Question-and-Answer SessionI would like to start with something a little more fun. You asked me before we came on stage. And unfortunately, this conference didn't allow me a lot of summer travel. But what did you do this summer? What was exciting for you, whether it was travel, something else? Like let's start on a lighter note before we get into the business.Ewout SteenbergenExecutive VP & CFO Yes. Actually, on the personal side, travel is something that I really enjoy already much longer and before actual ...

Core Viewpoint - The Pacer US Small Cap Cash Cows ETF (CALF) provides broad exposure to the Small Cap Value segment of the US equity market, with significant assets under management and a focus on companies with high free cash flow yields [1][7]. Group 1: Fund Overview - CALF is a passively managed ETF launched on June 16, 2017, and has amassed over $4.06 billion in assets, making it one of the larger ETFs in its category [1]. - The ETF targets small-cap companies with market capitalizations below $2 billion, which are associated with higher potential returns but also higher risks [2]. Group 2: Performance Metrics - The ETF seeks to match the performance of the Pacer US Small Cap Cash Cows Index, which employs a rules-based methodology [7]. - As of September 11, 2025, CALF has lost approximately 0.56% year-to-date and has gained about 2.16% over the past year, with a trading range between $32.00 and $48.76 in the last 52 weeks [7]. - The ETF has a beta of 1.10 and a standard deviation of 22.73% over the trailing three-year period, indicating a moderate level of volatility [8]. Group 3: Cost Structure - The annual operating expenses for CALF are 0.59%, which is relatively high compared to other ETFs in the space [4]. - The ETF has a 12-month trailing dividend yield of 1.36% [4]. Group 4: Sector Exposure and Holdings - The ETF has the largest allocation to the Consumer Discretionary sector, comprising about 22.9% of the portfolio, followed by Healthcare and Industrials [5]. - United Airlines Holdings Inc (UAL) represents approximately 2.52% of total assets, with the top 10 holdings accounting for about 19.75% of total assets under management [6]. Group 5: Alternatives - CALF carries a Zacks ETF Rank of 3 (Hold), indicating it is a viable option for investors seeking exposure to the Small Cap Value area [9]. - Other comparable ETFs include the iShares Russell 2000 Value ETF (IWN) and the Vanguard Small-Cap Value ETF (VBR), which have larger asset bases and lower expense ratios [10].

Core Insights - The analysis of Airbnb (NASDAQ: ABNB) indicates a favorable outlook based on observed trends, but a hold recommendation was made due to high valuation concerns [1] Group 1: Market Trends and Investment Insights - The importance of observing megatrends is emphasized, as they can provide insights into societal advancements and potential investment opportunities [1] - The evolution of society and technology presents advantages for companies and stakeholders, making it crucial to identify which companies can capitalize on these opportunities [1] - A focus on macrotrends, futurism, and emerging technologies is highlighted as essential for understanding the investment landscape [1] Group 2: Investment Fundamentals - The analysis stresses the necessity of paying attention to fundamentals, quality of leadership, and product pipelines when evaluating investment opportunities [1] - Recent focus has been on marketing and business strategy for medium-sized companies and startups, indicating a targeted approach to investment analysis [1] - The analyst's background includes experience in international development and evaluating startups, which adds depth to the analysis of emerging industries and technologies [1]

Airbnb (NASDAQ: ABNB ) is an online platform connecting hosts around the world with travelers seeking accommodation and experiences. The company has expanded beyond its core business and launched two additional categories — services and experiences — which help supplement travelingDear Reader,I am a Senior Derivatives Expert with over 10 years of experience in the field of Asset Management, specializing in equity analysis and research, macroeconomics, and risk-managed portfolio construction. My professional ...

Group 1 - Expedia Group Inc. ranks among the best performing S&P 500 stocks in the last 3 months, with a Buy rating reaffirmed by Bank of America on August 26, indicating a moderate global hotel room night share by 2025 [1] - Expedia's total nights increased by 6.5% in the first half of 2025, slightly below the 7.3% growth of the broader online travel agency sector [1] - The VRBO division of Expedia faces growth challenges due to its stronger U.S. exposure, with planned growth of 3% compared to the sector's 8%, although this gap is narrowing from an estimated difference of 11 percentage points in 2024 [2] Group 2 - Strong advertising income is helping to mitigate potential revenue headwinds from sales-boosting merchandise initiatives [2] - Expedia Group operates as a US and international online travel company, divided into B2C, B2B, and Trivago sectors [3]

