Closing Bell - Closing Bell Overtime: Tech, AI Stocks Bounce Back; Earnings Parade Rolls On 11/5/25

Episode Date: November 5, 2025

Tech bounced back after yesterday’s slide. Argent Capital portfolio manager Jed Ellerbroek breaks down the big earnings movers after hours, including Robinhood, Arm, Qualcomm and Lyft. Unity COE Matthew Bromberg on his company’s blowout quarter. Seaport analyst Jay Goldberg analyzes Qualcomm’s quarter and guidance. Quantinuum CEO Rajeeb Hazra on launching its new commercial product Helios. Fundstrat’s Tom Lee on bitcoin’s bounceback. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Well, that's the end of regulation. Ring Central, bringing the closing ball at the New York Stock Exchange. Max's making doing the honors of the NASAC. That's rebounding from yesterday's losses. The Dow up nearly 200 points, S&P 500, gaining two-thirds of 1%. And the NASAC up less than 1%. While there have been concerns about weak breadth in this market as of late, today, 10 of 11 S&P 500 sectors higher. Only consumer staples in the red and just barely. Check out shares of Dow Component Caterpillar today.

A noticeable turn higher around noon as the Supreme Court was hearing opening arguments about the president's tariffs. Many listening to the arguments felt that the justices were expressing some skepticism. We'll see. We've got some time to go here on this whole process. Similar moves higher in the automakers, though, Ford GM, Stalantis. Crypto joining the rebound today. Bitcoin up 2%, ether up 5, but still down 10% to this week. in gold, also moving higher.

Well, that is the scorecard on Wall Street, but winters stay late. Welcome to closing bell overtime. I'm John Ford alongside Morgan Brennan, and we've got a big slate of earnings to bring you this hour. Robin Hood reporting the best performing stock in the S&P 500 this year up nearly 4X. We're also going to hear from Qualcomm and Arm Holdings in the chip space and in the gig space. We're going to hear from DoorDash and Lyft. And Unity Software, a big winner following its results, revenue better than expected, raising guidance for the current quarter as well.

The stock now up nearly 90% this year. Company CEO will join us. That's coming up on overtime. And just as we're talking, Qualcomm earnings are out. Let's see what the stock is doing here in overtime. The revenues did beat and by a pretty good measure handily coming in at $11.27 billion versus $10.79 expected. Also, EPS beats at $3 adjusted versus $2.88. Guide for Q1, also solid, let's see, 11.8 billion to 12.6 billion is the range versus 11.62 billion expected.

Also, EPS, $3.40 at the midpoint versus 3.31 expected. I got a chance to chat with Cristiano Amon about these earnings. Turns out premium end of smartphones, a big part of the reason for this. It is across the board in terms of geographies as well. Also automotive, up 17 percent. That's a growth business for them. We'll be hearing a lot more from Cristiano later on. But let's start with the markets now and the rebound from yesterday's losses.

Sima Modi, joining us now from the New York Stock Exchange. Seema. Hey, John, a notable reversal in tech that really drove today's market action. Chipmaker AMD reporting a quarterly beat with data center revenues soaring 22% year over year. The stock trading higher in today's trade and now up over 50% in the past four weeks. Interestingly enough, rival Nvidia traded down, but that did not stop the broader semiconductor sector to trade higher. Micron, Intel, storage players like Western Digital and Seagate seeing notable gains. AI hypers, Oracle and meta, both of which have come under increased pressure for raising debt to finance their cloud computing needs,

staging a comeback today, lifting the broader NASDAQ as we get those results from Qualcomm that you just. broke. A different story for Super Micro, though, AI server player issuing weaker than expected first quarter results. It comes as analysts say rival Dell is giving Super Micro a run for its money, the ultra-competitive AI server market as hypers double down on their data center buildouts, guys. All right, Zima Modi, thank you. Now let's turn to the bond market where we're seeing a big jump in yields. Rick Santelli is joining us now from Chicago with more. Hi, Rick. Hi, indeed, a big jump in yields, and the reason a pretty nice jump in the, I, IM PMIs. Whether it was the headline number, best since February or new orders, one year high, well, all of them exceeded expectations and were sequentially higher. Here's the one flying the ointment. If you look at the prices paid, it continues to hover and accelerate at three-year highs. If you look at a two and ten, 12-hour chart, you can clearly pick out right around 10 o'clock Eastern. We really had some horsepower to the upside in yields. Now, many are pointed to some of the whispers from the

