February 16, 2025 • 6 mins
Investors are flocking to Airbnb in droves, with stock up 14% - the biggest one day move on record.
Hermes is also celebrating. The luxury brand's fourth quarter sales are up 18%, exceeding estimates.
Meanwhile, Kiwi's remain plagued with the cost of living: Food prices were up 1.9% last month, the highest rise since July 2022.
Greg Smith of Devon Funds Management joins the show to discuss these leaps.
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Episode Transcript
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Speaker 1 (00:00):
From Devon Funds Management, Greg Smith, Morning to you, Morning
to Mike. This spending is interesting, isn't. I go to
the American numbers, but this experiential thing seems to be real,
doesn't it. You know, people would rather spend their money
on experiences, and Nearbnb's part of that package.
Speaker 2 (00:12):
I guess yeah, certainly hasn't it necessarily checking into them
on Friday, so shared up fourteen percent. That was their
best day ever, although I've ambien listed since twenty twenty.
So yeah, people after experiences. They saw our revenues up
twelve percent two point four eight billion for the quarter.
Four year revenues twelve billion dollars. That's a record. Next,
you also swung to a profit as well. It's almost
five hundred million there and they lost about three fifteen
(00:35):
million a year ago. Gross booking seventeen point six billion
and one hundred and eleven million nights and experiences have
booked on the platforms. That was up twelve percent, and
they've just been listening to users, Mike, so I made
over five hundred new features and upgrades, have done things
like verifying listings, hiring the top ten percent favorite geast experiences,
(00:56):
and then removed around about one hundred thousand low quality listings,
so they're certainly doing well. Are looking to investor further
two hundred and fifty million dollars in the business, and
they can certainly do that. Free cash flow last year
four point five billion dollars, so they want to be
the Amazon of vacation. So it looks like they're heading
on the right track. We're going to get revenue for
the current quarter of around at two point two five billion,
(01:19):
But hey, Mike, it's not all about the money. They're
also doing their bits socially, so obviously had those terrible
wide wildfires in LA. They're nonprofit arm housed almost twenty
thousand people, over two thousand pets, and receive twenty seven
million dollars in donations, including eighteen million dollars from its founders.
So ye're doing well and also doing good nice. I
like it.
Speaker 1 (01:39):
And then you get to luxury or in this case,
ultra luxury. Ultra luxury seems to be working or is
it just Ames that's working.
Speaker 2 (01:45):
Yes, it's the way to go, isn't it. The Cademy
reported it eighteen percent surge in fourth quarter sales, and
that was a head of expectations around about ten percent.
So there's are luctually goods making and make those birk
and bags they gave for twenty thousand US plus and
think you should get one for one hundred thousand if
you want one with crocodile skin. They might, but yeah,
(02:05):
wealthy consumers, they don't seem to be put off by
the price. Their sales of the fourth quarter three point
ninety six billion euros and we're doing particularly well America
and Japan both up twenty two percent. So that's pretty stabbing.
But yeah, guess the key point is that they actually
continued to outshine their rivals. You look at it Ova, mate,
they actually said sales growth is going backwards, luctually good
(02:27):
sales last year down two percent. So you're China being
sluggish and global inflation like, and I think part of it,
Mike is keeping their all through exclusivity, so they limit
their production each year to six to seven percent, and
they reckon things mon't change with tariffs. In fact, they
said they're going to probably put up prices and they
probably looks at these results they won't have any trouble there.
They're already looking to put up prices six to seven percent.
(02:49):
And yeah, regardless of what happens with Trump and the light,
then they're going to keep France chuning out leather, Switzerland
for watches, Italy for shoes, So yeah, she's edge tied.
They actually taking the mark kept over three hundred billion euros,
so they're actually closing on LVMH, which has two hundred
thousand people on its head counts. That's ten times more.
So they could soon have in the bag the title
(03:11):
of Europe's most valuable company.
Speaker 1 (03:14):
Fantastic. And the reason we can't afford Burkns is of
course because the price of food's gone through the river.
What happened there, Oh.
Speaker 2 (03:19):
My god, it's pretty incredible. So inflation generally going down,
but yeah, not so food so up one point nine
percent in January. That's the largest monthly ri since July
twenty twenty two. It's a bit across the board as well,
so sixty five percent of the items and a food
basket were more expensive, and in fact, twenty percent increased
in price by five percent of more. So I suppose
you could say the currency is probably playing a bit here,
(03:40):
but yeah, quite incredible. So grocery food three percent high,
so we're not imagining those sort of higher grocery bills
each week. Milk sixteen percent higher than a year ago
five undre grams a but that's fifty two percent high
six dollars seventy nine and you look not such a
heavy Valentine's Day for chocolate lover seving price of two
fifty grams five dollars seventy two can pet with four
(04:03):
bucks ninety a year ago. Of course, part of those
cocoa prices they'll been on a ten years, so growing
conditions have been adverst in West Africa in the light.
