Closing Bell - Closing Bell Overtime: DraftKings CEO on Earnings, Super Bowl; Zoetis CEO on Avian Flu Vaccine For Poultry 02/13/25

Episode Date: February 13, 2025

Adam Crisafulli and Mike Santoli break down a packed earnings slate, including Airbnb, Roku, Coinbase, and more. Mark Mahaney joins to analyze Airbnb and Roku’s results, while DraftKings CEO Jason Robins weighs in on the company’s latest quarter and the impact from the Super Bowl. Citizens’ analyst Devin Ryan discusses Coinbase’s earnings, and Zoetis CEO Kristin Peck talks tariffs, avian flu, and the company’s portfolio. Plus, our Bertha Coombs reports on the growing coverage for sickle cell gene therapies.

That's the end of regulation. Group One Automotive bringing the closing bell at the New York Stock Exchange and Aardvark Therapeutics, one of this week's IPOs, doing the honors at the NASDAQ. A broadly higher finish for the major averages. We basically finished right near session highs as Terra fears ease and tech gets a lift driven by Apple 11's standout session and a bounce for mega cap names like Tesla and NVIDIA. That is the scorecard on Wall Street. But the action is just getting started. Welcome to Closing Bell Overtime. I'm Morgan Brennan with John Ford. Yeah, we got another big hour of earnings results coming, headlined by Airbnb, Applied Materials, Coinbase, DraftKings, Palo Alto Networks, and many more. Are you ready? Plus, we'll be joined in a first on CNBC interview by DraftKings CEO Jason Robbins before his call with Wall Street. And the CEO of animal health company Zoetis is going to join us to talk earnings, tariffs, and the fight against the avian flu. As we await earnings, though, let's bring in Vital Knowledge founder Adam Crisafulli and CNBC

senior markets commentator Mike Santoli. Great to have you both here. As I mentioned, we basically closed at session highs for the major averages. That was after a PPI that the street shrugged off and sent treasuries rallying and after tariff talk that the street also shrugged off. So, Adam, I'm going to start with you because the S&P 500, it looks like closing a little more than 1 percent higher, 61.15 as we settle here. We're coming back up on, we're not there yet, but very close to new record territory. Your thoughts? I think today was really

characterized by earnings. You had a bunch of favorable reports out last night and this morning, both in the U.S. and Europe. And then within the TPI, the headline TPI numbers were a hop, but within it,

there were a lot of encouraging dovish figures, and that definitely helped to relieve markets after the CPI. And it suggests that the pce coming out in a couple of weeks will be somewhat cool and then we had you know another tariff announcement that was short on detail um and there weren't you know immediate new tariffs implemented and so markets breathed a sigh of relief once that news was out of the way and it was kind of off to the races. You know, a lot of the tariffs so far, you know, they have not actually gone into effect. So you pull back on Canada-Mexico tariffs,

and then today the reciprocal tariff announcement, you know, it's still going to be a couple of weeks at least before these go into effect, if they ever do. So for now, I think markets are viewing it more as a negotiating tactic and waiting to see how it all unfolds. We have our first earnings report. Win results are out. Contessa Brewer has the numbers for us. Hi, Contessa. Morgan, Win Resorts comes in with a beat on the top and the bottom lines.

Revenues of $1.84 billion versus the $1.77 billion the street was expecting. Adjusted earnings per share, $2.42 versus the consensus of $1.22, a pretty significant beat. The most important earnings metric here, adjusted EBITDA, beats as well, boosted by a streak of good luck for the house when it comes to casino table games, $619 million versus the expectations of $550 million. With beats in both Macau, where Wynn claims healthy market share and strength in the VIP and that premium mass segment, those are the higher echelon customers. And in Las Vegas, where it saw its best year ever, it's especially notable in Vegas that Wynn was able to match the performance year on year against incredibly tough comps. Remember, the premiere of F1 happened in the fourth quarter of 2023. So the company's really highlighting its progress there and its progress in the United Arab Emirates. It says

it has firmed up its financing there. The shares are up four and a half percent after a really good run today, John. I'll actually take it. Contessa Brewer, thank you. Micah, I'll go to you as we do await more results here. I should note Applied Materials results are out. We're going through those numbers. We'll bring them to you in just a moment. Last I checked, those shares are under a little bit of pressure. But when I look at when and I take that and I put it against some of the other more services focused consumer names, some of the hotel companies we've heard from, for example, some of the other casino operators, what does it tell us about the health of the consumer in this environment? Broadly speaking, services has been the strongest part of consumer,

