Closing Bell - Closing Bell Overtime: Microsoft & Meta Report Earnings; Coinbase CEO On Earnings, Election 10/30/24

Episode Date: October 30, 2024

Tech heavyweights Microsoft and Meta reported their latest numbers. We have you covered with instant analysis and reaction from Wedbush’s Dan Ives and Roth MKM’s Rohit Kulkarni. Coinbase Co-Founder & CEO Brian Armstrong talks about his company’s latest quarter and the broader crypto industry’s efforts ahead of the election. Plus, Doordash CFO talks reaching GAAP profitability for the first time. 

Cardlytics doing the honors at the Nasdaqs, while cross currents in the markets netting out to a slightly lower finish, with the Nasdaqs seeing some pressure in the final minutes, as attention now turns to a slew of major earnings coming in just a few moments. That is the scorecard on Wall Street, but winners stay late. Welcome to Closing Bell Overtime. I'm John Fort with Morgan Brennan. Well, it's another crucially important hour of earnings season, with results coming from Microsoft, Meta, Coinbase, DoorDash, Starbucks, and many more. We will bring you all the breaking headlines, plus an exclusive interview

with the CEO of Coinbase ahead of his earnings call and a first on CNBC conversation with the chief financial officer of DoorDash before he talks to analysts. As we await those earnings, let's bring in BDA Capital Partners, Barbara Duran. Barbara, we got Meta and Microsoft, two huge ones coming just momentarily. What in particular, whether it's the spending on AI or the results of AI for Meta in things like Reels and for Microsoft and things like percentage of Azure, are going to be most important here? Well, I think there's two different things going on because I think with Meta, investors have seen they're doing a very good job in monetizing and improving their engagement using AI. They're way ahead of the curve on this. They're executing very well. Microsoft has been dinged. The stock has underperformed in the last quarter or so because of the last time they reported the Azure cloud revenue was a little disappointing. Then people started to say, well, when are we

going to see return on investment? Copilot doesn't seem to be going fast enough. So there's going to be two very different reports here that I think are going to be very company specific. But I think the one thing that is going to be clear is the ad spending is going to be tremendous on Meta's side. But Microsoft, given what we've seen with Google and their cloud, it should be better than expected for Microsoft. Bob, hold tight. We've got Amgen earnings out.

Let's get to our Angelica Peebles. Angelica. Hey, John. It's a mixed quarter here for Amgen, the company beating Q3 EPS estimates. EPS coming in at $5.58 a share adjusted versus the estimate of $5.11 a share. Revenue coming in just a bit below what we were looking for. Revenue of $8.5 billion versus $8.52 billion. Now, they're also narrowing their full-year revenue guidance. They are looking or excuse me, their full-year EPS guidance. They now see $ or excuse me, their full year EPS guidance.

They now see $19.20 a share to $20 a share. And that is, again, adjusted EPS. Now, some of the drugs that are doing well, drugs for PATHA, that's a cholesterol drug, and cancer drugs, Blinsido and Lumicross. Now, there is no Meritide data. That is the obesity drug that we are all watching. I'm not seeing anything here, but we will let you know if that changes. Back to you, John. All right. We'll keep watching it. Now, meantime, Microsoft results are out. The stock heading a little higher here in overtime. Let's get to our Steve Kovach with those numbers. Steve. Yeah, John, shares are up here on beats on the top and bottom lines. Let me give you EPS. That was three dollars and.30. Street was looking for $3.10. Revenues also a slight beat here, $65.59 billion versus $64.51 billion expected. And we will also be digging in here for the Azure numbers and some other data. But that is the top of bottom lines now, up nearly 2%, John.

All right, Steve, thanks. Mike Santoli, our senior markets commentator. We got one big one that's out out and the numbers initially don't disappoint. They don't disappoint, John. In fact, it was not just a beat, but it's a beat even versus what the estimate was for Microsoft for this quarter back at the end of June. So in other words, that modified estimates came down a little bit over the last few months, and then they beat even the prior one. So it looks healthy. Obviously, Microsoft shares did get a little bit of a bump following Alphabet's numbers, probably on some inference about the cloud business. We'll see if that gets kind of ratified in terms of the actual guidance today. Okay.

