Closing Bell - Closing Bell Overtime: Howard Lutnick On Why He’s Expecting One Cut This Year; DoorDash CFO On The Quarter & Consumer Spending 5/1/24

Episode Date: May 1, 2024

The Fed and Jerome Powell kicking May off with a bang for markets, as the rally during his press conference proved short-lived; the S&P 500 and Nasdaq gave up their gains by the end of the session. Jefferies Chief Market Strategist David Zervos and G Squared Private Wealth’s Victoria Greene parse the Fed’s actions and the market reaction. Cantor Fitzgerald CEO Howard Lutnick gives his first reaction to the Fed and tells why he is expecting one cut this year. Earnings from Qualcomm, Wolfspeed, Doordash, Etsy, eBay, Zillow, Carvana and Informatica. DoorDash CFO Ravi Inukonda on his company’s results. 

Well, it was a bullish reaction initially to Fed Chair Powell's words, but those gains fading fast into the close as the S&P ends lower at the highs. It was up 1.2 percent today. 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, and we have got another jam-packed hour of earnings heading your way, including results from Qualcomm, DoorDash, Etsy, Zillow, and more. Plus, billionaire businessman and Cantor Fitzgerald, CEO and chair Howard Lutnick joins us with his first take on the Fed and when he thinks cuts could be coming and so much more. Let's get straight to the market and that reaction to the Fed. Joining us now, David Zervos of Jefferies, Victoria Green from G Squared Private Wealth.

What an afternoon of trading it was. David, I mean, the Dow still eked out a gain here, but the S&P and Nasdaq, after a big pop in the midst of that Powell presser, finishing the day lower. Dovish here? Or when you start to look below the hood and at some of the specific words that the Fed chair was using, including about the signals from data, was this really more down the middle? I actually think it was quite dovish. I think the market's initial reaction was actually correct. I'm not exactly sure why the market got a little cold feet at the end of the day. Maybe we'll see something else that comes in. But I think from the Fed's perspective, this was a dovish move. It was a dovish policy move, a dovish statement, and a dovish press conference.

The rate markets seem to embrace that story maybe a little bit more than the risk asset markets. There was definitely a lot of fear that he might go down a Bowman-type path and talk about the possibility of hikes. He really pushed back on that. He talked a lot about how policy was still very restrictive in his mind, talked about the demand side, indicators that are confirming that view for him. And look, they cut QT. I mean, that's a policy move. That's, in my book, an easing, Morgan. I mean, they're just, they eased. They eased today. So I know he's not going to say that. The primary

tool for monetary policy is rates, blah, blah, blah. But the balance sheet's a big deal, as we've talked about a lot on this show. And they eased today. That's actually a pretty significant move. Yeah, I want to jump in here. Qualcomm results are out. That stock is higher by about four and a half percent initially. I'll give you the numbers. It's a beat and a raise quarter. Fiscal Q2 revenue came in at nine point.39 billion versus $9.34 expected. Non-GAAP EPS at $2.44 versus $2.32 expected. The guide is also above for Q3. Qualcomm guides to a revenue midpoint of $9.2 billion. That's better than $9.03 expected. EPS midpoint of $2.25 plus or minus $0.10 versus $2.18 expected.

I spoke with Qualcomm CEO Cristiano Amon about the results. He pointed out strength that Qualcomm saw in the premium tier Android in China, which is interesting given all of the trouble that a number of U.S. firms have been having in China. I would say Apple specifically, which of course is premium but is not Android.. So we'll get some more color on that. Also strengthen the automotive business. So in the IOT segment, one of the growth areas is automotive. And they did turn in $583.3 million of revenue there in an automotive alone. That's a little bit separate from IoT, but that $583.3 million, Qualcomm had said that last quarter was a bottom for that business. And indeed, this is 9% above that. In the IoT area as well, they were bang on with estimates. That continues

to be strong. And of course, they've got the AIPC announcements coming later this year from that as well. That, though, not in this initial guide so much as that's coming in the next fiscal year for continued growth. I asked him about the growth in the automotive business, given that we've seen some weakness in EVs. And he pointed out that that's really different. EVs help accelerate the move to new platforms in cars, but it continues, even as some automakers might get cold feet on EVs themselves. And their automotive business continues to grow strongly for them. I'm going to be speaking more with CEO Cristiano Amon after the show. You can catch part of that discussion tonight at 7 p.m. on Last Call. Yeah, stock higher up about 4% right now. Really some strong commentary and numbers there 7 p.m. on last call. Yeah. Stock higher of about 4 percent right now.