Supreme Court issues today on tariffs, but a lot of this move already occurred before we started to hear about that doesn't mean it won't be important in the future. If you look at a six-week chart, that's where we're on pace to close for two years, all the way through the entire curve outside of 20s and 30s. And finally, the dollar index, it might be given a little back, but it certainly looks like it's going to have two days on a close above 100, which hasn't happened in about six months. Back to you. Rick, quick question for you here, and that is the Treasury Refunding. we got earlier today, an increase in the supply of bonds potentially is what they're hinting

at as opposed to the shorter dated debt. How significant was that release today? You know, I think there was a bit of basis point appreciation on that, and you said it right. The $125 billion package we're going to get next Monday, Wednesday, and Thursday, threes, tens, and thirties is the same as it has been. But hinting about the future on the coupons, meaning everything along the curve, We have more supply. We know already T-bills are increasing in supply as well. Supply, more supply equals higher interest rates. Rick Santelli, thank you.

After worries about valuations in a stretched market, the major averages ending the day in the green with tech stocks leading the gains. A little bit of reversal here, a bounceback. So it was Tuesday just a one-day shakeout of some overcrowded names. Joining us now as Argent Capital Management portfolio manager, Jed Ellerbrook, and CNBC's senior markets commentator, Antole. Great to have you both here. And Jed, I will start with that very question to you.

And that is, was yesterday a one day shakeout some consolidation, some digestion, or are we really right for a bigger poll back here? I think the market still looks good. Thanks for having me on today. Yeah, we're optimistic about the market. I think that the AI infrastructure spending growth continues. Markets are supportive. IPO and M&A. Activities improving. Rates are falling. I think that there's a lot of good news out there, and I expect it to continue. Okay. We have Robin Hood earnings out. Mackenzie Sagalos has those numbers for us. Hi, Mac. Hey, Morgan. So Robin Hood shares falling a little over 2% and after I was trading, despite beating on the top and bottom line. The company posted earnings of 61 cents a share above the 53 cents that analysts expected in revenue of $1.27 billion versus the $1.19 billion estimate. Transaction-based revenue that was a little bit light at $730 million despite record trading volume in equities and options. But that shortfall. was offset by strong gains in net interest income. Now, funded accounts, also a slight miss at 26.8 million.

Meantime, a C-suite shake-up. New CFO, Shiv Verma, is taking over for Jason Wernick. I spoke to them both moments ago. They pointed to prediction markets as a major bright spot, calling it their fastest growing business ever. Contract volume doubled in Q3 versus the second quarter. And in October alone, they saw more trading than the entire prior quarter. They say that momentum is strong heading into Q4 with record.

customer deposits and activity. Those shares, though, more than 4.5% lower now, Morgan. All right. McKenzie, thank you. Mike Santoli, want to get your reaction to what we've heard so far. We had Qualcomm earlier. We just had Robin Hood, which we know has been one of those high flyers. Your thoughts? Yeah, Robin Hood is essentially, you know, a leveraged play on the most leveraged part of the equity market, which is obviously retail investor excitement and activity. So it had run tremendously. The earnings estimates were expected to be, you know, the earnings systems were up almost double from June 30th. So the bar was high. They hurted the bar. Now, any sign, though, of deceleration versus expectations in account growth or

transaction revenue is probably the explanation for this slight 4%. Pullback, the prediction markets, everyone's excited about it. I know some people on the street say that like a third of Kalshi volume, the exchange for prediction markets, is coming through Robin Hood users. What, that's great for the brand? They seem to love it so far. All right. Mike, just a quick follow-up on what you're seeing in volatility in the market overall. What did today's action tell you about the VIX and what it's been doing lately?

It calmed down to a fair degree. You know, I would basically say that yesterday, it could turn out that it was just kind of one-day wobbles that skimmed away some of the froth. That being said, you know, it was less emphatic by the close today. The S&P kind of did ease back into the close of trading. That's happened seven straight days. It feels to me like equity exposures are pretty high. Nobody needs to buy a bunch. And so any sign of a loss of momentum, you get the people who are just in there for the chase to come out first.

Below 18, it's somewhat more in the normal zone, but it's definitely not fully calmed down to what you would expect as we inch toward year-end holiday mode. Okay. Okay, now speaking of Wobbles, DoorDash results are out, and it is down more than 12%. It's not because of the headline numbers here, at least not because of the top line revenue. Revenue did beat at $3.45 billion versus $3.36 expected. EPS missed $0.55 versus $0.69 expected. And there's a wrinkle here in what DoorDash is leading investors to think about going forward. First, to give you a couple more numbers.

