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Coinbase pops, Walmart shares rise, Ulta Beauty slips as long-term targets disappoint

Yahoo Finance’s Ines Ferre reports on the day's trending tickers.

Video Transcript

BRIAN SOZZI: A lot of green on the screen today. The S&P 500, the Dow, NASDAQ, even the Russell 2000 all in the green. Some positive action here as investors digest all things earnings, coming a little bit better than expected here. Let's get to Ines Ferre right now. Seeing a lot of hot tickers light up our platform at this moment. Ines, let's start with Coinbase. I wrote about this in the "Morning Brief" newsletter on Monday about the potential to see a rerating in Coinbase shares, just given all this enthusiasm around ETFs. And so far, so good on that front.

INES FERRE: Yeah, that's right. And if you take a look at Coinbase in a five-day chart, take a look, it's up 21%, as this momentum has been really building when we're talking about that Bitcoin futures ETF and others that are coming down the pipe. So you're looking today at an intraday action of up 3%.

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I do want to also mention that Facebook has tapped Coinbase for its new digital wallet, so that Coinbase will be storing funds in from Facebook's new digital wallet. That wallet is called Novi. It'll basically allow users to store local currency in crypto. It'll be a standalone app. And that'll plug into other Facebook products like Instagram, et cetera.

So Coinbase's role here is that it will store those funds within its custody trust company that keeps funds secure. And that's also why you're seeing as well a jump with Coinbase up 3%. Still, though, not at its high of 429 a share, that high that we saw after its IPO earlier this year. But nevertheless, a nice bump, especially a nice bump going into that Bitcoin futures ETF that started trading today.

KARINA MITCHELL: And Ines, talking of nice bumps, Walmart also up today. What's the story with them getting a headstart on the holiday season?

INES FERRE: Yeah, that's right. Walmart was added to Goldman Sachs's America's conviction list. So you had the analyst there, Kate McShane and her team of analysts, saying that this was really one of the strongest stories that Walmart had-- that Goldman had seen it from its annual retail conference back in September.

Basically pointing to a couple of things-- pointing to increasing profitability because the company had invested so heavily in e-commerce and its supply chain and that scale of its e-commerce business really puts it in a good position to increase profits. It also talked about increasing market share in the US grocery space, with Walmart seeing market share gains in US grocery in the last two quarters, and also talking about the scale that Walmart has for positioning itself for better inventory than its peers, its competitors, especially among the supply chain crunch.

And because Walmart has invested heavily in supply chain also, basically, it talked about that focus of Walmart in its supply chain, adding lead time to its orders, chartering its own vessels, and even using different ports of entry. So all of this really positioning the stock to perform. Year to date, the stock is only up 2/10 of a percent, but McShane and her team really sees that this could be a high flyer. That's why they put it on their conviction list.

BRIAN SOZZI: And Ines, let's stay on retail here. Ulta stock can use a couple of shots of retinol. Their investor day did not go too well, at least in the eyes of [? Mr. ?] [? Mark ?] and my friend, Stephanie Wissink over at Jefferies, shot me a note, saying their long-term financial targets shared at investor day were short of elevated expectations. And the stock's getting hammered.

INES FERRE: Yeah, that's right. So the company having its investor day, putting out its long-term financial targets. And those were a bit conservative for what the Street was expecting. So, Ulta saying that it's expecting $10 billion in sales by 2024, comp sales rising 3% to 5% annually between 2022 and 2024, net new stores being around 50 per year, and also targeting low double digit growth in earnings per share for fiscal 2022 to fiscal 2024. Piper Sandler's Erinn Murphy said this range was really came in a little light of expectations.

Just talking about some of the highlights, though, that they mentioned in their investor day, this new partnership with Google for Glam Lab, that virtual tool, tryout tool. So that's supposed to improve that virtual tool, and also investing in a retail AI company to create more personalized search engine when looking for makeup on their digital store.

BRIAN SOZZI: Ines, while we have you, can you pull up a chart real quick of our parent company, Apollo? Their investor day just wrapped, I believe. It's been all morning long. Two highlights from this event-- much better than expected earnings outlook from Apollo for 2022 versus Street expectations-- actually, significantly higher than Street expectations. Also, the company looking to hit $1 trillion in assets under management by 2026. This year, they're pegged at about 472 billion. Here, look, the stock clearly likes it.

INES FERRE: The stock definitely does. It's up 7%. Year to date, the stock is up almost 50%, but certainly off of those targets. The Street liking what it's hearing.

BRIAN SOZZI: All right, Ines Ferre, thanks so much.