Really some strong commentary and numbers there, John. Yeah. OK, so let's go back to the panel. Victoria, I was going to ask you about the Fed. I was going to ask you about the tapering of QT and what that means to the market, this idea of easing, as David just mentioned. But now I'm going to also ask you about Qualcomm, given what we've seen in the semi stocks more broadly. Yeah, obviously, first off on the Fed, I think it's more reaction that they've lost a little credibility. It came out so positive, so upbeat, no rate hikes. Everything's fine. You know, we're significant. We're restrictive enough. Everything's good. And then I think the market priced in and said, is it really? You know, you've been pretty wrong the last, you know,

48 months. So I think some of this was just kind, is it really? You know, you've been pretty wrong the last, you know, 48 months. So I think some of this was just kind of repricing in how optimistic Palo was. On Qualcomm, it's a really pleasant surprise. After Skyworks, you know, there was a lot of worry coming into this. It's estimated, they don't break it out, but it's estimated Apple's about 20% of their revenues. And we're fairly certain that numbers coming out of China and Apple iPhone sales are weak in Q1. So this is fantastic. And they've got a great point on the automotive.

It's not just EVs. Everything has chips in it. That's why car insurance is so expensive now, because your bumper has a chip in it. You can't just bang out a dent anymore. You've got to get everything recalibrated. So there is a huge pickup for them, and as we roll out more and more significant AI upgrades in phones, we could see then an increase in the replacement process, and we could see finally the cell phone market bottoming. All of those are positive things. They kind of came in with a little bit of weak expectations, and they beat a low bar, so the markets are liking it.

Okay. David, the fact that we have seen, we saw that pullback in the market. That seems like it's sort of come and gone to a certain extent as well. I mean, risk on assets, is that still the place to be right now? I mean, you know what I really liked in all this, Morgan, was the fact that he thought there were two avenues to getting a cut, that he said it could be inflation that gets it there, but it could also be, oh, it could also be unemployment. Sorry about that. And that really opened up a door. I'm not sure if that's when the market got excited or not

because I wasn't able to exactly time that in terms of being in front of a screen, but the point is we could see inflation stay above 2. We could see inflation be a little bit sticky, and if the unemployment situation really deteriorates, they could start cutting, and Jay told you that today. To me, that's much more consistent with this view that we've put out for most of the year that the Fed puts in place. If things get messy, they're here to help you. And they haven't been here to help you in 2022 and 2023. That was a real problem for the market, certainly in 2022, when we had the 25 percent downdraft or even a little bit more.

So to me, the Fed really is much more balanced. If things get messy, they're here. I think he's very comfortable with inflation back down to two, seven, two, eight. If it grinds into two, he's going to be OK with it. But if you really see something going wrong, we're going to get rate cuts. We're going to get something that helps us out. And you couldn't say that in previous years when he was fighting inflation at much higher levels. That's a very supportive backdrop for the market, risk asset market this year. Yeah, let me jump in here. DoorDash earnings meantime are out. Revenues for DoorDash, let me first preface this by saying the top line numbers, the headline numbers are a mixed bag, but it's more complicated underneath. So bear with me here. Revenue came in at two point five one three billion versus two

point four or five expected. That's a beat. EPS came in at a six cent loss versus a loss of around four cents, three cents expected. Now, the analysts don't necessarily look at EPS for as much as the overall operating profit. We'll dig into that in a minute. So the guide, marketplace gross order volume, the range is $19 to $19.4 billion, which is at the midpoint right around the consensus at $19.23. Adjusted EBITDA is $325 to $425 million, midpoint there just below the streets consensus at $394. I did have a chance to talk to Chief Financial Officer Ravi Indakonda. We're going to hear more from him on the show in just a minute. Don't miss that interview coming up in just a few minutes. We dig more into the continued strength that they're seeing in customers and

in dashers as well. All right. We're looking forward to that. Victoria, I'm going to go to you with this one. DoorDash down 9, 10 percent right now here in overtime. The fact that we've been hearing some, I'll call it mixed commentary or cautious commentary around the consumer from quite a number of companies in the last 24, 36 hours. How does this factor in if it does? I think there's concern that the lower to middle income consumer is getting stretched, but we did see very strong spending. I think the concern is we eventually would like them to operate at a profit. And are we going to get there or are they seeing increased costs as they're fighting with Amazon and other delivery services and Uber Eats for

market share. And the concern is that their ad spend comes up, then their margins still aren't where they need to be. And one thing that could kind of save the stock after hours is they are actually looking into drone deliveries with Google. And if they have some way of doing drone deliveries and partnering with Wendy's, they could then undercut some of their driver costs. But for now, the question is, what's next for them? And they're trying very hard to push into grocery as well as other retails and partnering and creating these other verticals beyond just, you know, I can deliver you some pizza and pasta at home. I think the investors are just starting to get a little bit wary of, OK, at some point, you do need to make money with

this. And at some point, we need to know that you have a moat around you that Uber Eats or Amazon, you know, Amazon's pushing more and more into grocery delivery with their platform. Are you really going to be able to grow if your competitors start to encroach on your markets? Well, speaking of the consumer, Etsy and eBay earnings are out. Kate Rogers has those numbers. Kate. Hey there, John. We'll start with eBay here. A beat on the top and bottom lines for that company, $1.25 per share adjusted versus the estimates of $1.20 per share. Revenues $2.56 billion higher than the $2.53 billion that analysts were looking for. Revenue guidance here for Q2 a bit lighter than expected, $2.49 to $2.54 billion range. And Q2 EPS also a little

bit lighter than expected. The company giving a range here of $1.10 to $1.15, a little lower than the $1.14 initially estimated. And as you can see, the stock now is down by nearly 9%. And then moving on to Etsy, that stock is also lower right now. Q1 earnings here, $0.48 adjusted. That's lower than the $0.49 that analysts were looking for. And revenues right in line, $646 million for the quarter. That's exactly what analysts were looking for. But as you can see, that stock is also lower by more than 16%. Now we'll bring you any updates as we get them, guys.