Total orders were up 21% year-on-year to 776 million versus 770 million expected. So the core business-looking solid marketplace, GOV, up 25% year-on-year, also a little bit better than expected. But two near-term hits to profitability to look out for. DoorDash warning in the release here, robotics, software, and a common platform across DoorDash, Deliveroo, and Volvo. They're going to be investing in that. They say, quote, we currently expect to invest several hundred million dollars more in new initiatives and platform development in 2026 than we did in 2025. Also, they're going to invest a bit more in Deliveroo, that acquisition.

They expect it to contribute approximately $45 million to adjusted EBITDA in Q4, 2025, and about 200 million to adjusted EBITDA in 2026. What they're saying, actually, it was growing a little bit faster than expected, so they expect to invest a little bit more. And because, perhaps, of that shift, they haven't given all the detail on profitability of the stock down about 12% right now. All right, a big move there. Elf earnings are out as well, and the beauty company beating on earnings,

but revenue of $344 million was $22 million short of the estimate. So you can see a big drop there, too. Shares are currently down 16%. It's guidance for earnings and revenue, both well short of the current consensus. The company noting that gross margins decrease on 165 basis, points. And that was driven by higher tariff costs. Well, don't look now, but arm holdings earnings out as well. Beat on earnings and revenue. The company says it saw royalty revenue growth in all the major businesses, smartphones, data centers, cars, and internet of things.

It says more big companies signed big contracts as well. They keep rolling in. Snap earnings are out. Julia Borson has those numbers for us. Hi, Julia. Hey, Snap shares soaring. Stock now is up about 15% in after hours trading as the company's revenue beat expectations 1.51 billion versus the 1.49 billion estimated with 1 million more daily active users than anticipated. The company's earnings per share loss of 6 cents isn't comparable to expectations, but adjusted EBITDA of 182 million did top estimates of 125 million. Snap announcing a $500 million stock repurchase program and also guiding to fourth quarter revenue and arranged with the midpoint just ahead of analyst. expectations, also guiding to Q4 EBITDA and a range well ahead of the consensus estimates.

SNAP also announcing a partnership with perplexity to bring its AI chatbot into Snapchat. Perplexity is paying SNAP $400 million over the course of the year. Snap did warn, though, that they expect daily active users to decline in the fourth quarter, as they also said that their investments in AI and machine learning are delivering measurable gains for advertisers. shares now up about 14 and a half percent. Back over to you. All right. Let's see. Are there any more earnings? Are we going back to the panel? Back to the panel. Yeah, back to the panel. Okay. Jed, want to get your reaction, especially since I know your

investor in some of these names, for example, Robin Hood. Yeah. Yeah, the Robin Hood reaction reminds me of Palantir. You know, outstanding results, outstanding growth. Investor expectations had really built up after the stock had appreciated so much over the last couple months and year to date. So just a little bit of a breather. It doesn't sound like anything too concerning to me. And then, yeah, snap, I mean, good to see them participate in the growth of digital advertising. I think digital advertising is, you know, AI tools are super conducive to improving monetization of that. So good to see them capitalizing. Interesting, Mike Santoli, to see Qualcomm moving lower. Not really bad news to find in this report, but it did move significantly higher

today ahead of this. So it's given back part, not all of the gain it had today, but it's kind of like that Palantir reaction it reminds me of. What does that tell you when a stock that, I mean, I don't know if you can argue Qualcomm's been soaring, certainly not like Palantir, but doesn't react that well to good news? Well, first of all, Qualcomm was at 168, like two weeks ago before it had its Open AI announcement. So it did go vertical on that news. And, you know, you've had these situations before, where you have a company that was seen as not really a core participant in the big, exciting AI stuff, get some kind of a partnership, the stock moves on it, and then it's kind of like the market gets impatient because it's not going to happen all that soon.

So obviously, sell the news responses have been more the rule than the exception during this quarter. It's because pretty much everybody was expecting beats based on the precedent from prior quarters. So we'll see where it settles out, obviously it can go either way, but it's still in the money from that trade a couple of weeks ago, Qualcommies. So if this is a sell-the-news environment overall, Jed, what do you buy here? What name specifically do you like? Yeah, I think something like Allstate is kind of interesting.

