Brew Markets – Episode Summary

Podcast: Brew Markets
Host: Ann Berry
Episode: Investing in the Knicks and Rangers & Earnings: $WING $FVRR $MCO
Date: February 18, 2026

Episode Overview

This episode of Brew Markets, hosted by Ann Berry, explores some of the day's biggest stock market stories, centering on Madison Square Garden Sports’ announcement to spin off the Knicks and Rangers, key takeaways from the earnings reports of Wingstop, Fiverr, and Moody's, and a quick scan of other financial news including Moderna, Berkshire Hathaway, and Palo Alto Networks. With Ann's engaging and informed commentary, listeners gain insight into how market narratives are shaped by both financial results and broader trends like AI disruption and changing business models.

Main Thematic Sections

1. Madison Square Garden Sports Spin-Off: Knicks vs. Rangers (00:02–05:43)

Key Discussion Points

• MSGS’s Record-High Share Price: Shares surged after announcement of plans to spin off the Knicks from the Rangers, giving investors rare access to direct ownership in elite sports franchises.
• Market Context for Sports Team Investments:
  • MSGS owns both Knicks (NBA) & Rangers (NHL).
  • Comparisons to similar public sports plays:
    • Atlanta Braves (via Liberty Braves, tickers BATRK/BATRA)
    • Manchester United (MANU)
    • Several Italian football clubs
    • Canadian conglomerates (Rogers holds stakes in multiple Toronto teams)
• Why Investors Are Excited: Pure-play sports team stocks are rare despite soaring private valuations; a spin-off could unlock significant hidden value.
• Valuation Gap:
  • Analysts argue MSGS trades at a discount to the sum of its parts.
  • "Forbes valued the Knicks at $7.5B and the Rangers at $3.5B... still combined, that would be more than today’s value of the conglomerate, the enterprise value trading at around $8 billion." – Ann (04:13)
• Catalyst: 2025 open letter from Boyer Value Group urged such a split; the market cheers the latest board move.
• Tax and Control Issues: Spin-off preferable over outright sales due to tax implications; it remains to be seen if the Dolan family will cede true control.

Notable Quotes

• “This is a classic example of the sum of the parts being greater than the current whole.” – Ann (03:18)
• “A spin-off would launch the basketball and then the hockey assets into their own two distinct publicly traded companies—the pure play the folks have been looking for.” – Ann (02:40)

Memorable Moments

• Ann cheerily admits, “As a Knicks fan, or more specifically a Jalen Brunson fan, the record high today... caught my eye like a final second mid-range [shot].” (00:24)
• The segment closes on the irony of sports franchises being both incredibly valuable and hard to access by typical investors.

2. Earnings Deep Dive: Wingstop, Fiverr, Moody’s (05:43–15:18)

Wingstop (06:17–09:10)

• Digging Into the Numbers:
  • Q4 revenue up 8.6% YoY, but missed on expectations.
  • Full year revenue grew 11%; EPS beat by 17¢.
  • Domestic same-store sales fell 5.8%, but Wall Street feared worse; outlook for 2026 is flat to slightly positive SSS.
• Business Model & Growth:
  • Franchise-heavy, asset-light growth model (124 new stores last quarter).
  • Cost benefits from lower wing prices; targeting a rebound among lower-income, Hispanic, and younger customers.
  • “Club Wingspot” loyalty program and the upcoming World Cup are expected tailwinds.
• Stock Reaction: +15% despite mediocre guidance—Wall Street rewards results better than feared.
• Longer-Term View: Ann notes stock is up 110% over five years.

Notable Quotes

• “It’s a really strange world where... not-so-crappy earnings is being rewarded with a 15% share price increase.” – Ann (07:47)
• “Wingstop is looking for a rebound in its lower income Hispanic and younger customers, which CEO Michael Skipworth pointed out is the most under pressure in this economy.” – John (08:28)

Fiverr (09:11–12:52)

• Business Model: Freelance gig marketplace, heavily exposed to shifts created by AI and automation.
• Earnings Reality:
  • Q4 revenue up 3.4% YoY, but core marketplace segment saw a 2.7% decline.
  • Annual active buyers down 13.6% YoY.
  • Shares down 7% today; -48% over six months, -95% over five years.
• Crisis & Response:
  • Fiverr has cut costs (30% workforce reduction in Sept 2025) and is attempting to reposition as an “AI-enabled work platform” but faces existential threat as many services are being automated.
• CEO Vision:
  • Quoting CEO Micha Kaufman: “[Fiverr is transforming] from a transaction oriented marketplace into a trusted work platform... enabling businesses, AI models and agents to collaborate with talent on complex high-value outcomes...” – John reads, (12:16)
  • Ann is skeptical: “...there’s a lot of words, a lot of buzzwords there... the truth is it's very similar to what it does now.” (12:52)

