Core Viewpoint - Zillow's shares have experienced a significant decline, dropping 45% over the past year and falling 17% on a single day following earnings reports [1] Company Summary - Zillow's stock performance has been notably poor, with a 45% decrease in value over the last year [1] - The company saw a sharp decline of 17% in its share price on Wednesday, which is attributed to the earnings report and broader trends in the real estate services sector [1]

Core Viewpoint - Opendoor Technologies is showing signs of progress under new CEO Kaz Nejatian, with a focus on restructuring and improving operational efficiency despite challenges in the real estate market [1][5]. Company Performance - The stock price of Opendoor rose significantly in 2025, increasing by 1,800% in less than three months, but has since declined [1]. - The company is set to report its fourth-quarter earnings on February 19, marking the first full quarter under the new CEO [2]. - Revenue has declined by 34% year over year in the third quarter, with inventory dropping from 6,288 to 3,319 homes [6]. Strategic Changes - Nejatian is implementing changes such as cutting costs, utilizing artificial intelligence, and focusing on increasing transaction volume [5]. - The company has shifted responsibilities back to management from outside consultants, aiming for better internal control [5]. Market Conditions - The iBuying model of Opendoor has struggled due to high mortgage rates, although there are signs that the market may be improving [4]. - Weekly homes under contract have shown an upward trend, with a peak of 303 contracts in the last week of January [9]. Investor Insights - A new website has been launched for investors to track real-time progress, providing updates on contracts and operational improvements [9]. - The current market cap of Opendoor is $4.2 billion, with a gross margin of 8.01% [8].

Core Insights - The nationwide median home sale price increased by 1.3% year-over-year, rising from $370,000 in January 2025 to $374,900 in January 2026, indicating a normalization in the homebuying market [1] - Home price growth averaged 2.8% per year over the past two years, aligning closely with overall inflation, while incomes have grown more rapidly, enhancing home affordability [1] - The housing market shows improved negotiating balance, with a four-month supply of homes and an average of nearly 12 weeks on the market before selling, suggesting neither buyers nor sellers dominate [1] Market Trends - Major markets in the Northeast and Midwest experienced significant home price appreciation, with Philadelphia leading at an 8.6% increase, followed by Baltimore (5.6%), Washington D.C. (4.8%), and Boston (3.7%) [1] - Over 57% of nearly 1,000 tracked markets reported year-over-year price growth in January, contrasting with declines in some Southern and Western cities, notably Raleigh, NC (-4.3%) and Seattle (-3.8%) [1] Company Overview - Homes.com, part of CoStar Group, is the fastest-growing residential real estate marketplace in the U.S., focusing on enhancing marketing for homeowners and agents [1] - The platform reached an audience of 115 million average monthly unique visitors in Q3 2025, with brand awareness increasing from 4% to 33% following a major marketing campaign [1]

Good afternoon everyone. I'm Charles Payne. This is making money.Okay. So, investing around a title wave of misinformation in the information age folks and the battle between narrative and existing trends. We're talking factual trends.It is tough. I'm going to dive into this on several levels throughout today's show because it's obviously creating uh an environment of anxiety and and that could actually eventually give way to an environment of broad-based fear and we want to make sure that we're prepared fo ...

Group 1 - The market is currently experiencing a phase of disruption, with various sectors being targeted for potential changes, leading to a reactive selling approach among investors [1][6] - The real estate services sector, particularly companies like CBRE, faces risks due to their reliance on high-cost intermediary roles, which may be threatened by advancements in AI and automation [2][3] - The transition from theoretical AI capabilities to real-world applications is causing concern among analysts regarding the future demand for real estate as white-collar jobs may be displaced [4][5] Group 2 - There is a perception that the market's reaction to AI disruption is an overreaction, with many investors feeling caught off guard by the sudden shifts in sentiment [6][8] - Analysts suggest that while there is a threat of disruption across various sectors, there may be opportunities to capitalize on the market's volatility and investor anxiety [7][8] - Wealth management stocks currently show a lack of sell ratings, indicating a potential disconnect between market sentiment and actual performance expectations [9]

Market Overview - US stocks experienced a significant decline, with the Dow Jones Industrial Average falling approximately 1.3% (over 650 points), the S&P 500 dropping 1.6%, and the Nasdaq Composite decreasing by over 2% as investors reacted to fears of AI-driven disruption in technology shares [2][4] - Gold futures decreased by 3%, and Bitcoin's value fell to around $65,000 as investors adopted a risk-off approach [2] Sector Impact - The recent sell-off in software stocks has led investors to identify sectors vulnerable to AI disruption, with trucking, logistics, and real estate services stocks being notably affected [3] - Cisco Systems saw its stock decline over 12% due to a pessimistic profit outlook despite an increase in sales, while other major tech companies like Nvidia, Meta, Amazon, and Apple also experienced significant losses, with Apple dropping around 5% [4] Economic Indicators - The weekly jobless claims report indicated a smaller decline than expected, following a strong nonfarm payrolls report that showed the US economy added twice as many jobs as anticipated in January, complicating expectations for Federal Reserve policy [5] - The upcoming Consumer Price Index report is anticipated, with a softer reading potentially easing inflation concerns while maintaining economic growth [4] Earnings Reports - McDonald's shares increased after the company reported earnings that exceeded expectations [6] - Upcoming earnings reports from Coinbase, Applied Materials, and Rivian are expected to be significant, with all three scheduled to be released after market close [6]

