Earnings Exchange: Uber, Reddit, and Choice Hotels

Welcome back. Rides, rooms and recent IPO’s are all set to report. We’ve got the action, the story and the trade on Uber versus Lyft, Reddit versus Estera Labs and Wynn Resorts versus Choice Hotels in today’s earnings exchange. Here to do the trades. Jeff Kilberg, KKM Financials founder, CEO and CNBC contributor. I don’t know if I remember how to do this, Jeff, so you got to help me out. Welcome. We got this. Kelly, great to see you and I imagine it’s great to be seen. Let’s start off with rideshare. Lift us out with results after the bell, Uber reports tomorrow morning. The stocks are on a big divergent. Still since 2022, Jeffries expects Uber to keep winning with market share gains and better non core offerings like Uber Eats and Uber Black versus Lyft scooters and so forth. Then Instacart announced A partnership with Uber Eats just today ahead of its earnings after the bell tomorrow. Do you stick with the winner or bet on the the little guy, Jeff? No, you stick with the winner. I agree with Jeffries. And if you look at Uber over Lyft, Uber has beaten the brakes off of Lyft. And if you think about market cap Kelly, look at the size of Uber. It’s 20 times the size of Lyft. But let’s look through the lens. Let’s go back old school, Kelly. Let’s look at profitability. Uber makes money. Lyft has not made money yet, So I think it’s a pretty easy pick to stick with the winner. I like sticking with Uber here overall. Historically speaking from a Ford PE Kelly. It’s not that expensive too. All right, all right, let’s move on. Reddit Estera Labs, the first ever, reports from both out after the bell, and both are up significantly from their IPO’s. They’ve had a better crop lately. Not a lot. Elsa connecting the Internet forum in the AI infrastructure company, But investors are watching guidance and competition to see if these big kind of excitement waves are really merited. Do you? We were just talking about winners. Do you consider them winners here, Jeff, You know, I don’t consider Reddit a winner. I fully don’t understand. I talked about this actually on the exchange of the IPOI know it went up to $65 with all the enthusiasm anything. AI does get some, you know, euphoria into it, but when you look at what actually Reddit is, it’s an aggregation of news. I don’t feel in the AI play, switching gears or comparing apples to oranges here. Estera really is AI related. If you think about AI, we get so exciting. That’s been the investing theme for now, almost two years. Think of the vehicle, the car being all these different platforms which need artificial intelligence. You think of the engine, which is NVIDIA, AMD, Intel. The chips, stereo labs are the tires on this vehicle. They put the rubber to the road. So those connectivity parts that they make, that’s going to allow all the horsepower coming out of these new super duper chips that they’re producing and also allow it to be connectivity. So I want to stick with Asteria. I think technically there’s also more room to run here and that’s where I’m going to put my money versus Reddit, which I just don’t understand. Yeah, I use Reddit all the time. Not in a way that I think I see no ads. I don’t pay for it. I just find out things like there’s merit. Yeah, I think it’s a great news source, but I don’t really want to put in the same bucket as an Asteria left. If anything, I see AI supplanting it because I’m basically saying, hey, you know, wisdom of the crowd, how do I use Scott’s four step you know fertilizer program. I need to be need to you know educate myself instead of scrolling forever. Now I just, I can ask you know, AI maybe their answers nearly as good. Anyway, the CEO of Reddit will be on with Kramer tonight, so I’ll be looking forward to that. He’ll talk to Jim Mad Money 6:00 PM and we will move on to the hospitality names Win and choice both are up around 8% this year. Revenues are expected to reflect different segments of the consumer win on the higher end, Choice near the middle, Which of these, Jeff, do you pick here? My choice is going to be choice. There we go. First, I’ll pun back for you, Kelly. But I think if you look going back to COVID, you just haven’t seen wind fully recover. I know year to date, I know one year both of these names have been neck and neck. But if you go out five years, it’s really been a tough recovery. And why is that, Kelly? It’s because of Wind’s exposure to China. 70% of their revenue is exposed to China. So as we continue to see opaque readings out of China, I just can’t put my money there where choice is interesting. Those are 650,000 the rooms across the country, more of the Comfort Inn, more of Middle America. So I think when we see inflation continue to be a situation moving into Q2Q3, I have a better reading on what a middle America is versus that high end luxury hotel or casino in China real quickly. I we probably caught Druckenmiller’s comments about China. He’s still bearish on it but the hangs thing that’s coming off a 10 day win streak. Any any Spidey sense there You know he’s one of the best trainers of our generation of all time. So I’m going to take respect and give him a hat tip. But what’s interesting he brings up a great point if you are going to trim position, we just saw Brad Gerstner trim his position his equity exposure by 25%. Think of the ETFs that own NVIDIA, there’s 484 ETFs that own NVIDIA. So if all those ETFs are all those people who own those ETFs institutions and retail trim their exposure by 25% or trim all their exposure like we did see drunken Miller, you’re going to see a significant move lower. So I I do have some apprehension and these overbought AI themes, but the AI theme in itself, I think it be healthy for some type of reset because that’s not going away anytime soon, Kelly.