Bad Day for Cash

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Automatic TRANSCRIPT

It's Thursday may seventh walking to market fully. I'm Chris L. Joining me. The one and only bill barker good to see you good to be here. Earning season just continues to roll along. We're going to talk about the delivery economy. The working from home economy. We're going to start with the war on cash and at the moment cash needs to call a timeout because cash giving its butt kicked square and pay pal both out with first-quarter reports boats stocks up more than ten percent. And it seems like this was less about the results that square and payback delivered in the four first quarter and more about the way everyone is thinking about. Non-cash payment business. Yeah I think that's fair They're interesting reports and this is not maybe certainly not only them but Lift for instance I think or pay Pals report sort of breaks down results into the january-february period And then the march period and then the April period and then go forward period so when they talk about rapidly evolving business situations Many other companies are in the same boat where there's a pretty happy story to tell according to the numbers for January February and then a big change in March and then maybe a stabilization for these companies in April. And then just. We don't know what's going to happen going forward right and true of all businesses. They pretty much. If if there's one thing one unifying thread through every one of these conference calls regardless of the business it's people saying but we don't really know which is totally understandable but in the case of pay pal the I totally understand why they are eager to talk about the current quarter. It's like yes here's our. Here's our first quarter report but once we're done with this let's talk about what's happening in Q. Two because what we're seeing is pretty exciting stuff. Yeah they're seeing. I think quarter million new subscribers a day. Something like that is the pace. They're on right now. I think may I was the largest increase or the largest number of new users. They've ever had This is an acceleration of the future. Really you've covered it You've thrown the war on cash name around it People been following it and this Accelerates what has been going on To cash and where it's going and pay pal has been one of the principal beneficiaries of this A little bit more so than square for the last quarter. But they're both enjoying the very nice days. Stocks Square is is is more reliant on small businesses in a in a way that pay pal. Isn't I mean just for anyone who's been to a small independent shop or a farmer's market or something like that where you know you walk into a tent you think about buying whatever they're selling and they've got the little square thing that you swipe right there so I mean that's that's probably putting a little bit of dent in their q one numbers but it's hard to imagine square not succeeding over the next five to ten years? Yeah it's the you know little white square boxes where Swipe your credit card that you come to know and perhaps love perhaps not love? I mean I have discovered when I am operating with any sort of square interaction that there's a new opportunity to tip somebody at the counter for something that in almost all other circumstances. I don't find myself tipping for this option to just would you like to just go ahead and add? I don't know ten fifteen eighteen twenty percent onto that Which doesn't occur everywhere else. But it's just enough of to guilt me into doing that often. So your and you didn't give specific examples but it sounds like you're talking about. Hey if I'm a coffee shop. Yeah if I had some change or whatever. I'd throw that in the tip jar if I go to an independent bookshop. I'm not necessarily looking to tip the person I'm buying the book from no and yet here a square asking me whether I might consider that So the little square devices aren't getting much business in an era where people are not going into the little small shops but the CASH APP. is Is is doing good business for them and you know competitor then. Mo and You know all the money That you probably owe me for instance you can Use either of those two. Oh you don't owe me any money at the moment you now. I'd be like what are you talking about you? You were in that poker game the other week. That was not a poker game bill. Man Be Twenty Bucks No I. I did hear that you were the person walking away with the money. Yeah Yeah and and now you don't even have to see bill man you can just like send a message on slack and just be like hey man then give me my twenty bucks. Let's move onto the delivery economy and help me understand this because we got. We'RE GOING TO GET THE FIRST QUARTER RESULTS FROM UBER. After the closing bell today but we already got first-quarter results from lift and grab hub and on the surface. It would appear as though grub hub had the better first-quarter results and yet because they broke even and everyone was expecting hub to report a loss and Rub. Shares are down ten twelve percent. Meanwhile lift stock is up more than twenty percent this morning. It's still down for the year but maybe it was The benefit of low expectations but first quarter revenue for lift was up twenty three percent compared to a year ago. Yeah well there's a difference between a stock that is up twenty three percent to get back to about half of the price. It was a couple of months ago And the stocks like Paypal and square. That are at you know approaching all-time highs off of the you know perhaps You know some of the earnings expectations. you know changed around their stories. I think for you know lift. Things are improved over yesterday. Mostly in the sense that the company has reported. It's it's going to save about three hundred million dollars a year on run rate basis On its operations by scaling back on some of it's expensive. So that's that's the better part of the story there. Really the The numbers declined. Of course precipitously in in March And and continue to be In April Over where they were in January and February. But you know the company was sowing pretty pretty strong growth going into the beginning of this For the whole quarter twenty three percent. increased revenue for the quarter. That's completely on the back of the strong. I two months it do. You have any teams like every quarter when home depot comes out with their results. Lows comes out the next day and it's almost always similar but not quite as good. I don't know if we have enough data because