Barbara, I want to go back to you because we did just get Amgen. We did just get a beat on the top and bottom lines from Microsoft. We're waiting for a little more detail there. And certainly Azure seems to be the key number everybody's going to be watching for. But your initial reaction? Well, for Amgen and Microsoft. Microsoft, I think you're probably right. I mean, it's what we just chatted about in terms of the cloud, that given what Alphabet has done, it's likely that's where the improvement came from. Although we'll see. They've got new PCs out, incorporating IA. We'll see how much that contributed. You know, Amgen really is an interesting issue. The weight loss drug is really critical for them because they have so many

legacy drugs that have been key to their earnings power for some time that are coming off patent in the next few years. We have new drugs that have powerful potential being launched, but we don't know how quickly they're going to scale. So they could have a little bit of a pause where they are getting less revenue from their legacy products and the new ones haven't launched. And the weight loss drug has the potential, if it comes in with the same efficacy or even better than Novo Nordisk or Lily, they could be the third player in this market. But I think that data, and they're now in phase two, we may get a little insight from management, probably not a lot until the first quarter next year. If that comes in better than those two, then they're going to be a serious player in that space, or could be. Okay, we want to go back to Steve Kovac for more details on

Microsoft. Steve. Yeah, Morgan, we got some cloud growth numbers here and AI data. First, let me give you Azure cloud growth. That's 33% versus the 29.4% expected. A little wonkiness in here because Microsoft did change its reporting structure. So I don't feel super comfortable comparing that rate growth to a year ago, but then again, still beating expectations. And then as far as AI growth within that Azure number, 12 percentage points of that is coming directly from AI. That number continues to grow as well. That is a really important number to see how much, excuse me, AI is contributing to the Azure growth. Guys, I'll send things back over to you. Okay. Steve, thank you. We've got meta

earnings out as well as we stick with the MAG7 here. Julia Boorstin has the numbers. Julia. Morgan, meta beating on the top and bottom line, reporting revenue of $40.6 billion, ahead of analysts' expectations of $40.3 billion, and at the high end of the range that the company gave. Now, earnings per share of $6.03 were well ahead of analysts' consensus expectations of $5.25 per share. Meta's daily active people, 3.29 billion, that is up 5%, but it's also a hair lower than expectations of 3.31 billion.

Now, in terms of guidance, Meta guiding to between 45 billion and 48 billion in fourth quarter revenue, the midpoint ahead of the analysts consensus of $46.3 billion. Now, for fiscal 2024, total expense guidance, Meta bringing down the top end of its range. Now, the range is between $96 and $98 billion, down from the prior $96 to $99 billion range.

Now, for the full year CapEx guidance for 2024, Meta bringing up the low end of its range, now guiding to a range of $38 to $40 billion. The prior range was $37 to $40 billion. One note here on Meta's Reality Labs division, its revenue of $270 million, short of estimates of $310 million, while Reality Lab's operating loss of $4.4 billion was less than the $4.7 billion loss analysts anticipated. Mark Zuckerberg saying in the release that the good quarter was driven by AI progress, also saying they have strong momentum with Meta AI, that's the AI chatbot, Lama adoption, as well as their AI-powered glasses. Shares now, though, down about 2.5%. John? All right, Julia, thank you. And in the meantime, DoorDash earnings are out.

The stock is lower by about five percent, but it'll be hard to find a reason for that in these numbers. It is a beat on the top and bottom for DoorDash and a guide on marketplace gross order value and adjusted EBITDA that are ahead of the street. Now, revenue is $2.71 billion versus $2.66 consensus. EPS, $0.38 versus $0.20 expected. Now, for Q4, at the midpoints, DoorDash guiding to $20.8 billion in gross order value and $550 million in adjusted earnings, both ahead of consensus. On top of that, DoorDash reporting gap profitability here for the first time. We're going to have more from DoorDash's chief financial officer, Ravi Inokonda, before the call just a bit later right here on Overtime. All right. Looking forward to that. We've got more

earnings to bring you to. Starbucks results are out. Kate Rogers has those numbers. Kate. Hi, Morgan. So no changes to what we saw in last week's preliminary release. We'll take you through the numbers again. EPS a miss, 80 cents versus $1.03 estimated by analysts. Revenues a miss, $9.07 billion, lower than the $9.36 billion the street was looking for. The company also, as a reminder, suspended its 2025 guidance given the CEO transition and its recent performance. Global same same store sales down seven percent as previously disclosed in north america sales fell six percent in china its second home market same store sales fell 14 percent internationally uh seam store sales down nine

percent so china and the u.s business segments will really be in focus on the call but more so it's going to be all about hearing from brian nickel for the first time about his strategy in full now in a statement in the release nickel said quote my experience tells me that when we get back More so, it's going to be all about hearing from Brian Nickell for the first time about his strategy in full. Now, in a statement in the release, Nickell said, quote, My experience tells me that when we get back to our core identity and consistently deliver a great experience, our customers will come back. We have a clear plan and are moving quickly to return Starbucks to growth. Much more to come. The stock is lower by 1.5%, up over 1% year-to-date.

