Affirm CEO On Consumer Spending; Rivian CEO On Challenges 11/7/24
43:56 Share

Alright, that the end of regulation C A C I international ringing the closing belt in new york stocks exchange and becca a corp. Doing the owners of the national deck of record closes again for the S M P five hundred and the nas deck. As the fed cuts rates by a quarter point, the post election rally continues to gain steam.

We're watching the double and where that settles right now because IT is on the cut of a close. Maybe not you see as well that is the score card on wall street, but the action is just getting started. Welcome the close over time. I work in Brandon. John port is off today.

Will coming up this hour, we have a great time up to help break down the fed decision and current in the market, including David servers from jeffrey's high tower, stephany link, former fed economist event and ryan heart and ever core I assize Julian a manual plus it's another big afternoon of earnings were headlined by a firm, airbnb, block ribon and draft kings. But there many more will have all the numbers and interviews with the CEO of and firm before their analyst calls. Let's get straight to the action though.

High Terry, chief investment and strategist techne link, and Jeffery, chief market strategist David servers, both definition and David r. Cnbc contributors. And it's great to have you both here to kick off this hour.

David, i'm going to start with you. You're on set with me. Obviously, the big news of the day is the fed cutting by twenty five basis points.

But at after a year several years where it's really been, the fed has been the biggest mover of the markets. Not the case. We are still talking about animal spirits with the forty nine th record closed for the S M P since to start the year.

absolutely. I think IT definitely goes down as one of the most boring fed meetings we've had in a long time, which can be good news for the markets. And the markets did take IT that way.

There were some nuances, I think in the q na, there was a lot of confidence about inflation. J just felt very confident that IT was housing services that was keeping IT a little elevated in core and that that was coming down. He talked about IT rolling off.

Do you think I was warranted? Or do you think I was also during clear of policy and politics?

No, I think I think it's warranted. He's he's always careful to say, Morgan, I don't wanted to clear Victory too early. That's a big thing for him.

But in his analysis, it's just detected the confidence was probably never stronger and just reiterate how they're in a good place. I also felt like on the employment side, we really don't want to move any further up in the employment rate. We feel like we're at the right place.

We don't want to give up any more ground to weakness. So I think at the margin, the bond market interpret that a little bit. Double sly. We saw bond yields come down a little bit. And Frankly, I think the most amazing thing of our last two or three days, you know, to take the election in the fed together, the ten you note really hasn't moved maybe four basis points, five basis points.

If you would have asked the company of investors that I speak to on a regular basis, you know what they would have thought on a tramplin for Bonnie S, I think most were at least at twenty basis points higher for ten years and some may be be even higher than that. So the bond market has really held in much Better, and I think that's helping equities. I think equities are seeing that and going, aha, we don't have to worry about the bombs dragged us down with too much of a higher iee.

It's such a key point stuff. I I want to get your thoughts on the cut we did get from the fed and the commentary from power because because I was IT was a boring press conference for the fed chair but that was despite the fact that journalists were lobbing election and physical policy question bombs at him and he was duckling and diving and intercepting the left and right. Case in point, take a listen.

Some of the president's advisers have suggested that you should resign. Um if he asked you to leave, would you go? Oh, can you follow up on that is if do you think that legally he did are not required to leave?

No, uh.

this is a key point, right? Because despite all the a attempted, I guess, jawboning or politicization, uh, that's out there, the rhetorical c that's out there around a what fed policy and monetary policy is going to look like under a trump and administration and whether the president elect is going to have a hand in um determining any of that. We took about a mutely trader terabits.

And a lot of the power around that actually sits with the president and the executive branch. When you're talking about monetary policy, a lot of the power sits with congress, which was a key part of the messaging from chair power as he was getting these questions today. So how does that set us up looking to monetary policy to twenty twenty five?

And I think that was the most entertaining part of the press conference when he said no, really sharply, right. So look, I think he's just trying to concentrate on what he can control um and in terms of the job and should he step of the president asked you know if it's if it's legally, he can stay on. He's going to stay on and he's going to finish the job.

And quite Frankly, he's done a great job terms of getting us to this. Whatever we're calling is soft landing or just a nice economy growing at two and a half three percent with lower inflation shorts, not where they want IT to be, but it's certainly making progress. I thought his commentary about looking at the the three months, six months and the twelve months numbers in terms of P, C, E, the three months almost close to two.