Allstate reports this evening, too. That stock is inexpensive. It's been out of favor because investors want exciting and new and speculative and accelerating revenue growth. And Allstate has none of those right now. But what it does have is high profitability right now and attract. effective valuation, and I think a really big opportunity to take those high profits and repurchase their cheap shares. I think a lot of the insurance exposed companies should do that

right now. All right, Jed, Mike, thanks to you both. Lyft earnings are out. Stocks down. Mackenzie Seagallis has the numbers. Matt. Hey, John, it is mixed results for Lyft. Those shares moving almost 5% lower and extended trade. earnings coming in 11 cents per share, beating the 8 cents that analysts were looking for. Revenue was essentially in line at 1.69 billion. Gross bookings, that's the total value of rides on the platform or a slight beat at 4.78 billion. Active riders also came in ahead of estimates at 28.7 million, while profitability was in line with adjusted EBTA of 139 million. Looking ahead to Q4, Lyft is guiding to gross bookings between 5.01 billion and 5.131 billion and 5.131 billion and 5.135 million with that midpoint roughly. matching street estimates, stock, though, in sell-off mode around 4.5% lower now. John?

It's not alone. Mackenzie, thank you. Well, coming up, instant reaction to Qualcomm's results. The stock's down about 2.5% in overtime, despite earnings and revenue coming in well above estimates. And we'll get a check on Tesla ahead of tomorrow's key shareholder vote on Musk's pay package. Overtime is back in two. Welcome back to overtime. Applovin results are out. That stock doing what it tends to do, moving higher by more than 3%. Earnings of $2.45 a share, beating the estimate by a nickel. Revenues also better than expected. Guidance on both those counts also higher than the street was looking for. Apploven also increasing its stock buyback plan by $3.2 billion. Stock's been a really big winner,

up 273% this year before the overtime gain. Market. cap now 200 billion. Well, Tesla, once again, a big gainer today, up 4%. Tomorrow is the vote on Elon Musk's pay package, potentially worth a trillion dollars, analysts expect the vote to pass. That's despite some notable opposition. Schwab, Arc, Barron Capital have come out in support of the pay package, Norges Bank, Glass Lewis, Calpers, those are among the names that have opposed it. The move today higher coming, despite new data that shows that sales of Tesla cars in Germany we're down 50% year to date. All right, let's get back to Qualcomm now.

That stock is still moving lower, about 2% now, off the lows after reporting results moments ago. Let's bring in Seaport Research Senior analyst Jay Goldberg. Jay, did you find anything bad in here? Not yet. I keep looking, but I haven't found anything. So automotive is up 17%. But one of the things that I found interesting here was the strength in handsets,

which Qualcomm is saying was driven by the premium end. in a way that echoes what we're hearing from Apple. And I'm wondering, even though the full AI capabilities haven't come to these handsets yet, could it be that people are doing more PC productivity like work on phones because of what AI is enabling? I think that could be, or it may just be even something simpler as we're getting pretty long in the upgrade cycle.

The average age of a phone in most people's hands now is getting close to four years, which is sort of cyclically the sort of long end of that. And I think people are just upgraded. Everybody bought a new phone during the pandemic, and those phones are now come and do for a refresh. And I think it could just be as simple as that. Yeah, I thought about that.

I was talking to Cristiano about it. And he was telling me that in some countries that tended to be mid-to-low end phones, they're going premium, which suggests to me that there's something shifting that's making them want something stronger, but maybe it'll take us a while to figure out. What about automotive? This is a growth area, one of the growth areas that Qualcomm has targeted for several years now, and it's not so much about auto units growing as it is their share of silicon?

Yeah, that's right. I think what's happening is the content, the semiconductor content in cars is going up. We want our cars to be more than just sort of speed gauges and, you know, speedometers and stuff like that. We want them to be infotainment systems, digital cockpits, as they call them. And that's a growing number of higher-end chips are needed. And Qualcomm has the right chip at the right time for that. Data centers, when do we realize the full promise and capability of that for Qualcomm? And if they put up a solid print and that wasn't even a big part of it yet, then do you buy here on that possibility?

No. I'm going to be diplomatic and polite. I would say that the timing, the time to buy Qualcomm for its AI story is very far in the future. Very far. So you don't buy it all? You stick with a neutral rating. What would change that? I have other concerns.

As much as Qualcomm's story for the last three years has been about diversifying away from smartphones. They're getting into autos. They're getting into PCs. They're ostensibly getting into data center. 80% of revenue is still comes from smartphones. And I have a lot of concerns about what's taking place in that market. They're facing a lot more competition than they seem to be recognizing.

So I'm really concerned about that core market more than anything else. Okay. Jay Goldberg. Thank you for joining us. What shares of Qualcomm under pressure right now. Well, coming up on Overtime, Unity Software, big winner today, closing up more than, closing up 18%. The CEO is going to join us with more on his company's earnings. Welcome back to overtime.

