By coinnews 
00:00 Brad Smith
Now time for some of today’s trending tickers. We’re watching Etsy and Airbnb joining me now. We’ve got my Morning Brief co-host Madison Mills. Madison, first off, we’ve got to talk Etsy reversing earlier gains after reporting a beat on revenue in the first quarter. Some analysts say that the results were better than feared, but the stock, as you can see, is falling. It’s down by about 7 and a quarter percent right now, just about 10 minutes into trade.
00:29 Madison Mills
Yeah. If you caught me sort of staring into the camera there for a second, it’s because I was awaiting that stock price because I’m fascinated by the degree of downward pressure we are seeing on Etsy right now, given the results of the quarter. As typical for a lot of these earnings, what is the problem? It’s what’s going to happen in the future because the stock market is forward looking and that is perhaps why you’re seeing shares down so much. The results though were better than feared. We had a couple of bright spots. Advertising revenue, unlike Snap, was better than expected, building demand at Depop as well. That is their kind of vintage secondhand platform for consumers there, and those results better than feared, though city noting that shares are likely to be range bound until there’s more clarity on the company’s direction moving forward. Keybank also noting the outlook points to sequentially lower profitability, profitability and continued softness moving forward and several of the analyst notes coming in here talking about how that outlook moving forward is the sticking point and key issue, especially as we continue to hear from several companies and even from the economic data this morning of a softening macro environment.
01:55 Brad Smith
Yeah, it’s really interesting, especially given that Etsy has been one of those companies that investors look at and evaluate how the business does when there’s the absence of excess cash in the consumer mindset here. And as we’re looking at the makeup of services versus good spending and the services, the necessary services really getting that prioritization. Etsy is one of those businesses where you can and have in the past been able to see that kind of correlation as well here. So worth continuing to track as well as this next business Airbnb upgraded to buy from neutral at DA Davidson. The firm lays out four key reasons for the upgrade here as we’re taking a look at shares of Airbnb. The shares are down by about 4.6%. Oh yeah, I might add that this company is also going to be reporting earnings this week too.
03:11 Madison Mills
Yeah, I think it’s fascinating to have this upgrading to buy headline pass through my feeds this morning right as we were getting earnings in from the likes of some other travel names, including Norwegian, which showed a lot of weakness in consumers this quarter. Some of that weakness playing out in Airbnb stock, it’s down over 4 and a half percent despite this upgrade from DA Davidson to buy. They note four reasons here. They talk about resilience of online leisure travel, aka you’re going to switch to Airbnb maybe instead of using your hotel because maybe it’s a little bit cheaper. Uh, inventory breadth and depth and a focus on affordability. Maybe that again is a tailwind for them as consumers look for a more affordable Airbnb versus a hotel. Also talking about the new product cycle, they’ve got a tech stack development in the works here that could bring more profit to come moving forward, and then they talk about the company’s recent valuation as well because of that recent 23% pullback in the shares over the course of the last year, trading at about 16.5 times their lower 2025 EBI guide. So talking about that valuation and then a couple of key pieces of the company as potential moves to the upside to come in the future.
04:49 Brad Smith
Yeah, you know, all due respect and great respect for the team over at DA Davidson, but there are some issues that I take with this and only because of the environment again on the consumer front that we find ourselves in, where a lot of consumers typically, when they are pulling back on some of their vacation spend, or there’s unclarity around how much they’re willing to spend, they look across where they can deploy points and rewards. And that has been one area that has left kind of investors perplexed a little bit when it comes to some of the Verbos of the world or the Airbnbs of the world. How are you going to be able to leverage some of those points and get a similar experience that you would on some of the other accommodations? Like think Marriott, think Hilton, think the historic hotel businesses as well. So that’s just one that I think is going to be interesting to see how the business and Airbnb continues to discuss that in this environment going forward, and we’ll see what they say on outlook when they report this week as well.
05:58 Madison Mills
Really great point there, Brad.