Guys, back over to you. All right. Kate Rogers, thank you. Don't miss Andrew Ross Sorkin's exclusive interview with Starbucks CEO Brian Nicol. Tomorrow at 6 a.m. Eastern on Squawk Box. All right, well, it's not all good in the hood, at least right now in overtime. Robinhood earnings are out.

The stock is down well more than 13%. Kate Rooney has the numbers. Kate. Hey, John, yeah, a miss across the board for Robinhood. So top and bottom line, weaker than expected. A miss on trading revenue. I'm told this was a disconnect between the accounting side due to some of the promotions that are running.

A little bit more on that in a second. But EPS, 17 cents. It was a miss by a penny. It was on revenue of $637 million. That was shy of expectations, but was up 36% from a year ago. Funded customer accounts slightly late at $24.3 million. Average revenue per user also a miss by about $4. It was $105 per user. Assets under custody, that was a record $152.2 billion. That was a beat. Transaction-based revenue, crypto and equities all disappointed. The CFO, Jason Warnock,

telling me that they did see record options volume, equity volumes are at a three-year high and crypto volume did more than double. But he also described this as a, quote, disconnect this quarter with the street. He said that was due to some of the promotions they've been running to get people to transfer from other brokerage firms. It has to do with something called contra revenue. If you remember that from accounting class says that it's from a business fundamental standpoint, says we are nailing it. Just had a disconnect with the street on forecasting and how the accounting works in the quarter. Expect that to come up on the call. Also said some of the promotions, despite the disconnect here, they're paying off. Pointed to 10 billion dollars in net deposits, says the economics are good here.

Profitability looks good with 77 percent of revenue flowing through to the bottom line. But you can see the street was really caught off guards on this report. Stock down more than 15 percent here after hours. Back to you. All right. Kate Rooney, thank you. Big move there for Robinhood. We've got Coinbase earnings out as well. And there it was a miss on the top and bottom lines, too, for Coinbase coming in at $0.28 per share versus estimates of $0.41 per share. Coinbase revenue is coming in at $1.21 billion, also slightly light here. Trading volume of $185 billion versus estimates of $184 billion. Transaction transaction volumes of 572.5 million. That was a little light of street expectations as well.

Was down 27 percent. Subscription and services revenue coming in at 556 million. This was down 7 percent largely due to lower average crypto asset prices. That's one to watch as the company moves beyond simply trading here. But the company also initiating a $1 billion stock buyback, authorizing that. You can see shares are down 3% right now. We've got co-founder and CEO Brian Armstrong joining us to break down those numbers in an exclusive interview in just a few moments. We just went through a parade of earnings. Let's get back to the panel. Yes, let's do that. Mike Santoli, you're still there with us. Give us your take on particularly what we just heard

from Robinhood and Coinbase. Yeah, I mean, this is a story really across the board. Tell me the setup. Tell me the embedded expectations in the stock. And we kind of will tell you the reaction. Robinhood up 20 percent in terms of the share price this month. Really, fundamental momentum is just a presumption when you get to where this has traded the stock over the last year or so. And so, obviously, the fact that they're essentially buying cash from other brokerage firms to win market share and get accounts in the door is biting in the near term.

You know, I also think that there's this issue out there of, you know, they keep growing asset growth and records at a volume, but overall market volumes are also at a record and overall asset values are at a record. So, you know, they're riding the trend, but it's maybe a hiccup in terms of the growth pace. Similar with Coinbase, it seems like the rally in Bitcoin had a lot of people chasing these stocks, thinking it was going to be a one for one in the short term. So I think that being said, nothing changes the overall story. And then also same with Microsoft versus Meta in terms of just exactly how big the streets eyes were heading into the reports.

Meta really pretty unassailable results. The earnings per share way ahead of estimates and really way ahead of where we thought it was going to be a few months ago. But obviously, the stock had kind of outraced it to this point. I do want to note that there is a Q4 outlook for Coinbase. And they said in October, they generated approximately $190 million of total transaction revenue. They expect Q4 subscription and services revenue to be within a range of $505 to $580 million. Barb, there's so much for us to dig into here but i want to get your reaction to meta especially given the fact that they are trimming their operating expenses for the full year it looks like capex coming uh coming in

perhaps in line or below street expectations here too even as they do beat even as they do beat, even as they do move forward and ramp these AI investments. Your thoughts? Yeah, well, that actually is a nice surprise, because as we know, in this stock, you know, just a few years ago, there was very big concern about their CapEx spending. Of course, it was going toward the metaverse. You know, I think it's been a concern for all these companies. Are they going to show return on investment? Well, I think meta investors have felt pretty good that they are getting a good return on investment. So it's a nice surprise that they're seeing. And it'd be nice to know when they have the call what the timeline is on that. They also want to see what's happening with the ad revenue. Obviously, last year, they had a big,

big bump from Sheehan and Timu in terms of retail spending. So we'll see how much that is. Plus, they have the election spending right now. So we want to see how that works into their forecast. But the last quarter, you know, they had a very strong quarter and raised forecast. So it's very tough to beat that, you know, coming in. So I think this is just a little bit of profit taking after a stock that's done very well year to date. So I think it can, after we clear out some weekends here, this stock can resume its upward trajectory. Yeah, there's this drop in overtime taking us back to levels of Monday. Barb Duran, thank you.

