Becker Business Podcast – Klarna, Avis, CarMax, & KKR

Host: Scott Becker
Date: February 19, 2026
Episode Description:
Scott Becker delivers a concise update on major business news, focusing on stock performance, industry challenges, and notable market shifts involving Klarna, Avis, CarMax, and KKR. He also touches on a historical milestone for Amazon and Walmart.

Main Theme & Purpose

This episode centers on recent dramatic movements in the stock prices and business performance of several major companies, examining what their situations reveal about broader trends in retail, auto, fintech, and private equity. Scott Becker offers brief analysis and personal insight into what’s driving these changes and why revenue growth isn’t the only metric that matters.

Key Discussion Points & Insights

1. CarMax: Revenue Growth vs. Margin Pressure

• Stock Volatility:
  • CarMax’s stock started the day down about 16% but recovered to about a 9% decline by midday (00:57).
• Core Business Challenge:
  • “The basic concept is the revenues keep growing but the margins are shrinking and their earnings went down.” (Scott Becker, 01:18)
• Market Comparison:
  • Calls out Carvana’s similar volatility, with Carvana down about 10% the same day.

2. Avis: Tough Quarter and Year

• Significant Decline:
  • “Avis down about 20% today having a horrendous, horrendous quarter and year.” (Scott Becker, 01:33)

3. Klarna & the Buy-Now-Pay-Later Sector

• Industry Challenges:
  • Klarna, like fellow BNPL company Affirm, faces a tough market:
  • “Klarna, the buy now, pay later firm like Affirm … down 24% today.” (Scott Becker, 01:41)

4. KKR: Private Equity Under Pressure

• Year-to-Date Performance:
  • “KKR down about 19% year to date as the private equity funds continue to struggle, continue to have a hard time growing and exiting.” (Scott Becker, 01:47)
• Broader Trend:
  • Reflects mounting difficulties across private equity in both growth and exit strategies.

5. Amazon Surpasses Walmart in Revenue

• Milestone Moment:
  • “Amazon for the first time has greater revenues than Walmart. It's the first time that's ever happened. Amazon's ahead of Walmart in revenues.” (Scott Becker, 01:59)
• Stock Performance Paradox:
  • Despite this, “Amazon's down 11% year to date. Walmart's up about 15% year to date.” (Scott Becker, 02:07)
• Key Takeaway:
  • “Big question is revenues aren't everything. It's revenues plus margins that count.” (Scott Becker, 02:14)

Notable Quotes and Memorable Moments

• On CarMax and Shrinking Margins (01:18):

  "The basic concept is the revenues keep growing but the margins are shrinking and their earnings went down."
  — Scott Becker

• On Avis’ Rough Year (01:33):

  "Avis down about 20% today having a horrendous, horrendous quarter and year."
  — Scott Becker

• On Private Equity (01:47):

  "KKR down about 19% year to date as the private equity funds continue to struggle, continue to have a hard time growing and exiting."
  — Scott Becker

• On Amazon Surpassing Walmart (01:59):

  "Amazon for the first time has greater revenues than Walmart ... but Amazon's down 11% year to date. Walmart's up about 15% year to date."
  — Scott Becker

• On the Importance of Margins (02:14):

  "Revenues aren't everything. It's revenues plus margins that count."
  — Scott Becker

Important Timestamps

• 00:57 – Episode begins with a rundown of featured companies and context for the discussion
• 01:10 – CarMax’s recent stock moves and earnings performance
• 01:33 – Avis’s difficult quarter and market decline
• 01:41 – Klarna and the BNPL sector’s market troubles
• 01:47 – KKR and private equity pressures
• 01:59 – Amazon surpasses Walmart in revenue, but stock performance diverges
• 02:14 – Conclusion on the critical importance of margins alongside revenue

Tone and Style

Scott’s delivery is brisk, focused, and wryly candid, especially as he admits some companies discussed are “love to hate or love to think aren’t going to do well.” His commentary is succinct yet offers strategic business insight, making clear that headline-grabbing metrics like revenue growth aren’t the whole story—investors must watch margins and profitability.

This summary captures the core analysis and highlights from the episode—providing valuable, actionable business insight for anyone tracking corporate performance and market trends.