Notable Quotes

• “This is one that's really taking the hit in terms of the overall skittishness around certain tech names... and this is one where the company is desperately trying to get the message out that it’s going to survive and thrive in a world of AI.” – Ann (11:09)
• “I do have a bit of a pit in my stomach talking about the stock...” – Ann (12:52)

Moody’s (12:52–15:18)

• Business Snapshot:
  • $80B market cap, 115+ years old, iconic credit ratings agency.
  • Q4 revenue: $1.9B, up 13% YoY; EPS $3.64, up 39% YoY, both beat estimates.
• Role & Moat:
  • Moody’s remains critical in debt markets; the “second pair of eyes” for investors and companies.
  • Ann recounts her dealmaking past—Moody’s has been pivotal for credit structuring.
• AI & The Future:
  • CEO Rob Faber emphasizes “decision-grade contextual intelligence” and the moat of Moody’s proprietary, private data.
  • “Our data can’t be synthesized from public sources. The CEO said that data is both AI enabling and AI resilient.” – John quoting Faber (17:32)
  • Ann is convinced about the value in non-public engagements but wonders if profit margins will sustain as AI automates more underwriting work.

Notable Quotes

• "Very important. And just to look at the range of things that they cover, in 1997, ...David Bowie securitized royalties on his back catalog. They called them Bowie Bonds. And initially the 10 year bond was rated by Moody's as Triple A.” – John (15:18)
• “If AI is mainly sourcing its information from public disclosures and you haven’t disclosed anything public yet... then that makes complete sense.” – Ann (17:32)

3. Rapid-Fire Market Headlines and Analyst Insights (19:46–22:58)

Market Closings and Notable Moves (19:57–21:06)

• Market Wrap:
  • S&P 500: +0.5%; NASDAQ: +0.25%; Dow: +0.8%
• Berkshire Hathaway Moves (Warren Buffett):
  • Slashed Amazon stake by 75% in Q4 2025; bought 5.1M shares of New York Times (stake worth $352M).
  • NYT shares up 1.5%; up 25% in six months.
  • Ann: “A vote of confidence from one of the greatest investors of all time.” (20:31)

Other Headlines

• Moderna (21:06–21:35):
  • FDA reversed course, now reviewing Moderna’s mRNA flu shot for older adults.
  • Stock up 5%; approval decision expected August 2026.
• Palo Alto Networks (21:35–22:58):
  • Beat Q2 revenue/profit, but full-year outlook trimmed owing to operational distraction from integrating multiple large acquisitions.
  • Large recent deals: CyberArk ($25B), Chronosphere, Koi.
  • CEO Nikesh Arora on CNBC: “I’m still confused why the market is treating AI as a threat to, at least, cyber security.” (22:58)
  • Analyst support following the post-earnings dip.

Notable Timestamps

| Segment | Timestamp | |----------------------------------------------------|--------------| | MSGS Split and Sports Team Investment Primer | 00:02–05:43 | | Wingstop Earnings Breakdown | 06:17–09:10 | | Fiverr’s Existential AI Challenge | 09:11–12:52 | | Moody’s, AI, and the “Decision-Grade” Moat | 12:52–15:18 | | Market Headlines: Berkshire, NYT, Moderna, Palo Alto| 19:57–22:58 |

Final Thoughts & Tone

Ann Berry combines enthusiasm with analytical rigor, often interweaving personal anecdotes or humor. The tone is conversational but informed, not shying away from skepticism (especially on “AI-powered pivots”) while remaining respectful and market-focused.

Memorable Quotes Collection

• “This is a classic example of the sum of the parts being greater than the current whole.” – Ann (03:18)
• “It’s a really strange world where... not-so-crappy earnings is being rewarded with a 15% share price increase.” – Ann (07:47)
• “...There’s a lot of words, a lot of buzzwords there... the truth is it's very similar to what it does now.” – Ann on Fiverr’s AI rhetoric (12:52)
• “Our data can't be synthesized from public sources. The CEO said that data is both AI enabling and AI resilient.” – John quoting Moody’s CEO (17:32)
• “I’m still confused why the market is treating AI as a threat to, at least, cyber security.” – Nikesh Arora, Palo Alto Networks CEO (22:58)

For Listeners: Key Takeaways

• The MSGS Knicks/Rangers spin-off could set a new precedent for trophy asset value unlocking.
• Wingstop is a study in lowered expectations—mediocre guidance can be handsomely rewarded if the bar is low enough.
• Fiverr exemplifies the gig economy’s battle with AI disruption and platform commoditization.
• Moody’s survives on proprietary, private data but faces AI-driven margin pressure.
• Watch for Buffett’s (Berkshire Hathaway’s) final chess moves, and how AI is being integrated (or not) in legacy and cyber businesses.

Brew Markets delivers a punchy, insightful guide to the day’s market undercurrents—with just the right mix of humor, skepticism, and actionable intelligence.