Mike Santoli, we'll see you just a little bit later in the show. Yeah, the Azure number, 35% growth, is what the company itself had been forecasting for the quarter, even though Street had brought down their own estimates. Okay, well, you know, Microsoft's getting a win there. Well, we're just getting started here on Overtime. Up next, big takeaways for tech investors. We're going to have analysts' reaction to the numbers from Microsoft and from Meta ahead of tomorrow's earnings from Apple and Amazon. And Coinbase CEO Brian Armstrong will join us exclusively ahead of the earnings call to break down his company's results and how a renewed surge for Bitcoin is impacting his business. Overtime's back in two.

We've got booking holdings numbers out. Seema Modi has those. Seema. Hey, John. Amid concerns about weakness travel, Booking Holdings delivering a surprising third quarter beat. Bottom line, $83.89 versus the $77.52 estimate. Revenue topping expectations for the third quarter. And more importantly, the key room nights booked jumped 8%. That exceeded expectations. CEO Glenn Fogle in the press release says that's primarily driven by stronger performance in Europe, where we're seeing more Americans travel. He adds that booking continues to make progress on strategic

initiatives, driving cost efficiency. CEO Glenn Fogel joins me tomorrow, first on CNBC interview on Squawk on the Street. And we are watching shares of booking here rebound by 4 percent in overtime. Back to you guys. All right. Looking forward to that interview, Seema Modi. Thank you. Microsoft and Meta both reporting beats on the top and bottom lines just moments ago. Let's bring in Wedbush Managing Director Dan Ives and Roth MKM Managing Director Rohit Kulkarni. Great to have you both here. Dan, you're sitting on set with me. I'm going to kick this off with you. 33% growth in Azure, which is what the company had forecasted coming into this, even though street expectations had come down and were lower than that coming into the print.

Meta, on the other hand, strong report. But CapEx, is that what's pushing that stock lower right now? Yeah, so for Microsoft, I call these home run quarter. I mean, in terms of Azure, in terms of what we saw in the cloud, fears that you're going to see some sort of slowdown. Obviously, you saw the in Google numbers last night. Hyperscalers, you're just seeing this accelerate. It's all about the AI revolution. And on that Mount Rushmore, it's not just Jensen, it's Nadella. And I think this is just a huge flex of muscles for Microsoft.

When it comes to meta, stocks had a huge run. Talk about CapEx, they're going to continue to double down there. I think that is the smart move. Like, I think 24 hours from now, this is a stock that could be up. So I think there's actually the wrong reaction here. We'd be buyers here on Meta, but especially what we see on Microsoft. Yeah, and I guess that's sort of the point I'm going with, is that expectations were the bar was low for Microsoft coming to this print, it would seem, and maybe for Meta a little heightened.

Rohit, I want to get your thoughts on that, specifically where Meta is concerned. Yeah, I think the expectations for Meta were high, and they kept going higher. Google reported even before that. I think the high end of guide for Q4, that sets the benchmark for what the 25 growth algorithm could look like. I think what investors were looking for slightly more than that is what I think for them to get very excited. Absolutely nothing wrong with Meta. It is the one to own on weakness. But I think it's just an expectations mismatch between how the stock had run into earnings and what they are guiding towards. So I feel we should be the one to buying meta tomorrow if there is lingering weakness into the year end. Dan, back to Microsoft. I mean, it's only about a percent higher. You said it was a home run. It's not at the highs for the years.

What gives? Is this a signal that maybe stock move-wise it's out of gas, or are we just waiting for the guide and the color to decide how bullish investors should be? Yeah, I think it's waiting for that color, you know, from the Della. But I think what's really happened here is this is an Azure growth acceleration story. And I think investors were fearing that you were seeing some sort of slowdown. You look at that intelligent cloud, you look at the margins. I mean, this is a company firing on all cylinders. I believe ultimately we sit here six, nine months from now, and this is a $4 trillion mark cap.

I think Apple and NVIDIA get there first. But in terms of AI revolution, what we heard from Google, Microsoft, what we heard from Meta, it is still first, second inning of this AI revolution. And then you get more and more confidence from the hyperscalers. But I think Microsoft, to me, is a table pounder here at this level. We're going to take a left turn real quick here and ask about DoorDash. We've got CFO Ravi Anaconda coming up in a bit. I think you're neutral on it.