Unity jumping double digits, 18% today after a beat on the top line, issuing strong fourth quarter revenue guidance. The digital ads and video game software platform up nearly 90% year to date. And joining us now in a first in CNBC interview, Unity CEO, Matthew Bromberg. Matthew, it seems like the street's starting to understand or believe, probably more believe, in Unity in a vector here, which you've been talking about for a while. Tell me the latest traction that vectors got and your confidence that it can continue to deliver the kind of results that has. have investors paying attention here. Hi, John, it's great to be with you again. Thank you for having me.

When we were together the last quarter, you and I talked about the fact that we believe Uni was at an inflection point. It was becoming clear to us that this business was gonna provide long-term, sustainable growth. And as we've gone now gone through the third quarter, we're seeing that's precisely what is happening. We've seen strength across our business.

We'd be both guidance and consensus for both revenue and profit. Our advertising business was up 11% quarter over quarter driven by Vector AI. And our subscription software business, our creation business, was also up 13% year every year. So strength across the board and we're really excited about momentum the company has. One of the things I think investors are trying to figure out is in an environment where segments of the consumer are looking less certain. What is the impact on companies with digital ad strategies that are kind of at scale? We saw Mehta's report. We saw Alphabet, their report. Amazon's certainly in an interesting

position to draw revenue from targeting certain products to consumers and finding a match. How do you view unity within the mix? And this area where Unity plays, how is targeting going to fare as it becomes increasingly important for retailers and others to do that? Historically, the games business has been very, very strong during periods where the consumer is feeling some pressure. Games represent on a kind of hour by hour basis, an incredibly efficient way to spend entertainment dollars. By the way, that's particularly true for free to play games, of which most of our constituency are playing mobile games that are free to play. You cannot get a much better deal than free to play. So we feel pretty confident in this environment, and we're

not seeing any pressure from the consumer thus far. What are you doing on cost? We continue to see some pressures in the video game industry itself and major players making cuts yeah we're we have nothing to announce in that regard we have been operating our business with a great deal of discipline for the last you know 14 15 months since we began here we're really careful we add people carefully and we're constantly looking at our business and squeezing out efficiency and that's what we that's the way we believe you ought to be doing it not with kind of big cross-the-board sorts of cuts but more with constant, careful business management. We're just talking about Qualcomm's results,

a premium segment for them in handsets doing well. Apple similarly saw strength there. Do you expect that to flow through into mobile gaming? What role is that segment playing in your overall strategy? Yeah, listen, I think it's really good news for the entire industry. There appears to be a lot of vibrancy in the handset business. New phones, new phones during holiday season. People want to do things on those phones.

They download games and play. It's great for our business. It's great for the whole industry. So we're really pleased to see that that is continuing. How much are you adopting AI to drive efficiency internally? AI is critical for us, but it's growth for us in a lot of different ways. The first of the most important way is it fundamentally changes the way our creators make video games. So we're using AI to make that process easier and faster for them.

AI, by the way, also drives our advertising business. The vector is an AI product, and it's what driving our revenue. And then finally, to your point, yeah, we are using AI broadly across our business to write code and to gain efficiencies throughout a lot of what we do. Good day for the stock on those results. Matthew Bromberg, CEO of Unity. Thank you. Great to see you again.

Well, it's time now for a CNBC News Update with Steve Kovac. Steve. Hey there, Morgan. Yeah, a spokesperson for the National Transportation Safety Board said this afternoon, investigators have recovered the flight data and voice recorders from the UPS. plane that crashed in Louisville yesterday. At least 11 people are dead, according to the governor. The NTSB says video of the crash has been a valuable asset, including footage that appears to show the plane's left wing catching fire and an engine falling off during takeoff.

Also, a federal judge ordered prosecutors to produce more materials in the criminal case for former FBI director James Comey by Thursday. He expressed concerns that the Justice Department's position has been to indict first and investigate later. Comey is charged with lying to Congress in 2020, which he has denied. And Transportation Secretary Sean Duffy just announced mandatory flight cuts at major airports starting Friday if no deal is reached to end the government shutdown. Duffy says that will include a 10% reduction in capacity at 40 major airports. Airline stocks are moving lower on that news. Guys, send back over to you.