It's shaping up to be another tough week for the tech sector. US stocks slid lower on Thursday, with the S&P 500 on track to notch its third straight day of losses as investors continued to dump tech and software holdings and rotate into other areas of the market.Major indexes were up earlier in the day, but tumbled more than 1% around noon. The iShares Expanded Tech-Software Sector ETF, which recently entered a bear market and endured brutal selling last week, dropped another 3%. Here's where major index ...

Financial Data and Key Metrics Changes - Fourth quarter revenue increased by 12%, with core EPS rising by 18%, both reaching record levels for the company [5][12] - Core EBITDA rose by 19% for the quarter, indicating strong operational performance [12] - The company expects core EPS for 2026 to be in the range of $7.30-$7.60, reflecting a 17% growth at the midpoint [7][19] Business Line Data and Key Metrics Changes - Advisory services saw double-digit growth in leasing and sales, with global leasing revenue growing by 14% [12] - The building operations and experience segment experienced revenue growth driven by local facilities management and data center solutions, with data center solutions revenue growing by over 20% [15][22] - Project management delivered solid revenue growth, supported by new real estate projects for hyperscalers [16] Market Data and Key Metrics Changes - In the U.S., leasing revenue grew by 12%, with significant contributions from data centers and industrial sectors [12] - EMEA led leasing growth with Continental Europe up 29% and the UK up 16% [12] - Capital markets saw U.S. sales revenue increase by 27%, driven by office and multifamily sectors [12] Company Strategy and Development Direction - The company is focused on building businesses that benefit from secular tailwinds, such as the acquisition of Pearce Services to enhance technical services capabilities in the digital infrastructure market [5][6] - There is a strong emphasis on integrating AI to improve operational efficiency and create a knowledge advantage [8][9] - The company plans to continue investing in its functional platform and products to support sustained growth [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory, citing a strong start to 2026 and continued demand across various sectors [19][23] - The company acknowledges potential long-term impacts of AI on office space demand but currently sees robust demand for office leasing [40] - Management is confident in the resilience of its brokerage business against AI disruption due to the complexity of transactions [33] Other Important Information - The company generated nearly $1.7 billion of free cash flow in 2025, reflecting an 86% conversion on core net income [18] - There were one-time expenses that impacted project management margins, but these are expected to reverse in the first quarter of 2026 [29] - The company raised over $11 billion in capital in 2025, with AUM ending the year at $155 billion [17] Q&A Session Summary Question: Can you provide more detail on the capital markets pipeline and guidance for 2027? - Management does not expect the business to be driven by interest rate cuts, noting a balance between asking and offering prices and strong buyer and seller activity [26] Question: Can you elaborate on the one-time expenses affecting project management margins? - Management believes these expenses will be entirely reversed in the first quarter, leading to margin expansion [29] Question: What are the risks of AI impacting the brokerage business? - Management believes the brokerage business is protected from AI disruption due to the complexity and strategic nature of transactions [33] Question: How do you see the long-term demand for office space in relation to AI? - While AI may reduce some office worker needs, current demand for office space remains strong as companies use it to attract talent [40] Question: What is the outlook for margins in the BOE and project management business? - Management expects BOE margins to be flat in 2026 due to investments, while project management is anticipated to see margin expansion [69]

