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KB Home's "Softened" Market 📉

And, Starbucks ponders China biz sale.

June 24, 2025

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Today is Tuesday, June 24, 2025.

The Early Bird Index today is 82.72

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KB Home's "Softened" Market 📉

Although KB Home $KBH ( â–˛ 0.73% ) reported good financial earnings results on Monday, shares of the homebuilding company fell 1.52% in after-hours trading.

Financials: KB Home reported earnings of $1.50 per share and revenue of $1.53 billion in the past quarter. Both were better than expected.

Details: The company’s average selling price increased in the quarter.

Yes, But: KB Home’s housing gross profit fell from 21.1% last year to 19.3% this year. The company attributed the decline to price reductions and other concessions made to homebuyers.

  • CEO Jeffrey Mezger said Monday that “market conditions have softened.”

Outlook: The company also lowered its full-year revenue outlook on Monday.

Early Bird’s Nest Egg Gains: The housing market has shifted from a seller's market to one that increasingly favors buyers.

  • More homes available than buyers means more competition for selling homes.

  • For KB Home, this means slower sales, increased competition, and downward pressure on prices and margins.

Final Thoughts: It’s a nightmare year for KB Home, with the stock already down 17%.

Notables

Notable Earnings Today: FedEx (NYSE: FDX), Carnival (NYSE: CCL), BlackBerry (NYSE: BB), TD Synnex (NYSE: SNX), Worthington Enterprises (NYSE: WOR), AeroVironment (Nasdaq: AVAV), Anterix (Nasdaq: ATEX).

Notable IPOs Today: Cartesian Growth Corporation III Class A Ordinary Shares (Nasdaq: CGCT), Armada Acquisition Corp. II Class A Ordinary Shares (Nasdaq: AACI).

Notable Equity Crowdfunding Campaigns Ending Today: Beto's Carnitas (Honeycomb), El Pilon (Honeycomb), Majani (Honeycomb), Grim Wizard Coffee (Honeycomb), nView medical (StartEngine).

Notable Economic Events Today: S&P Case-Shiller home price index (9:00 a.m. ET), CB Consumer Confidence (10:00 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

Starbucks Ponders China Biz Sale

Starbucks ticked up 1.25% in after-hours trading on Monday after a report suggested that the coffee giant might make a significant change to its business unit in China.

Details: Caixin Global reported on Monday that Starbucks is considering a full sale of its China operations. The report said the company recently held preliminary talks with more than a dozen potential acquirers, including private equity firms.

Also: According to Bloomberg, Starbucks said it is not currently considering a full sale of its China business.

Background: Starbucks' performance in China has deteriorated notably in recent years, with declining revenues, falling same-store sales, and mounting competition from aggressive local brands.

Final Thoughts: Starbucks is still trying to turn its business around.

Solana Recovers After Bad Month

Amid excitement about new strategic partnerships and speculation about a potential spot ETF in the future, the price of the cryptocurrency Solana $SOL.X ( â–Ľ 2.69% ) jumped about 8% on Monday.

Final Thoughts: Solana’s price has been down 16% in the last 30 days.

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.