Investment strategist, Tim Urbanowicz, expressed concerns about a slowdown in consumer spending.
What Happened: On Thursday, Urbanowicz highlighted during CNBC's Worldwide Exchange that the earnings season has pointed out "the consumer is clearly slowing down," urging investors to be "cautious on stocks that are exposed to the consumer."
"The consumer is clearly slowing down, and at this point, I think you need to be cautious on stocks that are exposed to the consumer," says @TimUrbanowicz to @FrankCNBC pic.twitter.com/IXzaHR2BYI
— Worldwide Exchange (@CNBCWEX) August 9, 2024
This warning comes in the wake of similar concerns raised by companies like Amazon.com Inc. (NASDAQ:AMZN) and Airbnb Inc. (NASDAQ:ABNB) about slowing consumer demand.
Why It Matters: Urbanowicz's warning aligns with recent reports of slowing consumer demand. Expedia Group Inc. (NASDAQ:EXPE) reported "softening" travel demand in July despite a revenue beat in second-quarter earnings. Similarly, Amazon attributed its lower third-quarter revenue forecast to the ongoing Paris Olympics and the recent assassination attempt on former President Donald Trump, stating that "customers only have so much attention".
Moreover, Airbnb also painted a grim picture of falling consumer demand, attributing it to global events and new regulations in California. The company forecasted a "sequential moderation" in nights and experiences booked for the upcoming quarter.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari