gold is breaking out. >> you are definitely doing that. are you buying it on the close today? >> the order's in. >> i didn't realize it was already in. no wonder you weren't paying attention to the segment during the show. all right. i'll see you guys on "closing bell." the dow is down 75 points right now. "the exchange" starts right now. thank you very much, scott. hello and welcome to "the exchange." i'm kelly evans. here's what's ahead, black friday spending came in weaker than expected, but cyber monday is strong and perhaps the strongest category of all is buy now, pay later. is that a good sign? is that a symptom of stress? either way, it's a headwind for certain retailers and we'll discuss it all with the ceo of klarna in an exclusive interview ahead. we'll talk to goodwill's digital storefront who said secondhand am whys online continues to outstrip demand and the late of the read on housing that shows

those 8% mortgage rates department buyers on the sideline last month and there were two other data points in that report that may bring them back into the market. we'll tell you what they are and when it may happen. let's start with the markets, though. as mentioned, the dow is down 75 and dom chu has the numbers. >> kelly, this is right now just about near session highs, believe it or not. the s&p 500 which is currently at 4556. we are down two to three points and just about flat on the session at the high. tilting up toward the intra-day basis and the dow, off .25% and the nasdaq composite at 14,292 is up one-third of 1% and it's green right now and that's the current state of play for the markets. one place folks are keeping a close eye on is the gold trade, believe it or not. since the lows we saw over the last couple of months we were up

about 10% on gold prices which currently sit for futures at 2,000 per ounce and it's one-third of 1% and here ate trading range people are watching. is it going to continue to break out? that's key. watch gold prices and in the stock of the day right now is in real estate, but technology-related real estate and this is crown castle up 4% and it's a company that owns a lot cell phone towers and fiber optic networks and the infrastructure play. elliott management, the activist investor has taken a stake in the company roughly $2 billion worth pushing for change to unlock value and executive board changes and that's pushing it higher up 4% and we'll keep an eye on gold, crown castle and at least the move high are in the intraday trade so far, kelly. i'll send things back to you. >> thank you. the holiday shopping season is now in full swing and it's off to a somewhat bumpy start.

with black friday sales lower than expected and one clear winner, buy now, pay later. shoppers will fund more than $780 million worth of purchases with bnpl today alone. that's a 19% jump from last year and total buy now pay later sales for the month are expected to top 9 billion. those numbers are giving a publicly traded firm a boost today and its shares up 10% and my next guest says more about it and orders soared 30% on black friday. joining me now in an exchange exclusive is klarna ceo sebastian. >> thank you for having me. >> what can you tell us about cyber monday so far? >> just like you mentioned we were excite shocked the fantastic performance of buy now pay later and we were up 30% and the numbers we saw 7.5% increase. so it just shows how much market share it is gaining in the market and both share of

checkout and murore merchants offering it and it is a more soft performance among emergence in general and to some degree even the numbers we saw on black friday i have seldom seen such good offers and that's good for consumers. i'm not sure to what extent those numbers were merchants trying to get stock out and offering very aggressive discounting. >> we have a lot -- a lot of people have noticed the same thing and we wonder if that's why and sales were down 2% and that's reflective of the deep discounting and where are the areas where you saw the biggest usage of buy now, pay later? >> i think it's across the field. people have to remember that this is really a growing momentum in the u.s. because what we have identified is what we call self-aware avoiders. this is 20% of the credit card market in the u.s. that are very tired of the fees and the hidden fees and revolving accounts and a lot of bank practices that

they've deployed and they're showing this as an alternative and press 1 for debit and press 2 for credit and that's what we're try to do here, give people the option to click on credit and fixed installments in a short period of time. you see that everywhere. you see that in clothing and accessories and video games and to do a little bit of sharing with you, playstation 5 did very well. >> there's a nugget. playstation 5 did very well. one of the things is the extent to which people as they are out shopping are using these purchases to reach a little bit versus just because of the convenience of spreading out payments and it seems like it's displacing those retail credit cards that you mentioned. we've learned recently that some retailers, if my memory serves, kohl's is one of them that had upward of 40% or more of their revenues coming from

