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Affirm stock sinking, Good Buy or Goodbye: Market Domination

Stocks (^DJI, ^IXIC, ^GSPC) search for direction ahead of Wednesday's market close with the Dow Jones Industrial Average holding in the green. After topping fiscal third-quarter revenue estimates and narrowing expected losses per share, Affirm shares (AFRM) are now sinking in the afternoon and analysts have an idea of what the cause is.

Tripadvisor (TRIP), Teva Pharmaceutical Industries (TEVA), and Dutch Bros (BROS) are also reporting earnings.

Defiance ETFs CEO and CIO Sylvia Jablonski joins Market Domination for the latest installment of Yahoo Finance's Good Buy or Goodbye to talk about the latest trend in clean energy investing: Uranium.

Dine Brands (DIN) CEO John Peyton — whose company owns IHOP and Applebee's — discusses consumer spending patterns at his restaurants.

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This post was written by Luke Carberry Mogan.

Video transcript

Hello and welcome to market domination.I'm Julie Hyman.Josh in live from our New York City headquarters.We are giving you the ultimate investing playbook to help tune out the noise and make the right moves for your money.And here's your headline blitz getting you up to speed one hour before the closing.Bell rings on Wall Street two Q guide was fairly solid gross bookings on a constant currency basis.Up almost 21%.EBI dot Guide was kind of in line with consensus at the midpoint.I think the shares rate are down right now for, for two reasons.Number one, lower one Q mobility gross bookings and then the two Q guide was solid on the cost of currency basis, but lower on a on a reported basis as Uber's facing higher FX headwinds than we thought it was objectively a great first uh report uh or, or print out of the door uh for reddit now is a public company.Uh and the top line numbers look great, you know, revenue growth uh growing well above expectations led by ad growth, which is what you want to see.Uh and engagement growth or, or user growth is also kind of very strong.Um And so near term, we really like it, it's kind of a tactical play earning season has turned out to be better than a lot of people expected.I think according to fact sets numbers that maybe was 3.4% expectation coming in or at a 5% run rate.And that's really, you know, I think helped support the markets here, provided a bit of a floor here.We've got one hour to go until the market close.So let's take a look at the major averages sponsored by tasty trade.We did have a little bit of a breaking of the upward momentum recently, but the dow is an exception here.It's now up by about a third of 1% and at the highs of the session, after this sort of little run that we've had here that's taken the dow up by nearly 3% over the past five sessions.The S and P 500 still lurking in the red.But as you can see, it's been a pretty tight range today and it did flirt with positive a couple times during the session.The NASDAQ though a little more solidly in the red down about a quarter percent in today's session as well.Um If you take a look at the 10 year yield still around 4.5% so it feels like a sort of water treading kind of day, if you will, if you look at the trending tickers, which we're going to delve into in more detail later on, you see a lot more action, a lot more fireworks shop.I just one example down 19% after that company's numbers disappointed Uber, which we're going to speak to an analyst about down 8%.So on the individual stock basis, a lot more movement looking at some of the sectors here in the S and P 500 where we're seeing movement there, real estate down utilities is up, which is a little unusual because they're both rate sensitive sectors.They tend to move a little more in tandem.That's not the case today.Real estate down 9/10 of 1% and utilities up about the same amount but otherwise a decent amount of rent on the screen from consumer discretion to materials to health care, putting pressure on stocks overall, Josh Julie, as you know, the markets are mixed today with the dow trading higher, but the S and P 500 NASDAQ, they are a lower here.Where do we go from here though?Our next guest says the SPX has started its trek back to late March highs and should exceed this en route to 5400 for more.We're bringing in the one and only Mark Newton, managing director and global head of Technical Strategy at fundstrat Global Advisors.Mark It's great to have you on set Thanks Josh for so we, we were talking off camera.Uh Mark just about.It is interesting.I mean, today to see how some of the big, really well loved names like Uber getting nailed today.But I, I want to start kind of broader with you.You look at the Spxs and P 500 when you're looking at the charts, what are the technicals telling you, Mark about where we're headed near intermediate term here?I think it's important to keep in mind that we've seen an amazing first half of the year thus far with very little overall volatility outside of just really three weeks that we saw from late March in the mid April.It's been far less volatile, I think than most years at this time.But it fits right in with the seasonal playbook of election years, which says we do usually get some sort of a 1st, 2nd quarter pull back and then we go literally straight up into the fall before some consolidation ahead of the US election.And thereafter we go higher.Uh I would note that, you know, we've seen a lot of rotation.It started off being technology, industrials, energy and then that faded and we saw more movement into materials and literally in the last week, a little bit of evidence of health care bottoming out.And so that's interesting.Uh to me, this is actually quite healthy, technology has not deteriorated enough to think that you would avoid it.Um Even though it's been down, you know, really since late March, that sector has started to stabilize stocks like apple have broken out, which are extremely important to the broader market.So I'm actually pretty encouraged at a time when, you know, sentiment has grown a little bit more negative.Uh at a couple of evidence of pieces of information that say the economy might be slowly starting to stall a little bit ism numbers were lower uh jobs.So that's actually taken rates back to the downside.So at this point, it's really bad news is good news for the stock market as rates in the dollar start to move lower.That's a very good sign for, for us stocks in the short run and they'll push higher.Yeah, we definitely saw that on Friday with the jobs support, for example.Um there was a lot of conversation really in the beginning the year about the rally broadening out right beyond technology.And you highlighted in a recent note looking at that S and P equal weight index that we're seeing some positive signs there.And this is uh an interpretation of the chart that you were looking at.You know, what's interesting was we've now seen breakouts in the RSP which is invesco's equal weighted and it's still nowhere near uh prior highs.But, but the fact that it's breaking out we're seeing now some evidence of small caps and also mid caps, you know, starting to gain traction.I think that's very, very important.Um You know, many are still hyper focused on large cap technology, but it's important to note that, you know, the S and P was up 10% in the first quarter while health care and stocks like apple actually were down.And so now those are both starting to stabilize and turn higher.So if we can get that movement in health care, which is the second largest sector within the and P financials, uh seeing a little bit of boost in technology as rates turn lower.And, and we see a more of a push back towards growth.Uh That's gonna be very, very good for investors.So I'm, I think this is a year for risk taking.I'm very bullish.I think we push up to probably 5400 at a minimum.Uh We can see consolidation, I think in the fall but now is not a time to be running for cover.If anything with evidence of Treasury is starting to gain some traction and start reels are starting to roll over and the dollar is starting to pull back.Uh That's been great for emerging markets.We've seen areas like transportation coming back and that's very, very good.Uh A as a leading sector along with semiconductors.Uh both of them are very good for the market.You touched on where I wanna go semis, you got arm reporting after the Bell Mark.I'm just interested when you, when you look at, when you look at the chips, the semis, what do you see the socks?Uh, it did have a pretty severe pullback over the last few weeks, but we have come back.I mean, we've moved up about 4% or so.At least within just a few days time, we've seen nice movement out of NVIDIA.Some of the leading stocks within the semiconductor space, obviously still stocks like Intel remain laggards.But the majority of the space is still in great shape.It's still my favorite part of technology.So uh my thinking is the socks gets back to 5200.I'm still optimistic that we, we're gonna push higher.Well, and from a fundamental perspective, we still have a potential catalyst coming later this month with NVIDIA earnings on the 22nd.So is that gonna be the thing?Maybe that's gonna help it push up?Uh I it's already started to push up.I think that will certainly help to the trend to probably accelerate.So I see NVIDIA getting back to its former peaks which is near nine 75 I think.And above that, it can really push up to right near 1100.So I like and I'm long and video, I think it's gonna continue to work.I like to switch gears a bit here.Mark, I'm very interested you take on oil because we're, we're around 79 here, you know, a month ago, we were above 85.What do you see ahead?I think oil does have the potential of rallying.We did see a pretty sharp draw down.Uh, but in, in April for, for crude and now it seems to have hit an area that's technically trend line support and we're hearing the evidence of now, Saudi Aramco is raising prices to the shipments to the far east.I think that's a very good sign.Um It is going to be pressure obviously in the back half of the year, I believe from the administration, the US will continue to pump a lot of crude and evidence to keep crude down to keep inflation down.That's something to be aware of.But for right now, I don't see any evidence of demand waning as China starts to come back.That that's something that at least from a perception standpoint means that that there's going to be demand for crude and, and oil should push higher.Uh They've extended these output cuts, you know, over the next at least through the second quarter and likely into the third quarter.I think that's really, really gonna be good for, for crude seasonally speaking, we're still in a bullish time that's gonna change in the back half of the year for now.I think we have a decent balance back to the high eighties 90.I think energy can still work and it's still an overweight for me as a sector.Interesting up to 90.Not, not good news for drivers, I guess in the US, but uh good news for those who are, who are long oil um dig into health care a little bit more for me because I know specifically you've been looking at the XB I biotechs.So what are they telling us about what we're gonna see in health care?Health care has been uh affected by a lot of different factors.Uh I would just say that XB I is a small to micro cap type ETF as part of playing bio biotechnology.So as rates start to pull back, which is my expectation, I think honestly, under 435 in the 10 year could get us down under 4% and even down towards the mid threes, which would be a big, it either means economic weakness is coming.But my cycles say that rates are really gonna start to plummet and that actually is gonna be a source of uh a positivity for small caps.XB I being something that should start to recover health care has a very seasonally bullish time of the year, which normally is June, July.So the the sector has been battered and now it's starting to show evidence of bottoming stocks like Biogen stocks like uh you know, vertex today having a very good day.You know, I think the sector makes a lot of sense for those that wish to be tactical and play for a rally over the next three months before I let you go.I got to pick up on one thing I heard you say there 435 on the 10 year.Where, how, how far do you think we are from that?When do you think we would fall to that level?Well, we're getting closer the tenure in Germany.The Bund almost broke down yields and, and I think we're very, very close and, and I, I think it happens over the next few weeks.And so, you know, the evidence that the quarterly refunding, I think was a tipping