We continue to take a look at names that are on the move on earnings and I'm joined now by Diane King Hall and we want to look first at Capital One and acquisition news. Good morning. >> Yeah, it's got a lot swirling around this uh one because the reported earnings, but baked into the earnings was this acquisition.So the shares are actually under pressure right now off the back of its quarterly report card and news of this acquisition because investors are trying to digest this make heads or tails of what t ...

Core Insights - Spotify (SPOT.US) shares rose by 3.9% in pre-market trading following reports that the company plans to increase prices in the U.S. market in the first quarter of next year [1] Company Summary - Spotify is expected to implement a price hike in the U.S. market, which may impact its revenue and user growth positively [1] - The anticipated price adjustment is seen as a strategic move to enhance profitability amid competitive pressures in the streaming industry [1] Industry Summary - The streaming industry is experiencing shifts as companies adjust pricing strategies to maintain margins and attract subscribers [1] - Price increases in the streaming sector could indicate a broader trend of rising costs for consumers, potentially affecting overall market dynamics [1]

Core Insights - Spotify Technology reported quarterly earnings of $3.83 per share, exceeding the analyst consensus estimate of $1.87 [1] - The company projects fourth-quarter revenue of $5.26 billion (4.5 billion euros) and expects total Premium subscribers to reach 289 million [1] Financial Performance - The third quarter earnings surpassed guidance on ad-based users and gross margins [2] - The fiscal year 2025 revenue estimate was lowered from $19.47 billion to $19.43 billion [4] Advertising Trends - Quarterly ad trends showed flat growth in constant currency, down from 4.6% growth in the second quarter [3] - Programmatic ads are increasing, accounting for about 13% of ad sales, while direct sales are lagging [4] Market Position - Spotify claims 245 million in-car listeners, representing 34% of monthly active users (MAUs) and 15% of listening hours [3] - The company asserts it leads SiriusXM in car listening time, although Edison’s Share of Ear data contradicts this claim [3]

Norwegian Cruise Line - Norwegian Cruise Line missed revenue expectations, reporting $2.9 billion against a forecast of over $3 billion, but beat earnings per share (EPS) expectations with an adjusted EPS of $1.20 compared to the expected $1.16 [2][3] - Despite occupancy rates exceeding 100%, concerns arose due to lower participation in air travel programs, impacting revenue [4] - The stock has been underperforming, down over 8.5% on the day and extending year-to-date losses, reflecting investor caution in the sector [3][5] Spotify - Spotify outperformed expectations, reporting revenue of €4.44 billion and EPS of €3.28, with monthly active users reaching 713 million and premium subscribers climbing to 281 million [7][8] - The company provided strong user growth guidance for the fourth quarter, projecting revenue between €4.5 billion and €4.57 billion, despite currency headwinds [9][10] - Despite positive results, Spotify shares experienced a sell-off, potentially influenced by broader market weakness [10][11] Shopify - Shopify's adjusted EPS met expectations at $0.34, while revenue beat forecasts at $2.84 billion, a 32% increase year-over-year [11][12] - The company anticipates revenue growth in the mid to high 20% range for the holiday quarter, with gross profit growth expected in the low to mid 20% range [12][13] - Shopify is investing in AI and expanding its reach with larger enterprise clients and international markets [13]

Core Insights - Spotify Technology (SPOT.US) reported third-quarter earnings and fourth-quarter guidance, with several key metrics exceeding market expectations, leading to a 6% increase in pre-market trading [1] Financial Performance - Third-quarter paid subscription revenue grew by 9% year-over-year to €3.83 billion, surpassing market expectations of €3.76 billion [1] - Monthly active users reached 713 million, exceeding the forecast of 710.6 million [1] - Paid subscribers totaled 281 million, slightly above the expected 280.91 million [1] - Ad-supported users reached 446 million, also slightly higher than expectations [1] Fourth-Quarter Guidance - Spotify anticipates operating profit for the fourth quarter to be €620 million, above the media consensus estimate of €605.3 million [1] - Gross margin is expected to be 32.9%, higher than the market estimate of 32.5% [1]

Core Viewpoint - Spotify is projecting a fourth-quarter profit that exceeds Wall Street expectations, driven by strong user growth and anticipated benefits from price increases during the holiday season [1] User Growth - The company is betting on robust user growth as a key factor for its positive profit forecast [1] Price Hikes - Spotify expects that price hikes will contribute significantly to its revenue during the crucial holiday season [1]