But yeah, other stuff is gaping as well. Food and
veggie is up two point eight percent, broccoli mic fifty
eight percent high ten bucks twenty five of kg alcohol,
alcohol and tobacco that's going up as normal. And outside
of food, other things a game as well. So at
(04:23):
the pump, petrol prices up four percent, diesel up almost
six percent. But almost the main bit of good news
was on IF so internationally they fail almost twelve percent,
Domestic down one point three but yeah it's under pressure,
but on terms of the food prices for sure, so yeah,
perhaps a week of dollar it's part of it. Fortunately
we have got the RBNZ this week and generally inflation,
(04:44):
I won't say that might but inflation is playing board act. You'll,
which also quickly had some good news on the economy
as well. Their manufacturing sector. Yes, spend it for the
first twenty three months.
Speaker 1 (04:53):
Yeah, beat, it's like it's back. It was like we
were never in recession. Now, what are the numbers?
Speaker 2 (04:58):
So the Dow was a slip sid on Friday down
point four percent, forty four five four success in P
five hundred that was flat, Nastick up point four percent,
forty one hundred down point four percent, Nike down point
eight percent, Hong Kong tech stocks on fire, Ali Barb
with their partnership with Apple hangs thing was up three
point seven percent. A six two hundred up point two percent,
eighty five five five that's a recorded index. Fifty vestas
(05:21):
filling the love on Friday at point sixty four percent
twelve nine eight nine. Commodity markets goal down forty five bucks,
twenty nine hundred ounce oil down fifty five per cents,
seventy spots, seventy four. Currency markets against the US with
fifty seven point three. We're up almost one percent a
dollar forty five point five high as well, ninety point
two against stealing it was up, and eighty seven point
three against the un that was up as well. So
(05:43):
this week Mike Lot's going on US retail sales. Got
the RBA rate decision. We've got the world's largest minor BHP.
We got the world's largest retailer, Walmart. They're reporting back home.
We've got lots of results. We've got seventeen in fact,
including a two contact fletchers. We've got services PMI, we've
got trade data. But yes, the big one, the O cry,
(06:03):
what are we going to get? Hopefully at least half percent?
Speaker 1 (06:06):
But let's see good on your mite go well. Catch
up soon. Griggsmith, Devon Funds Management.
Speaker 2 (06:11):
For more from the mic Asking Breakfast, listen live to
news talks. It'd be from six am weekdays, or follow
the podcast on iHeartRadio.
From Devon Funds Management, Greg Smith, Morning to you, Morning
to Mike. This spending is interesting, isn't. I go to
the American numbers, but this experiential thing seems to be real,
doesn't it. You know, people would rather spend their money
on experiences, and Nearbnb's part of that package.
Speaker 2 (00:12):
I guess yeah, certainly hasn't it necessarily checking into them
on Friday, so shared up fourteen percent. That was their
best day ever, although I've ambien listed since twenty twenty.
So yeah, people after experiences. They saw our revenues up
twelve percent two point four eight billion for the quarter.
Four year revenues twelve billion dollars. That's a record. Next,
you also swung to a profit as well. It's almost
five hundred million there and they lost about three fifteen
(00:35):
million a year ago. Gross booking seventeen point six billion
and one hundred and eleven million nights and experiences have
booked on the platforms. That was up twelve percent, and
they've just been listening to users, Mike, so I made
over five hundred new features and upgrades, have done things
like verifying listings, hiring the top ten percent favorite geast experiences,
(00:56):
and then removed around about one hundred thousand low quality listings,
so they're certainly doing well. Are looking to investor further
two hundred and fifty million dollars in the business, and
they can certainly do that. Free cash flow last year
four point five billion dollars, so they want to be
the Amazon of vacation. So it looks like they're heading
on the right track. We're going to get revenue for
the current quarter of around at two point two five billion,
(01:19):
But hey, Mike, it's not all about the money. They're
also doing their bits socially, so obviously had those terrible
wide wildfires in LA. They're nonprofit arm housed almost twenty
thousand people, over two thousand pets, and receive twenty seven
million dollars in donations, including eighteen million dollars from its founders.
So ye're doing well and also doing good nice. I
like it.
Speaker 1 (01:39):
And then you get to luxury or in this case,
ultra luxury. Ultra luxury seems to be working or is
it just Ames that's working.
Speaker 2 (01:45):
Yes, it's the way to go, isn't it. The Cademy
reported it eighteen percent surge in fourth quarter sales, and
that was a head of expectations around about ten percent.