Back over to you. All right. Okay, thanks. We've also got Carvana earnings. Phil LeBeau has those. Phil. John, check out shares of Carvana. You want to see a pop?

This is a pop when you beat the street by such a wide margin. And that's what we're seeing with Carvana. You want to see a pop? This is a pop when you beat the street by such a wide margin. And that's what we're seeing with Carvana. Earnings per share, a profit of 23 cents a share. The street was expecting a loss of 74 cents a share. Revenue better than expected by a wide margin, 3.06 billion. The street was expecting just under 2.7 billion. Not going to go into all the details, but the key ones all revolve around the vehicles sold and gross profit per vehicle. Vehicles sold up 15.9% compared to the same quarter last year. Coming in at a gross profit per vehicle of $6,802. That was an increase of 41.8% compared to the first quarter of last year.

How did they do it? The company tells me they were much more efficient. In fact, their days to turn was down to 13 days, one of the lowest days to turns that they have ever had in terms of their business. Their retail guidance in terms of Q2, they expect retail vehicle sales to grow sequentially from Q1 to Q2. Also issuing guidance regarding adjusted EBITDA. They are expecting adjusted EBITDA growth in Q2 relative to Q1. That's the reason you see a stock up 25 percent, a much bigger beat than expected. Profit of 23 cents a share. Street was expecting a loss of 74 cents a share.

Guys, back to you. All right, Phil, thanks. That makes the one-year chart on Carvana look pretty darn good. Just don't look at two or three years. David Zervos, I want to go back to you, particularly on the consumer, maybe big picture here. We got rough tape in overtime on DoorDash, eBay, and Etsy. Of course, there are more details beneath the surface there, but how important is continued consumer strength, even maybe even especially at the mid to lower end for continued strength in the economy from here? You know, I think in the big picture, John, it's the consumers in great shape. The consumers delevered. If you look at consumer

debt as a percentage of disposable income or GDP. It's come down. You've got great stories in the job market, even though the JOLTS data came out a little lower. I mean, it's still way above pre-pandemic levels in terms of job openings. The unemployment situation we all know looks pretty good and has been amazing. People have jobs. And at the bottom end of the income distribution, that's where the wage growth has been the strongest. It's been almost three times what it's been at the top end, adjusted for inflation, positive, over 3% per year since the start of the pandemic. So big real wage gains, highest marginal propensity to consume consumers, those with the lowest income and wealth are probably the net beneficiaries here in this labor market.

It's much more of weakness in the white-collar jobs and the sort of the middle-tier jobs and those middle quintiles. So I feel pretty good about the consumer. I feel a little bit nervous, as Jay was talking today, about how he wants to make sure demand stays in check. But, you know, he's done a lot. It's stayed pretty much robust enough. The supply side's been working overtime for him on inflation. And I think he's pretty happy. And as I said in my last segment with you, I really think that if things do deteriorate, the Fed has ammo here. They've got a lot of ammo to backstop the consumer and get those lower rates in pretty quickly if they start to see the labor markets deteriorating. So I feel great about the consumer.

That story doesn't worry me. And in the meantime, we've got the beginning of taper of QT. David Zervos and Victoria Green, thanks for kicking off the hour with us as we did see that post-Fed rally fade here and a mixed picture for the stocks to close the day. After the break, Cantor Fitzgerald CEO Howard Lutnick said back in December that the Fed would go slower with rate cuts than people expected. So far, his prediction has been spot on. Up next, he joins us with his first take on Chair Powell's comments and the market's seesaw reaction. And later, we're going to hear from the chief financial officer of DoorDash about that company's results as the stock pulls back hard about 10% so far in overtime.

We're back in two minutes. Welcome back. Freshworks earnings are out. That stock is lowered by almost 12% right now in overtime. Revenues beat coming in at one hundred sixty five point one million dollars versus one hundred sixty three point seven expected. Earnings per share also beat at 10 cents non-gap versus eight cents expected. On the guide, it is light. Freshworks guiding to Q2 revenues of one hundred sixty eight to one hundred seventy million. What's one sixty nine at the midpoint, versus $172.1 expected. And for the full year, $695 to $705 million, that's $700 million at the midpoint,

versus $703.5 to $711.5 expected. In addition here, they're announcing a CEO transition. Dennis Woodside is going to become the CEO. And then G. Mathur-Bootham, the founder, is going to step into an executive chairman role. I've known Dennis Woodside for a while. He was at Dropbox and then Google and Motorola before that. You know, overall, the results, they turned in strong. I wonder how much of this is new CEO coming in. You want to set the bar low. They are they're setting the bar low and the stock is lower in overtime as well. But hope to learn more about the results here from Freshworks,

which has been quite a grower. In the meantime, I think, you know, have known everyone for a long time when it comes to the tech world. So I'm not surprised to hear that. I try to meet people. Well, Freshworks down 13 percent. Meantime, Zillow earnings are out. Diana Olick has the numbers. Hi, Di. Hi, Morgan.