Core Insights - Europe has historically been a leader in technology but has failed to produce global consumer tech giants comparable to those in the US and Asia [2][3] - Despite a strong foundation in education, industry, and R&D, the European consumer tech market is underdeveloped, with significant gaps in market capitalization compared to US firms [6][7] Market Position - The combined market capitalization of seven major US tech companies reached $13 trillion in 2024, while Europe's top 11 tech companies totaled only $2.2 trillion, representing less than 17% of the US firms' value [7] - The absence of recognizable European consumer tech brands is further highlighted by the rise of Asian tech giants [7] Structural Challenges - Regulatory fragmentation within the EU complicates the establishment of startups, as companies must navigate 27 different regulatory systems [9] - European investors exhibit a cautious investment culture, leading to 54% less funding for startups compared to their US counterparts [10] - A significant brain drain is occurring, with 73% of EU science graduates choosing to stay overseas, impacting the talent pool for high-growth startups [11] Regulatory Landscape - Europe is focusing on regulation to hold tech giants accountable and set global standards, exemplified by the GDPR and the Digital Markets Act [12][14] - The Brussels Effect allows European regulations to become global standards, as multinational companies prefer a single compliance structure [15] - The EU is proactively investing in technology, such as the €43 billion European Chips Act to enhance semiconductor production [15][16] Innovation and Future Outlook - Despite challenges, Europe is fostering innovation, with examples like Estonia's fully digitized government services and France's growing startup ecosystem [16] - The fundamental question remains whether Europe can build its own tech future while regulating the existing landscape [16]

Core Insights - The founding of Spotify in 2006 by Daniel Ek was seen as a "moon shot" due to the challenges in the global music industry, including declining sales and rampant online music piracy [1] Industry Overview - The global music industry was facing significant difficulties at the time of Spotify's inception, characterized by years of declining sales [1] - Online music piracy was a prevalent issue, impacting the viability of music products and services [1]

Market Overview - The U.S. is facing a potential government shutdown, which could have economic implications, including a drag on GDP of about 0.1% per week if resolved quickly, but potentially more significant if extended [1][2] - Job openings reported at 7.227 million, slightly above estimates, indicating a tight labor market [1][2] - Consumer confidence index for September came in at 94.2, lower than the expected 96, marking the lowest level since April [1][3] Economic Implications - A prolonged government shutdown could lead to furloughs of 600,000 to 700,000 workers, potentially raising the unemployment rate from 4.3% to between 4.5% and 4.7% [1][2] - Consumer confidence is being affected by rising prices in food, fuel, and utilities, which dampens spending and corporate investment [2][3] - The market has shown resilience despite political uncertainties, with stocks generally not reacting strongly to government shutdowns historically [1][2] Company Focus: Nike - Nike is set to report fiscal first-quarter earnings, with expectations of a year-over-year sales decline of 5% to 6% [5][6] - Analysts are looking for guidance indicating a smaller decline in the second quarter, ideally down only 3% to 4% [5][6] - Innovation is highlighted as a key factor for Nike's growth, particularly in the running footwear category, which is crucial for the brand's recovery [5][6] Consumer Behavior - There is a contradiction between consumer sentiment and spending, with strong spending indicators despite declining confidence [3][4] - Concerns about job availability and rising prices are prevalent among consumers, impacting their financial outlook [3][4] - The upcoming holiday season is expected to test consumer tolerance for price increases due to tariffs [3][4] Industry Trends - The athleisure market has faced challenges, with many stocks down significantly this year despite strong sales growth [5][6] - Companies like Under Armour are noted for potential growth due to upcoming innovations, despite negative sentiment [5][6] - The overall market sentiment is cautious, with investors closely monitoring earnings and consumer behavior as key indicators for future performance [5][6]

分组1: Wolf Speed - Wolf Speed has exited bankruptcy, resulting in a share rally of over 30% due to a significant restructuring of its business and a reduction of approximately 70% in its debt [2][3][4] - The company is focusing on growth markets such as electric vehicles (EVs), artificial intelligence (AI), and clean energy, where its silicon carbide chips are in demand [3][4] - Existing shareholders faced substantial losses as old shares were canceled, and they received only a small fraction of new shares in exchange, with most new equity allocated to creditors [4][5] 分组2: Spotify - Spotify has announced a leadership change with Daniel Ek stepping down as CEO after nearly 20 years, transitioning to an executive chairman role, while Gustav Solderstrom and Alex Nordstrom take on co-CEO positions [6][7] - The company has seen its shares more than double over the past year, with a current market cap reflecting strong performance and a user base of approximately 700 million, including nearly 300 million paying subscribers [8][10] - The new co-CEO structure aims to enhance focus on business operations and technology, with both leaders having been instrumental in Spotify's growth over the past decade [9][10] 分组3: Oaklo - Bank of America has downgraded Oaklo to neutral from buy, raising its price target to 117, indicating a mixed view on the company's valuation amid concerns about overly optimistic assumptions regarding small modular reactors [10][11][12] - The nuclear energy sector is expected to grow, but Oaklo remains pre-revenue, leading to skepticism about the realistic deployment and growth of its projects at this early stage [11][12]