store-branded credit cards. do you think you are disrupting that revenue source? >> well, yes and no to some degree. we work with a lot of retailers that have in parallel with our offering a co-branded card, right? and it's actually less cannibalization than you would expect and these are consumer audience groups that are using these different products and the self avoiders that we refer to which is 20% of the credit card market they would never sign up for those cards, as well. some of the programs haven't been in the best interest of consumers and they've been slightly too aggressive and some of the programs when they tried to push people to evolve and quite costly from a financing perspective and if it's driving slowly, but very safely. it is increasing the kind of perfect markets where it's basically harder in the future to create services that rely on people by mistake falling into

late fees or high-paying, high interest rates and so forth and there needs to be more transparent and consumers take active choices and understanding the consequences of those choices and long term you will see a trend like credit products like the ones that we offer in the market, but again, i don't think necessarily that it will have that short-term implication that some people may fear. >> as we are learning, it is those who are younger consumers and with difficulty accessing credit use, the pbuy now, pay later more frequently. there is some relationship with the credit bureaus and maybe that's a pro or maybe that's a con, but it is sitting in this gray area in terms of the regulatory space right now, it seems and maybe even in consumers' minds because we haven't been through this kind of severe down cycle yet. it's unclear what's going to happen if people come under stress. although you have a stress test of that when inflation hit its peak last june. >> i think you have to remember

that i've been running this company now for 20 years almost, and i've gone through a few financial. i wasn't that old back then and i'm not that old yet, but the point in 2007 i saw that. one thing is when you have consumers they choose the product because it was safer to use in the credit card and these are self-aware customers and remember our losses compared to credit cards are 20% to 30% below industry standards and our average outstanding balance is 100 to $150 compared to 5,000 on a credit card. it's a fixed installment and so forth. you see that drives better than expected rates and better outcomes for consumers using these services and compared to the alternative that exists this is a beneficial product and we turn around the balance sheet, the interest rate changes and it doesn't affect the cost to that large of an extent because you have great balances.

>> i teased you about the ipo, and i'll save it for another one. on the consumer more broadly, we're getting mixed messages through the last three or four days here. what's the bottom line for you? what shape is the u.s. consumer in right now? >> i think, unfortunately, i tend to avoid to do horoscopes on these things because they're worth as much, but my perspective is we worked with retailers for 20 years, and i see a difficult outlook, and i see klarna gaping marining mark, and we have 500,000 retailers, my impression is there's been a little bit over discounting and so far it will cause a crisis of cost for the consumers with inflation due to interest rates. >> yes. >> but what ai could potentially lead to in the coming six to 12 months is an increase in unemployment especially among middle income people who have

want been used to being there and that's a very different outlook which i find unfortunately not entirely unlikely considering what i am seeing in the tech company. so i think we are moving into a little bit tough macro conditions, as well. >> i didn't think about ai displacing jobs, but i'm glad to hear. i'm terrified to hear that's top of your mind. it's an interesting data point. sebastian, thank you for joining me today. >> thank you for having me. >> 55 billion in five-year notes, i should say. rick santelly is here to track the action for us. rick, how did it go? >> it went a lot better than the two-year note auction which was a bit below average. the grade, a b as in boy. 55 in five-year notes at the dutch auction which is a half a

basis point below the one-issue market and that stops through and it's the exact opposite of tailing and it's a good thing, and if you look at all of the metrics, well, they were a bit deceiving and slightly below average with indirect bidders. direct bidders were very much in line, but what really looked good was the amount the dealers took. dealers took a little over 9% and that is the smallest amount since the first auction of the year in january and the ten-auction average 13%. and 14.42. that means we now have 109 billion of the 148 billion already done and tomorrow will be the last leg of seven-year notes to the tune of 39 billion and do keep in mind that the shorter auction seemed to be a bit better even with the below average two year. what makes the market a bit nervous is the longer maturities. so if it's tomorrow's seven we get the tens and 30s. those will tell the tale of how

aggressive investors want to be on longer data debt obligations. kelly, back to you. >> another sigh of relief for the bond pits and we appreciate it, rick santelli. >> let's get back to stocks coming off session lows and off session highs with the dow down 67. that is breaking what has been a four-week win streak and that is better than expected fourth-quarter earnings and the most in two years, but only 61% beat on revenue and that gap that you see on your screen there is the widest in nearly eight years. earnings overall were up 7% a year ago while revenues were up 1.5%. my next guest is not worried about corporate profits or the consumer going forward and neil is a portfolio strategist at hennessy funds. what kind of mood are you in? >> it's holiday season. i'm also in a good mood. >> don't you think people have