All right. Steve Kovac, thank you. A record 36 days and counting now for this government shutdown. Yeah, flight cuts are going to hurt a lot of people in a lot of ways. Yeah, they already have, but you've got to think it's going to ramp up now. Coming up, we're going to get you caught up on overtime's big earnings movers. And speaking of big movers, dualingo really dropping hard after hours down 20%. Revenue beating estimates, the daily active users and paid subscribers are missing. We're going to hear from the CEO coming up.

We'll be right back. Welcome back to overtime. Stocks did bounce back from yesterday's losses, but gave back some of the games late in the session. Now lots of earnings out in this hour. Robin Hood, lower right now, but the best performer in the S&P 500 so far this year. Results were better than expected on the top and bottom line, so maybe more sell the news here. Now check out some of the stocks getting hit hard after hours, Elf Beauty, missing on revenue, hurt by tariffs. See, that's down nearly 28. percent. DoorDash is down 17 and a half on an earnings miss. Fort Nett lower by nearly 7 percent. It beat on earnings and revenue, but fourth quarter revenue guidance looked a little weak. And HubSpot also falling a little over 10 percent, despite earnings and revenue beats. Guidance mostly in line on all metrics, but once again, stock is down pretty hard. All right. Well, check out Bitcoin because that's rallying more than 3 percent after

dipping below $100,000 yesterday for the first time since June. So what What does today's bounce back mean for crypto and for the broader market? Joining us now is Tom Lee, Fundstraat, Head of Research, and CIO, and a CNBC contributor. And Tom, it's great to have you back on. Great to see you. So let's start right there, because we did have a bit of a bounce back here in Bitcoin and really across the crypto landscape today. But yesterday, as Katie Stockton over at Fairlead pointed out, Bitcoin broke below its 200-day moving average.

I know she's watching some technicals there pretty closely. How about you? Yeah, I mean, I think it makes sense to watch the technicals for Bitcoin. You know, as you know, Bitcoin is very sensitive to market liquidity and also perceptions about risk appetite and risk premium. And, you know, over the past couple of weeks, I think there have been headwinds building, right, from the government shutdown to a hawkish Fed cut that was done last month and uncertainty about December. And as you know, with the shutdown, Treasury liquidity, the Treasury General Accounts actually been building cash. So I think all of these created a cascade of problems that put pressure on crypto.

But hopefully, you know, as you know, headwinds become tailwinds when you can resolve these things. Yeah, I want to hone in for a second because I'm not sure we've been talking enough about it, but that funding stress we've seen in Sofer, I know there was data that was put out on Monday showing just a huge drop in that secured overnight financing rate. on Halloween from the day before. Should we be paying closer attention to that and what that's meant in terms of the liquidity picture across asset classes?

Well, people definitely pay attention, Morgan, because one, as you know, that can often be an early sign of stress, but it also takes place when there's window dressing. So, and banks are doing window dressing at the end of month. So I am kind of watching it, but I think those funding stresses have eased. And of course, it hasn't spilled over and reflected in what should be building stress in either credit markets or in bank equities.

And so I would just say that it's an anomaly and it may be due to the shutdown. But yeah, it's worth watching. Okay. Just the fact that we have had this de-leverging event, if you will, in Bitcoin. I mean, what do you watch to know that that's washed out? And I guess perhaps just as importantly, has this been playing out the way it has previously in the market? it? Yeah, in some ways. I mean, I think we have to go back to two different episodes. You know, 2002 when FTX collapsed, and then in 2020 when we had the COVID shock. And in both cases,

those are really widespread de-leveraging events in crypto, because as you know, in crypto, there is typically a lot of leverage. The October 10th, de-leveraging was the biggest in history. And that means there are still ripple effects being felt even two weeks later. There has been a defy protocol streamer that actually reported a pretty sizable loss, and that created further ripple effects. And that's what happened yesterday, along with this thing called the balancer hack. So I'd say it's probably still a couple of more weeks. The good news is there aren't a lot of bodies floating to the surface, so it doesn't feel

systematic, but it's going to take some time for confidence to come back. And I think that's why crypto took it so hard in the last couple of weeks. Got it. So what's the read-through to stocks, specifically the QQQ or the NASAC 100? We know there's always been this very strong, or in more recent years, a strong correlation between the two. Yeah, and the linkages are growing because, as you know, like market makers actually trade both products. And I think in general, people get nervous because part of it is stocks have been up six months in a row. And we have to keep mind that in October, we had the wobble in the first half before, markets found their footing. I wouldn't be surprised if people are just pausing here and saying, look, we still have the shutdown. We've had six months in a row. Stocks are up. Markets are overbought, and they get a little nervous. But let's say that that just means a wobble in the first half of November, since 1928, okay, 100 years of data, when markets have been up six months in a row,