So that's what he's looking at at versus the twelve month annualized, which was that terms of core, which was that about two point seven. So and and he's just focusing on the fund metals and were going to continue to be data dependent, unfortunately. And you get two inflation reports, one job report between now and the next meeting.

So we'll have more of an an idea. I think you're at something like sixty five percent chance that they are gonna cut in december, but we'll have to wait and see. I think he's very I think he sounds very measured and again, like kinda right down the middle, kind of boring.

But that's okay. I think the markets like boring. And by the way, I would say one last thing, two hundred of the three main events this week we've gotten through. We gotten through the election check. We've gotten through the fed meeting check. Now we ve got to get through china tomorrow in terms of do they announce more stimulus, but it's been a heck of a week and the market hang in in there in a big way.

All right. Well, airbnb earnings around and dear robots, a has those numbers for us. I D.

hey Morgan, those shares are popping up nearly twelve percent. IT was a little volatile. ET for shares were initially down as much as five percent.

But turning that around very quickly. IT has a missing the bottom. E, P, S, coming in a 3 short， two dollars, 13s， two dollars, fourteen cents.

IT is a beat on the top line. Revenue at three point seven three billion dollars versus three point seven two billion will call that in line. Gross booking values, nights and experiences ebit off the quarter all above street stations.

This is key outlook. Q for revenue is mid point from the company, two point four two billion dollars that is right in line with the streets estimate. This is probably what is powering the stock higher.

Also some commentary um from the company encouraged by a Better outlook in demand, the company saying that some of the weakness that they saw earlier in the year has Normalized. That really spoke investors last and airn b has been an other performer all year, so making up for some lost ground here. Shares still up well over ten percent back to your .

jobs a thank you, expedia earnings as we stick with travel here are out and see mmi has those number of see a hey.

Morgan, expedia third quarter results are out. And while earnings per share of six dollars and thirteen cents came in nine cents above street estimates, room nights of ninety seven point four million above the forecasts of ninety six point zero eight million, revenue did come in a little light. Uh, at four point zero six billion s mate was for four point one one CFO.

Julie whelan is stepping down. Uh, as to financial officer SHE will also, uh, we should also leave the board of expedia. This is the first leadership change under the new C E O are in gorn, who became C E O of the online travel giant earlier this year.

On the call, we will look for comments from gn on a the topic of M N A fault, rumors of an uber deal and whether he is, in fact, looking for strategic opportunities for the company. We are watching shares move higher in overtime by over six percent. Morgan.

all right, see a mody, thank you. Riving an results out? Phillippa, has those numbers fill?

Morgan, this is a miss on the top and bottom line for river on the company, losing ninety nine cents and share in the third quarter. Seven sense worse in the street was expecting revenue coming in at eight hundred and seventy four million, shy of the nine hundred and ninety million that analysts were expecting. Loss per vehicle.

This is not good. It's trending in the wrong direction. In the third quarter, ready in lost thirty nine thousand, one hundred and thirty dollars per vehicle. That is almost nine thousand dollars worse than what the loss was in the third quarter of last year.

Gross profit negative three hundred and ninety two million vers negative four hundred and seventy seven million in the third quarter of last year, net loss of one point one billion compared to a net loss of one point three six billion. Q three of last year, liquidity stands at eight point one billion. Compare that with the end of the second quarter when I stood at nine point one seven billion.

Then there is the question of guidance. And this is what's going to perhaps put some pressure on shares of revision the company now expected and adjust that even a loss between two point eight two five and two point eight seven five billion dollars. The previous guidance from the company was for a loss for the full year of two point seven billion dollars.

IT is affirming its capex guide for the full year of spending one point two billion dollars, also on track for positive growth profit in the fourth quarter. That something they have been saying for some time, they are on track for that according to ride in. And theyve affirmed their delivery numbers of forty seven and forty nine thousand vehicles production as well between fifty thousand and fifty two thousand vehicles for the full year.

Lots to discuss with riva founder and CEO R. J. Scranton, right here on the floor of the river, an final assembly plant, Normal illinois, that's coming up in just a few minutes. But again, morning, this is a miss on the top and bottom line to back.

Can't wait to hear what he has to say. Shares are fractionally higher right now. Fu, thank you. We ve got pension turnings out and Julie burson has those numbers.

