Good afternoon. A little late today but we made it. QQQs finished +60bps, yields were flat; BTC +5%; China +2%.
In internet, META +1.2% after Clev and Yipit were positive on Q1 trends. Head of facebook was also at MS TMT and sounded good talking up AI impact on the business (full recap here). SHOP +75bps as CFO sounded ok at MS TMT (recap here). RBLX +2.5% ahead of 3p releases later in the week. Housing names were strong on the back of lower yields: Z +3%; OPEN +6%, RDFN +2%. CART +2.5% as investors continue to do more work on likely acceleration in the biz (see Wolfe note digging into Cohort analysis yesterday). PINS -3%; CFO was at MS and they sounded ok but nothing incremental from the earnings call, saying that 3p partnerships are becoming “a more meaningful contributor but not dominating growth” and will not break them out separately. Some investors were hoping for more hence why stock sold off. We still like the story medium term over the next 3-6 months as 3p partnerships ramp, but n/t nothing too exciting to get longs excited, so wouldn’t be surprised if it continues to underperform until we get previews closer to earnings. GOOGL -1% underperforming again; Chief biz officer at MS TMT Conf and lots of chatter about how he sounded good, defending their core search biz and saying search query positive y/y (full recap here). Will be interesting to see how stock reacts tomorrow, but today’s px action left us unimpressed. Other large cap names underperformed: AMZN -35bps; NFLX -15bps. EBAY +1% continues to re-rate higher. LYFT +8% (didnt see anything here). UBER -50bps as Dara at MS sounded good but nothing incremental. CVNA +60bps on the day. SE +6% continuing higher after their EPS a couple days ago. China names were strong as JD +16% had a solid beat with BABA +2%, BIDU +1%, but PDD -4% on FT’s article talking down Temu.
Keep reading with a 7-day free trial
Subscribe to TMT Breakout to keep reading this post and get 7 days of free access to the full post archives.