Yeah, and Zillow stock is taking a hit down around 8 percent, not because of the earnings on top and bottom line. That was a beat. EPS of 36 cents a share versus estimates of 32. Revenue of $529 million versus estimates of $509 million. Revenue up 13% year over year. It's the guidance that's the problem. I'll get to that in a second. Rental revenue was the real winner, up 31%, primarily multifamily. And interesting, they said they benefited from occupancy rates coming down

off historically high levels, which drives an increasing need for advertising. Occupancy is down, of course, because so much new apartment supply is coming on the market this year. Traffic to Zillow Group's mobile apps and sites in Q1, it was flat year over year. There was mention of the big settlement on commissions with the realtors and brokerages in the shareholder letter. CEO Rich Barton wrote, the substance of the settlement is what we've characterized as a very reasonable mid-path forward for the industry, where commissions are negotiated and communicated between buyers and sellers, and both parties are better educated. Now, Zillow gave weaker than expected Q2 guidance, noting the recent rise in mortgage rates. Where have we heard that? And

some underperformance among first-time home buyers. It did, however, reaffirm full year. Kind of questionable as to why, though, guys. Back to you. All right, Diana Olick, thank you. The share is down 8.5% for Zillow right now. Let's turn back to the macro. The average is losing their post-PAL gains into the close.

So what's ahead for the Fed? What's ahead for the markets? Our next guest correctly called for higher for longer rates all the way back in December when many were predicting cuts. Joining us now is Howard Letnick. He's chairman and CEO of Cantor Fitzgerald and BGC Group. He joins us now. Welcome to Overtime.

Great to see you. So you did say this back in December when the market was pricing in six or seven cuts this year from the Fed. The term you used was steady Eddie for rates looking to 2024. That certainly has been the case. We've seen inflation staying stickier and the market has dramatically repriced for just one cut this year. Coming off of this press conference with Powell and, of course, this news about the beginning of tapering of quantitative tightening, your thoughts today? Well, you've got the Fed basically, they're not cutting the six to seven

cuts was really never was really a thing. So I called it that way. It's staying that way. I think there's one cut left for the Fed that's in September and that's just showing off, not really moving anything. Now, what the most interesting thing is, they were letting their balance sheet run off and they've slowed that down. So if they're not going to cut rates, remember, cut rates is easing, letting the balance sheet run off, meaning you buy it, not us. That's tightening. Right. So the Fed's going to reduce the amount of tightening, not going to cut rates. Rates are going to get steady. I'm thinking one cut in September just to show off, maybe help their guys. They get elected. Maybe they keep their job a little longer. Not saying

the Fed's political, but, you know, if their guy gets elected and they get reappointed, it's a good job for four years. That's my view. And the Fed made it crystal clear today. We're going nowhere with rates right here, right now, through the summer. Enjoy your holiday. Do you think inflation is going to be stickier here for longer than maybe perhaps previously anticipated? I mean, Powell did say in terms of the data, the signal that we're taking is it's likely to take longer for us to gain confidence that we're on a sustainable path down to 2% inflation. Well, let's think about it for a minute. We're running $1.8 trillion deficits, pumping money like it's going out of style into our economy. And inflation is going to be sticky. I mean, obviously, inflation is going to be sticky. We all know it. You go to the supermarket, you go to a restaurant, anywhere you go, prices are up and they're staying up.

Someone cutting the prices, anything you've seen lately? No way. We're sticking here. We're steady here. That's where we're going to be. I think it's an obvious call. One cut in September showing off, but not really moving things. And then we're steady from there as well through the election. And that should be exciting. So, Howard, what's the impact on commercial real estate, both office and industrial from where you sit? Okay, so you've got a trillion dollars of commercial real estate coming up. That's offices, multifamily, and all kinds of, you know, senior living, student housing. A trillion dollars this year, $500 billion next, and $500 billion the year after. Let me tell you, a third of those commercial mortgages are totally underwater. They're going to default. The banks are going to get them back. Now, fortunately, the banks underwrote them at reasonable levels because let's face it,

interest rates went from 5% on mortgages to 7% on mortgages, 40% down. That wipes out the equity on a third of the buildings. A third of the buildings need to go find new capital, go get a new, you know, new mortgage because your old lender is not going to lend you now. And a third just need recap. They need new money coming in. So I think what you're going to see is a massive resetting of the commercial real estate business. And that's where like Newmark and the commercial real estate services people, remember, they don't own real estate. They're going to help with the bank sell it like we did with, you know,

Newmark liquidated the Signature Bank. You know, those kind of sales, helping them sell buildings, refinance buildings. And then once these buildings come down at lower prices, you know what you're going to see? A whole lot of leasing coming. So real estate services like Newmark going to be fire in 25 and 26.