Core Viewpoint - Airbnb has emerged as a significant player in the post-pandemic travel sector, attracting investor interest due to its global brand, strong free cash flow, and aspirations to evolve into an "everything app" [1] Regulatory Risks - Regulatory pressure is identified as the most critical long-term risk for Airbnb, with governments worldwide tightening regulations on short-term rentals due to housing shortages and affordability issues [4] - In Spain, courts mandated the removal of over 65,000 listings, while in France, Airbnb was ordered to pay over 8 million euros in tourist tax compensation, setting a precedent for similar claims [5] - In the U.S., cities like New Orleans have enacted stricter laws requiring verification of listings, leading to legal challenges for Airbnb [5] - These regulatory actions could limit growth in major tourist markets and increase compliance costs, impacting profitability [6] Margin Pressure - Airbnb is diversifying into new services with a $200 million investment and a redesigned app, aiming to become a comprehensive travel companion [7] - However, these new services are operationally intensive and typically have lower margins compared to the core rental business, posing a risk of margin dilution [8] - The success of these new initiatives is crucial for maintaining user retention and average revenue per user; otherwise, they may become a costly side business [10] Valuation Concerns - Airbnb's stock is currently trading at a price-to-earnings (P/E) ratio of 30, reflecting high growth expectations [11] - While the global travel industry presents significant opportunities, potential challenges such as regulatory issues and competition could pressure this premium valuation [12] - If growth slows while costs increase, the elevated valuation may come under scrutiny, reminiscent of past tech stock downturns [13] Summary for Investors - Airbnb possesses strong fundamentals, including profitability and brand strength, with growth opportunities in long-term stays and international expansion [14] - However, investors should remain vigilant regarding regulatory risks, margin pressures from new services, and the elevated valuation, as these factors collectively indicate that Airbnb is not a "set it and forget it" investment [14][15] - The balance between growth ambitions, regulatory compliance, and profitability will be critical for Airbnb to sustain its premium valuation [15]

Summary of China Internet Sector Conference Call Industry Overview - The China Internet sector has shown strong performance in YTD 2025, with a return of +44.8%, outperforming other regions such as SEA (+24.7%), Japan (+21.9%), and the US (+19.2%) [1] - Despite some recovery in valuation multiples, many Internet companies still trade at a discount compared to global peers and other tech/consumer names in China [1] Key Companies and Performance - **Alibaba (BABA)** and **Tencent** are highlighted as core AI plays, demonstrating positive multiplier effects from AI-enhanced growth [1] - **Pinduoduo (PDD)** is noted as a high beta long opportunity, while **Trip.com (TCOM)** and **Full Truck Alliance (YMM)** are also mentioned as potential picks [1] - In the 2Q25 results, 22 out of 49 covered internet companies reported revenue beats, while 25 reported earnings beats [2][10] AI and Monetization - AI is expected to enhance monetization opportunities across advertising, gaming, and transaction conversion, leading to revenue and profit growth in upcoming quarters [3][38] - Initial signs of AI-enhanced ad targeting and game development were observed in 2Q25, boosting investor confidence in future monetization potential [3][38] Quick Commerce Insights - Incremental sales and marketing spending from major players like Alibaba, JD, and Meituan in 2Q25 reached RMB 40-50 billion, indicating a competitive landscape in quick commerce [4] - Quick commerce is projected to capture approximately 10% to low-teen percentages of the e-commerce market in the long run [4] Investment Sentiment and Risks - Investor focus is expected to shift back to companies with strong AI narratives in 2H25, with fund flows rotating from leisure/entertainment names to cloud infrastructure and advertising companies [5] - Risks include muted stimulus policies affecting consumption, persistent tariff uncertainties, and intense competition impacting platform profitability [6] Notable Earnings and Guidance - Meituan's significant profit miss was a notable surprise, while PDD and TCOM exceeded expectations [15] - The overall sentiment on AI-enhanced monetization from Tencent and growing demand from Alibaba positively influenced the investment outlook for large internet companies [15] Share Price Performance - Year-to-date, Alibaba leads with a 59% return, followed by Tencent at 45%, while Meituan underperformed with a -32% return [17] - The divergence in share price performance between Meituan and TCOM began in June, indicating a shift in investor sentiment [19] Valuation and Recommendations - Current P/E ratios for major companies indicate that Tencent (18.7x) and Alibaba (13.9x) are trading below average, suggesting potential for re-rating [30] - Top picks for 2H25 include Tencent and Alibaba as core AI plays, PDD as a high beta long, and Century Huatong as an A-share pick [31][34] Cloud and AI Updates - Alibaba Cloud reported revenues of RMB 33.4 billion in 2Q25, with AI-related revenue maintaining triple-digit growth for eight consecutive quarters [39] - Tencent Cloud's revenues grew significantly, driven by cloud services and improved efficiency [39] - Baidu AI Cloud also showed strong growth, with revenues increasing 27% year-over-year in 2Q25 [39] This summary encapsulates the key insights and developments from the conference call regarding the China Internet sector, highlighting performance, investment opportunities, and risks.