point for treasuries along with evidence of a little bit of economic weakness.Uh 435 lines up with a couple different former highs over the last few months breaking that structurally would be a negative four yields.Uh I think we probably get down to 3.5 and which is a big, big move before we turn back higher, but it is gonna prove to be a sign of relief for those trying to refinance for those who are looking to buy homes.You know, the housing sector in general has held up with this unusual sign of the US consumer locking in rates at 3% and then not wanting to refinance.So there's an undersupply of homes that has sort of artificially maybe kept the economy afloat and us consumers have been insulated from those interest rate hikes specifically given that they're all locked in at low rates.Well, certainly the rates heading lower would provide some relief there.Thanks a lot mark.Good to see you.Pleasure.You too.Appreciate it.Well, we're just getting started here on market domination.Coming up, Uber shares were under pressure after the ride share giant swung to a loss in its most recent quarter.Will talk about the road ahead for Uber with an analyst on the other side.Plus the latest edition of our series.Goodbye or goodbye.Today is all about the smart clean energy play will take a deep dive into two stocks to help you make the best choices for your portfolio.All that more when market domination comes back time.Now for some of the day trending tickers, a firm reporting a beat on third quarter revenue forecast for the fourth quarter topped expectations but worries from shop five surprise net loss, dimming Wall Street sentiment on the buy now pay later stocks.This was interesting Julie because All right, so they turned in a good report.The Q four revenue guide that beats consensus.They offered 585 to 605 Street.Was it IV three stock has been a roller coaster was higher turned lower.Comment from the street is positive analysts saying results very strong GMV, better than expected.But I know you talked, we checked in with some analysts who maybe gave us a good clue as to why we're we're in the red, I was confused.And so I reached out to two friends of the show, uh David Cini over at Wedbush, as well as Dan Dole of Mizuho, who we spoke to also about Robin Hood the other day.And both of them pointed the finger at Shopify as saying that this was the reason why we're seeing a firm down.Um, and Dola pointed out that, um, you know, there's a partnership between the two and that Shopify accounts for something like 10% of, um, a firm's gross merchandise volume that people who are buying via Shopify sites or people who use Shopify on the back end, use a firm as their buy now pay later some of them.And so that's why people sort of extrapolated.He thinks that that move is overdone.Um, but we still, I mean, he's, he's a bull, he is a bull, but we'll see if the, you know, if the street, uh, agrees, obviously today they do not.And we've got the shares selling off.Oh, all right.Let's take a look at Tripadvisor.Sorry.That's me, trip advisor shares.Tanking after the travel company rejected the idea of a potential sale, the shares are down by some 30%.Now, Tripadvisor, um, basically came out and a few months ago and said it had formed a special committee.Yeah, exactly.Said we're exploring options for the company and now has come out and said, now, no action with a third party is in the best interests of the company and its stockholders.So people did not like that news.No, I mean, the company they reported to and profit results that beat right.Um Looks like revenue 395.The expectation was right around there.394 is what I saw.I didn't see guidance offered the co talking in a statement, Julie, you know, we're pleased with the results.Solid start to the fiscal year, uh continue diversification of portfolio but to your point, bottom line, no deal, no buy out.That's the headline.The stock got wacky.Yeah.And the shares, by the way are up almost 60% going into today over the past year.But really a lot of that upside coming after they said that they were potentially putting themselves up for sale.Let's talk about Teva as well.Those shares are trending and the stock is surging today after the pharmaceutical maker unveiled positive results from its Schizophrenia treatment study for more, bringing in yahoo finances and so numbers and also this study.Yes.So a lot going on for, we know that of course, the stock has been one that's been under pressure for quite some time because of the opioid settlements.And they are finally looking like they're coming out under that reporting at 3.8 billion in revenues for the quarter up, uh 5% year over year.And that's a really good sign in addition to that uh they're looking at the results of their schizophrenia drug OLANZapine, that is, it could be a $1 billion product for the company.Uh It is, it would be a long acting injectable once monthly compared to the current pill form that is on the market.And so is looking at, you know, being able to provide a product that's easier for patients to use.And so that is what the company is looking at.Currently, the account for 19 or the product accounts for 19% of the US market for the drug.So it's good market, potential market for the company there.Meanwhile, the company is also looking at launching their Humira biosimilar.So they're gonna be in the same market as the what is it now?Half dozen that are on the market uh competing with Abby, we've already talked on this show before about how Abby has managed to maintain the market share when it comes to Humira.But we are seeing that other companies have been able to gain just a little bit of that share and looking like is looking to play in that market as you see on your screen, that is the market share of Humira right now, whether or not the way that the formularies, those pharmacy benefits managers handle how these biosimilars are sold to patients or rather to the to the pharmacies will determine whether or not to a can also break through and get some of that market share.Thank you.Appreciate it.Moving on.Shares of Dutch brothers, let's check them out as well because they're rising after reporting positive first quarter results yesterday and here to help us break it all down is Yahoo Finance's Brooke Dipalma Brook.Yeah, Dutch bros.Certainly a big day for them.The stock jumped as