Brew Markets – "Will Walmart’s CEO Exit On Top? & StubHub Snubbed On No Guidance"

Date: November 14, 2025
Host: Ann Berry
Producer/Co-Host: John Croteau

Episode Overview

In this episode, Ann Berry dives into four top stock stories: Walmart’s CEO stepping down after a transformative 12-year tenure, StubHub's post-IPO stumble due to lack of financial guidance, Sally Beauty’s earnings beat (and at-home beauty boom), and an update on Virgin Galactic’s repeatedly delayed space tourism vehicle. Ann and John unpack the numbers, market reactions, and industry context in their trademark incisive and conversational style. The show closes with a check on market indices, crypto, and a quick note on a new US-Switzerland tariff deal.

Key Discussion Points & Insights

1. Walmart’s CEO Departure – Did Doug McMillon Leave At The Top?

(00:34–04:43)

• Walmart as a “Tech Stock”: Ann highlights Doug McMillon's visionary push into e-commerce, fintech (the “One” startup), and digital advertising—transforming Walmart into more than “just” a retailer.
  • “Walmart’s first-party data to help advertisers reach millions... blossomed into a whole business, Walmart Connect, which has more than $4 billion in revenue.” (Ann, 01:24)
• Business Fundamentals:
  • Profitable merchandising, grocery market share, high-income shopper gains.
  • “Walmart’s promise since 1962 of consistently low prices... Stock is up over 100% in the past five years.”
• Financial Perspective:
  • Valuation: $880 billion, trades at ~20x EBITDA, with a lofty 4x PEG ratio—higher than Nvidia.
  • “Amazon is now directly attacking that moat around Walmart’s core business...”(Ann, 02:05)
• McMillon’s Hits & Misses:
  • Success: Revenue up from $500B to $680B, stock up 300% since 2014.
  • Misses: Jet.com ($3B) and Bonobos ($310M) acquisitions did not work out.
• Succession:
  • John Furner (current US head, Walmart veteran, Arkansas roots) named as successor.
  • Market mildly spooked: “Walmart stock did head down today. It’s coming in roughly flat, a sign that the existing CEO is going to be missed.” (Ann, 04:38)

Notable Quote

“There’s a question... as to whether he’s leaving Walmart behind at its peak.” (Ann, 01:57)

2. StubHub Stumbles Post-IPO – The Danger of No Guidance

(05:26–13:38)

What Sparked StubHub’s 22% Stock Drop?

• Headline Numbers:
  • Revenue ($468M) beat estimates, GMS up 11%, adjusted EBITDA up 21%.
  • Stock fell over 22%, “dipping below $13”—half its IPO price from September.
  • $1.3B accounting (non-cash) hit due to IPO-related expenses.
• Market’s Real Issue: No Guidance
  • CEO Eric Baker spent 17 minutes reiterating company history, not the future.
  • CFO Connie James added “color,” but nothing new.
  • No forward guidance, repeatedly stonewalled all analyst attempts.
  • “This was the first quarter... after that IPO, and the company just stonewalled. The market just refused to talk about guidance for this quarter.” (Ann, 09:41)
• Competitive/Industry Context:
  • Raised as a “tech business” going after Ticketmaster/Live Nation (LN trades at lower multiples).
  • Justified YoY GMS growth by excluding Taylor Swift's Eras Tour anomaly.
• Investor Reaction:
  • “This was a massive premium... and the market’s saying, where is the data that supports it? And StubHub said, we’re not going to say anything.” (Ann, 11:51)
• Broader Impact?
  • Vivid Seats (SEAT) down 7%, Live Nation (LYV) flat—suggesting concern is StubHub-specific.

Notable Quotes

“This IPO was on the promise of investment in these technologies... and StubHub said, ‘We’re not going to say anything.’” (Ann, 11:56)

“It’s so important to get past the headlines. This is not about that 1.4 billion dollar non-cash impact. This is about... a really expensive IPO.” (Ann, 11:39)

3. Sally Beauty – At-Home Beauty & Digital Services Driving Growth

(15:27–19:57)