And if you own real estate, unfortunately, you know, you're long a bond and you know what happened to bonds lately. Yikes. All right. And you are chairman of Newmark. So I just got to follow up on that. I mean, you're talking about potentially a third of those real estate holdings being foreclosed on and going back to the banks. What does that mean for the banks and the financial firm or financial services landscape overall then? So the big banks are in good shape. They've underwritten correctly. They saw this coming. They've got good numbers. They wrote, you know, 60 percent loan to value loans. So 40 percent decline means the banks are OK. The regional banks, you know, there are 4000 banks in America. That's so many. You know,

when we're, this is all said and done, 500, 700 go bye-bye. Small regional banks, names that you don't really know, names that you guys don't really talk about on television. But you know what? There'll be 3,500 banks. You're going to watch it every, you know, starting in about six months. You're going to see every two weeks weeks a bank gets swallowed up by another bank. Basically what the FDIC does, it takes the bank, it sells it to a local guy, cleans it up. It's not it's not a big deal, but the number of banks is going to go down and down and down and down as this happens. It's just the way it's going to happen. And of course, that speaks to the hire for longer scenario as well, maybe exacerbating that pain. You know, you're also the CEO and chairman of BGC, publicly traded brokerage

firm. It's tied to Cantor Fitzgerald's earnings yesterday. Perhaps the bigger news, though, is FMX, which is the exchange being stood up under BGC, forging further into futures and derivatives. You just announced basically a partnership, minority equity stakes with every major U.S. bank, every major market maker signing on. So really a shot across the bow at the only game in town, which is CME. How does this play out? What does this mean for the way that market to execute on those trades is disrupted now. So if we were sitting next to each other at a dinner party and you said, what does BGC Group do? I'd say we are the wholesaler for every market in the world that doesn't trade on an exchange.

And we're the most valuable wholesaler and the market's interest rates are back. That market's growing. We just guided revenues up 10 percent, earnings up 18 percent next quarter. So business is wonderful, beautiful and rocking forward. And then you'd say to me, well, if you do, if you're the wholesaler for all financial assets that aren't on an exchange, why don't you become an exchange? So Thursday we announced FMX became a futures exchange, fully, fully approved by the CFTC, and we're going to take on the Chicago Mercantile Exchange. Now, the Chicago Mercantile Exchange at CME has got 99 percent, only 99 percent of the market for futures in America. I mean, they are the heavyweight champ, no doubt, no doubt. So who would you enlist when you're going to compete with them? The 10 best market

makers, trading firms and banks in America and in the world as partners. Everyone from JP Morgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, Morgan Stanley, Barclays, and then the best trading firms, Citadel, Jump, who you may not know, who happens to be the best trader in futures in the world. Number one in volume. Just saying number, Citadel. Jump, who you may not know, who happens to be the best trader in futures in the world. Number one in volume. Just saying number one in volume. Tower, another great trader. They're all partners.

All partners to build this great exchange. Better margin. Better, faster system. Innovation. We're going to take it to the CME. It's going to be so much fun. Can't believe it. So fun. Howard Lechnik, it's it to the CME. It's going to be so much fun. Can't believe it. So fun.

Howard Letnick, it's great to have you on. You'll have to come back. You have your hands in so many different asset classes and markets. There's always so much to talk to you about. We didn't even get to crypto, for example. So please come back. Good to have you. Look forward to it. Great to see you. And in the meantime, MGM earnings are out. Contessa Brewer has those numbers. Contessa. Hey there, John. MGM Resorts International beats on the top in the bottom line. Earnings coming in at $0.74 per share adjusted versus the expected $0.56. Revenue at $4.4 billion against expectations of $4.2 billion.

The crucial earnings metric here, EBITDA. MGM beat the street in Macau and set a new quarterly record of 301 million. Slight beats on the same metric in Las Vegas and in regionals, though overall results are slightly lower year on year against some tough comps there. Not a lot of details provided about the digital contributions of BetMGM. We'll expect to hear that on the call, though. The company brought back a half a billion dollars in stock and MGM China resumed paying a dividend. It says in the release that its rewards partnership with Marriott that was launched in January has exceeded expectations and will drive growth right there.