they uber and lift haven't been public companies nearly as long as Home Depot and Lowe's but any should we look at Uber reporting after the bell today and think. Oh yeah it'll probably be about what lift is doing. Yeah and in part because Hoover's already announced The massive Layoffs that were announced yesterday and that was I can't remember exactly how many people it was But it was massive In terms of the business so I think that they'll be able to quantify what the savings from that are going to be They obviously found ridership way. Way Off Right now and they've got to find saving somewhere and that usually comes at the cost of employees. So that is. I think the reason that it's up today aside from just the you know the mimicking lift is the. There's I don't know that this would affect the stock price but the announcement that it is a taking an investment in Lime and getting rid of its scooter business and I guess. combining that with limes I I don't know about where you live but where I live. Yeah we need some consolidation in the scooter business way too many of them and it's just again now. These aren't all going to survive. So yeah the sooner you all can get together and decide which brand is going to survive the better. We're all going to be. Yeah I have not found myself using any of the scooters that have plentiful an available wherever you go around Alexandria but Also getting back to Grub a down thirteen percent today. I think that the results today you would have to have believed that if there were a time when Grubb was going to have a great quarter it would be the one just announced So the fact that they weren't really able to translate to additional orders into additional profitability and have said that they are nearly all of their profits. the in the coming quarter are going to be used to generate additional orders for the restaurant partners. Okay you know being a good partner with the restaurants which they have been accused of not being a great partner to restaurants in the past maybe long term but you know they're they're a company that you would think well they. They be raking it in right now. And that's that's really not the case. Yeah this is absolutely one of those times where it's I think. Completely Fair for investors to look at a business and say it's put up or shut up time if Grub can't get it done at a time when there's a national pandemic and people trapped inside their homes. I'm sorry Yup it may be time to move on and where you know. The the UBER EATS is a legitimate competitor. as his door dash but I think that that will be one of the interesting things to get a from. This evening's call by Uber They're gonNA see the ridership way way way down but ubereats will make up Some of those losses For the company and say the other thing that they'll be pointing to is is the money that they have been able to save going forward With the UNFORTUNATE LAYOFFS. That are necessary. Let's ramp up with Peleton Shares of Peleton fifteen percent hitting an all time high although it's only been a public company since last September so but still a good day for Peleton third quarter report big again not surprising big jump in sales big jump in membership huge huge jumping in sales up sixty six percent something like that And the subscription revenue is up more more than that and this is without one of their principle items Really available for sale in most cases that is they're they're better known for the bikes but they also sell What I would deem to be outrageously expensive treadmills you might be able to comment on that because you're the ultra marathoner here and They sell treadmills which they can't Install right now because they can't go into people's houses and it takes a couple multiple repairman to construct these things. But they're forty three hundred dollars and What what do you think about that so? I don't have a treadmill in my home. I have never been interested in having a treadmill in my home so I I can't say I have a good sense of what a reasonable price for a treadmill. Is You know why that is. I prefer running outdoors. 'cause it's yeah you're from Maine. So the the worst weather that northern Virginia has to offer. You is like kind of a joke to you. Know to your makeup right. I mean I'm not a big fan of running in driving rain but yeah I'll run twelve months out of the year. Sure yeah and weaker people than yourself. Less hardy people from America really Are are willing to spend apparently forty three hundred dollars on a treadmill or will according to Peleton when they're able to bring these people these devices into people's homes and construct them in the meantime the twenty to twenty five hundred dollar bikes Are going like hotcakes. there's a panic buying. Apparently you know according to I think the New York Times of of these New New York Times readership probably intersex fairly well with Palestinians subscribers so They've had the largest class in their history. Twenty three thousand people In one class And just all the numbers up and down. Look Great and At the moment not that they want to rub it in but the nobody's really rubbing it in when they're having a very good quarter right now. They're couching their enthusiasm for results in in more muted terms than that. But they're having the last laugh over everybody who is trying to dance upon their graves for their Christmas ads. They certainly are. And it's not hard for me to imagine that businesses start to get involved with Peleton and by that I mean if we are going to. We're going to see a shift in businesses where businesses conducted. I don't know about you. I'm already hearing from friends of mine. Who Work in Manhattan and there in situations where a fifty thousand square feet of office space in downtown Manhattan and. Now they're saying well. We don't think we're going to need this anymore. And instead we're just GONNA find a couple of smaller footprint places out in the suburbs instead of fifty thousand square feet. We're going to need about ten thousand square feet. We're going to shift how we spend money as a business. We're going to be spending less on office space but we want to make sure our employees are happy and so instead of subsidizing their commute. We're going to subsidize their Home Office. And it wouldn't shock me at all in the next six months start hearing about businesses that are using. Peleton as a way to recruit people could be could be. You should Do Pr for them. I think they're doing fine. Npr FOR THEM BILL Mark. Thanks for being

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