So there's are luctually goods making and make those birk
and bags they gave for twenty thousand US plus and
think you should get one for one hundred thousand if
you want one with crocodile skin. They might, but yeah,
(02:05):
wealthy consumers, they don't seem to be put off by
the price. Their sales of the fourth quarter three point
ninety six billion euros and we're doing particularly well America
and Japan both up twenty two percent. So that's pretty stabbing.
But yeah, guess the key point is that they actually
continued to outshine their rivals. You look at it Ova, mate,
they actually said sales growth is going backwards, luctually good
(02:27):
sales last year down two percent. So you're China being
sluggish and global inflation like, and I think part of it,
Mike is keeping their all through exclusivity, so they limit
their production each year to six to seven percent, and
they reckon things mon't change with tariffs. In fact, they
said they're going to probably put up prices and they
probably looks at these results they won't have any trouble there.
They're already looking to put up prices six to seven percent.
(02:49):
And yeah, regardless of what happens with Trump and the light,
then they're going to keep France chuning out leather, Switzerland
for watches, Italy for shoes, So yeah, she's edge tied.
They actually taking the mark kept over three hundred billion euros,
so they're actually closing on LVMH, which has two hundred
thousand people on its head counts. That's ten times more.
So they could soon have in the bag the title
(03:11):
of Europe's most valuable company.
Speaker 1 (03:14):
Fantastic. And the reason we can't afford Burkns is of
course because the price of food's gone through the river.
What happened there, Oh.
Speaker 2 (03:19):
My god, it's pretty incredible. So inflation generally going down,
but yeah, not so food so up one point nine
percent in January. That's the largest monthly ri since July
twenty twenty two. It's a bit across the board as well,
so sixty five percent of the items and a food
basket were more expensive, and in fact, twenty percent increased
in price by five percent of more. So I suppose
you could say the currency is probably playing a bit here,
(03:40):
but yeah, quite incredible. So grocery food three percent high,
so we're not imagining those sort of higher grocery bills
each week. Milk sixteen percent higher than a year ago
five undre grams a but that's fifty two percent high
six dollars seventy nine and you look not such a
heavy Valentine's Day for chocolate lover seving price of two
fifty grams five dollars seventy two can pet with four
(04:03):
bucks ninety a year ago. Of course, part of those
cocoa prices they'll been on a ten years, so growing
conditions have been adverst in West Africa in the light.
But yeah, other stuff is gaping as well. Food and
veggie is up two point eight percent, broccoli mic fifty
eight percent high ten bucks twenty five of kg alcohol,
alcohol and tobacco that's going up as normal. And outside
of food, other things a game as well. So at
(04:23):
the pump, petrol prices up four percent, diesel up almost
six percent. But almost the main bit of good news
was on IF so internationally they fail almost twelve percent,
Domestic down one point three but yeah it's under pressure,
but on terms of the food prices for sure, so yeah,
perhaps a week of dollar it's part of it. Fortunately
we have got the RBNZ this week and generally inflation,
(04:44):
I won't say that might but inflation is playing board act. You'll,
which also quickly had some good news on the economy
as well. Their manufacturing sector. Yes, spend it for the
first twenty three months.
Speaker 1 (04:53):
Yeah, beat, it's like it's back. It was like we
were never in recession. Now, what are the numbers?
Speaker 2 (04:58):
So the Dow was a slip sid on Friday down
point four percent, forty four five four success in P
five hundred that was flat, Nastick up point four percent,
forty one hundred down point four percent, Nike down point
eight percent, Hong Kong tech stocks on fire, Ali Barb
with their partnership with Apple hangs thing was up three
point seven percent. A six two hundred up point two percent,
eighty five five five that's a recorded index. Fifty vestas
(05:21):
filling the love on Friday at point sixty four percent
twelve nine eight nine. Commodity markets goal down forty five bucks,
twenty nine hundred ounce oil down fifty five per cents,
seventy spots, seventy four. Currency markets against the US with
fifty seven point three. We're up almost one percent a
dollar forty five point five high as well, ninety point
two against stealing it was up, and eighty seven point
three against the un that was up as well. So
(05:43):
this week Mike Lot's going on US retail sales. Got
the RBA rate decision. We've got the world's largest minor BHP.
We got the world's largest retailer, Walmart. They're reporting back home.
We've got lots of results. We've got seventeen in fact,
including a two contact fletchers. We've got services PMI, we've
got trade data. But yes, the big one, the O cry,
(06:03):
what are we going to get? Hopefully at least half percent?
Speaker 1 (06:06):
But let's see good on your mite go well. Catch
up soon. Griggsmith, Devon Funds Management.
Speaker 2 (06:11):
For more from the mic Asking Breakfast, listen live to
news talks. It'd be from six am weekdays, or follow
the podcast on iHeartRadio.
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