It beat on the top and bottom lines, guided higher than the street expected. Stock is off the lows here in overtime. Initially dropped about 5%. Now it's down about a percent and a half plus gap profitability they say that they're gaining ground market share wise and they've got this partnership with lyft that i guess tries to take on uber one um what more do they need to do look i think i think they are in a spot where they have the core market, which is the best and the most profitable market. Every new thing they touch, be it grocery, be it overseas, restaurants, or any new growth, there is already competition there, and profitability in those new growth areas is going to be structurally

lower. So that's the worry we have with DoorDash. It's a market leader in U.S. restaurants, but in everything else they touch, their profitability is going to be slightly lower and lower and lower as the days go by. Gap profitability is extremely important. It's probably the only $60 billion market cap company with the first quarter as a gap profitable being reported today. So again, I think valuation is a key concern for us. And I think what happens to this company next 12, 18 months as growth is going to be mid-teens

and profitability longer term is not going to be as high as standalone mobility business like a Lyft or a global leader like Uber. So that's why we are neutral. Okay. Rohit Kulkarni and Dan Ives, thank you both for joining us. Thank you. Well, we've got eBay and Etsy earnings to bring you as well. Pippa Stevens has the numbers. Pippa. Hey, Morgan, and they are going in different directions. So let's start here

with eBay because that stock is down about 10% here. Now, Q3 results did beat estimates coming in at 119 adjusted on EPS, that beat by a penny. Revenues of 2.58 billion. That was also a beat, but it really seems to be this weak guidance that is weighing on the stock here. Both Q4 revenue and Q4 EPS coming up short of expectations. Now moving over to Etsy because that stock is up 13% here. It was a mixed quarter. EPS of 45 cents. That was an eight cent miss. But revenue at 662.4 million did beat estimates. And Etsy also announced an additional one billion dollar buyback program. And that stock now up more than 11 percent. Morgan. All right, Pippa Stevens, thank you. Coming up next, an exclusive interview with Coinbase co-founder and CEO Brian

Armstrong with his first comments on the quarter. Bitcoin's recent push toward record highs and the impact of the election on crypto. And later, we'll hear from the chief financial officer of DoorDash, as I mentioned, ahead of that earnings call at the top of the hour. Overtime. Shares of Coinbase under pressure after Q3 numbers came out just moments ago. Shares are down about 4% right now. But join us in an exclusive interview. Before the call, Coinbase co-founder and CEO Brian Armstrong.

Brian, it's great to have you on the show. Welcome. Yeah, thanks for having me, Morgan. All right, so I do want to talk about the quarter because trading volumes fell, though, a little bit better than street expectations. Transaction volumes down 27 percent. What got my attention particularly here is subscription and services revenue, which was also down 7 percent, largely due to lower average crypto asset prices. I'm honing in on that because I know that's an area where you're focusing a lot of time and attention as the company looks to build beyond and expand beyond simply just trading activity. So what are you seeing there?

Yeah, well, you're absolutely correct. Our subscription and services revenue has been a way for us to diversify away from transaction fees, which are purely market dependent. It's hard for us to predict what the next quarter of volatility is going to look like, just like it's hard to predict what the S&P 500 is going to do next quarter. Subscription and services still is somewhat market dependent, but it's less so. It's allowed us to make our business a lot more predictable. And I have to say things are going well in that department. Our subscription and services are on pace to surpass $2 billion in revenue this year. That's up from about $1. four billion last year. So otherwise, we had a positive quarter of, you know, seven seventh consecutive quarter of positive

adjusted EBITDA, our fourth consecutive quarter of positive net income. So even though the market conditions were a little bit weaker, which is not in our control, I think we've still managed to have a pretty good quarter. Brian, good to see you again. Give me an update, if you will, about the derivatives platform and how that's trending. Yeah, well, the derivatives space is really important in crypto. Actually, about 75 percent of all trading volume in crypto is happening in derivatives now. The take rate or the fees on it are lower than in the spot, but it is the majority of volume. And so we made a big push this year to launch our international derivatives exchange. We also launched a U.S. futures market here in a regulated and trusted way. And when we go talk to

the big parties out there that do trading in the derivative space, they all say, you know, we're looking for a trusted, compliant counterparty to do this aspect of our business. And Coinbase consistently comes up as the trusted brand that they want to work with. So we've made a big effort this year, not just launching it, but we've got a lot of new order books live. We're building the features that our customers want around such as a unified margin, some things like that that are helping them get off the ground. So it's still early days on derivatives, but we've made a dent in it. And I think 2025 will probably really hit our stride on the derivative space. What's interesting to me about your shareholder letter, we're less than a week away from the election.