gotten more constructive on the market than a week or two ago? >> if you put these in perspective, you talk about eight companies have run this market and that's it. all of a sudden two weeks ago we went to the magnificent seven, and if you go back to 1960, too young for you, they made a movie, the magnificent seven, and if you go check that out their only three left at the end of the movie. >> uh-oh. now you think who will be left out of the magnificent seven. there are others and they're beating earnings and down on revenue and they're controlling their costs. they're looking to the bottom line and that's where the cash flow is good, that's where the profits are good and that's where you'll have higher dividends, buybacks. >> the reason i'm pounding the drum on the revenue side of it because i wonder if that's a leading indicator. in other words, if you see the number of beats slowing and

nominal, 1.5% revenue in real terms so that's going to be a conundrum, isn't it, for companies going forward? >> revenues are truer numbers than earnings per share and that's what we always follow. the slowdown in revenue is to be expected because the economy has not grown as fast as it was. that doesn't necessarily mean that these companies, most all of them don't understand looking to the future and say if we can put the cash away and even for the consumer, i know you were talking in the segment before, 9, $10 billion in purchases is a fair amount of money in one day. >> yeah. >> so the consumer's in good shape. maybe a little fragile with their psychological outlook, but they're in good shape and you have the holiday season that's historically always been good no matter how much negative news comes out. >> which are the ones you feel

more comfortable and confident about right now? >> i don't feel comfortable with those eight because essentially on average you're selling 11.5 on a price to sales. >> wow. which is ten times more than we would ever pay. so you can look at a sprouts and the farmers market. it's just a farmers market inside. you think about budgets being squeezed. there's a lot that you can do with fruits and vegetables and pasta. you have to have the pasta in there, but essentially you can save money and make great meals and farmers market makes almost $ 3 a share and doesn't pay a dividend. >> he's noticeded by cart turns that people are leaving the inside of the grocery store and going to the outside because the outsides have seen more deflation and the inside they're paying 30% more than they were for cereal, for instance.

>> that's true. you see inflation starting to flatten out and that doesn't mean prices will come back to where they were three years ago. meat's up, poultry is up and everything is up and it might flatten out and that's not the real number that's hitting had the family. >> i like sprouts that you think people can play this. what else are you exciteded about? >> it's coin-operated laundromat and you can look at comfort systems and it's just air-conditioning, heating, ventilation systems for commercial, industrial, government jobs. it's not exciting, but they make almost $8 a share in earnings and pay a dollar in dividends. >> wow. >> so you start to look at these type of companies, not the highfliers because we've seen that before. we saw it in 2007 and in real estate and you saw it in dotcom in the mid-'90s. the more things change the more

they stay the sime. >> are there other strategies other than your typical looking for value in names? i mean, is there anything that jumps out to you as an opportunity thematically right now? >> thematically? no. my biggest problem is where people are just looking at an index and they're going into an index and just looking at the s&p 500, they're not all good companies. 40% almost, supposedly are losing money. so that's 2 00 of the 500 gdp. >> what do you think if there is a premium built into that as a result? >> leverage is a two-edged sword and when you look at apple, it's 7.5% of the s&p and over 13% of the nasdaq. that's one company that's, you know, would you -- you have to ask yourself the question. would you take 13% of your portfolio and put it into one company. >> would you? would hennessy funds? >> absolutely not.

that would not be the smartest play in the book. thank you so much. we appreciate your time today. neil hennessy with hennessy funds. shopify is an early black friday winner and its shares is were up 5% after sales soared 22% that day alone and my next guest sees more upside from here and he'll tell us much more next and the itf is on its best pace since may of 2020, but taking a breather today after the housing report puts pressure on the builders and new home sales, that is. good news for home buyers and we'll tell you why ahead and the dow's down 63. we're back in a moment. cnexan" s "the chgeon bc.

welcome back. shares of shopify are up today and on pace for their best month ever although they're still 50% below their 2021 levels. black friday sales record highs for the platform up 22%, far outpacing the 2.5% overall increase in spending this year. here's shopify president harley finkelstein on "squawk on the street" this morning. >> one of the things that's very interesting is that sales made by merchants on shopify using our point of sales system in store has grown by 33% since this period last year.