There you're seeing the stock reaction up a percent and a half in the extended trading day. All right. Yeah. Contessa, thank you. And after the break, the chief financial officer of DoorDash on the company's quarter and the signs he's seeing from consumers, that stock falling right now down to more than 11 percent in overtime. We'll be right back. Welcome back. We have news on ExxonMobil. Pippa Stevens has the details. Hi, Pippa. Hey, Morgan. The FTC is not going to block Exxon's takeover of Pioneer Natural Resources, according to a source familiar with the matter. However, Scott Sheffield, that is Pioneer's founder, is not going to join Exxon's board of directors as initially planned. Now, this $60 billion deal will make Exxon by far the largest

oil and gas producer in the Permian. And so lawmakers had urged the FTC to look into that, saying that it could negatively impact pricing for consumers. Now, the Wall Street Journal is reporting that we could get this news as soon as today. John? All right. Thank you. Pip, I want to go back to Qualcomm for a moment. Correct something I said. The automotive revenue was six hundred three million. You see that stock is up about four percent right now in overtime. The pipeline there is forty five billion. It marks the third consecutive quarter of record auto revenues for Qualcomm in IOT in that segment, which is separate, the bottom was called last quarter. That saw 9% sequential growth. I'll talk more to CEO Cristiano Amon a bit later.

Now back to DoorDash. That stock is pulling back in overtime after a mixed quarter. See it down there, 12%. Topped revenue estimates reporting a wider loss than expected on EPS, but that number is funky. Okay, the guide, marketplace gross order volume to $19 to $19.4 billion. Now, I spoke with the CEO or CFO, Ravi Inokonda, about these results. Here's what he had to say. DoorDash is the only player to have gained share across all lines of business, across all the countries that we operate in. If you look at our grocery business, that's doubling, growing at 100% year on year for third straight quarter. We are the fastest growing in the U.S. And at the same time, our U.S. restaurants business hit an all-time high in terms of

category share. I'm very pleased with the all-time high in terms of category share. I'm very pleased with the performance of the business in Q1 and really excited about what's to come in 2024. Tell me about this non-GAAP earnings per share number. I believe it's a loss of six cents versus a loss of three cents expected. Explain how all that broke down. GAAP net loss is the lowest in our history. What's driving that is the growth in adjusted EBITDA, which hit an all-time high. The thesis for us has always been we want to grow users, we want to grow order frequency, because that drives scale. And scale in our business ultimately drives profitability. What you're seeing is every line of business

growing fast, as well as improving in terms of overall unit economics now i want to talk about the guide i believe you're guiding to marketplace gross order volume between 19 19.4 billion um consensus is at 19.23 which is just you know a hair higher than the midpoint on the guide also adjusted ebit uh range of 325 to 425 is your guide. The streets consensus is 394. What in the economy is is leading to that guide, which is a hair under on G O V where the street is looking and within the range on EBITDA. Yeah, I'm really pleased with the performance of the business in Q1 and excited about the guide for Q2. If you look at the performance of the business, Q1 was really strong.

We fulfilled more orders in Q1 than ever before in our history. The underlying consumer strength feels very strong. All three lines of business are growing. They're growing faster than market. We're gaining share as well as improving in terms of profitability. I'm very excited about not just the Q2 guide, but the rest of 2024 as well. I also asked him about the health of the consumer and about the availability of drivers called dashers in the labor market. Consumer health continues to be very strong. We mentioned that we ended 23 with over 37 million consumers. When I looked at Q1, that number has continued to grow since then.

Order frequency also has set an all time high. And when you look at both of these compared to the number of times people shop with us at least once a year, or the number of usable moments that consumers have across multiple categories, it's just a small portion of the overall addressable

opportunity in front of us. And we are aiding this by continuing to make affordability a key priority for us, where not only have we reduced consumer fee, but we've introduced programs such as Snap EBT, where consumers can order affordable groceries in over 10,000 stores. This is our way of ensuring that consumers can find affordable options on the platform, which is helping us drive the growth in the business, in addition to both adding more selection as well as adding more categories. Last year, when you looked at the platform,

over 7 million dashers have dashed with us. When you look at retention of dashers, there's more number of dashers that have dashed with us that continue to come back and dash with us because the product continues to get better. Dashers continue to be very happy with the service. Average dasher does less than five hours per week. And that overall profile of dashers continue to improve on the platform. For more color on this mover before the call, you can scan that QR code over there if you want to watch the entire interview.

I put it the wrong way. Follow us on LinkedIn. There's a lot of exclusive content there as well. There sure is a lot of content. That's really fascinating to hear what he had to say. More dashers, more users. See how it all shakes out despite the fact that stock's under pressure right now. Well, after the break, the Fed noting strong job gains, low unemployment in its statement this afternoon. But there are signs of a further cool down in the labor market. Mike Santoli is

tracking it, of course. He looks at what the latest data is showing ahead of Friday's jobs report. So stay with us. Welcome back to Overtime with the Fed decision in the rearview mirror. Attention now turns to Friday's jobs report. We got some signals today in the Joltz data with job openings falling to a three-year low. Mike Santoli joins us now with more. Mike. Yeah, Morgan. And, you know, in his press conference, Jay Powell did make reference to some loosening of the labor market based on some alternative measures. Well, here are some of those. That Jolt's report today did show both the quits rate and the hiring rate going down and getting back to essentially pre-pandemic levels.