much as 15% during today's trading session after the company beat on both the top and bottom line adjusted earnings coming in at nine cents higher than expected revenue.Also growing 39% year over year to 275.1 million higher than what Wall Street expected that 255.62 million and same source sales growth is really the big story here.We saw that jump 10% year over year, far higher than what the street expected, which was 4% and there are really four things that led that uptick.In same source sales, we saw pricing foot traffic, menu and Dutch bros reward members drive that same store sales increase.This was the strongest single quarter jump since the end of 2021 we saw higher prices up 6%.We saw 1% increase in foot traffic also menu innovation.The company launched protein coffee and boba which helped in the afternoon and boosted the average ticket size and also reward members made up six, 6% of transactions in the latest quarter.Now the company did raise their guidance when it comes to revenue.They now expect between 1.2 billion and 1.215 billion for the full year.Many on the street saying that they can actually beat that.And we know that Dutch Pros is rapidly expanding.They opened up a new location in Florida.That's one of their first east coast locations.I not the first and we're also rapidly expanding in Texas as well.So lots of optimism on the street right now and many watching Close Super super quick.Yeah, obviously this is a big contrast with Starbucks contrast.I mean, and it's, they're very different in size, but just quickly, is there something that's like that encapsulates why Dutch bros is doing so much better?Yeah, many of focusing in on that rewards members.We did see a huge uptake year over year, just Dutch bros putting out of the rewards program and doing well.Then, you know what's interesting is Dutch Pros has a model where they actually have more customers during the afternoon than they do in the morning.And so with this uptick or more reward members using the app to make their transactions.Now, they're saying, hey, we're actually using marketing to bring them in the morning.And what's really interesting too, which is something to watch is that such pros doesn't even have that much food offerings, if not many at all.And so Starbucks obviously has a huge, huge food offering.And so that's something to watch to see how they roll that out and how they can entice breakfast.That protein coffee though, brought in a lot more people about new products, protein, milk, infused coffee.All right.It's more than 20 g of protein we'll talk about, we gotta, we gotta go.But we, we to, to be continued Brooke.Thank you.All right, let's get to Uber earnings.Now, those shares down 6% today after the company's first quarter, results revealed gross bookings fell below estimates for more on the numbers and what they mean for the ride sharing giant.Moving forward.One, welcome in Ali Mora, the West End Capital Management, senior equity analyst, Ali.Um congrats on the new position, by the way, good to see you here in a, in a different role.Um So this really caught a lot of people by surprise.Were you surprised by the numbers?And what was the biggest source of that surprise?Well, actually, we were not necessarily surprised by the numbers.Uh We think that they were very, very strong.Uh You know, you've got very strong growth in gross bookings.Uh You've got strong growth in total revenue.Uh Both, both of the main segments performed very, very well when you're talking about mobility or or delivery.Um And my biggest takeaway, our biggest takeaway was the network effect of this entire platform continues to strengthen.So you've got user growth around 15% you've got their frequency increasing at around 6%.Um And a lot of that growth and we're talking about revenue growth.Also, a lot of that growth wasn't necessarily driven by higher prices, was actually driven by higher demand again in, in the two largest segments.So overall, we were pretty pleased.And of course, you know, let's not forget, we just talked about the top line, let's not forget about the bottom line margin expansion on the EBD side.So we were actually pretty pleased.We think there is, this is an overreaction to a slightness on the on mainly the bottom line, which was basically a decline in the unrealized um uh value of uh of the equity investments that these guys have.I'm interested ali to drill down specifically into Uber eats.Just get your take on that segment, Ali and how much of a growth driver do you think it is for the company looking ahead?Um It's actually, well, first, let me say this, it's very surprising that these guys still continue to grow, right?I think it was around 17%.Uh you know, we're, we're a few years away or a few years past the, the COVID and looks like consumer behavior uh has actually adopted to ordering online and for, for delivery.So, uh we are, we still are very confident about continuing growth uh in the mid teens uh going forward.And uh and also, of course, you know, let's look at the further expansion that these guys have when it comes to groceries and other retail and the partnership that they've got with, with Instacart, they, I think they announced it yesterday.So, uh we think that will provide additional growth.And then besides that, you know, let's talk about advertising.I mean, you know, these guys, we talked about user growth, uh I think 100 and 49 million.So, you know, you've got a very wide audience and I think the CPG consumer packaged goods, uh brands want to expose brands on this widely used platform.So on the delivery side, I think the high margin a revenue will also contribute to growth.Uh So, so we're pretty, I'm pretty confident about the continuing growth in the delivery side of the business.Ollie, I do want to ask about two things that there seemed to be concern around.One of them was about cooling demand in Latin America.And secondly, there's the continuing sort of regulatory overhangs that are uneven, sort of depending on what region you're looking at.Are those a concern for you?Not necessarily.Um The first one is somewhat, I mean, uh somewhat seasonal, you could say um the, the second one from a regulatory standpoint, uh let's look back, I mean, you know, I I've been following this company covering this company for a long time before their IP O and they've continued to