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Breakfast News: Airbnb's "AI-First" Plans

August 7, 2025

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1. Airbnb Drops Over 5% on Slowing Guidance

Airbnb (ABNB -6.87%) beat Q2 revenue expectations yesterday with a 13% year-over-year rise to $3.10 billion. The company repurchased $1 billion of its own shares in the quarter, and authorized a further $6 billion for future buybacks. Guidance for slowing growth in Q3 led to a pre-market fall of over 6%.

  • "You're going to see ... Airbnb becoming an AI-first application": In the earnings call, CEO Brian Chesky announced plans to turn Airbnb into a service covering everything bookable – experiences and services on top of accommodation – including making the bookings.
  • "We are very mindful of the desire and ambition to grow more quickly than where we are today": In a June interview with TMF co-founder Tom Gardner and CIO Andy Cross, CFO Ellie Mertz spoke of ambitions beyond Airbnb's first five years as a public company, using "growth levers" to help propel the stock.

2. Tariffs Take Effect

President Trump's sweeping import tariffs are now in force, ranging from 10% to 50%. A new rate of 15% applies to top trading partners including the E.U., Japan, and South Korea.

  • "We're going to be putting a very large tariff on chips and semiconductors": The president announced a 100% duty on imported chips yesterday. Asian chipmakers dipped, though Korea's Samsung and SK Hynix escaped thanks to an exemption for companies that commit "to build inside the United States."
  • $100 billion investment in U.S. manufacturing: Apple (AAPL 2.35%), meanwhile, is set to avoid a threatened 50% tax on goods made in India, after adding to its earlier $500 billion promise.

3. Big Moves for Stock Advisor Recommendations

In Wednesday's first-quarter earnings call, e.l.f. Beauty (ELF -13.53%) CEO Tarang Amin announced "our 26th consecutive quarter of both net sales growth and market share gains" as the company beat Wall Street estimates. But a 30% net income decline, blamed on China tariffs, led to a 10% stock fall in early trading.

  • 10.5% revenue rise year over year: Paycom (PAYC 10.96%) popped 5% ahead of market open, following Q2 revenue and earnings beats. Full-year guidance suggests 9% revenue growth.
  • Beating the S&P 500 by 68% since October 2024 rec: Food delivery company DoorDash (DASH 1.24%) posted 25% Q2 revenue growth with $285 million net income compared to a loss the same quarter last year. The stock gained 9% pre-market.

4. Q2 Earnings Thursday Include LLY, MNST, and GILD

Eli Lilly (LLY -14.41%) raised full-year profit guidance this morning, after the leading U.S. weight loss drug maker saw Q2 revenue jump 38% to $15.56 billion on the back of growing demand for Zepbound and Mounjaro. But the stock dipped 13% after disappointing results for oral weight loss drug orforglipron.

  • Missed Wall Street revenue estimates six times in the last two years: Rule Breakers rec Monster Beverage (MNST 0.97%) saw Q1 revenue drop 2.3% year over year, but analysts predict a 9.6% rise this time to $2.08 billion. Results are due after market close.
  • Up 60% in the past 5 years: Gilead Sciences (GILD -0.72%) also reports this afternoon. Revenue is expected to be flat, with EPS down 2.5%. The company expects a $61 million hit related to partner R&D charges.

5. Fed Cuts Finally Coming?

San Francisco Federal Reserve president Mary Daly put fresh pressure on the Federal Reserve for interest rate cuts Wednesday, saying: "Once the labor market stumbles, it tends to fall quickly and hard."

  • "All this means that we will likely need to adjust policy in the coming months": She added underlying inflation has been trending down, and tariff inflation is unlikely to be persistent.
  • "You have to think of this as still quite early days": Fed chair Jerome Powell remains cautious over tariffs, in the face of dissent from two governors at last week's meeting. CME FedWatch now puts the chance of a September cut above 93%.

6. Your Take

The Trade Desk (TTD 0.43%) reports later today. The stock saw as much as a 60% peak-to-trough fall earlier in 2025, though has climbed over 20% in the past month alone.

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