Join Jason Moser, a seasoned analyst who tracks market trends, and Emily Flippen, an expert in company earnings, as they explore the emotional rollercoaster of stock and love this Valentine's Day. They dissect The Trade Desk's 30% dip post-earnings and Roku's streaming prowess, while Robert Brokamp shares strategies for couples to tackle money discussions. With playful love letters to stocks like AAON and Zoetis, they blend romance with financial savvy, ensuring you and your partner are financially in sync for years to come.
The Trade Desk's recent challenges reflect internal execution issues rather than a decline in the long-term advertising market opportunity.
Effective communication about finances in relationships may uncover underlying issues, suggesting that money problems often stem from deeper personal conflicts.
Deep dives
Trade Desk's Earnings Disappointment
The Trade Desk faced a notable sell-off after missing internal benchmarks for the first time in 33 quarters, resulting in underwhelming guidance for 17% revenue growth. Despite a revenue increase of 26% and adjusted earnings per share rising 43%, the market reacted negatively due to unmet expectations from a company typically known for outperforming. CEO Jeff Green acknowledged internal execution issues but expressed confidence in the company's long-term prospects, likening it to a sports team facing temporary setbacks. Analysts see this situation as potentially indicative of growing pains rather than a fundamental decline, as the company continues to capture market share, especially benefiting from election spending.
Roku's Resilient Ad Market Performance
Roku reported impressive fourth-quarter results despite previous cautious guidance, achieving significant growth in adjusted EBITDA that surpassed expectations. The company saw a remarkable increase in advertising revenue, which reflects the resilience of its advertising business amid competition. While it will discontinue reporting certain metrics in the future, Roku remains a leading platform for smart TVs, now present in half of U.S. households. Analysts noted the importance of expanding internationally while maintaining strong performance domestically, and the market responded positively with a 15% jump in shares.
Airbnb's Strategic Growth Initiatives
Airbnb reported a robust earnings performance, driven by a 12% revenue increase to $2.5 billion, underpinned by a higher number of nights stayed. CEO Brian Chesky emphasized plans to launch new revenue-generating initiatives similar to Amazon's strategy, aiming to make Airbnb a frequent destination for users, beyond occasional travel bookings. The company also highlighted its spending on enhancing tailored experiences, showing confidence in expanding its service offerings. While there are concerns about share repurchases not significantly denting the outstanding share count, the overall financial results have garnered positive market reception.
Upstart's Positive Shift in Loan Origination
Upstart reported a significant rise in loan origination rates, increasing by 68% year-over-year due to improved underwriting activity and more partnerships. The stabilization of interest rates has played a vital role in enhancing its growth potential, with the company nearing profitability for the first time in nearly three years. There are risks involved, particularly concerning the management of loans not flowing smoothly to funding partners, which could lead to potential losses. However, opportunities in expanding into the auto loan and home equity sectors present a significant avenue for future growth, albeit with caution about the economic landscape.
The market plays a love/hate relationship with earnings from Fool stocks, and we talk about the ways you and your partner can be on the same page this Valentine’s Day and for years to come.
(00:21) Jason Moser and Emily Flippen break down:
- The Trade Desk's 30% post-earnings decline, and why it’s more about the company’s internal structure and execution rather than the long-term ad market opportunity.
- Roku's impressive position in streaming and progress in advertising. Airbnb's vision to become the Amazon of travel and living.
- Green flags from Dutch Bros, Shopify, and Upstart in their earnings reports.
(19:11) Answers crew Alison Southwick and Robert Brokamp break down how to talk to your spouse about money and why “money issues” might really be the symptom of other problems in a relationship.
(30:00) Emily and Jason offer love letters to their favorite stocks, and two stocks on their radar this week: AAON and Zoetis
Stocks discussed: TTD, ROKU, ABNB, BROS, UPST, ZTS, AAON
Host: Dylan Lewis
Guests: Jason Moser, Emily Flippen, Alison Southwick, Robert Brokamp