face regulatory threats and what we have realized is that the platform itself is so effective in terms of satisfying demand by the users, that it's created that network effect, that the user will continue to come on.And it's become somewhat of a, you know, you could say a necessity.So some of those costs that they may uh additional costs that they may incur because of new regulatory measures could actually be passed on to the consumers and or to the merchants.Uh So, from that standpoint, you know, we're, I'm pretty comfortable that, that these guys can overcome this and to a certain extent, you know, they've done, they've been very successful in actually reaching compromises with the lawmakers at various levels, whether it's at the community level, the state level or the federal level.Uh So, uh again, I'm, I'm pretty confident that management will uh approach these, um the way they should, of course in different regions, different markets.Ollie, when you look at the results both for Uber and Lyft, um any kind of broader takeaways you had about the state of the consumer because I was, you know, Ollie, I was actually impressed how they both sounded generally positive on the consumer.Yes, I was too.Uh consumer spending continues to uh to move along.Um uh you know, various indications that, you know, from a macro standpoint, we're not necessarily in a recession.And uh and as I mentioned before, uh consumer behavior has adopted very, very well to these platforms or you could also say the other way around the platforms has has adopted to consumer behavior.So the network effect of both firms and in my opinion, both Uber and Lyft uh remain strong.Of course, you know, we prefer Uber uh mainly because it's more of a diversified type of business and we saw the benefits of that uh during COVID.Um but uh but yes, both are actually uh situated pretty well in an environment where consumers continue to use the platforms.Ali It was great having you on the show today.Thank you so much for joining us.Thank you and coming up, it's the latest edition of our series.Goodbye or goodbye.Stay tuned.More market domination after this.It's a big noisy universe of stocks out there.Welcome to, goodbye or goodbye.Our goal to help cut through that noise to navigate the best moves for your portfolio today.We're taking a look at the power behind clean energy stocks.Joining me here to discuss his defiance, ETF CEO and Cio S. Thanks so much for being here.Thanks you.Thanks for having me to see you.So let's get to your goodbye.First of all, the one that you like and that is uranium energy.So basically a bet on what's happening in nuclear power.We've seen the stock already go higher over the past year, but let's get to your case here and it has to do with nuclear as one might imagine.So, what are you looking at here?Exactly.So as you have here, nuclear power is essentially the cleanest type of power and energy that we can use.The cleanest type of electricity that we can use.And you know, the only abundant amount of clean energy that we can use.So you have for every dollar fossil fuels being used, you have an investment of a dollar 70 in clean energy like nuclear.And so, you know, any kind of uranium types of companies uranium ETF S are going to benefit from this as it grows.And also it's subject to sort of what's been happening in geopolitics, which has been interesting because the underlying uranium as a, as a um a source has been rising in prices because there's been shortages of it.Yeah, exactly.So there's a supply issue, there's, you know, high level, high levels of demand for uranium levels of supply.So you had a couple of things in Kazakhstan, you had this issue where they had a lack of sulfuric acid so they couldn't produce as much.And then you also have the government, the US government banning any kind of uranium imports from Russia.And so that right away spiked the price of uranium for investors in that stock and they saw the price pop.So last year was just a parabolic move for uranium and this year is going to, you know, looking like it might be the same because of some of the supply demand stuff.Interesting.And speaking of demand also, you were looking at some of the forecasts for what the global demand for uranium is going to be.Yes.So the global demand for uranium is set to double within the next 10 years.You know, so you're you're talking about a massive growth in this energy space.It's going to be a massive use of clean energy such high needs for this.And I think that, you know, more production is going to come out of the US, particularly as we have offshore betting.So another reason why the stock price might pop interesting, we always like to talk about the risks for any of this.And you know, uranium is a little tricky here, it is volatile, there's been regulatory overhang in the past and it always seems like recently that there's been sort of a sentiment turn when it comes to nuclear energy.Yeah, it's a tough thing because on one hand, we have this, you know, big priority as, as, as a nation and as a globe to to become carbon neutral by 2050 you know, everything is sort of about green energy, clean energy.Uranium fits the bill, but then actually creating safe infrastructure that doesn't have any issues or, and you know, government regulation because of issues and accidents that have happened in the past is one problem and the the cost of investing in that infrastructure can some times be burdensome.So and then the supply and demand story can shift too, right?If you un ban imports and you have increased supply, that might change the story.But for now, I think um uranium is, is looking to be on that.And do you have a position in UEC?I don't at this time.Ok.So let's get to the stock you don't like in the clean energy sector and that is sun power, which is already down quite a bit over the last year.Now, solar stocks in general have been sort of weak, but this one stands out in particular, it's got some challenges.Um Let's talk about some of them.So there have been some misstatements over the past couple of years.Accounting wise.Yeah, so they've had some accounting errors basically and I think that they lost a lot of confidence from investors when the accounting errors were announced, essentially the stock price began to fall.And so they're going to have to invest a lot in terms of, you