• Earnings Beat & Market Reaction:
  • Stock up 30% YTD, 5% on the day; net sales $947M in Q3 (+1% YoY).
  • “This is a big business... just for one quarter.” (Ann, 16:37)
• Business Model:
  • Split between retail (3,000 stores, 10 countries) and Beauty Systems Group (serving pros via CosmoProf, Armstrong McCall).
  • “It's a really interesting piece that has both consumer facing businesses and professional or business facing elements.” (Ann, 15:52)
• Innovation:
  • Licensed Colorist On Demand (LCOD): Free online video consultations for hair color, seeing 5–6K consults/week, cited as driving 7% color category growth this quarter.
  • “Trying to focus on expertise. Also refreshing stores... looking to do 50 refreshes next year.” (Ann, 19:57)
• Consumer Trends:
  • Ann notes a rising trend in at-home beauty, as inflation drives consumers to “skip the salon and save.”
  • “I've been watching this idea of consumers trying to do more beauty services for themselves at home... instead try and find great products to use at home instead.” (Ann, 18:34)

Notable Moment

“The service has been available for two years. They see about five or six thousand consultations a week. And on the call it was pointed out that they're seeing real conversion... color category was up 7%.” (John, 18:14)

4. Virgin Galactic – Still Waiting for Lift-Off

(19:57–22:51)

• Company Update:
  • Ann and John recap Virgin Galactic’s long-delayed space tourism craft.
  • Flights paused in 2024; investors tired of hearing “it’s coming.”
  • On earnings call, reaffirmed new spacecraft expected in 2026.
  • John: “If you go on Reddit... people are burned, they say we’ve heard this before.”
• Technical Progress, Investor Skepticism:
  • “We have seen the expected completion dates of our wing and feather subassemblies shift modestly to the right.” (John quoting the call, 21:39)
  • Ann contextualizes: Virgin’s plane-like takeoff approach vs. Blue Origin’s vertical rockets.
• Pop Culture/Personal Aside:
  • Ann describes touring the Intrepid in NYC, muses on one day seeing a Virgin craft on display: “I think one day we will see a Virgin Galactic craft sitting on that deck with the lineup.” (Ann, 23:00)
• Bottom Line:
  • Company says 2026 is launch year, but market remains wary.

5. Quick Market Update & Trade News

(23:24–24:29)

• Market Closes:
  • S&P 500: Flat
  • Dow: Down 0.7 pt
  • Nasdaq: Up 0.1%
  • Bitcoin: Down 3.5% (now -20% from all-time high)
• Tariff News:
  • New US–Switzerland trade deal: Swiss import tariffs dropping from 39% to 15%; includes pharma and gold smelting sector plant relocations to US.
  • Ann’s take: Signals push towards inflation control; December rate cut now “not so sure” due to mixed Fed signals.

Notable Quotes & Memorable Moments

• On Walmart’s Innovation:
  “A tech stock by any other name... investments that CEO Doug McMillon was making to innovate in e-commerce, to have its own fintech startup... and to realize the retail giant’s potential as a media network.” (Ann, 00:57)

• StubHub’s Evasive Call:
  “This earnings call, John, was over 30 minutes... CEO spoke for the first 17 minutes, barely drawing breath. What he did was reiterate what we already knew from the recent IPO.” (Ann, 07:35)

• Sally’s At-Home Boom:
  “This licensed colorist on demand pickup reminded me... instead of going into a salon and getting their hair done... using this service, getting an expert perspective, and then going home to do it.” (Ann, 18:34)

• Virgin Galactic’s Future:
  “We have seen the expected completion dates of our wing and feather subassemblies shift modestly to the right.” (Quoted by John, 21:39)

Timestamps for Key Segments

• Walmart CEO & Business Analysis: 00:34–04:43
• StubHub Earnings, Stock Plunge, Guidance Drama: 05:26–13:38
• Sally Beauty Earnings & At-Home Trends: 15:27–19:57
• Virgin Galactic’s Delayed Spacecraft: 19:57–22:51
• Market/Tariff/Rate Cut Update: 23:24–24:29

Summary Takeaway

This episode delivers sharp, critical analysis of some of the market’s hottest headlines. Ann Berry breaks down why Walmart’s CEO departure is a cautious turning point, demystifies StubHub’s stock crash (non-cash charges weren’t the real issue: lack of guidance was), shines a light on consumer and innovation trends in beauty retail, and offers a measured update on the (perpetually pending) era of space tourism. Rapid-fire, insightful, and sprinkled with data and real-world context, “Brew Markets” again proves itself a must-listen for anyone interested in what’s really moving markets.