Core Insights - Airbnb has evolved from a unique rental concept to a global travel platform with over 5 million hosts and more than 2 billion guest arrivals worldwide [1][2] Growth Drivers - **Shift Toward Longer Stays** Airbnb has become a popular choice for long-term travelers, with stays of 28 nights or more accounting for 18% of gross nights booked in 2024. This trend reflects changes in work and lifestyle, allowing travelers to combine work and leisure [4][5][6] - **International Expansion** While Airbnb's strengths lie in North America and Europe, significant growth opportunities exist in regions like Asia-Pacific, Latin America, and India. Nights booked in these expansion markets are growing at approximately twice the rate of core markets, with the Asia-Pacific region contributing $36 billion to GDP in 2024 [7][8][9] - **Expanding Beyond Stays** Airbnb is diversifying its offerings by enhancing its Experiences segment and venturing into services. The goal is to create a comprehensive travel ecosystem, potentially transforming into a "personal travel concierge" powered by AI, which could increase customer engagement and revenue streams [10][11][12] Investment Implications - The three identified growth drivers—longer stays, global expansion, and ecosystem expansion—are expected to provide reliable and scalable growth opportunities. These strategies leverage Airbnb's core strengths, including brand recognition and a vast host community [13] - Despite potential risks from regulatory pressures and competition, Airbnb's consistent profitability and $11 billion cash reserve position it well for future growth [14]

Core Insights - The article highlights the significant increase in domestic tourism, particularly in Hainan, during the off-peak travel season, with a notable rise in travel-related searches and hotel bookings [1][2][10] Group 1: Travel Trends - The price of one-way flights from Beijing to Sanya surged from over 500 yuan in early September to over 2000 yuan during the National Day holiday, indicating a shift in travel demand [1] - Hainan's tourism growth in September saw a year-on-year increase of 58%, ranking it fourth nationally among the top ten off-peak travel destinations [1] Group 2: Consumer Preferences - There is a growing interest in local cuisine, with searches for "Hainan cuisine" increasing by 33% and "Zao Po Vinegar Hot Pot" by 30% since September 1 [2] - High-end hotel bookings in Hainan experienced a 56% increase in September, reflecting a trend towards premium travel experiences [2] Group 3: Demographic Shifts - The influx of post-00s tourists from Jiangsu, Zhejiang, and Shanghai is notable, with 88% of new customers coming from major cities, indicating a shift in the customer base towards younger travelers [6][7] - Young travelers are increasingly seeking personalized and interactive experiences, with a focus on local culture and cuisine [6][7] Group 4: Hotel and Dining Synergy - High-end hotels are leveraging dining experiences to attract guests, with a significant increase in hotel bookings linked to restaurant reservations during romantic occasions [8] - The combination of dining and accommodation services has led to a 207% year-on-year increase in room nights at the Sanya Coral Bay Mandarin Oriental Hotel [8] Group 5: Market Growth - The demand for "accommodation + dining" and "accommodation + entertainment" packages has surged, with increases of 87% and 99% respectively over the past year [10] - The overall search volume for hotel accommodations on the Meituan app rose by 48%, while searches for flights and travel groups increased by 99% and 42% respectively [10]

Group 1 - The discussion involves Ronald Josey, who covers the Internet sector at Citi, and Ewout Steenbergen, the Executive VP & CFO of Booking.com, highlighting the importance of travel in their business context [1][2] - Ewout Steenbergen mentioned that he has taken approximately 70 flights this year, indicating a high level of business travel, which reflects the global nature of Booking.com's operations [3][4] - The conversation also touches on personal travel experiences, with Steenbergen sharing a recent trip to Japan, which underscores the personal engagement with travel that aligns with the company's core business [4]