We know crypto is on the ballot and you call it out here in your shareholder letter and in earnings. And you basically say that the next this will be the next major milestone in your ongoing work to drive regulatory clarity for crypto. So how are you gaming out election outcomes? And what would you like to see from a regulatory standpoint? Yeah, well, I'm really proud of where we are from a regulatory point of view as compared to just, say, a year or two ago when I feel like the crypto industry was under siege and there was just a handful of folks in D.C. that were really trying to attack the industry. Today, it couldn't be more different. You know, both presidential candidates are courting the crypto voter. There's about 355 candidates running for federal office in Congress and other areas that have gotten an A or a B score on StandWithCrypto.org.

They've actually, you know, filled out their position, made it known to the voters. So no matter what happens in this election, it's going to be the most pro-crypto Congress that we've ever had. And I think that just means that the U.S. is more likely to get legislation passed that will allow this industry to flourish, allow investors and consumers to be protected in the United States. And that's really what Coinbase has been advocating for for many, many years now. So, you know, it's actually something that we're really proud to have supported these organizations like StandWithCrypto.org and Fairshake, which ended up being the largest bipartisan PAC in this election. So I think the crypto voter is really playing a massive role in this election and we'll get our final results here in a few days.

How much of this hinges on the makeup of Congress versus the outcome for the executive branch? I know you took to X earlier this week and basically said the SEC owes apology to all Americans. Well, I think regardless of who's elected president here, I suspect the executive branch won't be the blocker to getting legislation passed. You know, the House already passed bipartisan legislation earlier this year with FIT 21. The Senate is now debating that. I think the Senate is really the key next step. We've heard from folks in, you know, in potential future executive branches. I don't think either of them would veto legislation if it got through the Senate with bipartisan support.

So we're hoping that happens here in the lame duck or maybe early next year. But to your question about the SEC, yeah, I mean, look, I'm not holding my breath on an apology, but I do think it depends who becomes the next SEC chair. And I think it would be an interesting moment of leadership if they did say, look, we didn't make it clear what the rules were in the past.

That harmed consumers. We've seen a loss of trust in the SEC as an institution, along with many other institutions in our society, by the way, if you look at the polls. And I think to start to rebuild that trust, we do need to get to a place where the rules are clear and then business can operate here in the United States. This kind of regulation by enforcement attitude has really been harmful to the United States. STEPHANIE SY And of course, you're engaged in this legal fight with the SEC, which has alleged that your exchange is engaged in unregistered sales of securities. Bitcoin, though, flirting with

record highs. And I do want to get your sense of what's propelling that, where we go from here and how to think about Bitcoin versus maybe some of the other cryptocurrencies, stable coins, for example, that are starting to get more attention again as well. Yeah, well, you're right. Bitcoin is flirting with an all time high. We've seen incredible inflows from the ETFs that were approved earlier this year. That was actually a very positive step toward regulatory clarity, I have to say, just to give credit where credit's due. And so, you know, I so I expect that to continue. And there could be a bit of a trade happening around people's expectations around the election and opportunities for more regulatory

clarity on that front. But you're right, stablecoins is another huge development that I think maybe is underappreciated right now. Last year, there was about $10 trillion of stablecoin volume, which is a massive number. And actually, year to date, 2024, it's already doubled that it's about 20 trillion so far and so this is being driven by a couple of building blocks that have fallen into place in the last few quarters just having a scalable layer 2 solution like base has made every transaction faster and cheaper you can now send payments under one second and one cent anywhere in the world with these stable coins on layer 2 and then having a trusted stable coin like USDC has been another major component. That's grown

quite a bit year to date. I think it was the fastest growing major U.S.-backed stable coin in the world this year. So they're both very positive developments on the utility front as crypto is starting to power more payments, not just being trading as an asset class. OK, I feel like we've been talking about that possibility for a while. So watch how all of this evolves from here. Brian Armstrong of Coinbase, thanks for joining us. Yep, thanks for having me. Time for a CNBC News update with Leslie Picker. Leslie.

Hey, John. Sam Bankman-Fried's former deputy will avoid prison time for his role in the multi-billion dollar FTX fraud. Nishad Singh pleaded guilty to six felony counts as part of the trial that led to the former FTX founder's conviction. Singh's lenient sentence comes months after fellow former FTX executive Caroline Ellison was sentenced to two years in prison despite her own cooperation in the case. A Pennsylvania judge has extended the deadline for voters to apply in person for a mail-in ballot to Friday. Former President Donald Trump's campaign sued Bucks County earlier today, alleging county officials violated election law when they turned away people who arrived to apply for and receive a mail-in ballot before the 5 p.m. deadline.