Financial Data and Key Metrics Changes - Fourth quarter revenue increased by 12%, with core EPS rising by 18%, both reaching record levels for the company [5][12] - Core EBITDA rose by 19% for the quarter, reflecting strong performance across various business segments [12] - The company expects core EPS for 2026 to be in the range of $7.30-$7.60, indicating a 17% growth at the midpoint [7][19] Business Line Data and Key Metrics Changes - Advisory services saw double-digit growth in leasing and sales, with global leasing revenue growing by 14% [12] - U.S. leasing revenue grew by 12%, supported by significant increases in data centers and industrial sectors [12][14] - The building operations and experience segment experienced revenue growth driven by local facilities management and data center solutions, with data center solutions revenue growing by over 20% [15][22] Market Data and Key Metrics Changes - EMEA leasing revenue led growth with Continental Europe up 29% and the U.K. up 16% [12] - U.S. sales revenue increased by 27%, driven by office and multifamily sectors, although still below prior peak levels [14] - Mortgage origination fees grew over 20%, supported by a 23% rise in loan volume [14] Company Strategy and Development Direction - The company is focused on building businesses that benefit from secular tailwinds, such as the acquisition of Pearce Services to enhance technical services capabilities in the digital infrastructure market [5][6] - There is a strong emphasis on integrating AI into operations to improve efficiency and create a knowledge advantage [8][9] - The company plans to continue investing in its functional platform and products, including launching a finance transformation [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustained growth, particularly in the data center and digital infrastructure sectors, despite potential risks associated with AI [11][57] - The company anticipates a slow, steady recovery in capital markets, with no reliance on interest rate cuts for growth [26] - Management noted that while there may be long-term changes in office space demand due to AI, current trends show strong demand for office space [40] Other Important Information - The company raised over $11 billion in capital in 2025, with assets under management (AUM) ending the year at $155 billion [17] - Free cash flow generated in 2025 was nearly $1.7 billion, reflecting an 86% conversion on core net income [18] - The company has embedded gains of about $900 million in its development portfolio [16] Q&A Session Summary Question: Can you provide more detail on the pipeline in capital markets and the impact of interest rates? - Management indicated that they do not expect capital markets to be driven by interest rate cuts, noting a balance between asking and offering prices [26] Question: Can you elaborate on the one-time expenses affecting project management margins? - Management stated that these expenses are expected to be reversed in the first quarter, leading to margin expansion [29] Question: What are the risks of AI impacting the brokerage business? - Management believes the brokerage business is protected from AI disruption due to the complexity and strategic nature of transactions [33] Question: How do you see the long-term demand for office space in relation to AI? - Management acknowledged potential long-term reductions in office space demand due to AI but noted current strong demand across various markets [40] Question: What are the expectations for margins in the BOE and project management businesses? - Management expects BOE margins to remain flat in 2026, with some margin expansion anticipated in project management [69]

Financial Data and Key Metrics Changes - Fourth quarter revenue increased by 12%, with core EPS rising by 18%, both reaching record levels for the company [4][11] - Core EBITDA rose by 19% for the quarter, reflecting strong performance across various business segments [11] - The company expects core EPS for 2026 to be in the range of $7.30-$7.60, indicating a 17% growth at the midpoint [5][17] Business Line Data and Key Metrics Changes - Advisory services saw double-digit growth in leasing and sales, with leasing revenue growing 14% globally [11] - The building operations and experience segment experienced revenue growth driven by local facilities management and data center solutions, with data center solutions revenue growing over 20% [13][14] - Project management delivered solid revenue growth, supported by new real estate projects for hyperscalers [14] Market Data and Key Metrics Changes - In the U.S., leasing revenue grew 12%, with significant contributions from data centers and industrial sectors [11] - EMEA led leasing growth with Continental Europe up 29% and the UK up 16% [11] - Outside the U.S., strong sales were reported in India and the UK, with mortgage origination fees growing over 20% [12] Company Strategy and Development Direction - The company is focused on building businesses that benefit from secular tailwinds, such as the acquisition of Pearce Services to enhance technical services capabilities in the digital infrastructure market [4][5] - The integrated data center solutions business is expected to reach $2 billion in revenue by 2026, growing at 20% per year [5] - The company is investing in AI to improve efficiency and create a knowledge advantage, leveraging its extensive real estate data [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustained growth, citing strong demand for office space and the ongoing recovery in the market [39] - The company anticipates continued double-digit revenue growth in both resilient and transactional businesses for 2026 [17][18] - Management acknowledged potential long-term impacts of AI on office space demand but emphasized current strong demand across various markets [39] Other Important Information - The company raised over $11 billion in capital in 2025, with assets under management (AUM) ending the year at $155 billion [16] - Free cash flow generated in 2025 was nearly $1.7 billion, reflecting an 86% conversion on core net income [17] - The company is focused on maintaining operational efficiency while investing in future growth opportunities [19] Q&A Session Summary Question: Can you provide more detail on the pipeline in capital markets and the impact of interest rates? - Management indicated that they do not expect capital markets activity to be driven by interest rate cuts, noting a balance between asking and offering prices [25] Question: Can you elaborate on the one-time expenses affecting project management margins? - Management stated that they expect these one-time expenses to be reversed in the first quarter, leading to margin expansion [27] Question: What are the risks of AI disintermediating the brokerage business? - Management expressed confidence that the brokerage business is driven by strategic thinking and relationships, which are not easily replaced by AI [31] Question: How do you see the long-term demand for office space in relation to AI? - Management acknowledged that while AI may reduce some office needs, current demand remains strong as companies use office space to attract talent [39] Question: What is the outlook for margins in the BOE and project management businesses? - Management expects BOE margins to remain flat in 2026 due to investments, while project management is anticipated to see margin expansion [68]