and travel within services has been basically the strongest area. I think the question is, have some of those names, like the traditional lodging companies, maybe gotten a little bit stretched? There's some hints of that with the Hyatt News today. Marriott traded a little sloppy off of its numbers, whereas Wynn has not been participating to the upside in the same way. It's a little bit of a relief. The question for me is how much the market wants to pay for last quarter's good luck in terms of the Wynn rate. All right. Meantime, Airbnb earnings are out. That stock's popping. Julia Borson has the numbers. Julia. John, Airbnb beating on the top and bottom line. Revenue of $2.48 billion ahead of the $2.42

billion expected. EPS of $0.73 ahead of estimates of $0.58. Nights and experiences booked came in at $111 million. That's ahead of estimates of $108.7 million. The company's first quarter revenue guidance, though, was in a range below analyst estimates, $2.23 billion to $2.7 million. The company's first quarter revenue guidance, though, was in a range below analyst estimates, 2.23 billion to 2.27 billion. And that would be year on year growth around 5 percent and also below the nearly 2.3 billion estimate. But the company explains this. They say that last year's quarter benefited from the timing of Easter and Leap Day and that excluding those calendar factors as well as FX headwinds, they do anticipate that first quarter growth would be in a range of between 10% and 12%

rather than that 5% guidance. The company also saying that after Q4 marked its highest nights and bookings growth quarter of 2024, they see that momentum continuing. Back over to you. All right. Stocks up 11%. Julia, thanks. Applied materials earnings out as well. Christina, quarter of 2024. They see that momentum continuing. Back over to you. All right. Stocks up 11 percent. Julia, thanks. Applied materials earnings out as well. Christina Parts and Nevels has those. Christina. Yeah. So for Q1, we are seeing a beat on the top and bottom line, $2.38 adjusted, $7.17 billion. But it's in terms of why you're seeing the stock drop, a lot of that has to do with the Q2 revenue guidance. It fell below estimates. And in the press release, too, you had the CFO commenting, saying that they're also taking into account export controls, control-related headwinds, something that they alluded to during investor presentations throughout the quarter, that new China export controls could

impact earnings. So we're seeing the guidance coming in a little bit lighter. Gross margins for the quarter a touch above we saw back then and some fears that that would be lumpy. What's your take so far? I think, as Mike was saying earlier, you know, travel and leisure has been very strong for multiple quarters. It's had a very robust rebound coming out of COVID. There seems to have been kind of a secular shift in the percent of wallet that consumers want to allocate to services and experiences versus hard goods and consuming product. And that continues. You have had some hiccups today, which is disappointing. But in general, every company that's levered to travel leisure has spoken very favorably about the demand backdrop in the environment. And you also are seeing a rebound in business travel as well. So that's just kind of an extra to go with.

All right. Well, stick with us. We've got more earnings to bring you. Roku results are out. Julia Borsten has those numbers as well. Julia. Yes, that's right. Beating on the top and bottom line, the company reporting a loss of 24 cents per share.

That's far better than the expected loss of 40 cents per share. Revenues of 1.2 billion ahead of estimates of 1.15 billion. And the company's adjusted EBITDA 77 and a half million dollars, about double the 34.8 million street account estimate. Now, in terms of first quarter guidance, the company is saying it sees revenues of about one billion dollars, which is pretty much in line. And first quarter EBITDA also in line of $55 million. Also want to point out here that Roku channel, that's the free ad-supported channel, streaming hours are up 82% year over year. And we see that sending the stock up about 13% in after-hours trading.

That is interesting, Julia. Thanks. Mike Santoli, Roku, if it trades tomorrow where it's trading right now, will be right at about the levels of a year ago. Maybe some important levels getting close to 100 bucks a share up. Look, it looks like Anthony Wood is going to be on CNBC tomorrow morning at 820 a.m. Don't want to miss that squawk box. But Mike Santoli. Streaming on your Roku. Yeah. However you want to watch CNBC, we'll take it. Mike, when we think about what Netflix is doing, but think about the broader challenges in media.

Roku is such an important channel for streaming. Right. The cord cutters, a lot of them are going to Roku. Are we starting to see more benefit accruing there, you think? You are. I think people are trying to get clarity on exactly what the kind of lasting place Roku is going to hold. I mean, a lot of the commentary has been about, you know, they they're kind of the operating system of smart TVs. So it's all about what are the cheaper, you know, new flat screen TVs? Are they are they fire TVs? Are they Roku? So it's kind of this embedded component. Then you have their own network and their own ad sales business. And obviously the devices around the edges, they don't sustainably have kind of a profit model

that we can observe at this point. So it's really a question. I think that they've been kind of adapting and navigating along the way. It's very difficult to know, though, exactly how it plays. I always like to remind people this was almost a five hundred dollar stock during the pandemic. You know, we're talking about maybe bumping back up to $100 on this reaction. Indeed. Okay, hold on. Twilio earnings are out. Initial move is down.

Pippa Stevens has those numbers. Pippa. Hey, John. Well, Twilio is down 8% here on a mixed quarter and disappointing guidance. So for Q4, EPS coming in at $1 adjusted. That was $0.04 short of estimates. Revenue at $1.19 billion. That was essentially in line.

Now, this, of course, comes against heightened expectations after the company did give positive guidance at an investor conference just a few weeks ago. Now, on the guidance front for Q1, they see revenues largely in line with estimates. A little bit soft, but it's more that Q1 EPS number of $0.88 to $0.93 against the $0.99 that Wall Street was looking for. That really seems to be weighing on the stock here down seven and a half percent. Guys. All right. Pippa, thank you. Twilio's CEO, Kazama Ship Chandler, is going to discuss those results with us tomorrow on overtime in an exclusive interview.

Don't want to miss that. We've got more earnings. Palo Alto Networks and Coinbase are both out. Kate Rooney is doing double duty. Morgan, so let's start on Palo Alto. Stock down 6 percent at this point. Looks like Q1 revenue did miss revenue for the first quarter. They're guiding to 2.26 to 2.29 billion at the midpoint. That was lighter than expected. For the quarter, though, EPS stronger than expected, about a $0.03 beat on that adjusted number. Revenue also stronger than expected, grew 14% to $2.26 billion. And that was stronger than expected as well. Another key metric, next generation security, ARR. That's a number folks watch, grew 37%

better than expected at $4.8 billion. And then the company also adding two new board members as well. They are expanding from nine to 11 board members. I'm going to bring you Coinbase now. It's looking like a massive beat for Coinbase in the quarter, helped by really strong crypto trading and Bitcoin's all time high. You can see shares moving slightly lower, though. EPS, though, for the quarter, a beat by almost $3, $4.68. Sand Street was expecting $1.81 there. Total revenue for the quarter coming in at $2.27 billion. That blew by estimates. It was up 138% or so year-over-year.

Transaction revenue, which is a reflection of trading volume, also a strong beat, 1.6 billion. For that number, it was up 172 percent sequentially. Coinbase did see about 439 billion in trading volume. Consumers made up the largest portion of that, 1.4 billion. Institutions were closer to 141 million. Subscription services did hit an all-time high. That was up 15 percent. And then monthly transacting users, excuse me, were up 24%.

There is a quote in the press release. They are benefiting here really from that crypto bull market and friendlier regulation. They say it's the dawn of a new era for crypto. The voice of crypto is heard loud and clear in the U.S. elections. And the era of regulation via enforcement that crippled our industry in the U.S. is on its way out. They say the Trump administration is moving fast to fulfill its promise of making the U.S. the crypto capital of the planet. And they say leaders are taking notice globally. So a big tailwind there for Coinbase and a big help in the quarter there and helping the outlook as well, guys. But shares now reversing slightly higher, up 2 percent after hours. Back to you. All right. Kate Rooney, thank you. Adam, we just ran through quite a few reports,

but let's start with Coinbase, because there were a lot of animal spirits arguably priced into the stock ahead of this earnings release and the EPS number alone just trouncing estimates. What does it tell us about this asset class, the bull market we're in for things like Bitcoin and where it potentially goes from here? I think expectations were very high, and that's why we're seeing a relatively immediate reaction considering the magnitude of the beat. You saw yesterday with Robinhood, they had massive crypto results as well. And so I think investors are kind of just attempting to gauge the sustainability. What is the sustainable going forward earnings power of the company versus anyone giving

court? You could have kind of an explosion of volatility. But nevertheless, there definitely does seem to be a secular shift of funds into crypto. And that's definitely a win for Coinbase. For sure. Adam, thank you. Mike Santoli, we're going to see you again in just a little bit because we're just getting started here on Overtime.

Up next, instant analyst reaction to earnings results from Airbnb, Roku and Coinbase. Plus, access you will only get on Overtime. DraftKings CEO Jason Robbins will join us before he talks to Wall Street on the earnings call. We've got all that and more coming up. Overtime's back in two. Welcome back to Overtime. I want to mention DraftKings results are out. The stock is spiking up about 5%, 6% so far in overtime. We're going to get you those results in detail in just a moment.

Meantime, shares of Airbnb and Roku are both up double digits right now in the teens here and over time after reporting earnings moments ago. Joining us now is Evercore ISI head of internet research, Mark Mahaney. Mark, two big moves. Maybe give me Airbnb first and then tell me how Roku's results here fit into the content ecosystem. So Airbnb put up stronger than expected numbers, very similar to what Expedia gave you. And I think other travel companies are going to tell you the December quarter was pretty robust when it came to travel. And so far, 2025 is shaping up to be more of the same. The other kind of positive surprise for investors, one of the fears I had going into the print was that the company was really going to start investing aggressively in 2025 and we're really going to get a reset down to the margins. We're getting a reset, but it's very modest. It's nice to have a high

margin business like they have so they can put an incremental $200 to $300 million into some of their newer initiatives. I think they're going to be bringing back experiences aggressively. But they can do that and still maintain what are some of the highest margins I see out there in the sector. So the overall results on Airbnb, the stock should be up. And Roku? Roku, you know, this is kind of a little bit of a tale of two cities. We had this disastrous print from Trade Desk yesterday that kind of made you wonder about all ad platforms outside of Meta maybe and Google and maybe Amazon.

And so there was concern, fear going into Roku tonight. But Roku put up a beat and raise quarter, looked pretty clean. Their gross margins, the profitability levels are continuing to improve. I think there's a lot of struggles, a lot of almost structural challenges that Roku faces going forwards. But this was a quarter in which there was a lot of fear going into the print and they overcame it. So the bar was low. They rose above it. So, Mark, what does it take for Roku to get to sustainable profitability? Oh, probably a lot more scale and maybe a sizing down of the devices business that they have.

Yeah, it's a good question. I mean, we're still dealing with EBITDA. It would be nice to get to gap earnings. I don't think they've got the scale to get there. Maybe sustainable high, large, chunky gap earnings. I don't think they have the scale to get there for a few more years. But that's what you'd probably need, just scale and then trying to find some of these areas to win down from or to thin down from. And devices would probably be the best area to thin down out. One of the most fascinating things coming out of this earnings season to me, and we saw it again today with Airbnb, is the fact that we had a leap day last year and we've also had some pretty

substantial FX headwinds and that's really hit companies across industries this earnings period. And yet a lot of these two factors were not necessarily factored into street consensus. And I wonder where you think it goes from here and what needs to be kept in mind now with earnings that we're still waiting on. Well, you know, Morgan, I think people are going to start looking ahead. And so if the worst quarter of the year with the most headwinds because of leap day and maybe the timing of Easter, which is key actually for travel names, and then, of course, currency and a lot of these internet names that I look at, the large cap ones, have 50 percent of their revenue from overseas. I mean, you've got the real strong headwinds in this quarter,

which means, if you look forward, you should start seeing potentially acceleration in Q2, Q3, Q4, and generally investors like that. And if you get acceleration, you usually get margin expansion with it. So the question is, could you get beyond the March quarter? And it's been a bit of a hiccup for some of these names. There's been very few names that have aggressively traded up unless they had something really idiosyncratic like Meta, Spotify, Netflix. Most of the other names have been kind of cautious with their March quarter outlook. As long as it wasn't too bad, it almost seems like the market is saying, OK, we get through March. The rest of the year should be good. All right. Mark Mahaney covering a lot there, as always. Appreciate it. Thanks, Morgan. DraftKings earnings are out.

Contessa Brewer has the numbers. Hi, Contessa. Morgan, we're seeing a miss here on top line revenues coming in at one point three nine billion, where the street was expecting one point four one billion, a loss of twenty eight cents per share, where the street was expecting a loss of 28 cents per share where the street was expecting a loss of 16 cents. So, miss on the top and bottom lines. The EBITDA, though, it beat. The street was expecting 87.7 and DraftKings came in with 89.5 million. A miss on monthly users. It looks like the street wanted 5.12 and here DraftKings came in at 4.8.

On guidance, it is now raising for the full year the low end of its guidance. It was 6.2 billion, and now they've raised it to 6.3 billion to 6.6 billion range and reaffirmed full year EBITDA guidance of 900 million to 1 billion, respectively. I know you guys have Jason Robbins on with you. He told me last week at the Super Bowl they did definitely have to ride that volatile wave of customer-friendly results. When the fan favorites win in games, the house loses. So you're seeing the stock up 5.5%. The guidance raise clearly impressing investors.

They were very focused on that, guys. All right. Contessa Brewer, thank you. Well, as she just mentioned, when we come back, DraftKings CEO Jason Robbins is going to join us for a first on CNBC interview ahead of his earnings call with analysts with that stock off to a hot start this year heading into today's print. And later, shares of $70 billion animal health company Zoetis. Pulling back after this morning's earnings results, we're going to talk to CEO Kristen Peck about the guidance, the impact of

tariffs and trade dynamics, the company's efforts on avian flu and more. Stay with us. Welcome back to Overtime. GoDaddy earnings are out and the stock is taking a leg lower. The company turning in a mixed quarter revenue narrowvenue narrowly topped estimates at $1.19 billion. Earnings per share missed, though, at $1.36 per share. That was versus estimates of $1.43. Guidance was essentially in line. You could see shares are down about 4.5% right now. Well, DraftKings shares are higher right now after reporting Q4 numbers just moments ago.

That's despite reporting a revenue miss wider than expected loss per share versus the streets estimates. You can see the stock is up six plus percent. Joining us now on a first on CNBC interview before the earnings call is Jason Robbins, DraftKings CEO. DraftKings CEO Jason Robbins, great to have you. So I want to start on the monthly uniques, 4.8 million versus the 5.12 expected. But tell me how flow through is working out and with all of the advertising that you're doing, how customer acquisition seems to be shaping up. Customer acquisition has been absolutely fantastic. That was one of the big stories of Q4. It was well ahead of our expectations. So really excited about how that sets us up going into 2025. And, you know, we're on pace to, I think, do the $900

to $1 billion in EBITDA that we predicted. And I think that's pretty good for a company that only two years ago was losing money. So what's happening on the revenue side that investors need to know about? Well, the biggest thing is that we continue to see just great customer acquisition growth. I'd say the second thing is that we are really innovating on product. We recently made some acquisitions and some of those folks from, you know, Mustard, SportsIQ, SimpleBet, they're really all contributing in a big way to the company's efforts to create a more compelling product, create better live betting experiences. So really excited about that. We're very excited about the Jack Pocket brand and the lottery business.

We acquired that back in I think it was May. We we announced that once or excuse me, close that one. So very excited about that. Lots of great tailwinds going into 2025 and beyond. Jason, you're on with Contessa Brewer last week ahead of the Super Bowl. So now I will ask, how did it go with the Super Bowl and And how do you build on that momentum post-football into other sports like NBA? Super Bowl was just an absolute monster day for us. We did $436 million in handle. We had a huge year-over-year increase across virtually every metric. Bet mix improved dramatically year-over-year.

Really, it was a huge day for us. And everything, I think, that we kind of wanted going into it. And then the game outcomes were great, too. We didn't end up incorporating that into our guidance still very early in the year. And as we saw in Q4, it can clearly swing the other way. So we're kind of keeping the neutral outcomes view on the guidance. But Super Bowl is definitely better than expected. How are you navigating possible policy changes, both on the federal level and also on the state level, especially as we see some states now looking to raise taxes?

Well, there's a lot that we have to deal with because we're, you know, 25 plus states. We also have, you know, many more states that are considering legalizing that haven't yet. So still about half the country does not have access to sports betting. So we're watching on both fronts. I think there's a number of states this year that might end up passing legislation. Last year was a tough year because it was an election year, and it's just typically tough to get legislation done in an election year. This year, we think there's some pent-up demand, and we anticipate that there will be a few states that end up passing sports betting. And we're also hoping that we get some iGaming legislation through. You give me a sense of how the mechanics are working as far as costs of customer acquisition. I know there's still a

lot of market left for you to penetrate, but say in the markets where you already are, is it getting more expensive to acquire additional customers? Are you finding digitally or otherwise that certain channels that you're investing in are still cost effective. So those costs are relatively stable. Well, really what's been amazing about the customer acquisition environment is that a lot of it is coming from some of the older states that you were alluding to. It's not just the newer states. So it really does seem to be an overall just momentum thing in the industry. And generally speaking, when customer acquisition is good, we do spend a little more, but we typically just take more of it to the efficiency side. So we actually had record low CACs. We had the lowest CACs in 2024 that we've had since our first year in the industry. So

really, it's been a great story on that front for us. Okay. Jason Robbins of DraftKings, thanks for joining us. Thank you for having me. Stocks now up 8% here in overtime. It's time now for a CNBC News Update with Pippa Stevens. Pippa. Hey, Morgan. A top federal prosecutor in New York and a senior Department of Justice official

resigned earlier this afternoon. According to NBC News, the acting U.S. attorney for the Southern District of New York, Danielle Sassoon, and the DOJ's acting head of public integrity, John Keller, refused to comply with a DOJ order to dismiss the corruption charges against New York City Mayor Eric Adams. A federal judge has temporarily blocked U.S. health agencies from enforcing President Trump's order to end all federal funding or support for health care providers that offer gender transition treatment for people under the age of 19. The ruling comes after a lawsuit was filed earlier this month on behalf of families with transgender children.

The ruling puts the freeze on hold for 14 days while the case proceeds through the courts. And the U.S. military confirmed today it's ramping up surveillance of Mexican cartels in order to collect intelligence to counter their activities. The head of the U.S. Northern Command said the military is using its airborne assets to gather the information and added that it would need the Coast Guard's help for a larger maritime presence. John, I'll send it back to you. Pippa, thank you. Well, Informatica earnings are out. The stock is tanking. The cloud data management company missing top line estimates reporting four hundred twenty eight million dollars in revenue for the fourth quarter versus estimates of four hundred fifty seven million. Earnings

beat, though, by three cents at forty one cents per share. But first quarter and full year revenue guidance was below expectations. Now still ahead, much more on all of today's after-hours action, including a closer look at results from Coinbase and what to listen out for on that earnings call. And check out the action in defense stocks today. Getting hit hard late in the session after President Trump told reporters he would seek discussions with China and Russia about potentially reducing military spending, maybe cutting it in half.

Also about denuclearization. You can see those shares lower on your screen right there. Stay with us. Welcome back. We have a news alert on GameStop. Kate Rooney has the details. Hi, Kate. Hey there, Morgan. So CNBC.com now reporting that GameStop is evaluating a plan to invest in Bitcoin and other cryptocurrencies. This is according to three sources familiar with those plans. You can see the stock is up 17 percent after hours. These sources telling CNBC the plan includes alternative asset classes that could include crypto and in particular Bitcoin. This is, again, according to three people in the retailer.

They said could decide to not follow through the investment plans. The company is still right now in the process of figuring out if it makes sense for the GameStop business. According to sources, it comes after Ryan Cohen, the CEO of the video game retailer, posted a photo with Bitcoin bull Michael Saylor this week. He's the chairman of MicroStrategy, which is the largest corporate holder of Bitcoin, recently re-branded a strategy.

It was one of the first companies to do this and to start buying Bitcoin, putting it on the balance sheet. Although two of those sources said that Saylor was not involved in this decision, GameStop had attempted to expand into digital assets at one point with crypto wallets. It did shut that down in 2023, citing regulatory uncertainty. GameStop, of course, the poster child of this meme stock phenomenon we've seen in recent years, has had a volatile run since it was front and center of the Wall Street bets and meme trading media. But shares here up double digits, guys, after this news. Maybe it's coming back. Kate, thanks. Well,

Mike Santoli returns with a look at how some sectors are reacting to policy expectations and interest rates. Mike. Yeah, John, this market continues to really just win. Oh, perceived winners from losers at this point. This is within the health care sector is what's going on. This is the subsector that covers life science tools and services. This is lab equipment. This is analysis products for medical and other science research. You see, it's not far from a two year low right here. And this is the pharmaceuticals ETF, big cap pharma, not just not really biotech. And that's obviously toward a two year high. Obviously, you got the hiccups in funding from the government for medical and other research.

There was already a bit of an AI shadow over this area as well, if that's going to help in drug development and many other sort of pressure points here. So you can see how, yeah, health care is outperforming, but it's really very uneven within it. Now, take a look at within the real estate related sectors as well. Home builders, this is on a one year basis, have really struggled at 7 percent mortgage rates. Pretty tough for for that housing sector and new homes to really make hay right here. Whereas you see things like residential real estate investment trusts and deck desk right here is a very small and very new but office company. And that's separated to the upside a little bit less rate sensitive, at least on the long end, guys.

Interesting chart. All right. Mike Santoli, thank you. Breaking it down for us, as always. Up next, the CEO of animal health, Giant Zoetis, on what's driving weaker than expected guidance, how trade policy could impact your business and more. And to the QR code for the latest installment of my On the Other Hand newsletter. This week's debate is President Trump's Department of Government Efficiency, or DOGE, really helping eliminate wasteful spending or doing more harm than good? Scan that QR code on your screen now to join the conversation. We'll be right back.

Welcome back to Overtime. Shares of Zoetis closed lower today after reporting Q4 earnings this morning. Meantime, Zoetis says it just got approval from the USDA for its avian flu vaccine for poultry. Joining us now for an exclusive interview is Zoetis CEO Kristen Peck. She joins us on set. Welcome. It's great to have you here. Thank you. It is great to be here, especially after such excellent results and the great news of our conditional

licensure of our high path avian influenza vaccine for poultry. So I do actually want to start right there because we've seen what egg prices are doing in the midst of this bird flu. We've seen it spread to other types of animals. We've seen it spread even to some humans. We've seen it show up in the inflation data just this week. What does this vaccine mean and how quickly can it be deployed? Sure. I mean, what we've seen is a significant impact to the poultry industry from high path avian influenza across the globe, but certainly in the U.S., especially in the layer population, which is driving the increase in the egg prices. We've also seen it, as you know, in dairy cattle and it's now in humans. So it's a very one health.

We've been working with the administration and with Congress, and we're very excited today to get the licensure for it in poultry, which we think will be a tool that we will help support the government as they, you know, deem necessary. So we'll continue to do whatever the government wants there. How big is that opportunity in livestock, in poultry, when you think about vaccines and health? I mean, I sort of came ready to talk to you about pets, and we'll get to, I sort of came ready to talk to you about pets and we'll get to that as well. But when we're talking about something like avian flu, what could that opportunity mean from a market standpoint? Given that pet care is our largest business, over 65 percent of our business, livestock is not as large. So we don't see it as

an important, you know, significant impact overall to the bottom line of getting that. It's really important to our customers and most importantly to our purpose to support and nurture the world and nurture human health. So that's really much more it has to do with. It's not going to make a significant impact for us on the bottom line, but it really will support our customers as they need it. So let's talk about cats and dogs. And in particular, I'm wondering, demographic shifts and maybe psychographic shifts. There's been so much that the luxury consumer, the higher end consumer has been powering in this market. And you've got to have a certain amount of money to do sort of medication for your pet with more advanced and serious diseases. What are you seeing trend wise, maybe even with those pandemic pets that got purchased and the percentage of pet owners who are willing and able to provide that kind of care.

Yeah, what we're really seeing is how essential and resilient the animal health care industry is. And that's because of the human animal bond. It's not just the number of pets, it's who's adopting them. And to your point on the trends, it's more millennials and Gen Z. And they see their pets as critical members of their family. And they want them to be treated with the same, you know, health care that they get treated with. And that's what's really been driving the double-digit growth for us across key franchises, such as our OA pain franchise, which grew in 2024 80 percent. As you look at our, you know, Simperico or parasiticides franchise,

growing 28 percent and 17 percent in dermatology. They're taking better care of their pets. They're much more engaged in their pet's life. And we think it's really a resilient and enduring driver of the growth for Zoetis. Is there going to be a GLP-1 type effect for pets at some point? Not necessarily specifically that, but a life enhancement? Well, our biggest areas of focus right now in our pipeline that we really think are going to be disruptive and game-changing is chronic kidney disease, which is going to be a $3 billion to $4 billion market. And we mentioned at J.P. Morgan that we're expecting a product there in the 12 to 36 month. You know, that is really one where, for both dogs and cats, there are no treatments in animal health approved today. Also, oncology,

which is where you see in human health, which was going to be a $1.2 to $1.7 billion. What we really guided to is we're expecting an approval every year for the next several years. And these are going to be blockbuster products. And I think what's really important is these provide drivers of our growth over the short, medium and long term. So you have a robust pipeline. I am curious how you're navigating trade policies, especially as we're having conversations just the latest today. And we don't know when or if or how those get implemented, but reciprocal tariffs that the president talked about this afternoon, yours is a global business. How do you navigate it? Yeah, so, I mean, what we've done is

very similar to many companies. We've had, you know, teams working over months to be tracking some of this and to really understand what the potential implications are. It is fast-moving, and it's evolving. And so, as we said when we gave our guidance today. We're not baking that in since we don't know when and exactly how much, but we've been doing scenario planning like many companies and, you know, stand ready to try to help address and mitigate whatever we can. How quickly could you move production from one country to another or stand it up in order to adapt to that? Well, we're a highly regulated industry and it takes, you know, multiple years to be able to move a product or honestly, it's not just a product. It even could be an input. So this is a very global supply chain

as you think about both human and animal pharmaceuticals. AI, we know it's coming into drug development and research for humans. How does it play out with pets and other animals? Well, we're really excited that we already offer AI products. You know, I sometimes say you can get better diagnostics for your pets sometimes real time than for humans. So we already offer imagist in the clinic. Imagist is a platform where it can take a picture of whether it's blood or fecal or urine and get you the results while you're at the vet. So you can find out whether or not you have worms or whether or not, you know, we're talking about oncology, whether or not your cell is cancerous. So this is really a game changer. And we don't just give you that answer based on the AI. We'll connect you with a pathologist so your local vet knows how to

interpret that and what the potential options are going forward. So we're really excited to have AI in the market, but we're super excited for what it can also do across R&D for our organization and early research and discovery um and in development and obviously all the commercial applications as well kristen peck of zoetis it's great to have you here on set thanks for joining us absolutely thanks for having me we should know kristen's one of cnbc's change makers for 2024 and this year's list will be revealed later this month you can learn more at cnbc.com change makers and opal says hi that's our russian blue well coinbase crushing analyst earnings

estimates up next. An analyst with a buy rating on the stock tells us what he wants to hear from management on the call, which kicks off at 530. And shares of Carmen Holdings soaring sky high today after the space and defense company went public at $22 a share. That was above the expected range and it raised more than $500 million. You can see right there on your screen, finished up more than 36%. Sticking with space, though, Jeff Bezos' Blue Origin is cutting its workforce by 10%. That's according to an email I obtained with a memo from CEO Dave Limp to employees. It's about 1,400 jobs, with most of those job cuts coming from engineering and research and development. Stay with us.

Welcome back. Coinbase is bouncing around right now in overtime after our initial move higher on earnings. You can see it's up fractionally right now. But head of financial technology research at Citizens JMP, Devin Ryan, has a buy rating on the stock with a $400 price target. He joins us now with his reaction. So, Devin, we'll start right there because it seems like it was a gangbusters quarter, even if the stock is not moving dramatically right now. Your takeaways? Yeah, it was a great quarter. The stock was up 8 percent today, so I think it did run into results. It's up 50% since the election. So the bar is high, but they blew numbers out on the quarter, beat estimates by 25% on revenues.

And what I think is great is that not only do you have this really incredible quarter, but they gave some commentary on the first quarter and the first quarter starting just like the fourth quarter ended. And so you've got a lot of momentum into 2025. And then the bigger story is obviously around what comes next and just a lot of pro crypto policies across the White House, Congress, now the SEC. And so I think people are pretty excited, but very good results from Coinbase. Devin, if I look at Coinbase's chart since April of 2021 and then overlay Bitcoin since April 2021 on top of that. Directionally, they're about the same. And so when I see this spike and these results up against what Bitcoin has done since Election Day, it really makes me wonder, are you essentially betting on Bitcoin

if you're betting on Coinbase or if at some point the business diversifies enough that there's enough in there for them to really move in different directions at some point? Yeah, John, it's a great question. I think the observation is obviously that as Bitcoin being kind of the largest asset gets more adoption, that's good for Coinbase. And so there has been a strong correlation. I think over time, what you'll see is there will be a divergence there. And Coinbase really is diversifying its business. And really, Coinbase, what I think people have missed on the story is it's not just about trading assets. It's about really being an infrastructure layer for blockchain. And as blockchain gets adopted, whether that's Bitcoin or other aspects of blockchain, Coinbase will participate in that.

And you can see that in their subscription services revenues, which are run rating nearly $3 billion today. We're effectively at zero in 2020. And I think that business is going to grow multiples from here. So the point is, there will be diversification. I think it will break away. But Bitcoin is really an indication of what the adoption is of crypto assets. All right. Devin Ryan, thank you. Great to see you. Up next, a look at the huge advancements in the fight against sickle cell disease and whether they could be in jeopardy because potential Medicaid funding cuts by Congress.

We'll be right back. Welcome back to Overtime. It's been just over a year since breakthrough sickle cell gene therapies were approved. Drug makers Bluebird Bio and Vertex say they expect to treat more patients this year as capacity improves. CNBC senior health care reporter Bertha Coombs joins us with a look at what's happening with access to these seven-figure treatments. Bertha. John, you know, the new sickle cell therapies involve about a year of treatment, and we're starting to see a few patients who have come through it. Nineteen-year-old Deshaun DJ Chow finished up treatment in January at City of Hope Cancer Center in Los Angeles

after months of hospitalization, before and after gene alteration of his cells. He's now starting to dream about a normal life. Learn how to snowboard and like surf and do all these things that like experiences that I never really got to do because of my sickle cell. Now, DJ's two million dollar plus treatment was covered by his dad's employer's insurance. Hospital officials say that authorizations are now going smoothly. But over half of sickle cell patients are on Medicaid plans, which are facing funding cuts in Congress. Researchers say the largest concentrations are in southern states like Florida, which has nearly 5,000 patients. States have until February 28th to sign up for a federal gene therapy access model

that was developed by the Biden administration to get a discounted Medicaid price for the whole group. Meantime, CVS Health CEO David Joyner told me that private insurers are looking at developing similar types of risk pools for companies to share the burden of the cost. But he says it's going to take time to build those. Morgan. Bertha Coombs, thank you for the report. We've got President Trump now hosting a bilateral meeting with India's prime minister

at the White House. We're going to monitor that. We're going to bring you any headlines as they happen here with Prime Minister Modi. And we know, John, that the expectation has increased LNG, combat vehicle and jet engine purchases, according to Indian government officials ahead of this meeting. So perhaps more investment, more trade. We'll see. Yeah, and the Indian market was, as far as international markets go, particularly strong stock-wise last year. It has flagged this year. Here in the U.S., in overtime on earnings, Roku and Airbnb both still up double digits right now as we await more from those earnings calls. It was interesting, Mark Mahaney telling us, contrasting Roku's strong results with the Trade Desk's results that had that stock majorly down today.

The monetization story across content is diverse. I think Coinbase is interesting, too, because consumers can continue to drive so much of what we're seeing in the results there, particularly on the trading side. If you start to see a stronger regulatory or, I guess, a more stable regulatory, decisive regulatory situation here in the U.S., do you start to see more institutional money come into some of these platforms? And then, of course, GameStop maybe perhaps being an example of maybe more corporations starting to think about adopting some of these assets. We'll see. Yeah. I mean, GameStop is up 9% now. You wonder if a different flavor of meme mania might be coming back. Yeah, retail sales tomorrow, among other things, and all the averages higher today. That does it for us here at Overtime.

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