so i don't think it's online only. i think it's intentionality where consumers want to buy from their favorite brands. >> and our next guest sees more up side as shopify continues to win share and joining us is ken wong at oppenheimer. good to see you. we are talking up 10%, but what does your gut tell you? >> thank you for having me on. i think a lot of the upside right now is dependent on what happens kind obviously, q4 looking out to fiscal '24. so with sentiment going into the holiday season initially a little more cautious. i think these results definitely show that we can potentially be looking at upsides are numbers and outside of the consensus numbers that are looking for growth closer to 17% and they just have a 22% growth as of black friday. >> wow. did that number surprise you? up 22%? i know when they're in the early, early growth stages we'd

be, like, yeah. of course, give me some context around that figure. >> yeah. it's definitely a bit of a surprise. consensus expectations for the fourth quarter are closer to 17%. we had been hearing from merchants from partners and even from consumers that shopping was starting earlier in the holiday season than just purely during the black friday, cyber monday stretch. it would come in light of the 17% that people were expecting. 22% number definitely meaningfully higher than anticipated and i think some of this is also purely just online. we noticed that on pls which is the retail product. we saw growth actually accelerate to 33% from 27% last year so clearly, this is more of a shopify thing than just purely a retail dynamic. >> not to go on a tangent. i never think of shopify as

being something that i would experience in-store. point of sale volumes were up 33% when in-store traffic was up only 1.1% overall. tell me where would i encounter shopify at the checkout? would i know as a consumer? >> as a consumer you probably wouldn't realize it, but i think some of the consumer's favorite brands like warby parker have an offline presence now. i think what's more important is shopify is no longer just a platform for, say, online first, hybrid second. over the last 18 months we've seen a much bigger push to just pure offline retailers. so this is something that, again, i think the trend is still early, but we shouldn't just purely think of these guys as an e-commerce direct to consumer type of play. >> i think sometimes it benefits them if they think of that way

except for something more traditional and i take your point. let me ask you about your coverage space, what are your conclusions about black friday, cyber monday now? >> i think it should be a net positive for companies levered to online sales, e-commerce. we also cover some more down market competitors in wix and square, godaddy and i imagine they're seeing more upbeat sales trends and for the up market, we have big commerce and they also put out black friday and cyber monday details as they suggest double-digit growth on their platform. across that entire group and i assume some in the e-commerce group have a monolith based on what we saw over the weekend. >> finally, how much more when people are looking through the numbers and going, wow, 8.5%. to me it feels like we're still at such a nascent stage of market growth or penetration to in-store that we should still

expect to see numbers at least that strong, i would think, but maybe i'm being too blase. how much more runway is there for these online players to grow in terms of the total retail market in this country? >> that's a great question. >> right now, it's a percent of retail mix in the u.s. and they're still in the high teens. i imagine that we should continue to see that penetration number move up at least into the 40%, 50% over time. >> wow. >> i don't think offline retail has completely gone away, but clearly, from a consumer, user perspective, whether it's on your phone, your tablet and your pc device, i think we're finding that more and more consumers are purchasing off the couch than in-store, and i think more importantly for shopify it's not just purely a growth dynamic and this is the first year we'll have profitability and by fiscal '24 they'll be looking at mid-teens margins and billions of cash flow and that number

will continue to grow and attract an investor profile than purely a growth-oriented mindset. >> half of the online purchases remain on a smartphone which make sense and that's where we are and we're on the couch and what we're doing. >> ken, we appreciate it. >> i appreciate you having me on. >> ken wong of oppenheimer. shares of the value village is down 40% since its ipo back in june. they are up over 10% over the past week, though. is tlifrhrift the gift this hol weekend? and buy builders' pain, buyers gain and we'll look at the etr st housing report and whheyou're looking to buy or sell this winter season. "the exchange" is back after this break.