So five or six times you build on those gains with an average gain at 3%. And in 1936, the market was flat. I'm sorry, 1942. So in other words, you either have a flat November or actually strong. It's actually a good sign we've been up for six months in a row. Okay. Given all the focus there's been on stretched valuations, particularly tied to the AI trade, do you anticipate here then into the final weeks of the year that we're going to

actually start to see this broaden out a bit? Uh, yeah, it makes sense. I think, you know, we are doing more Zooms with institutional investors where they're talking about, not 2026, so they're trying to position in, I mean, part of me would say, I think the MAG 7 and the AI stocks are still reasonably valued because they're growing at more than double-digit growth rates and even in video, the biggest name and most important stocks only at 29 times for it earnings, so they're not demanding, but there are plenty of stocks that have underperformed for three years, you know, where their underperformance is so severe,

you haven't seen it in 50 years. And so I think there is going to be some folks looking to buy mean reverting ideas, but I'd still say I like the AI. I think there's a lot of visibility, and I think companies are starting to see payoff. So it still makes sense to stick with it. Okay. Tom Lee. Thank you. Thank you. Well, Duolingo shares are plunging down more than 20% here in overtime, despite a revenue beat. And there's a reason similar to DoorDash. We're going to hear from the language learning and overall learning company CEO and founder before he dials into the call with analysts when overtime comes right back. Welcome back. Shares of AMC moving higher and after hours. The company reporting

a loss of 58 cents. That was versus estimates of a 20 cent loss. But revenue did come in above estimates. The CEO is saying they're seeing a softening third quarter, but expect the fourth quarter industry-wide box office to be the highest grossing fourth quarter in six years. We should note that this is a $2 stock. Well, 54 cents on that now. Duolingo shares down 21 percent now, 20 and a half in overtime. I spoke with CEO Luis von on about results earlier this afternoon. The reason the stocks moving down is a shift in how much they're investing in growth versus letting dollars flow through and profit. Von On told me why.

There are experiments that put monetization and user growth at odds. And part of my job has been always arbitrating between these two. If there's a trade-off to be made, kind of where, how do we make that trade-off? What we've been doing over the last couple of months is we are really shifting that trade-off to be much more towards user growth. again, because what we want to do is we want to grow rapidly. I mean, we're growing daily active users at 36% year over year in this quarter. We want to continue growing rapidly for a long period of time.

And we think that will allow us to, you know, just reach the full impact of this business, which is much larger than anything that we have right now. We have a line of sight to be able to teach people in a way that is as good as a one-on-one tutor and probably also more engaging than a one-on-one tutor. And if we're able to do that, this business is, you know, right now we have hundreds of millions of active users. This business would be a billions of active users type business. I mean, it's just much larger. And that's what we're shooting for.

So this is, you know, this is the main thing that I want investors to know is that we are, we have made a slight shift over the last quarter and in how we invest. And we're investing a lot more in long term things because we see that is such a big opportunity. ahead of us. Another founder-led company DoorDash lower here in overtime for similar reasons. They're investing in AI platform unity across their three major brands as well as investing in robotics. Well, up next, we're going to hear from the CEO of Continuum, which just unveiled what it hopes is the next big thing in quantum computing. Plus, much more on this wild hour of overtime movers as we count down to the calls from Robin Hood, Snap, and DoorDash the top of the hour. Be right back.

Welcome back to overtime. Let's check in on shares of SNAP. The stock soaring nearly 24% on strong revenue, better than expected daily active users, a million more than expected. Also announcing a partnership with perplexity to bring its chat bot into Snapchat. Snap adding that investments in AI and machine learning

are delivering measurable gains for advertisers and it announced a half a billion dollar stock buyback program. Well, Continuum, the $10 billion quantum computing firm, majority owned by Honeywell, launching a new commercial product today, Helios. The company calls Helios the world's most accurate, general purpose, quantum commercial quantum computer, and Helios already has clients, JPMorgan Chase, SoftBank, Amgen, and a strategic partnership with Singapore. It also has deepened the partnership it has with InVIDIA, which participated in a recently closed funding round. Now, I sat down exclusively with Quantinium CEO Raj Hazra, and I asked him what this milestone means for bringing the long-anticipated promise of quantum computing to market realizing reality. It's no longer if I was a large enterprise saying, I think the quantum revolution is coming. I just don't know when to time my entry into it.