know, keeping up with record keeping efficiency, fixing the errors and coming up and proving that, you know, they, they aren't in any kind of um credit risk, default types of situation and investors can, you know, count on their, their statements.Um There is also the issue of rates which is, you know, you don't automatically think of solar as being an interest rate sensor sector, but it has been it has been.And so the the growth of solar is starting to slow down.The there are two reasons, one there's a supply backup, right?So we talked about uranium, they're shorter supply, they're benefiting with solar, you kind of have this backup.And if you think about like what happened with semiconductors after COVID, you actually had this um at some point, you had a backlog of supply and it took about 18 months to shake out and you know, boy did it right.And so that's one of the issues with solar.But the reason that you kind of have the supply sitting there is because the cost of these projects is so high and the average person is impacted by inflation and doesn't want to borrow with a high, you know, level of rates.And then same thing for the company actually trying to, you know, service their own debt.So I think that there is a little bit of a hiccup there for them in the near term because of rates and inflation.And, and then also to go sort of go back to the um credibility question if you will, you, you think just generally there's some questions, I think, yeah, the, the the books and records that we talked about um they had two negative earning seasons.But I think, you know, the loss of confidence also kind of just came back into play because they're laying off 25% of their staff, 80 people in Seattle is the last I heard a couple of 100 people elsewhere.You know, that's not super reassuring for, for the future of the company.We love cost cutting.You know, you've heard a lot of these big tech companies cost cutting so that they can invest in A I, you know, this just isn't that?So we have to see how this, this shakes out and then just like we talked about the risk to the bull case, let's talk about what could go right here.And that's just that you are still seeing sort of overall demand for solar power.And it goes back to what we talked about before with nuclear.You know, if we want to be carbon neutral by 2050 if we care about the climate, green energy, clean energy, things like this, you know, solar is still a leader there and solar is also a volatile sector.You know, you kind of see these stocks and etfs pop up and down depending on um cyclicality of the markets and things like this.So there's there's hope we'll keep an eye on it.All right, let's sum up what you are telling investors here.You would recommend buying uranium energy demand is expected to grow for uranium prices may also go up that can mean rise in province for the company on the side.You say some power, it has been hitting a bumpy road with misstatements and also the rate hikes which continue to weigh on solar power companies.Thank you so much for coming in.So thank you for you and thank you so much for watching.Goodbye or goodbye will be bringing you new episodes three times a week at 330 pm, Eastern Josh.Thank you, Julie consumers are pulling back on D now.That's according to Dine brand's latest core, the race restaurant company saw same star sales fall year over year across its brands including Applebee's and Ihop Dy brands.Recognizing that guest our laser focus right now on value as inflation we know continues to weigh on households with more on the state of the consumer.We're joined now by Don brand co, John Payton alongside Yahoo Finances, Brooke Dipalma.Welcome to you both, John.Thanks for joining us.Thank you.So it looks like let's just dig right into the report.John, it looks like Q one profit sales maybe fell more uh than the street was looking for.You did though.Reiterate full year looks like sales guidance for Applebee's Ihop maybe just start John walk us through the quarter.What are the big trends you're seeing?So it was a tough quarter for, for our brands as well as for the industry overall and driven by two things.The first was there was some weather issues in the beginning of the quarter, but, but most importantly, we've been talking for six quarters.Now about when will the inflation and sort of the economic situation in the US permeate the psyche of, of our guests.And we really saw that in the first quarter in a, in a significant way, uh particularly for our guests that earned $50,000 or less a year, which is 45% of our, of our customer.And so the behavior we saw was they, they went out to dine a little bit less often.And when they did come into the restaurant, they found they were managing their check and, and making sure they were really finding our value oriented promotions.And so it really is a promotion, value driven uh moment for the restaurant industry and for us particularly, uh and with, it'll be that way all year, it'll be a fight for share of wallet, you know, all, all year in April, you did launch that whole lot of burger.We were chatting about it before, but how is it going so far?It's 999.And do you think that these sort of promotions, these are of value offerings are bringing customers from, say a mcdonald's or Burger King who are looking to dine out on a dime?Well, that's, that's, it's an interesting moment right now, Brooke.So we, we introduced a new menu innovation, which is the whole lot of bacon burger.The bacon is in the burger, the bacon is on top of the burger and there's a bacon sauce.It's a whole lot of bacon for an introductory price.We just heard of that.I know what to bring next time.Um And so, and for, for 999 and you know, what we're seeing is, you know, we're seeing a, uh a sort of a collapsing or commingling of our competitive set in a way we haven't seen before.And that, um you know, QSR is, is something that's on our radar screen as a competitor now and even eating from home because if you can get the whole lot of bacon burger, which is abundant, great quality and the terrific experience of being in our restaurant with our service for 10 bucks.That's a great alternative to, you know, a burger in a bag that's eating out of your car, right?And so suddenly we we have a sort of a broader landscape and, and while we may have some guests who are trading out of