General Motors (GM) and Toyota (TM) posted double-digit sales gains in the third quarter. GM’s third-quarter sales were up 21 percent year-over-year and Toyota’s sales increased 12 percent year-over-year. Despite this, shares of both companies are moving lower in Tuesday's late trading.
Trading for Molson Coors Beverage Company (TAP) was halted as news came out of the company’s Strategy Day, which included details on the alcohol company's plans to capitalize on the next Super Bowl.
Airbnb (ABNB) shares fell in late trading after the stock was downgraded by KeyBanc analysts citing easing travel demand.
Yahoo Finance Live takes a look at some of the trending stocks of the day. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
JULIE HYMAN: GM and Toyota both posting double digit sales gains in the third quarter. GM and its dealers delivering more than 674,000 vehicles in the US. That's up 21% year-over-year. Toyota, meantime, reporting sales over 590,000 vehicles. That's up 12% from the prior year. This is not-- some of the automakers report on this timeline. We just heard deliveries from Tesla yesterday. Ford, we don't hear from for this particular metric on this timeline. But it gives you an idea of what's going on here. But the stocks are down.
JOSH LIPTON: Yeah. I mean, I think it's interesting for investors right now, you're kind of concentrating on what's next, right? So if you're in these names, you're thinking about how the UAW strike doesn't seem like that's ending anytime soon, right? Wages, wage tiers, pensions, so to the extent that keeps going on at some point, impacting production perhaps. And of course, as we were just talking about, higher borrowing costs. How does that all weigh on demand for vehicles looking ahead?
JULIE HYMAN: Right. If my-- you know, it's like we keep talking about with mortgages, how much that payment has gone up for the same price of home. Well, of course, the same goes for auto prices. Now, auto prices are a little more variable, right? But at the same time, if I'm financing an auto purchase--
JOSH LIPTON: Yeah.
JULIE HYMAN: --that's going up, my financing costs are going up.
JOSH LIPTON: For sure, I think, that's what you see investors reacting to there. Trading has been halted for Molson Coors as we get some headlines from the company's strategy day as well. This was interesting name, of course, Julie. It's up actually about 20% so far this year. And one theme of this, of course, has been the problems plaguing Bud Light there, got caught up in a culture war. The extent to which perhaps Molson Coors, the question has been asked is going to be able to capitalize on that dust-up.
JULIE HYMAN: Right, exactly. Now, again, these shares are halted. So we're not seeing reaction to this news as of yet. The company's strategy day saying its long-term net sales revenue growth should be in the low single digits. And its long-term underlying income before income taxes should be in the mid-single digits high, single-digit long-term underlying earnings per share growth as well.
I believe this is mostly repeating targets that are already set. One other thing that we learned from the strategy day, got a little color on what we're going to see in the Super Bowl apparently or what kind of ads they're going to be coming out with. The NFL JJ Watt is going to be doing some new Miller Lite commercials. So that's part of it. They're going to boost their ad spending for the Coors banquet line, which I think of as sort of a very old school. Maybe it's-- I guess, it's coming back. And so-- and it's also-- its theme for its Super Bowl ad, it's going to be "made to chill."
JOSH LIPTON: Yeah. I mean, listen, to the extent that they push in to the Super Bowl, that's interesting, because, traditionally, you would think NFL and Bud Light, so they're making moves.
JULIE HYMAN: Exactly.
JOSH LIPTON: I will say, though, this, you know, it's interesting 20%, about 70% of analysts, the gross majority, are a hold on this name. They are on the sidelines. So not a lot of love on the Street.
JULIE HYMAN: I mean, at this point in the day, it's likely it's just going to be halted through the close. So we'll keep an eye on it and see if there's some after-hours activity that will give us an indication as to how people are reacting to some of these headlines.
We're also watching shares of Airbnb today. They are down by nearly 7%. That's after the stock was downgraded over a key bank. Analysts, they're attributing the move to easing travel demand, saying margins have likely peaked and revenue growth could slow. And there was an interesting interview with the CEO Brian Chesky the other day, in which he talked about some real fundamental issues at the company that he is trying to change amidst competition, amidst other issues, like new regulations in New York that are going to make it much harder for people to rent out their properties as Airbnbs.
JOSH LIPTON: And in fact, this analyst actually called out New York in that downgrade. So he goes to sector weight, which is basically a meh, right?
JULIE HYMAN: Yes.
JOSH LIPTON: Oh, yeah. But he actually called out New York City, because he said restrictions here, Julie, and, obviously, when we think about New York City, a popular destination for New Year's Eve, right? That could actually accentuate, he says, quarter-over-quarter decline. So that is a reason he moved to the sector wait there.
JULIE HYMAN: Yeah. I mean, you kind of understand that ruling in New York City. If anybody who lives in an apartment-- lives or has ever lived in an apartment building in New York City, and he got like strangers coming in and out of the building, it's not something that buildings like that.
JOSH LIPTON: Do you feel better about the move to New Jersey when you hear that?
JULIE HYMAN: Yeah.