Hydra Morgan countries speeding on the top and bottom. Ines reporting adjusted earnings per share of forty cents at six cents more than estimates, while revenues of eight hundred and ninety eight million that is just a hair, three million doors ahead of estimates now monthly active visors five hundred and thirty seven million and four million more than anticipated.

And fourth quarter revenue, the company guiding to a midpoint, arrange with the midpoint of one point three five billion dollars. That's just a hair light of expectations, bill ready saying in the release quote or AI investments are driving results by powering Better personalized experiences and greater performance for advertisers. But I need to just flag the fact that the stock is now done nearly twelve percent, and we believe this is likely on the Operating expensive of guidance.

The company saying IT expects fourth quarter non gap Operating expenses to be the range of forer or ninety five million to five hundred and ten million that represents eleven to fourteen percent growth year over year. And also working uh after we saw q three beat uh especially on the bottom line, the questions why there is a stronger guidance for q four. But IT really seems to be the expenses waiting on that stop right now.

Yeah, A I related expenses and investments. We've seen what that's done across the tech space. Julia, thank you, luck. And the firmer earnings are out mccane. Y cigala has the numbers on both for us men zi.

yeah mixed results for blocks, setting shares down more than twelve percent, adjust their earnings coming in at eighty eight cents, which was a slight beat on the eighty seven and estimate revenue coming in light at five point nine eight billion. The street was expecting six point two four billion dollars here. And now I spoke with CFO m rea hujaku ort time ago.

He says that the cell side orients more to gross profit than to revenue. SHE pointed to the company's nineteen percent growth, profit growth and record quarterly profitability. Now a key metric that the street was watching out for gross payment volume that was a miss coming in at sixty two point four billion dollars versus a street estimate of sixty four point three billion.

But the bigger picture here that the company is overcoming shortfalls in gp v with tighter cost controls and improving cost structure, which is bullying profits and growth profits as regardless, the company says that he expects strong growth profit growth in twenty twenty five of at least fifteen percent. Now a firm shares also moving lower this hour, about four percent down after reporting a beat on both of the top and bottom line. The company posting at thirty one per share loss, uh, versus that four sets less than what analysts were projecting here.

Revenue coming in ahead of estimates at six hundred and ninety eight million versus six hundred and sixty four million dollars. IT was expected. Gross merchandise volume, which really helps engage the total value of transactions, accelerated thirty five percent from a year ago, beating expectations.

Partnerships with apple, amazon and shop of fire helping to drive up its top line, really those large ticket into sparing purchases that set them apart from the B N P, L pack, which is why you're seeing the company continue to take market share. Now looking for next quarter, revenue and GMV guidance is roughly in line with street expectations. However, a firm says IT won't achieve gap profitability for another three quarters. That stop, which is one hundred and four percent in August, currently a trading more than seven percent lower.

The car back to you, mom, thank you. Doing double duty will coming up a firm C, E, O and founder max election results with us in a first on cnbc interview before he dies into the analyst costs to stay tuned for that stuff. I'm going to go to you because we just had a parade of results. Uh, you can really sort of pick pick your name here. But but we've heard quite, quite a few different types of industries report chase now and quite a bit of commentary.

Yeah, I think the the travel companies really very interesting because expectations were very, very low. Expedia, I think, was Better than A, B and b, but L, B and b, the expectations were really, really low expected. Although he looks out of the numbers, bookings were Better at seven percent.

B to c was up three percent. That was a two point acceleration. B to b up nineteen percent.

That was also Better than expecting and lodging bookings up at eight percent. Really solid IT trades at half the multiple of bookings holdings. So at eight point five times ea dovers fifteen times.

And so I think you could probably see some catch up airbnb. You know everybody was nervous about the booking and the lead times as well as margins because they're aggressively investing. So the guidance in the middle of the range, very encouraging block.

I mean, they've got a lot to do to fix um they I thought that gross profit numbers and the the nineteen percent figure that that I heard a little bit light volumes missed. And then that's offset by Operation efficiencies because that's what's everybody cares about on the coast front. So I think we're going to a get more detail on the call, but no, you can't miss.

And the the point the I think what we're all waiting for, for the company anyway is really more card activity and that growth as well as the cash apps and seeing acceleration overall. So you're not seeing IT yet. So I think we have to get through some more details, but those are the three that kind of stand out to me. All right.

David wanted get your thoughts on where you invest right now because we have the election overhang. Husband ny moved. You now have a market is digesting what's likely to be a red wave here as well. You've got a feed that just cut again and is making its way day IT dependent towards neutral, whatever that ultimately is going to look like. You've got seasonality and you have earnings.

