From ABNB to NVDA: What's Driving the Growing Divide in the Market

**SPEAKER_1** (0:00)
I do want to shift us back to Airbnb, and just a broader look at the earnings that we've gotten, and bring in Matt Maley, the Managing Director and Chief Market Strategist over at Miller Tabac, and also the founder of The Maley Report. Matt, I'm buzzing through these Airbnb numbers, I mean, really strong numbers. They raised their guidance for the second time in a year. They're saying they see strong demand, particularly in Europe and the US. We got this nice boost from the World Cup. The street really seems to like it. I'll check back in here. We're still up 10.5%.
What were the key standouts for you in the numbers that Airbnb put up?

**Matt Maley** (0:35)
Well, Marlee, I mean, it's this whole thing where it shows that even though this situation with the World Cup certainly boosted things in a big way, the whole positive experience has kind of heightened the awareness around the world of how much fun travel can be.
But much more importantly, it shows just how the consumer is hanging in there. We've been talking about the resilient consumer since God was a child, it seems like. And we've seen it, but we're seeing it in the cruise lines as well. Their numbers have been fine. And across the board, a lot of these things, especially, of course, at the upper end of the consumer, look very good. And that bodes well for the economy. And as we move through the second half of the year, we just got to see how the situation in the Middle East can hold up and calm down, and if these tech stocks can continue the bounce they saw earlier this week.

**SPEAKER_3** (1:31)
With Airbnb specifically, Matt, I mean, obviously, it's been a big beneficiary of that sort of post-pandemic travel, as you say, the consumer is hanging in there. So before we broaden out the conversation to other earnings and what the market's been up to, I mean, do you think it's successfully transitioning to a sort of more consumer tech type of platform with what it's doing around AI, is it seemingly wants to do here?

**Matt Maley** (1:56)
Yeah, it really has because the situation is that the transformation from to Airbnb and things like it, in a way, I'm afraid, from some of the traditional, whether it be rentals or hotels and such, people are very, very comfortable with this because the technology has gotten so much better, whether it be from AI or whatever. When people go and take care of these visits, at least it's certainly been my case and certainly the people I talk to on a regular basis, it's been a very, very positive one and a very easy one to go through. So the technological advances they've made in recent years has just made the whole situation much better and an experience that people are now becoming normal for them on any vacation that they take.

**SPEAKER_1** (2:47)
And Matt, before we have to say goodbye, I just want to broaden it out really quick. I mean, S&P was down today, but we were at records, we're near those records still. Yet we've seen a reaction to very strong earnings that have been much more mixed beneath the surface, especially across semiconductors in some of the AI trade. Do you still view this as a healthy bull market or are you seeing potentially some signs of fatigue here?

**Matt Maley** (3:11)
Yeah, Marlee, this definitely concerns me because it seems that pretty much every chip stock has reported great numbers and almost all of them reported a very good guidance. I guess Broadcom was one that didn't, but for the vast majority they have and yet they've all, pretty much all of them have gone down.
Whether it be Micron or, well, I said mentioned Broadcom, Texas Instruments, Intel, Taiwan Semiconductor, you name it, they've all gotten hit and in most cases hit pretty hard. Yes, we've had a couple of the hyperscalers act well with Amazon and Microsoft, but some of the others haven't done well, META, Apple, and we've also had Palantir, which is really a hyperscaler. But that's one tech stock that has acted well to their earnings. But the vast majority of not, that tells me that people are becoming much more nervous about the situation and just this assumption that we're going to get these returns or return on investment just around the corner. Well, they keep stretching that out longer and longer, and they've been doing it for a long time now. People are coming a lot more cautious. Just to finish, I'll just say that we're moving into that August to October timeframe where it can be seasonally tough for the market. So if that tech group, especially the chip stocks, roll back over and take out their lows from July, it's going to be a real problem.