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Airbnb, DoorDash and Coinbase to report — here’s what to expect

Airbnb, DoorDash and Coinbase are set to report quarterly results after the market close on Thursday. Julie Hyman, Brian Sozzi and Myles Udland break down what investors can expect.

Video transcript

JULIE HYMAN: After the bell today, we have some earnings to talk about as well. And just to do a quick preview of some of them, we want to hit on Coinbase first. Because, obviously, a lot of attention on crypto right now. Now Coinbase already pre-announced, right? It said first quarter profits are going to be $730 million to $800 million. That's more than double what it earned all of last year. And so, analysts are mostly saying, there's not necessarily a lot of suspense because of that initial forecast the company came out with.

However, it's going to be real interesting to see if they give any kind of color commentary on the volatility that we've been seeing in cryptocurrencies, what effect that has on the volume of trading that a Coinbase gets when crypto is not just going straight to the moon, when it's bouncing around a little bit more, what kind of effect does that have on their numbers. That is kind of going to be, Myles, one of my essential questions of what we hear from them.

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MYLES UDLAND: Yeah, and I think the way to-- like, the question for Coinbase-- and I'm not even sure that this is quite the right question to ask or if there's a clean answer to this, but is the company a proxy on the value of cryptocurrency or on the activity in cryptocurrency? They might say it's both. Some analysts are probably going to say it's neither. But I think, Julie, to your line of questioning there, that is how the market receives this report and what the report itself shows on that kind of like for like breakdown, I think is certainly what most interests me about the company right now.

BRIAN SOZZI: You know, I'll add, too, you know, and Mark Palmer has a dead right over at BTIG. Good note heading into their earnings. And there's a good chance for that management team at Coinbase to change the narrative on the stock, which has been under pressure since the IPO. And he brings up this good point that part of the pressure, of course, is the pullback in crypto, but also this view that Coinbase is going to be hammered by a move to zero commissions. That hasn't happened yet. So it'll be interesting to see if they can change that narrative on that earnings call.

JULIE HYMAN: Speaking of narratives, really, the big question for a DoorDash is going to be momentum question, right? What happens as things reopen? Can they continue their momentum? I mean, the consensus seems to be that they cannot, at least not at the same pace.

But it's just a question of what that momentum looks like. The revenue estimate, as you can see there, nearly a billion dollars here and adjusted earnings per share, or I should say, a loss per share of $0.10. EBITDA estimate is for $34 and 1/2 million and orders estimate of 303.8 million. So we'll see how they stack up to those numbers. And we'll see, you know, Brian, what they say about what is happening with the order flow, what is happening with how many restaurants are signing on to the platform and how many people are using it.

BRIAN SOZZI: Yeah, I would-- if you are a trader in DoorDash, one, it's been a bad month for you. Your stock is down about 24% this month alone. But you will want to listen to on the earnings call, are they having trouble finding workers? Uber, gig economy workers, they have called out problems facing-- finding workers. Lyft, the same deal, many other companies. Look, McDonald's. Obviously, these companies are finding trouble finding workers.

And they're having to raise wages. Is a DoorDash going to have to raise wages to attract the workers it needs to service its business model? And if so, do their fees go up? And that necessarily isn't a good combination for later this year. As the economy reopens, people go back out, and they perhaps order less food. They do not want to pay higher fees to have their food delivered.

JULIE HYMAN: And then there is Airbnb, which also reports after the close today. And as we talked about yesterday with Brian Fitzgerald, there's sort of a stock overhang here because this share lockup is going to be expiring. But there's also the question I think that you brought up, Brian, yesterday, about whether hotels are going to be taking more share from Airbnb.

Myles, I don't know. I mean, it's always fun to talk about anecdata with this sort of thing and talk about with people whether they are renting Airbnbs or staying in hotels when it comes to their summer travel plans, because people finally have summer travel plans.

MYLES UDLAND: Yeah, I mean, look, Airbnb, obviously, you know, was set to go public, what, this time last year, I think probably the winter of 2020. So they had to delay that right into the teeth of the pandemic. Obviously, the pandemic is still going to be taking a huge bite out of the results. We see the expected losses there that we were showing on the screen earlier. But I think when you look at these new economy stocks, Uber, Lyft, DoorDash, Airbnb, to me, Airbnb is by far the most interesting because I think that they've moved in-- they've moved into-- and not I think-- I know they moved into an already profitable and growing space, which is the travel industry. And they've created a foothold that sort of took the industry by storm.

And I think there's a lot of-- I think you can look at that model and say, OK, this is probably going to work. Now the stock has almost been cut in half, as has DoorDash, which became public right at the same time. But I think Airbnb, to me, is an interesting longer term story in terms of, what do they do with their hosts, do they have to incentivize them more, do they start owning more properties on their own, so on and so forth. But they are, again, working in a space that has a real business here.

Food delivery is an ancillary loss-making kind of piece of all restaurants. No one really loves delivering food, unless you're Domino's. People love traveling, and they love Airbnb'ing. And so the trajectory of this business over the next decade really interests me, whereas DoorDash and Uber, I don't know. Sozzi, I don't find myself too excited about them.

BRIAN SOZZI: You know, I'm just-- I'm unclear if I-- I mean, not for me-- if people are going to want to stay in someone else's home this summer. We've all been locked in our homes. Why not just go to a Marriott or a Hilton and get pampered, get your big towels and your free shampoo?

JULIE HYMAN: There's something to be said for pampering. We're going to talk to Brian Chesky about all of this tomorrow in the 9:00 AM hour. You will hear from him following those earnings numbers.