So I think that the story is developing for me is that the red sweep, which is not guaranteed yet but looks very ally, giving some bond investors confidence. As I said in our earlier segment, I think people were worried about deficit spending and run away just have run away fiscal story, getting the bond market into a tizi and that feeding back equity. We've seen bonds really stable post election, post fed.

I think the fed gave us a pretty at the margin dovish outlook, but stable outlook. I kind of like the whole story that we're going to get a little bit more fiscal parSimony, a little bit more of a congress that doesn't spend as much under the red wave as maybe a divided government would have because divided means they all have to get a piece of work. If you have one side, and especially the republican side, which is typically a cost cutting side, once smaller government think the markup might rally around that a little bit.

Elon musk speech was very important on that in terms of saying he could get rid two trillion dollars, I don't think he can, but he he can definitely have a shot. And he's certainly with the one guy you might at least the markets would like to hear that he's the guy thinking about that after we saw what happened with twitter. Flash x, yeah, I feel like that stories is the big developing story.

I'm getting very positive. I've been positive on my respirable trades, have been positive on equity. I'm getting even more positive.

I like the way everything's going into the end of the year. I'm looking at stephane SE Christmas tree. I'm looking at year Christmas is out there today. And i'm just i'm thinking Christmas rally.

I'm just get excited about IT gbs and the link. thanks. We're kickin off the hour with me.

We got a record close for the nazi, a record close for the sp. Looks like we are not finishing at a new record for the basically unchanged, a slightly lower. Now let's turn to senior markets commentator mike sane toy for a closer look at the rally. In some parts of the market that are playing catch up bike.

yeah Morgan playing catching up maybe anticipated potentially to catch up further, here's a look at the high quality component of the S M P five hundred compared to hybels a, which is the more voluted, somewhat lower quality, more cyclical parts of the market, faster moving stocks, those that are less stable.

You see this this premium that opened up in favor of quality for now, that's definitely consistent with things like mega cap tech leadership, but that's not the entire story. You are obviously just people wait in in A A time of of maybe macro flux a to kind of hue tour more stable companies. So now you see this a little bit of of a catch up move, closing that gap.

This idea of a sort of a higher volatility board market is interesting. A higher metabolism economy might be filter through that kind of less. Now when IT comes to value stocks, long suffering value, investors are yet again saying that the policy makes you can anticipate under the the newly elected regime could in fact finally revive value relative to growth.

More cynical, a more financial working things like that. I wanted to point this out that it's been said before and it's been tried before and that was basically after the twenty sixteen election, you did get a massive rotation into value and out of growth and then IT sort of fizz. And that doesn't mean that a fizzle, meaning no stocks went down that much IT just means that growth just photo grab the baton in a microcom.

That's what happened yesterday and today, today, that was all the year to date winners of the next one hundred to Carried the indexes after yesterday's value. So what's the relationship obviously, where deeper debt right here? Obviously, value sets are even cheaper right into the market then they had been in recent years. But it's a dynamic we can continue to watch. Morgan.

right? And we will, Michael, see a little bit later this hour. Thank you. Let's turn back to evian.

Shares are moving between gains and losses after a miss on the top and bottom lines. The loss per vehicle was nearly forty thousand dollars per car. That's verses about thirty thousand per car in the same quarter a year ago.

Jining us. Now, an exclusive interview is robyn founder and CEO R. J. Garge, along with our own fill above fill.

Thank you, Morgan. Rj, go to be down here in Normal. Elano, yeah, you look, Morgan set IT up there.

You guys had a Whiter than expected loss. In the third quarter, you guide IT to a Whiter than expected loss for the year. You're trending in the wrong direction in terms of loss for vehicle. What happened?

Yeah I mean, this is our core focus is on driving towards profitable. We talked about our our objective of going to positive margin. Q 4， q three is really a hard quarter to see through a lot of the noise.

We just made a big change over to our our second generation of our r one vehicle. And there is a lot of cost social changing out roughly half of the billion materials as measured by costs. And so we brought on these suppliers.

There is expensive associated with that. We also to supply change shortage as part of this ramp up. And that really heard this in terms of are overall output for the quarter, which affected this from terms of fixed costs absorption across all different vehicles. Um but we remain optimistic around uh, overall performance. And looking at you for we have continue to guide towards business version.

how do you get there? How do you get the positive growth profit in q four after the losses?