Helius changes that to a no-brainer decision. Now is the time. Start getting into quantum. looking at the use cases that quantum can help you with, start building your internal capability and workforce, that weight is over. That's the paradigm shift. So public quantum stocks like Raghetti, D-Wave, INQ, those have stored in the past 12 months. IBM has announced some breakthroughs in recent weeks. Hauser thinks there will ultimately be several winners, but today's Helios offering puts his company three to four years ahead of the competition.

If you look at this industry that's going to be worth creating about $8,900 or trillion of value over the next decade, it's not going to be a single player. We will need that diversity of approaches, the research to keep us all honest and moving fast. But what I can confidently say, particularly with Helios, we're good three to four years ahead in terms of taking lab capability or demonstrated research into the hands of customers in a commercial offering. Ultimately, that is what is key. The sooner you get it into customers, the sooner you learn together, the sooner you take the customers learning down, their risk down, and the quickest path to value. Now, you can watch the full interview right now at CNBC.com, where we dive even

deeper into the topic and the news of the day. And up next, Mike Santoli analyzes the ADP jobs report and what a divergence in hiring between big and small companies could mean for the economy. Don't forget, you can catch us on the go by following the closing Bell Overtime podcast app, podcast on your favorite podcast app. We'll be right back. Right here on overtime, we will break down numbers from Expedia, Airbnb, Win Resorts, Affirm, and Block. Thanks to the now-record government shutdown, though, we will not get reports on weekly jobless claims, third quarter productivity, and September wholesale inventories. We will get results of the vote on Elon Musk's proposed pay package, though, so keep an eye on Tesla. And, John, we will continue to get more Fed speak.

We've gotten a lot of that this week, and so far the messaging, it's been leaning a little hawkish. Hmm. Okay. Well, we'll certainly be listening. And now markets seem to be rewarding scale and resilience, especially when it comes to absorbing costs, deploying capital. But is the gap widening as smaller players fall behind the big names? Senior Markets commentator Mike Santoli has taken a closer look at the divide in corporate fortunes. Mike. Yeah, John, so that certainly was the story within this morning's ADP private sector payrolls report, which did show an overall net gain of about 42,000 jobs last month. That was close to 20,000. twice the estimate. It actually qualifies as a decent number these days when the break-even number of created jobs is seen to be lower because labor supply growth has been lower. But here's the breakdown. Among employees that are employers that are larger, that have more than 500 workers, that's where the strength is. That's continued to see in recent months

job growth, whereas mid and smaller employers, like below 500, especially the smallest of under 150 employees, that's where you're seeing a net decline in job gain. So there's just general sense out there of, you know, smaller companies have a harder time withstanding some of the pressures, whether that's residual inflation, tariffs, all the rest of it, or just can't bid for workers as well as big companies can. And then take a look within the stock market. Even inside every sector, it seems as if there's been a leadership group and then the rank and file is struggling behind. This is the large bank dominated KVW banks. index, obviously a very strong chart. This is community banks. It's a NASDAC listed

ETF of those community banks. And it sees basically flat on a one-year basis. So this is more stark than most sectors, but it's very instructive, I think, in terms of this environment that we've had for a little while, where it seems like winner take most for the big guys. Mike, I'm going out on a limb here, I know, but back to that first chart, what if the smallest business is, and we saw a bit of this earlier this week from Intuit, and their QuickBooks report, what if they're not adding because they don't need the marginal employee, because they're starting to pick up on some of this productivity gain and hope through stuff like AI that we hear Microsoft and Amazon and some of these other huge businesses talking about as

well? I suppose you can't disprove it, and I'm sure over time that might be a greater influence on these decisions, very difficult to know. Or maybe there's a sense out there that there's a few more cards that need to turn over in terms of policy. And in the meantime, you You might be able to squeeze more productivity out of what you have right now in terms of a workforce, whether through those tools or the anticipation that they're going to be coming around and becoming more useful. So there's definitely not a, there's an explanation here that doesn't really fall into the, you know, worrisome doomsday camp for sure. All right. Mike Santoli. Thank you.

Morgan Qualcomm, down 4% still here after what looked like strong results. And boy, DoorDash and Duolingo, two founders deciding to invest. in part for AI ahead of their businesses, but the street does not like it. No, and honestly, it also speaks to this whole idea of what we talked about at the top of the show, which is this sell-the-news narrative that we've seen in this earning season. I mean, obviously expectations got very, very high coming into it, and despite so many beats, it just still has not been enough. Nonetheless, stocks finished higher today.

That does it first here at overtime. Best money starts now.