our, of our space, we have an opportunity to win others back because of price points like that, John, I have to ask bacon and beef are two items that are set to see higher commodity costs.Yet again this year, why not launch a chicken value promotion instead have me back next quarter.Maybe we can talk about that.Oh, good to know.Good to know John John.Another question, how much are you focused?Right on automating kind of tasks and functions and features in your restaurants?Is that, is that a focus it is, you know, we, we're very careful to say we're not a technology company.We're a restaurant company that embraces technology and our technology is all about helping our servers or back of house staff be more efficient, you know.So, so a great example is we just rolled out a brand new point of sale system to all of ihop, finished it just in the last month or two.And what comes next is handhelds for servers.And so the handhelds prevent servers from take your order on paper, run back to the point of sale system, enter it, come back to the table.And so they're they're spending more time with their guest as a result of that.And so we're seeing uh faster table turns, we're seeing higher average check because they're selling second beverages, offering their appetizer and more tips for our servers.Could I ask you John as you as you do automate though more tasks and functions?Could you get to a point where the human server, you know, the person filling my coffee, bringing my pancakes?Could that get actually just phased out?Not our, not our objective, not our plan.I mean we we are a full service restaurant at Applebee's at IHOP and, and, and at Fuzzy's Taco Shop.And so coming to us, part of it is the experience of being in the restaurant and interacting with another human because um as I said, you know, our guests are not the highest earners in the country and when they choose to spend $35 which is the, you know, the average check at Applebee's, that's a big decision for them.And in interacting with another person serving them is a big part of the experience.And when you think about how exactly these customers go and pay, you know, many are using these tablets, they run around, they have the automated system to pay.Why did you choose to use that virtual?It sounds like a permanent tablet at each table.No, it's not, it's not um based, it's not attached to the table, like like in the airport, essentially a server.It's a handheld so they can take the order on the handheld.It goes directly to the k the kitchen management system appears for the fears for the cooks and then they can also um swipe out and you can, you can charge your credit card on the on the device as well.Is that host technology or?No, it's tre technology.So the company is called Tray where we are um one of their largest clients and we've been building our version of Tray with them directly.It's been in very good partnership.Very good stuff.I I do wanna quickly ask about these virtual brands.We saw IHOP sales decline one point 7%.But you're saying that you see an opportunity with these virtual brands, describe what they are and how you think they could boost sales.Sure.So a virtual brand is brands that number one only exist on the online, on the on the food delivery apps like like Uber Eats and they are, they appear as that new brand and they're prepared in Ihop's kitchen and then delivered, you know, on behalf of that brand.So virtual brands, you can't have them just for the sake of having it.It's gotta have a real business need.And so Applebee's is primarily sorry, Ihop is primarily an AM brand and our virtual brands are targeted toward uh night time, right?So tar targeted toward younger people, gamers, people who are ordering food at night.So we've got Ballpark Bites and partnership with MLB.We've got Refuel in partnership with NASCAR.Um and we've got pardon my cheesesteak.And so, uh those are, those are brands that we think can add 2% or more to, to Ihop's sales.They're already in 1000 restaurants and 500 of them have two or more of the brands, bacon burgers, tacos, cheesesteaks.It all sounds good.You too.Good to hear.Thank you so much for joining us.I appreciate that.Thank you.Thank you, Brooke Dipalma as well.Coming up real estate stocks could be poised for a major turnaround.We're gonna splore opportunities across the sector in our investor playbook that's coming up next.Real estate stocks are having a real tough time.This year, the sector has lagged behind the broader market down nearly 7% in 2024 amid a broader market rally.But one key conviction could spark a major upside in the months to come.We're looking at how to navigate the big picture with the Yahoo finance playbook and join us to discuss Handel Saint, just senior equity research analyst at Mizuho cover Reits alongside Gregory.Cool global real estate portfolio manager at Janice.He Henderson investors.Welcome to you both And Greg, maybe I'll start with you.Um uh Listen, we talked res obviously a lot of very interesting verticals, Greg to get into there, but maybe you saw a big picture 30,000 ft view.Uh Greg, how are you thinking about reeds in general?Are you, are you general broadly bullish here, Greg?Hi, thanks for having me.You know, I I would say yes with the right time frame.So I think what's really important to remember about res is uh you know, this is an in interest rate sensitive asset class.Um And as we talk about listed res we reprice every day in the market versus maybe private real estate.That doesn't, right.So the good news there is that as we've seen a huge shift in fed policy and underlying interest rates over the last couple of years, we've seen listed res repriced downwards to reflect that.And you kind of reference that in your opening comments as we look forward, I think we're pretty optimistic that assuming we are done in terms of uh fed rate hikes and higher rates listed reached today.Our price for the interest rate environment that we have, which means they can do well.And just to give you a sense, you know, since the beginning of 2021 our sector is down roughly 20% on a total return basis.At the same time, re cash flow per share has grown in the, in the mid teens cumulative on that on that time period.So it's not an issue of fundamentals, it's purely an issue of valuation which we think we're getting towards the end of.And