The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
1118 ET - Airbnb's hotel business is still small but it is growing fast, Chief Executive Brian Chesky says on a call with analysts. Hotels still make up a single-digit percentage of total nights booked, but hotel bookings are increasing at about three times the rate of Airbnb's core home rental business, Chesky says. The company is hoping the new hotel segment will bring in new types of customers that haven't used Airbnb before. Chesky says about 35% of first-time hotel guests return to Airbnb to book a home. "What this shows is how hotels are introducing new guests to Airbnb," Chesky says. Shares climb 16%. (katherine.hamilton@wsj.com)
1106 ET - Under Armour CEO Kevin Plank says the business is fundamentally stronger today, following steps the company has taken recently to simplify the organization, reduce its number of products and strengthen the connection between product marketing and sales. "That brings us to the central question: How do we turn a healthier business into stronger consumer demand?" Plank asks. Moving forward, Under Armour will aim to cut back its reliance on promotions and focus its investments on its top-performing brands. At the same time, the company will look to increase its cultural relevance through collaborations with athletes, improve commercialization so its products are easier to buy, and better manage its inventory, Plank says. (connor.hart@wsj.com)
1100 ET - Under Armour lowers its revenue outlook for the year, citing softer demand in North America and the Asia-Pacific region. "That's not the outcome we wanted on the top line," CEO Kevin Plank says on a call with analysts. "Our response is to chase that market lower, which continues simplifying the business, sharpening our product focus, improving marketplace execution and investing behind the innovation, athlete credibility and storytelling that will strengthen Under Armour over the long term." Shares are off 2.7%. (connor.hart@wsj.com)
1020 ET - DraftKings CEO Jason Robins says the platform's new prediction markets offering isn't eating into its existing sports-betting market share. DraftKings has rolled out prediction markets in several states where online sports betting isn't legal, such as California and Texas. That has opened up new markets where DraftKings wasn't previously able to operate sports betting, Robins says. In states where sports wagering was already legal, bettors are mostly sticking with their existing platforms rather than switching over to prediction markets, he says. Instead, the new business is bringing in more institutional investors, a customer cohort DraftKings hasn't historically attracted, Robins says. (katherine.hamilton@wsj.com)
1006 ET - Drugmakers Sanofi and Regeneron Pharmaceuticals seem to be exploring ways to work more strategically together again, Jefferies analysts say in a research note. They could work on extending the lifecycle of their blockbuster drug Dupixent or on next-generation immunology assets, even though neither company disclosed a new collaboration in recent earnings calls, the analysts say. The tone from executives at both Sanofi and Regeneron seemed to shift from their somewhat transactional relationship over the last few years, Jefferies says. Sanofi shares rise 2%, Regeneron's are little changed. (adria.calatayud@wsj.com)
0953 ET - Sanofi has investors worried about its lack of a pipeline to replace blockbuster sales of its Dupixent drug once the medicine goes off patent, but it has financial muscle to pursue deals, Jefferies analysts say. "The question remains how to deal with the Dupixent loss of exclusivity after 2030, which, at this point, will have to largely be an inorganic answer. That in and of itself may not be exciting, but the stock is priced for no answer," the analysts say. It should only take one sensible deal to address the market's concern, they add. The French drugmaker should have between 20 billion and 30 billion euros to spend on deals, according to Jefferies. Shares rise 1.6%. (adria.calatayud@wsj.com)
0951 ET - Take-Two Interactive Software sees a disc-less future for the video game industry. The company already sells about 90% of its games digitally because "discs don't really make sense for the consumer" anymore, Chief Executive Strauss Zelnick tells analysts on a call. Zelnick thinks discs will stick around for nostalgic purposes, similarly to vinyl records, but that the majority of gamers will register online to play digitally. "If you're already connected, like, who cares if you download digitally? It's all the same and it's much more convenient," Zelnick says. "That's where the world is going in our opinion." (katherine.hamilton@wsj.com)
0948 ET - Take-Two Interactive Software isn't seeing a significant pull-back from consumers due to macroeconomic volatility, executives tell analysts on a call. Recurrent spending within the video-game company's mobile business declined 7% and is expected to continue falling, executives say. However, they say this is because some of its games did especially well last year, including Color Block Jam, so the comparisons are difficult. While there is some pressure on user acquisition, executives don't see it as related to broader macro problems. (katherine.hamilton@wsj.com)
0854 ET - Wendy's withdraws its full-year outlook and cuts its dividend, moves the fast-food chain says will aid its ongoing turnaround. The company says it pulled its outlook in order to give new leadership a chance to "fully assess the business opportunities and formulate a comprehensive turnaround plan, including the optimal deployment of capital." And the slashed dividend will provide greater financial flexibility, allowing Wendy's to reinvest more into the business as it aims to spur sales. CEO Bob Wright says the company will rebuild its menu to offer more compelling value and step up its marketing efforts, while also investing in operations, digital capabilities and its restaurants. Shares are off 3.5% premarket. (connor.hart@wsj.com)
0827 ET - Wendy's isn't performing at its potential, says CEO Bob Wright, who returned to the fast-food chain in May to oversee its turnaround. "I believe we can fix our issues and I am excited to work with our team and our franchisees to drive a strong turnaround," he says in a statement. "Our traffic, our value proposition and franchisee economics are not meeting our expectations. We have already begun taking action across five areas that we've identified to drive the turnaround: rebuilding a quality menu at compelling value, marketing that drives demand, operational excellence, a digital experience that builds frequency, and restaurants as an engine for growth." Wendy's falls 3.4% premarket after withdrawing its full-year outlook and cutting its dividend. (connor.hart@wsj.com)
0823 ET - Munich Re's results show the German reinsurance company can deliver on near-term net profit expectations, but the task seems to be getting tougher, J.P. Morgan analysts say in a note. The company walked away from its reinsurance revenue target for 2026, which doesn't seem surprising, the analysts say. It lowered the target to 38 billion euros from 40 billion euros, while JPM's estimate sits at 37.3 billion euros. Property-and-casualty reinsurance revenue declined 10% in the second quarter, which is likely worse than market expectations, the analysts say. Revenue expectations have come down since Munich Re reported first-quarter results, but the guidance cut should lead to declines to future earnings consensus estimates, they add. Shares fall 1.6%. (adria.calatayud@wsj.com)
0821 ET - Take-Two Interactive Software's game "NBA 2K" is becoming a leading product. Executives of the video-game company, which is known for its "Grand Theft Auto" series, say on a call with analysts that "2K26" had a record year for the franchise, selling more than 12 million units. That marked a 9% increase from last year's game, "2K25." Engagement was also up, with consumer spending growing 7% and outpacing the 3% bump in recurrent spending on the GTA series.
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