What We Learned This Week

Consumer Remains on Watch: Home Depot offered another window into the consumer landscape this week with first-quarter results that came in largely in line with expectations. On a slightly more encouraging note, the company reaffirmed its full-year sales guidance — a sign of some underlying stability. The big-picture takeaway: consumers are still spending, but they're hitting pause on larger projects and big-ticket purchases. That hesitation likely reflects broader uncertainty around tariffs, interest rates, and overall economic direction.

Home Depot noted it won’t be raising prices in response to the latest tariffs, thanks in part to its favorable U.S.-based sourcing mix and ongoing supply chain diversification. That restraint may also reflect the current demand environment, which remains soft across much of retail. The broader read on the consumer is one of increasing caution. We've seen some cracks in the labor market recently, and many companies are pressing pause on hiring — especially for early-career roles. That weighs heavily on key consumer segments and adds to the overall hesitancy we’re seeing. Where we go from here is anyone’s guess, but the cautionary tone from both consumers and businesses is becoming harder to ignore.

No Sacred Cows: Disney finally unveiled its long-awaited plan for ESPN's direct-to-consumer (DTC) strategy, marking a major shift in how sports fans will access live content. This fall, just ahead of the NFL season, Disney will launch a new app simply called "ESPN," offering full access to all of ESPN’s programming across any device. The service is expected to cost around $30 per month and will include a bundled launch promotion with one-year subscriptions to Disney+ and Hulu. Some might be wondering how this differs from the existing ESPN+ service. The distinction is simple: ESPN+ has always been a supplementary service, providing exclusive content but lacking marquee live events like Monday Night Football, which remained locked behind cable paywalls. This new platform will finally make all ESPN content fully accessible without a cable subscription—a long-awaited move that many saw as inevitable.

The bigger question now is whether Disney can convince consumers to shell out $300+ per year for comprehensive access to ESPN’s offerings, on top of their other streaming expenses. Does ESPN's lineup have enough exclusive, must-watch content to justify that price? Time will tell, but what’s most encouraging is that Disney is finally making bold moves, even if it means shaking up its legacy business. Sports have been one of the last strongholds for linear TV, and Disney’s willingness to embrace this change shows a commitment to evolving with the market. For a company in the midst of a massive turnaround, it’s a promising sign that they’re willing to let go of some old playbooks to position themselves for the future.

Everything Experiences App: Airbnb is making bold moves to expand its app and services far beyond its traditional peer-to-peer home rental model. Up until now, Airbnb has primarily been known for offering travelers an alternative to traditional hotels, providing unique stays in homes and rooms across the globe. It opened up accessibility to remote and underserved areas, all while delivering a more personal and localized travel experience. Now, the company is setting its sights on becoming a more integrated part of its users' everyday lives. Through a major app overhaul, Airbnb is rolling out new features that allow users to book personal training sessions, curated chef-prepared meals, spa treatments, and more—all within the same platform they use to book accommodations. Additionally, its "Experiences" section has been expanded, making it easier than ever to line up tours, activities, and local events during a trip.

This is a big strategic shift for Airbnb, one that it first explored back in 2020 before shelving the idea to focus on core business during the pandemic-driven travel surge. But with travel demand leveling off and broader economic headwinds emerging, the company is searching for new growth levers. Last quarter's earnings miss and lowered guidance shook investor confidence, exposing the vulnerabilities of its tech-company-level valuation. This diversification into ancillary services represents an attempt to drive revenue growth and better compete with luxury resorts and hotels that offer all-inclusive experiences. The big question now is whether consumers will embrace this expanded vision—and if Airbnb can effectively deliver it while maintaining its unique edge. If successful, it could mark a transformative moment for the brand.