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Marcus & Millichap CEO sees hope for commercial real estate

The commercial real estate sector had a rough year in 2023 compounded by the regional bank shakeup. The sector has had to adapt to surging mortgage rates, volatile markets, and changing work setups for office employees. Commercial real estate could still bounce back on stabilizing certainty in markets and potential interest rate cuts by the Federal Reserve. Marcus & Millichap (MMI) CEO Hessam Nadji joins Yahoo Finance to discuss why he believes the "worst of it" is behind the commercial real estate sector and why he believes investors should be cautiously optimistic going forward in the sector. Nadji affirms his stance: "As interest rates either settle or start to come in, either one by the way, the industry doesn't need interest rates to come in that much to basically get going again. It's the variability from week-to-week of where the interest rate movement is going to be that's creating an obstacle for the business. Once that happens and the price adjustments continue, I don't think we're done... seeing the full effect of the interest rate shock. I think we're more than halfway there. So within the next couple of quarters, we think that price discovery will have run its course and there will be more certainly related to revaluing commercial real estate in this higher interest rate environment. And that will bring a lot more activity to the market. So is the worse is it of it behind us? Yes, I'm confident that it is." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino


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39 points
Walmart CFO talks Q4 earnings lifted by holiday sales, ads

Walmart (WMT) stock reaches a record high intraday on Tuesday after the retailer reported better-than-expected fourth-quarter earnings results. E-commerce sales jumped 23% year-over-year, beating estimates on both revenue and earnings year-over-year. Walmart CFO John David Rainey joins Yahoo Finance Live to discuss the drivers behind the strong performance. Rainey says holiday spending fueled sales, with "the two biggest sales days" occurring right before Christmas. Over the quarter, Walmart "gained share in almost every category," showing customers are increasingly shopping at Walmart as the company enhances how it serves them. Another headline for the big-box chain is its plans to acquire TV manufacturer Vizio (VZIO) for $2.3 billion, after Walmart's "fast-growing, high margin" advertising business grew by 33% in the past quarter. Rainey explains the deal will allow Walmart to "connect and serve customers in different ways" by leveraging data to improve experiences. While consumers show discretion around bigger purchases, Rainey says Walmart's "omnichannel retail model" with robust in-store and online distribution "is really resonating with customers" as they shop more frequently. As inflation persists, Walmart wants to provide value through lower prices, working with suppliers, and fine-tuning its own personal brands. However, Rainey notes "it's hard to generalize" where price pressures occur across categories. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith


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