We've yeah I mean, one of the things when you've got so many different changes, we talk about how to how to decide for that and look through the noise to see what what's the real signal.

The thing I call out is if we look at q four this year, so this quarter related to q one of this year and look at the difference in our material cost for the vehicle, which twenty percent lower in q 4， we are in Q Q 1。 And that sort of helps you to see through some of those who have made real progress in terms of the overall material structure on the vehicles. And of course, we're continue to drive efficiency improves into the plant. We're continue to drive progress in terms of the quarter, the plant in the hours .

for unit R J. It's great to have you on the show. I want i'm going to ask you the policy question because we just came through this election.

We know president like trump on the campaign trail been very vocal about scaling back the I R. A subsidies to the extent that he can. But the flip side of that is he also as one of the EV pioneers, tesla, elon musk, in the mix with the administration. So what do you expect to happen where the evy investing environment and those um subsidies are concerned?

I mean, we think about developing our future products and even our existing products that the most important thing we can we can do is make sure the vehicles themselves are really exciting, that great features, the performance, the capabilities, the va proposition is really strong. And so as we look forward, we're decide to work with the administration, but really our focuses, making sure the vehicles really compel customers to make this watch from intern combusting into a lux fiction.

R, J, you are gonna still have closer joint venture with votes wagg and forth up to five billion dollars. Do you have the capital right now to get to r two production in twenty twenty six.

said before you trust the joint venture is something we're really excited about. We've got a really great relationship we built across the various levels with vox egg, but importantly, between myself and and the CEO of vox hag gript as well. And so that relationship we're excited to see come together in the fourth porter and be able announced. But with that relationship in place, plus the six point seven billion doors of couple past we have on hand today, that funds is not just the launch of r two here are Normal, but if funds are the build of the r two platform with underPriced ple r two and r three in our georgia facility and takes us to positive for cash for thank you.

Arr, j, we're going to send effect you all right.

R J, chrge, thank you into our filled ow. Thank you. Love a good live shot from a factory floor. Will draft king earnings are on catez. Brr has those numbers conTessa.

Hi there, Morgan. Consensus revenues coming in at one point one billion dollars. So that basically is in line with expectations and expectations of loss per share. The loss came in its sixty cents versus the streets expected of forty two per share. Uh IT looks to me like the ebata loss fifty eight point five million against the streets expectation of a loss of seventy one point one million.

So that came in Better than expected and monthly unique players came in Better than expected to they're reaffirming guidance for this year for next year rather for twenty twenty five, but they cut guidance for eba and for revenue for this year. This may be the reason why pen entertainment CEO jays note talked on his earning call today about the fact that there's spent five weeks of bad luck where football is concerned, and IT looks like IT took its toll on the house. The parallel briefly paying out for the customers will have to wait and see if Jason actually talks about that when they have their earnings called tomorrow. He's on that money tonight by the White.

Alright, conTessa, thank you. Yes, what's still ahead? ever? Core I S S, july in a manual just putting out a balls mid year twenty twenty five Price target for the S M P five hundred. He will join us with that number and why he says there is a, quote, animal spirits revival taking place in the market and after the break, former fed economist of vince ent ryan heart ways in on the fed decision and reads the tea leaves from palace commentary over time.

we'll be right back.

Cnbc has quick and easy to understand business news updates at the open midday and close every weekday. Markets, money and more from wall street to main street. I'm cnbc Jessica, adding to follow and listen to C, N, B, C. Business news updates wherever you cat your podcasts.

Welcome back, cloud flare. Earnings are out and the stock is thinking it's about ten percent right now. That's a spite to beat on earnings by two cents at twenty cents per share x items.

Revenue were also ahead of estimates at four hundred thirty million dollars, but forth quarter of revenue guidance was below estimates. So tomorrow we're going to learn more about this. Don't miss over times exclusive inter view with cloud flare, a CEO Matthew prince that kicks off at four pm eastern.

Meantime, record closes across the board as the fed announced this afternoon that IT is cutting rates by another twenty five basis points. Joining us now is a Vincent ryan heart. He is chief economist at drives and melon and a former that economists, and it's great to have you on. thanks.

Thanks for having me.

You're take away from the fed decision and the power pressor today. IT seems like he was very determined not to make news, including not commenting on the future trajectory of rate cuts and what that passed to neutral looks like.

As for the first thing, we learned that chair POS not self destructive, uh, there is no reason to talk for him to talk about the election. He will already, his institution will be under pressure from politicians, uh, uh, in, in, in, in the months to come. Uh, he doesn't have to add to IT. So he stayed in his own lane, which was economic policy making, and he's happy. Is lane right now, uh, he's upbeat on economic activity, not that concerned about inflation and uh was really in a position to think about when to dial back monetary policy easy, not immediately, but h sometime next year.

And you need to talk up the door Mandate as well. And he made comments about the state of labor market in the fact that it's not as that is basically less tight than IT was prepare demand. And I just wonder how much to make of that given the fact that labor data can be a lagging indicator, a and I can move very quickly in different directions.

So couple parts that you identify. The important part of the beginning, his character zone of the labor market. Back at his Jackson whole speech, we got got a lot of attention was I didn't want the market to get worse from that, from where IT was then.

And then an answer to a question today, he said, well, we wouldn't wanted to get much worse. He actually soft. And to take a little bit, part of IT is, you're right, economic.

Da are always variable IT always volatile ah and it's just getting harder and harder to sample. And the beer of labor's s statistics has a really hard, hard time. Employment situation is measured with a lot of uncertainty and we've had strikes, we've had storms. They have to smooth through this information to get the underlying trend, but they're upbeat about the underlying trend.

David servers made the point that we basically seen round trip in ten year treasury yids from the reaction to the election to over the last couple days to now the digesting of those results as we get them in today's trading session. And I wonder what you make about what the bond market is. Signal power certainly is not willing to play ball on the possibilities around fiscal policy and how that can potentially feedback into monitor policy. But when you start talking about changes to immigration and when you start talking about changes to trade and application of potential terra, when you start talking about changes to the tax code and lowering, lowering those are making those more permanent. How does that potentially feedback to the monetary piece of this?

okay. So there's three parts about what's been moving, moving long term yields over the last week, in particular, what is getting realistic, understanding that the premium should be hired. The the, the, the the market economy works at a higher base.

Y second, we learn a little bit about monetary policy today. Uh, the fed is not on a one way ticket to just easy. They will take into account the data and at some point they will will stop easy and and certainly slow th Epace.

The what was the keyword power said patient, uh patient means not ever need and that that decisions coming soon. The big thing was about governmental policy, fiscal policy. We're gonna big budget deficits.

We're going to be adding to that. We are gonna probably doing do things that are somewhat intrusive and expensive, like potentially tariffs. And so there's lots of reasons to be worried about the longer term, a willingness of investors to continue and continue and continue to add to treasury that devils in .

the details will see how that all plays out. Come twenty, twenty five, Vincent. Red heart, thanks for joining me.

Thanks for having time for A.

C, B, C. News up with pepper Stevens, peppa.

hey, Morgan. President elect trump said he believes his Victory a call to bring common sense back to the country. Speaking with meat, the press moderator, Christian Walker, trump also said one of his priorities upon taking office would be making the border strong and powerful, including Carrying out mass deportations. Rum said there was no choice but to Carry them out. And gold man sax named the new crop of partners today, ninety five in all, the most ever under the leadership of CEO David salomon, the class of twenty and twenty four also includes the largest number of diverse partners and includes the largest ever number of women promoted with twenty six and total. And the note to staffers, solman wrote that this year's promotions reflect to growth in golden's global banking markets and its asset and wealth management businesses .

and the test events. Thank you. After the break, we will talk to a firm, C. E, O max lecht, for his first comments about earnings that before he talks to wall street analysts on the call, stay with us.

Cnbc has quick and easy to understand business news updates at the open midday and close every weekday, markets, money and more from wall street to main street. I C N B C, Jessica adding to follow and listen to C N B C business news updates wherever you get your podcasts.

Welcome back shares of a firm of falling after reporting results for the first quarter. Training is not to break down those results as a firm CEO. Max levin, it's great to have you back on the show.

welcome. This is a beaten and raise quarter for you. And gross merchandise volume were up thirty five percent. Revenue, perhaps even more interestingly, of forty one percent. Walk me through what you're seeing across the business .

right now for firing all distance. It's I I cannot be happier and fatter of the team we just really nailed at this quarter probably give me more exciting to me. The product level were touching twenty million active consumers, just we are over five, five point one transactions per user.

So every part of the ecosystem we build just growing and growing and growing, we're very side about the future. We are starting to roll out the need of lex book credential card functionality. So just many things you're happening.

We just rolled out and back from london, he looks like deprived. That's because was there to launch our expansion across atlantic. So many things growing really well, excited to deliver a beaten rays and just looking forward to declaring ourselves gap upper and positive in the public quarters.

So let's talk a little bit about that expansion to them because in the us, you're continuing to take market here. You are the largest by now. Pay later player in the us. What does international enable, especially as you do continue on this path towards profitability.

just more opportunity everywhere we go, we see demand for a product. One of the more maybe surprising, unsurprising take a away from my conversations in london was just how delighted merchants there, not just our merchants in the U. S.

We planned to bring with us to U. K. But local merchants in pure U. K.

Players saying we can't wait you guys to be, is widely believe as possible because the need for this longer term, Better under written, higher quality, consumer friendly transactions is just not met. And where we're excited to bring IT there. Uh, and then in the U.

S, we are right where the other player weeks alerted. We used to be about thirty two percent of we estimate of the total pure play B, M, P, S. Space are now thirty four percent. And we are more than a half the revenue of the entire industry in the us.

As you're talking with stocks turning higher is now two percent right now. If you have these partners PS with amazon, with apple, will shop ify. That's helping to to drive your growth.

J. P. Morgan, though, and in their motorists and animals, talks about the fact that the firm is is more tied to directionally spend. I wonder whether that's actually, in fact, true when I do see revenue numbers that are higher than volume numbers. And if so, what you are seeing in terms of the health of of the consumer right now.

don't think a firm is for everyone. The thing is kind of amazing about the brand and the customer relationship we've built is we help folks finance things that are generally expensive, seventy thousand dollars and a big consumer of cycling. I and bikes are not cheap.

And paying for them over eighteen months longer is something that were very good at and disappears to folks in any credit range. And then all the way down to couple of hundred dollars, just splitting IT across three months to make a little easier in a cash low works for both sides of the credit vector. Um and so for some people, we are a four times a year major outlet.

Want to play to plan my expenses carefully. And for others, especially our cardholders, we are two to three times a week and both. We have a wonderful relationship, helps that we don't charge late fees, we don't screw our customers, we don't use things like different interest. So the product is broadly appealing for now of the kind of scale that major car issuers can brag about.

So what will a trump s. Administration mean for the company? And what do you think that means for the state of the consumer and the state of the bino pay later business?

I think the trend .

we are writing is entirely secular by not pay later or we think of us pay later broadly is about seven, seven and half percent of overall e commerce. So there is seven down ninety three ago. Just any commerce and offline is rapidly growing.

Um half the volume for a card comes from offline and it's basically a round up fair for now. Just small mean how huge that tam is. So I think the cycle trend is pretty much independent of whoever s in the White .

house but know people .

in red states and blue states and purple states borrows money from us and paid back with remarkable consistency and work side about that. So I expect very little change in the growth opportunities that we have.

Max lepton of a firm. Thank you for joining me.

Thank you home while .

announce to six thousand S M P year and Price target right here on over time back in june, IT was a street high at the time coming up ever core I size jilin a manual is here with an even more bullish call on the market. You're gna want to hear that. But first, mike sand toley looks at whether retAiling investor enthusiasm could drive the market even higher.

Welcome back. And as I N S. P. Five hundred closing at record highs again today, my export is back with look at whether retail investors could drive another push higher. mike?

Yeah, morning. What we can say for sure is that retailer investor sentiment is beginning this post election rally period in relatively subdued fashioned terms of bullishness. This is the balls minus bears in the american association of individual investors weekly survey.

You see that spread when IT gets successive. It's up here, you know twenty five percent and point spread. It's about thirteen.

now. This is before yesterday's rally, before the election result. I to you next week, this is going to be shooting higher. So you want to keep an iron. Whether that's getting a little bit extended and raught y, along with some other measures, are positioning sentiment. I don't think that we're there yet, but that is usually what's going to start to restrain rally that gets rolling when the market was already kind of at all time high and we were not coming a very barry shh place. I'll take a look at the positioning by asset managers in small cap russia two thousand index futures.

This is just a measure of what the big money is expecting out of this group and this shows you that already and this again is before tuesday, wednesday and this was showing a very net long position uh, in russia two thousand futures by this group, pretty much comparable to where we got to in twenty sixteen. So again, it's not a holy neglected group that that sector of the market started to participate and now perform a few months ago. So we ve got to keep an iron, not just how good the news and how the market behaves, but whether people were already position for Morgan.

All right, mix and tally. Thank you. Up next, much more on all days after the bell earnings action as more animals calls get set to kick off at the top of the hour plus bulls on parade africa ze Julia manuals out with bullish call on the Marks, find out just how high he thinks the S.

M. P. Can go. Let's coming up later on overtime.

Welcome back Donald trumps Victory and another fed cut adding field to this bull market. Our next guest announced to six thousand S M P five hundred year and Price target right here. And over time, back in june at the time I was a street high and today he's even more bullish, just putting out a new forecast for mid twenty twenty five of six thousand six hundred for the S.

P. X. Well, let's bring in junior manual ever crise, I see.

Or managing director july is great to have you back on the shell. Great to be here. Okay, we're closing in on six thousand fifty nine.

Seventy three. Is where is where the S. M. P.

Finished today? So h, at a time where just a couple of months ago you were so bullish versus everybody else, I wonder what you think about this market. Now as you do put out this media forecast.

well, IT look good. The point in doing this for us is, is basically to sort of capitalized on the idea that, you know, having run a decisive and uncontested election, when you think about IT is a public investor, you basically spend the time since july worried about politics. You survive the fourth largest volatility Spike of all time in early August.

Then you had the seasonal weakness for a spell in september, and put that all together, and the public had become somewhat disenchanted with socks. And then long behold, you get the selection outcome that, you know, regardless of the party. But obviously, we have a party that's perceived to be more pro business and you know more pro deregulation, which is driving the animal spirits and participation from active manager. But now there's every reason for the public to once again engaging stocks in november and december, the most positive time of the year. And we think all of that is likely to Carry through a into the new year, hence going to sixty six hundred for the end of joe just .

need to hear to talk about the public. We just have this conversation we might actually about retail investor sentiment and activity and whether we're going to see more of that now as the market still seem to be turbo charged animal spirits revival. Is that specifically what propellers us to sixty six hundred? I just wonder how much actual policy that's going to be meaningful to the market we're going to get in these first couple months of trump two point now.

So IT may not necessarily be the policy itself that, that, that drives the market forward, but the perception of administration that is going to allow em ade worker and and this is one of the um interesting aspects of this bull market at up sixty five percent and just barely over two years old. That's still very Young in terms of age and gain. And you almost always see A O N M A environment and I P O environment, uh, take shape.

We haven't seen a yet, but we hear the cable in front of us. So combine that with the public who is still fascinated by A I and the mag 7 and you have a recipe for， you know what we think is gonna very vigorous gains in the coming months. 嗯。

we're almost the earning season. We had quite a few of them here in this hour, but were almost the earning season. The key beat beat rates are running below the one in five year averages ah and so I think that raises the question, is the market expensive here? Does that matter?

The market is expensive here. We have to be very upfront about that. But the thing about expensive markets is they tend to last longer and go further than in common wisdom. And Frankly, the fact that professionals in particular realized that the market is expensive and is causing them to hold back is part of that while a worry, along with the climate interest rates, that we think that the market will ultimately climb successfully over the coming month.

So what do you buy here? What you steer?

So we we think that uh the the playbook that work technology, uh, we'd like software in particular and small caps which love soft landings. Certainly happy uh to see that twenty five basis point cut today are very, very attractive .

and do a small caps actually now power to a record high because they helps still I rose where to three or high, but they they ve lage the broader market. And some of that has also been tied to what we've seen in .

the bond market yet. No, they heaven and that's a very good point. But when you look at IT again, in an environment where credit is likely to flow and capital markets financing is likely to flow and credit spreads have been uh, no, really are at their tides. That's an environment where capital markets activity, uh, where small caps tend to be outsides beneficiaries, particularly areas like biotech, are really going to benefit from the environment.

Okay, join in a manual. Thanks for joining me. You i've ever core I si with a sixty six hundred Price target for the scp for the middle of twenty twenty five.

Well we did get a record high in the S M P. Five hundred and fifty nine and seventy three is where we uh finished there. The nastec as well, also a record. The dw basically finishing unchanged, down about half a point. But we're going to continue to watch this market as we have a number of factors contributing to the rally we've been seeing that does IT fresh here at over time. Fast money begins right now.