And a pig in Oregon has tested positive for the H5N1 bird flu. The USDA said today it's the first time the virus has been found in pigs in the U.S. The agency said the farm has been quarantined and there are no concerns to the U.S. food supply. But the case is concerning as pigs can be infected with both avian and human viruses simultaneously and create viral strains that can easily infect people. I'll send it back to you. Leslie Picker, thank you. Coming up, Mike Santoli is back with a look at the valuation equation for Meta and Alphabet. Which one looks like a better bargain now that those results are on the books?

And check out Roku falling in overtime, down 4.5%, despite reporting a much narrower loss than expected and beating on revenue. But fourth quarter adjusted earnings guidance was below estimates. Overtime will be right back. Welcome back to Overtime. Positive earnings from Alphabet pushing the NASDAQ to another all-time high earlier in today's session. But the Nasdaq 100 still just short of its own record. Mike Santoli is here digging into the charts for a closer look at mega cap leadership. Mike.

Yeah, John, that Nasdaq 100 made a record high on July 10th. Just coming up a little bit short right here. Still a picture, of course, of year-to-date outperformance by those mega cap growth stocks. But what's interesting is, so you have that July 10th peak. We're still under that ceiling. But look at what's happened with the equal weighted S&P 500 from that date, as well as the Russell 2000. So they've obviously made progress, have clicked to new cycle highs themselves.

And you do have the mega cap leadership kind of resetting and coming back to the pack over this period of time. What was July 10th, the peak of the Nasdaq 100? Well, that was right as we got a very, very friendly June CPI report that really cleared the way for the idea that the Fed was going to be allowed to cut rates into a still sturdy economy that helped the rest of the market. Now, take a look here at meta versus alphabet. Obviously, we just heard meta results, alphabets yesterday. For as much as each of these stocks has been deeply in and out of favor, alternatively, over the last five years, come to a pretty similar spot and the alphabet making a little bit of a bid at trying to close

that gap. We'll see how meta trades in the regular session to see if that gap closes more. And then in terms of valuation, highlighted this pretty recently that the forward price earnings multiple of Alphabet had dropped below Meta for the first time in quite a long time. And you see this maybe just curling higher here. So both between 20 and 25, not very dissimilar,

but clearly there was a little more of an overhang in terms of long-term business model impact of AI on Alphabet. We'll see if the street got convinced otherwise here. Morgan. All right. We'll be watching. Mike Santoli, thank you. Up next, DoorDash's CFO weighs in on the company's quarterly results before he speaks with analysts on the call. Stay with us. Welcome back to Overtime DoorDash out with third quarter numbers earlier this hour that beat expectations on the top, the bottom and the guy. The stock's initially down about five percent. Now it's off just fractionally. I spoke with CFO Ravi Anukonda about reaching GAAP profitability for the first time. I'm really proud of the team's work here, John.

Our consistent strategy, the stable execution, and the growth in the business has led the overall business to be GAAP profitable for the first time as a public company. We're seeing really good strength supported by strong growth in our retail, grocery, and international business, as well as very stable growth in our restaurants business in the U.S. How much control do you feel like you have over the levers here? When investors see that gap profitability, they're going to be wondering, is that just a one-time thing, or is this a journey that we're on where that's going to continue to ramp?

Our strategy has been consistent. We're always expected to get here. For us, the key focus is to build the best product possible for consumers, merchants, and dashers. And if we do that, that builds scale, scale drives profitability in the business. We've always known that we're going to get here. It's never been a discrete goal for us. Our goal going forward continues to build the best product possible for all three sides of our audience. I also asked him about how the credit stretched consumer looks and about the company's new partnership with Lyft, arguably taking on Uber's Uber One.

We are excited about the partnership with Lyft. The thesis is we want to make DashPass even more valuable. 18 million plus subscribers on our membership program have saved over $10 billion globally. And perks like this make DashPass even more attractive, allowing our consumers to save even more. We are the leaders from a third-party local commerce subscription program. And these benefits give our members more opportunities to save and make the program

overall more attractive. Are you seeing the impact of a credit strained consumer? Consumers continue to be very strong. You see that in terms of user growth. You see that in terms of ordering patterns. Consumers are spending more of their wallet on DoorDash, not just across restaurants, but our grocery business, our international business as well. If you think about our grocery business, we are the fastest growing in the U.S., continuing to gain share. We've added more selection and we're making the product more affordable. One such example is we've offered SNAP benefits to over 15,000 grocery stores because we want to drive affordability on the platform, which is ultimately driving the consumer strength that you're seeing on the business.

