unbelievably hard time we have to give him some slack for that on the other hand, a lot of people in disney, and ex-disney people, there has been a bit of grumbling. he divided the company into
4:56 pm
theme park and everything else including streaming. he pursued the strategy that streaming is the future. the lines of communication, authority, who is over who, there has been a lot of uncertainty and some adjustment going on that may get end results in execution disney has run for years like a well oiled machine i am not sure the old status quo will work in this new world. look at the movie studio, they used to break it out and now they are part of the streaming revenue. they have five of the top movies and you see the revenues are not great. we are not seeing what happens when you take a blockbuster and put it direct to streaming are people paying $40 or $50 for that that's murky and unclear i think there has been confusion
4:57 pm
in the management structure how to deal with this. >> jim, we appreciate this with disney stock down 3.5% an interview with bob chapek coming up at 6:00 p.m. esg is responsible investing. who's responsible for building esg into your investments?
4:58 pm
at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit ♪ (man) still asleep. matching your job description. (woman vo) so, where to next?
4:59 pm
(vo) reflect on the past, celebrate the future. season's greetings from audi. pnc bank believes that if a pair of goggles can help your backhand get better then your bank should help you budget even better. virtual wallet® with low cash mode℠ from pnc bank. one way we're making a difference.
5:00 pm
bond market is closed tomorrow it may be calm >> stocks will not necessarily have the leadership or pressure from the bond market also, i think you might have to look at the silver lining in disney as the conference call goes on. we will see joe back in about 30 minutes on "fast money" which starts now >> this is "fast money." i'm melissa lee. our lineup tonight -- tonight on fast, burning rubber. affirm holdings, is this the stock to bet on? it's soaring in after hours earnings the numbers straight ahead later inflation nation, consumer prices seeing thei


info Stream Only

Uploaded by TV Archive on