♪ ♪ welcome back to "the exchange," everybody. i'm tyler matheson with your cnbc news upon date. john kirby does not know the details of the status of all of the american citizens who were kidnapped by hamas on october 7th. kirby estimated that less than ten americans are still being held hostage. he added that it is unclear whether they're being held by hamas or another group. a southwest passenger was hospitalized after opening the plane's emergency exit hatch and climbing on to the wing at new orleans international airport. officials said the plane was still in the skyway and not moving at the time. the sheriff's office said the investigation has been referred to federal authorities. and the new hunger games

prequel, the ballad of songbirds and snakes led the box office over the thanksgiving weekend. according to studio estimates it held on to the top spot with $42 million in ticket sales. napoleon came in second with 33 million and disney's wish came third with the disappointing take of 31.7 million. kelly, the one i'm looking forward to is maestro with breadly cooper. >> nice. i'll look it up. tyler matheson. home prices dropped dramatically last month and inventory rose. the 30-year mortgage trended down somewhat, 7.3%, practically a steal is the stage setting for buyers to get back into the market? check out shares of i robot after the european commission said amazon's proposed deal for the company may restrict competition in the robot vacuum space. the news triggered several volatility halts for i robot which is now down more than 17%

at more than $34 a share and that has been going on for years at this point. let's quick check on markets and the dow is down 56 while the nasdaq remains positive now by a quarter of 1% and the ten-year yield pretty strong tethafr e five-year auction and the s&p is down 200. we are back after this.

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♪ ♪ welcome back to "the exchange." bad sign for the builders, new home sales falling more than expected in october even as prices dropped. let's get out to diana olick for the numbers. diana? >> in the builders stocks dropped initially on this and they seem to be recovering a bit, flat to slightly lower as they're fueled by lower interest rates, but sales of newly built homes dropped a much wider than expected 5.6% in october from september and september's figure was revised down significantly. still, sales were nearly 18% higher year over year. this read is really the most recent indicator of home sales because it's based on account of signed contracts and not closings. so the deals were actually in october and that's when mortgage rates shot over 8% after hanging in the low 7s for most of september. builders have been buying down rates aggressively for their

customers and many saying they're getting them into the 5% range, but we also saw aggressive price cuts in october with the median price down 18% year over year. some of that may be the mix of home selling and that is the smaller, lower priced homes and homebuilders are reducing prices to get buyers in. the inventory of newly built homes also shot higher to a 7.8 month supply from 7.2 in september. mortgage rates pulled back, and the 30-year fix sed is 7.3% and we're heading into the slower season for home sales even though the deep freeze is in already. >> my next guest says if mortgage rates stay above 7% home sales will continue to falter. joining me is chief economist mark zandi. good to see you. we haven't seen that budge much and diana said it was down 17% year over year. >> builders are aggressive.

i think the median price is close to 400k, if we go back a year ago close to 500k and that's 15, 20% and that goes to the buydowns that diana mentioned and they're being a lot more aggressive and that's why new home sales have hung tough ask they leveled off and they haven't declined that much and host of the weakness in sales are on the existing side where homeowners are much more reluctant and builders are doing what it takes to move those homes. >> are they, diane a going to add the price declines into the existing home sales. >> no. you have the supply and demand situation where there's nothing for sale on the existing home market because we have potential sales why would i trade my 3% rate to a low 7% rate and we are seeing more rent declines in both apartments and single-family rental homes. do you think that will juice the market or have renters because they've been paying so much year to date not having so much to

get into the housing market whether it's existing or new homes? >> you're right. rates have gone flat to down, and the big multi-family towers are going up in the urban centers and chicago on the west coast and that's putting pressure on rent. i think that's having some impact on new house prices and at the high end of the single-family housing market and the single-family rental has seen some weakness and that is a sign that we will see the weakness in prices kind broaden out here. ultimately, all of this will make it more difficult for existing homebuyers to not cut price. at some point they'll have to sell their home due to divorce, death, life changes, children, and they'll get competition from other sources of housing. >> a lot of people would say the home buyer is idiosyncratic and even cheaper rents, for instant,

won't be much competition. >> well, you're right to some degree, but i think it's on the margin. single-family rental. they can get the same kind of lifestyle in a single-family home and rent and if they get a better deal there than if they go out and buy, they'll do it and more options and as diana pointed out there's more inventory and we are seeing people use the single family rental option as an alternative. it is competition and not one for one, but it will play a role. >> i thought it was a recent -- what's the number and the trigger where you think a lot of inventory comes flooding back out to the market and it floods buyers who are waiting to ? is it 5%? what do you think? >> think diana was trying to create drama the last time i was on. >> what? me? drama? >> i disagreed with you and i don't think she really did. >> no drama. never. >> i don't think 6% is -- i

think 5%, that's where the builders say that they're having to cut the rate down to because, look, 7% is not doing it and we saw it go from 8% to 7% and you still saw new home sales drop. i think you have to get into the high fives or the low sixes, but mark, you? >> obviously five is better than six, no doubt about it, but everybody should get used to 5.5 to 6 because that's where mortgage rates will settle in long run. the ten-year treasury yield at 4, 4.5 and put them at 4.5 to 6 and that's kind of long run where mortgage rates will settle in and that's kind of where we all have to get used to seeing. i suspect you're right. six, things start to come back to life and they're close to where they were pre all of this at least for a while. the other thing that has to happen is we do see weakness in

house prices, if house prices don't come in to any degree, so we need no recession, obviously and incomes have to continue to rise and all of those three things will determine exactly what has staffing with rates and with prices. >> thought i remember sed some drama. diane, what are you hearing from the industry that we're entering the quiet sales season, is 2023 going to be the nadir here and can we look so far? >> things can always get worse and get better and the builders are tackling other issues and that's high cost for land, labor and material prices have come back and you still have high interest rates and that makes deal making difficult especially for the homebuilders and i think it will be rough going. i think what will make 2024 a better market is if sellers finally say, okay. i've had enough. maybe we're in the low 7 'or the

high 6s and you will not see prices come down until you see more supply. it's as simple as that. there's a lot of demand out there and there continues to be more household formation and that means we ned more houses for people to buy and sell to get a better market. >> is a good economy bad for the housing market or good for the -- you know, i certainly think -- well, but then it keeps mortgage rates. i can't even tell which way the wind is going to blow for home would abouters and the stock is up 40% this year. >> a necessary condition for good housing market is people have jobs. the unemployment hasto stay low and beyond that nothing else works. it would be nice if interest rates come in and they will as long as inflation continues to moderate and all signs will continue to do so, and once the federal reserve makes it clear

they'll cut interest rates and that's probably by next summer when inflation rates go into target and the spreads they mentioned between mortgage rates and treasuries which are very, very wide for a lot of complex reasons when sales start to come in and, you know, the housing market will come back to light. so we need a good economy, but we also need to see inflation come in and interest rates come down. >> we'll leave it there. mark zander and diana olick. >> coming up for the first time in nearly 20 years the toyota prius is motor trend's car of the year. maybe a surprise to some, but the sales just don't lie. we'll talk about how long hybrids can stay hot. we'll talk about that next. as we go to break. let's take a quick check on shares of roku up 7.5% on an upgrade to buy from boutique to canon ball research. they see spending growing 16%. roku is always a volatile one to

the upside today. we'll be right back.

>> welcome back. don't tell tesla or rivian or lucent, but hybrids are outpacing evs in sales once again. phil lebeau joins us with the latest. what do we know? >> kelly, what we've seen is hybrids have been picking up in popularity over the last 12 months and they are now outselling evs here in the u.s. and this is not expected to last forever, but for the foreseeable future unless you see lower priced evs come in and what you will see is hybrids are outselling ev. they are almost 10% of the market now. we continue to see internal combustion engine and yes, they dominate the market and they're under 80% in the last couple of months and it won't be long until you see that further. the average price paid for a hybrid is the key denominator or key differentiator between why

evs are hot. the average, v sells for over 5 1,000 and that's a primary reason why you see hybrids much more in demand than evs right now. again, that's expected to change over time. take a look at shares of toyota and honda versus gm and ford, and the reason we're showing you this is that toyota and honda have quietly put together a pretty nice year for investors. there's a clear difference in performance for shares of toyota and honda versus ford and gm and yes, we realize that the uaw negotiations are a big part of that, but it's also the fact that gm and ford have allocated billions of dollars towards going electric and that is one thing that investors are looking at and saying when are we going to see a payoff there. speaking of l speaking of electrics and tesla, it will be interesting to see what the reaction is.

look, we're not expecting a ton of these to be out on the road and they'll only deliver ten thursday night and it's the beginning of deliveries and a gradual ramp up in production going into 2025. mid to late 2025 is probably when we see full production, annual production for the cyber truck. >> i just love the triumph of the prius. what is the criteria for car of the year? is it sales or is it more of a just general kind of car of the moment kind of award? >> it's not sales. it's not sales because if it was sales alone you would look at the rav4 hybrid. look, there are more models and newer trend much like autoth ma mags and they have their own criteria why they pick a particular vehicle to be car of the year. again, it's not strictly sales. >> i was going to sneak in a quick one because i'm asking as a shopper now. what would be my gas mileage with a hybrid and with the

prius? my range. >> if you get a gas/electric hybrid which is a prius prime which is a plug-in, a hybrid electric vehicle, far greater and i don't know what the latest mileage is, kelly, but it's faru bought an internal combustion engine, 40 to 60 miles. >> that's what i thought, about 50. >> something like that. >> phil, thank you. we really appreciate it. still ahead, $53 billion, that's how much the secondhand and resale market is expected to reach by year end. we're talking to goowill's ceo about that coming up next.

welcome back to the exchange shares of thrift store operator savers value village are down 38% since their late june ipo, despite the shift to value as consumers look for bargains. my next guest says that's been changing with a surge of secondhand goods online. joining me is matt, i didn't know goodwill had gone digital welcome. >> great to be here.

yes, goodwill is not new to online the companies across the country that make up the goodwill network have been working as a third party selling but mostly through storefronts and amazon and ebay you think about buying a used book from amazon, it's probably from goodwill. there's also a site that is run by one of the network members. but we launched this new venture last year called goodwillfinds.com, last october, in a response to a lot of the new players in the space, threadup, real real, poshmark, et cetera. >> i'm impressed you have the resources. i'm on it now, looking for crocs because, you know, the kids' feet are growing so fast, and you know what you're getting there. how does this work this feels like an expensive

undertaking that i assume all of your stores are participating in, or maybe only some >> goodwill has been around for over 100 years it's made of 150 nonprofits. we launched with four in october, we're now at 14 we should be at 40 by the end of next year, looking to have all 150 plus on the platform as soon as possible. and it's going great we did $25 million in demand our first year, which for a brand-new e-commerce start-up is a great result and over 200% comp this black friday holiday selling period compared to last year when we first launched so we are participating in this large and fast growing category of online resale, and we're doing it on behalf of the pioneer of circularity in retail this goodwill mission that is so important to millions of people

across the country that rely on goodwill services in local communities. >> yeah, i know the goodwill in virginia, i think i spent 25% of my time growing up it was just so much fun. it was kind of the original treasure hunt, and now any time i can give stuff, i try to give it there to complete the paying it forward thing you guys are a nonprofit, right? so what happens if i buy, for instance, these shoes, you know, they don't usually have size 10. if i pay $30 for these shoes, where does that money go >> yeah, kelly, so we're a nonprofit as well, so we're the only nonprofit in this online space, and we rely exclusively on donations that are dropped off at thousands of stores and donation centers across the country. so we rely on the goodwill of people who bring us their goods, and then the individual goodwills will list them in our catalog. we sell them through our

website, goodwillfinds.com, and then all net proceeds from our sales go back to the goodwill community where the item was donated. so we really believe that we're pioneering a model of circularity where individuals get rewarded by donating to their local goodwill and having all the proceeds go back to support other people in their community who rely on goodwill services i will say, with respect to price, online demand in resale is outstripping supply and so there's a real battle that has heated up across the industry to get access to high value supply and this is not just players like savers in the brick and mortar space, and some international players that are entering the u.s., but also brands retailers that are d

deciding how to dispose of all of their returns and unsellables. >> thanks for bringing it to our attention. it's good to get your sense. appreciate your time good luck this season. >> thanks, kelly >> that does it for us here on the exchange next on "power lunch," we'll hear from the president. he's set to eak spon supply chains and lowering costs. tyler is getting ready tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. meet gold bond daily healing. a powerhouse lotion that moisturizes, heals, and smooths dry skin. with 7 moisturizers & 3 vitamins.

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. good afternoon, everybody. welcome to "power lunch," alongside kelly evans, i'm tyler mathisen coming up, the end of the busiest and most important part of the year for retailers. we'll look at the numbers from black friday's weekend and start our series breaking down all the different parts of the retail sector today, which big box store is best positioned. plus, meta shares have been a rocketship this year, second best in