You see, this is different scales, but the key here is how they sit relative to where they've been in those times of extreme labor market tightness during and after the pandemic lockdown. So you see, there's the quit rate coming back to levels that we saw in 2018, 2019. Same thing with the hiring rate. So it's a bit of a slower turnover job market right now. Presumably, this should take some of the pressure further off of wage growth. And this is all supposed to be part of the formula for how disinflation resumes. And maybe we get the conditions in place where the Fed can be confident that that's the trend and they can lower rates. So a lot of steps in that chain.

But so far, these numbers are cooperating. All right. Mike Santoli, thank you. And now, data processing platform Informatica just out with results topping EPS expectations of 22 cents per share, X items versus 21 cents. Revenue also slightly above at $398 million versus 387 estimates. The company's CEO is going to break down the quarter with us next

before he dials into the call with analysts at the top of the aisle. Be right back. Cloud data management software firm Informatica out with earnings moments ago. Topping estimates for the quarter comes after reports last month said the firm was in talks to be acquired by Salesforce, though Informatica put that to rest, saying it's not currently engaged in any discussions to be acquired. Joining us now ahead of the earnings call at the top of the hour, CEO Amit Wali. Amit, I know we only got you for a couple minutes because you got to get ready for the call. So tell me, we just had results from Amazon, Microsoft, and Alphabet where those hyperscalers said that AI was driving cloud adoption. How is that affecting a partner at your level? Oh, definitely. First of all, John, thanks for

hosting me. Had a great quarter, a pretty clean beat, top to bottom line. And I think so as our cloud business grew 35% ARR growth, I think coming to the Gen AI question that you're asking, we see it two ways. We're a critical part of helping customers do Gen AI projects, and we're seeing the early adoption of that one. For example, a large financial services company for mortgage approval is leveraging us to be able to take data from many places with good quality,

get it into the model of choice, and we can help them choose the models, and to get loan output approvals in a matter of minutes that was taking them weeks. And on the other hand, we are doing our GPT version next in a couple of weeks that will allow any user to be able to use the chat interface to do a lot of Gen AI projects on our platform. How does M&A fit into your outlook? And I don't necessarily mean you getting acquired, since you said that's not happening in the foreseeable future, but also you looking for tuck-ins,

things to continue to fuel your momentum. You already said that the full year is looking like it's at the top of the range. Yeah, no, we've reiterated a guide for the year. We have a great platform. Our innovation is firing on all cylinders. Our platform IDMC is growing 70% in terms of usage to 92 trillion transactions a month. We really have done a fantastic job of organic innovation. And we're

going to be opportunistic, right? Whenever we feel like we have an opportunity to do some tuck-in, acquire right talent, capability, we acquired a company in data access management last year that's on our platform now to allow Gen AI data access. And we're going to keep being opportunistic in that context. Amit, I do want to talk about Gen AI because after investing, after deploying some of these capabilities, it does seem like you're starting to realize some of those early results. Walk me through it. Yeah, no, absolutely. We are seeing the early green shoots. Look, Gen AI is playing out like any adoption is playing out. Infrastructure happens first. The data layer goes second. And we are seeing that right now. I can give you examples.

Like we were in private preview of our Clare GPT. And we saw like customers use it for many use cases. And as we go GA, we expect that to obviously materially help us in the second half of this year and materially in the years to come. Example being a large healthcare provider being able to then look at how they can move their staff or mission-critical life-saving drugs across their chain by allowing users to be able to go through ClareGPT and access the right data. Or a financial services company to manage their risk. So we're seeing those use cases emerge as we speak. All right. Well, I know you got that call in 10 minutes,

so we'll let you go. Amit Walia, the CEO of Informatica. Thank you. John, thank you very much. And tomorrow, it's going to bring another feast of earnings after the bell, all leading up to what might be considered the main course, Apple.

Find out what the top analyst is expecting when overtime returns. Welcome back to overtime. We have some more movers for you. First up, Fastly. Those shares tumbling right now in overtime. The company giving a very weak revenue guide and sees a much bigger than expected Q2 and full year loss. Shares are down 27 percent.

Next up, C.H. Robinson. Soaring after topping estimates on both lines. EPS of 86 cents per share versus 62 cents expected. Revenue came at $4.41 billion. That was also better. Those shares are up 13 percent%. Here's an interesting one. Unity falling in overtime as well after naming a new CEO. Matthew Bromberg to take over as interim chief. Jim Whitehurst moves to executive chair and back to Silverlake. I think some people thought he was going to stay on as CEO. Silverlake, one of Unity's largest shareholders. Dropbox also under pressure. It reported a breach of its electronic signing service. All users of Dropbox also under pressure. It reported a breach of its electronic signing

service. All users of Dropbox Sign were affected. Emails, usernames were accessed, possibly other information like phone numbers and unique passwords. Now, looking ahead, Apple's the next of the, well, at least formerly, Mag7 set to report earnings. That's in less than 24 hours. Joining us now to share his preview of those results, Scott Kessler of ThirdBridge. Scott, this is ahead of the Worldwide Developer Conference, ahead of the big unit numbers for iPhone in the back of the year. How much do these particular numbers matter versus things that they might hint at? Yeah, you know, John, I was thinking a similar thing because also they have the iPad event next week. So it seems like there's a lot in front of the company that they're not necessarily going to speak to in conjunction with these results. And I think, frankly, a lot of

people are concerned about what Apple might communicate at this point. I think expectations are for revenues to decline somewhere in the vicinity of. Four to five percent. Folks are looking for- iPhone units at around fifty million- so. The reality is that I think people are thinking about. The downside for Apple here the stock hasn't been a great performer I think it's down. Nine ten percent year to date- so I do think, however, that people are inclined to look ahead at this point, whether it's at the event next week. The Worldwide Developers Conference will be underway, I think, within six weeks. And then obviously you'll get some new product in the

market, presumably in September. I wonder how much China in particular has to be in the spotlight, maybe a pressure point. Qualcomm's up 5%. Cristiano, I'm on this CEO over there telling us that the Android premium smartphone market actually looking pretty strong and the market shifting in his direction. And given the headlines that we've seen about Apple weakness in China, that might raise some questions, no? Yeah, I agree, John. And I think that Apple is super focused on China, as are, frankly, the key stakeholders. If you think about the macro dynamics, if in fact you're seeing strength from an alternative option that coupled with indications that Apple has continued to lose market share in what is their second largest country contributor to revenues. The reality is that China becomes more and more of an issue that people are focusing on.

And I'm not so sure that they've figured that out quite yet. Okay. I mean, is it really, does this really hinge on iPhones? Is that really going to be the key metric where Apple is concerned, especially with the bar so low? Or if you see better services numbers, if you see better Mac numbers, some of these other businesses that we don't talk about quite as much, is that enough because the bar is low to offset the focus on iPhone and actually send shares higher if it's better than feared? I think the name of the game here, Morgan, is iPhones. And people might be looking ahead to better things or looking forward to, you know, an AI-enabled phone. The company obviously needs to speak to that because all the experts that we talk to when it comes to Apple and AI say one thing, and that's that Apple is lagging that we talk to when it comes to Apple and AI say one thing,

and that's that Apple is lagging in a significant way when it comes to their competitors and peers. So we'll see if they make any hints about what's to come. But I think, as John alluded to, that's going to happen, you know, in five to six weeks at WWDC, one would think. Yeah. And just, I guess, looking ahead to WWDC, is that really where we're going to start to see more of a fleshed out AI plan for Apple and probably shouldn't expect it before that, especially with some of the headlines and reports that we've gotten in terms of refocusing efforts away from something like autos, for example, towards robots? The short answer to that question is one would hope. I think a lot of people are expecting some breadcrumbs

to kind of be dropped so that people are in fact looking ahead to the worldwide developers conference in June. But the reality is this is something that Apple needs to address because it's something that frankly has been an

overhang on the company and frankly the stock. And it's something that frankly has propped those up just over the last couple of weeks as some of the chatter has centered on partnerships and what they're going to do with respect to an AI-enabled phone. Okay. Scott Kessler, thanks for joining us. Thanks a lot. Apple under pressure again today, under pressure since the start of the year. And over the past 12 months, it's definitely been the laggard. Other than Tesla and what we've seen with Tesla, really, especially since the start of this year,

it's been the other Mag 7 that hasn't been so magnificent in terms of returns. Yeah, good line of questioning. Interesting line of questioning there on Apple, I think, when you're pressing him on AI. I really think as a longtime Apple watcher, no matter what Apple does, people are going to be a little disappointed about AI because they're not going to do some big whiz-bang presentation, I bet. Apple tends to present solutions, right? So something with photos, something with how they deal with text in a particular app, things like that, tools to developers to build out AI within iOS apps. And then people tend to say, oh, well, that's not enough. Why aren't you making an Amazon Echo? You know, that was the argument against, oh,

they should have made the Echo. Well, we're not talking so much about the Echo anymore. If people need to adopt those features, then they're more likely to upgrade to the next version of iOS and to buy the next phone. And that's going to take a while to play out. And then, of course, between earnings and that developers conference, we're going to get Berkshire over the weekend as well. We know Buffett and Berkshire Hathaway, huge investor in Apple, will be interested to get those comments as well and that reaction as well. And as Mike Santoli has pointed out so many times, those two stocks more recently have been trading a little more in tandem with each other, for better or worse. On market appetite for risk, Supermicro was down big post earnings. You have the hyperscaler

cloud players doing a bit better. Apple has been in a weak position. So I wonder at which point this question for Max Antoli, right, and for others, so much of the pessimism has already been priced in. Yeah. Meantime, more labor market related data. Stocks faded the gains. We saw Treasury yields lower. We saw the S&P finish lower today, too. That does it for us here at Overtime.