I would ask your opinion on the sort of relationship between rates and these stocks as well because even if the fed has done hiking, if rates are going to continue to sort of hover at these levels for a while, is that going to be problematic for the sector?Uh Yeah, absolutely.I think that there certainly has been a concern that with rates appearing to be set, you know, higher for longer, we came into this year with expectation of five or six rate cuts.Now we're down to maybe basically zero.But if we have rates that are higher for longer with stickier inflation and a slowing growth backdrop, uh there have been some concerns raised that, you know, that is an ideal uh for, for real estate.So certainly that's something that's on investors' minds.Um And, you know, we, we would point people to, you know, sectors where there's clear demand, tail winds, you know, apartments, health care, uh data centers and stocks are names with uh pricing power, uh better than average earnings growth to alleviate some of those concerns.And Greg, I wanna bring you back here and actually go, go right there when you kind of lift the hood here, Greg.What parts of the market do you find attractive here right now?Is it housing health care data center office?I think all of those are attractive on a long term basis, maybe with the, you know, potential exception of office, but even office at the right price can be interesting.And you've seen actually office stocks do really well, you know, I think to highlight a few that we really like at the moment, uh I would say some of the more specialty property types, something like self storage res where, you know, we think that uh we're in the process of a bottoming out there on a fundamental basis and that's a really good long term business that we like uh with really low Capex Handel mentioned health care, you know, we also like that quite a bit the the demographic story of kind of the 80 years and over demographic paints a really positive picture for demand for health care res at the same time, supply of assisted living and and senior housing.Uh it is is almost as low as it's been in, in, you know, a decade.So that's really good.And then, you know, the, the third area I highlight is maybe more of a specialty situation.Um you know, at the right price, even something like malls can be interesting.So we, you know, one stock that we like in particular is Macerich, which trades at a very large discount to its only public tier in, in Simon.There's a new management team at that company.Malls is a business that we don't think is particularly great long term, but we also think it's not terrible if you own the best malls.And so that's a specific situation where the public markets are giving you something at a really good price in our view.Um And maybe something else that is counterintuitive to a broader narrative is multifamily and gel there you like a couple of stocks um in that subsector.Why, why multifamily?What and for for the late people, multi family is what we'd like to call apartment buildings where you have a lot of families living.What?Why is that a good area to look right now?Sure.Sure.So yeah, we've all lived in apartments at some point or another in our lives.But uh it's a subsector that's underperformed the last couple of years.As you know, the earnings growth of fundamentals were slowing.We're getting to the uh near the end of that.Actually, we see an inflection in the road ahead.There have been pockets of, you know, oversupply in certain regions, the Sun Belt, in particular Seattle certain markets around the country.So that concern is still out there, but there's been really strong job growth this year.So the absorption of those excess units has been a bit better than feared.And so we think that with getting past the peak supply and we're about to pass that either second or third quarter, depending on which market you're looking at plus the inflection with better rents and then eventually earnings growth in the road ahead and thinking about where the stocks are trading today at meaningful discounts to the long term averages to the private market values.And that's by the way is on trough revenue and trough earnings uh that the sector could be at the beginning of a multi year recovery and stepping back thinking about the alternatives in the marketplace.Uh there is generally a shortage of housing in this country.Uh demographics uh certainly support uh an immigration uh demand for uh for, for housing.But thinking about the affordability of single family housing with the mortgage rates near 7%.So that's an additional tail winner support for the renter ship side of the business.Greg bringing back in here, I'm interested internationally any opportunities, Greg, any spots China Europe or or no, you'd rather stay here in the US.Yeah, I think there's plenty of opportunity internationally in, in a couple of areas, you know, China is one that, that we've probably shied away from a little bit more in recent years.But, you know, the opportunities are, are a little bit different in Europe and Asia.So I think in Europe, you have stocks that trade at really interesting valuations, you maybe have less of the quality, compounding growth stories there.Although they do exist to us, that's a valuation story and, and that's pretty interesting at the moment.And then Asia is somewhat similar.It's a bit a bit in between the US and Europe in terms of a mix of valuation and also really high quality kind of growth with within res the biggest thing though, maybe to think about in those markets is just the overall maturity of the listed reed space in the US versus XU reeds have been around a lot longer in the US.It's a lot more mature business than it has been outside the US.And if you think back to sort of the nineties and the, and the earlier part of the two thousands, owning the stocks through that maturation process to where we are today in the US has been a really good experience for, for investors.We think the same thing can be said for X US uh in the decades ahead, Greg Handel.Thank you guys both so much for joining the show today.That was a great chat.Appreciate it.Thanks for having us.Thank you while we're wrapping up today's market domination.Doug go where we've got you covered with all the action following the closing bell.Stay tuned for market domination overtime.