Morgan Doordash also delivering Halloween costumes now this season from Spirit Halloween stores and other local merchants. So not just food. Interesting. That would have been very helpful with the makeup that I just had delivered to my house earlier today for tomorrow. All right. Great stuff. Well, coming up, Carvana driving higher. Teladoc ringing up big returns in overtime. We're going to break down those results next. And later famed pollster Nate Silver on whether he thinks Kamala Harris or Donald Trump will win the White House with just under a week to go until the election. We'll be right back.

Welcome back. Carvana earnings are out and Phil LeBeau has the numbers. Phil. Morgan, it is the earnings report of the hour because when you look at shares of Carvana, you know why the stock is up more than 20 percent, easily blowing past analyst expectations, earning 64 cents a share. The street was at 25 cents. Revenue better than expected. Then the numbers within the numbers, well above expectations. EBITDA margin of 11.7%. Gross profit per vehicle, $7,427, well above what analysts were expecting. Auto sales up 34% compared to the same quarter last year. The guidance, they now expect fourth quarter auto sales

sequentially to be at a higher growth rate than they were in the third quarter. So greater than 34%. The adjusted EBITDA guidance is gonna be at the high end of the previous guidance of one to $1.2 billion. Don't miss tomorrow on Money Movers. We will be talking first on CNBC with Ernie Garcia, CEO of Carvana.

Just for a point of reference, guys, you have to go back to December of 21, last time that Carvana was trading above $250 a share. Guys, back to you. Well, it's certainly carving a nice path higher here in overtime, Phil. Thanks. Also higher, Teladoc on earnings. Bertha Coombs has the numbers. Bertha. Hey, John. Yeah, big beat for Teladoc, posting a smaller loss of 19 cents a share in the bottom line. That's nine cents better than consensus, while revenues also came in better, 641 million versus 631 million for the estimate. This is the first full quarter under new CEO Chuck DeVita, appointed in June. Basically, the company's medical telehealth unit, known as its integrated care, beat expectations with margins of 17.7 percent. That's more than 200 basis points better on the call.

DeVita said that they really tried to bring everything together and get greater efficiencies in that unit. Meantime, the mental health service, BetterHelp, also posting stronger sales, but margins there came up a bit shy of expectations. The company spends a lot on advertising for BetterHelp, and they say those acquisition costs remain elevated. The company had withdrawn guidance initially, but now sees fourth quarter revenue growth of flat to 2.5% year over year. The street had been modeling a 4.2% decline, and as you can see, the stock right now up about eight and a half percent back over here. Indeed, Bertha, thanks. Well, Apple, Amazon, Intel. Oh, my. Up next, what to expect with that trio of tech titans reports earnings tomorrow right here during overtime. Be right back. Yesterday, I sat down with pollster and author Nate Silver at CNBC's sixth annual Technology

Executive Council Summit, where we discussed everything from gambling to AI and, of course, the outcome of next week's election. So in a recent op-ed for The New York Times, Silver said, quote, my gut says Trump, but don't trust my gut, end quote. And from what he told me yesterday, he's sticking to that. There's a 45 percent probability that Kamala Harris will win and a 55 percent probability that Donald Trump will win. There's been certainly some momentum toward Trump over the past couple of weeks. You've gone from seeing Harris up by a point and a half in Pennsylvania, Michigan, Wisconsin to tied the Sunbelt states, Georgia, North Carolina, are maybe Trump up by a point. But we just have been through a couple of elections where the polls are off by four points, three or four points systematically across the board.

And that changes by the day. Well, highlights from my conversation with Silver and more coverage of yesterday's Technology Executive Council Summit. You can find that at CNc.com slash TEC. Also, don't forget, CNBC is going to have live coverage throughout election night with some of the biggest names in business. It all starts next Tuesday, 7 p.m. Eastern from the New York Stock Exchange. Yeah, well, tomorrow will be another monster day of earnings featuring Merck, Bristol-Myers, Squibb, Uber, MasterCard and Comcast, which is the parent

company of this network. That's all before the bell. Then the action shifts into overdrive right here in overtime with Apple, Amazon and Intel. Plus, it will also be a huge day for economic data. Investors are awaiting the latest PCE price index, personal income, consumer spending and the weekly jobless claims report. There's going to be a lot. Quite a bit. I also want to call out Informatica results. That stock last trade I saw was higher by about 4%. I spoke to CEO Amit Walia before the call about that.

You can check that out on my LinkedIn, Twitter, etc. Yeah, another name I'm watching is Altair Energy and Engineering. It's halted right now. Siemens is buying at $10.6 billion. This is an engineering software firm as Siemens looks to push further into industrial software, which is obviously something we talk about here. Jim Scapa has been on Fort Knox. Know that company well. Interesting move with all the data that's going into that area now. All right. We're watching for Microsoft and Meta calls and Amazon trading higher in sympathy with Microsoft. That does it for us here at Overtime. Fast Money starts now.