A new batch of earnings results is reshaping investor priorities, with strong profitability driving gains in some stocks while operational disruptions and softer growth pressure others. The mixed picture is reinforcing a renewed focus on fundamentals, pricing power and balance sheet strength.
BNN Bloomberg spoke with Grant White, portfolio manager at Endeavour Wealth Management, about earnings reactions at Spotify, Coca-Cola and Air Canada, how clients are thinking about artificial intelligence, and why quality-focused names are standing out amid volatility.
Key Takeaways
- Earnings reactions are increasingly driven by profitability and cost control, rather than headline revenue growth alone.
- Operational and geopolitical disruptions can quickly impact otherwise stable businesses, underscoring hidden risks.
- Valuation discipline is returning as investors reassess companies with strong margins and sustainable cash flow.
- Artificial intelligence is shifting from hype to execution, forcing software companies to prove real economic value.
- Quality-oriented stocks with durable business models are gaining favour as volatility remains elevated.
Read the full transcript below:
ANDREW: Let’s get to today’s market stories. We just talked about shares of Spotify jumping in the premarket. However, Coca-Cola reported a miss, and we’re also keeping an eye on Air Canada, which has suspended flights to Cuba because of an aviation fuel crisis on the island. We’re joined by Grant White, portfolio manager and wealth advisor at Endeavour Wealth Management. Grant, great to see you. Thanks very much for joining us.
GRANT: Andy, always my pleasure. Thanks for having me.
ANDREW: What’s catching your eye this morning in the markets?
GRANT: You know, that Spotify report you were just mentioning really stood out to me. I definitely saw a nice surprise to the upside, and I’m pretty excited about it. Spotify is a company I’ve liked for many years. At times it’s been challenging to buy. We’ve been shareholders off and on over the years.
But this was a really nice report. The best part wasn’t the top line — it was the bottom line. That’s what I loved about it, because it shows management really has a handle on the business and on operating costs going forward. That’s especially important in a competitive content space like Spotify operates in, where there are a lot of challengers. Netflix is now in podcasting, for example.
Spotify continues to prove that it can add users and manage the bottom line effectively. We’re seeing that play out. They reported roughly a 33 per cent margin base in the latest report, which is a fantastic number, and the stock is being rewarded today.
ANDREW: Let’s put up a five- or 10-year chart for Spotify. You wouldn’t be buying more right now, though — it’s a hold for you at the moment?
GRANT: We were actually looking at it pretty hard this morning. I might be leaning more toward a buy. Yesterday, it was a hold, to be honest. But after reviewing this report, it’s starting to change my mind.
We’re going to take a closer look. I really like how the company is managing the bottom line, and that’s what’s giving us reason to revisit it. Pricing still matters, but we could be shifting it to a buy very soon.
ANDREW: I don’t want to get too bogged down on the Swedes here, but the stock is still well off its highs. Why is that?
GRANT: A lot of that has to do with how challenging the space is, and I also think it was overvalued before. It’s a great company, but prices got ahead of fundamentals and it was due for a pullback.
Competition is intense. Netflix is in the space, along with Apple, Google and many others. That said, Spotify has a genuine moat. It’s a great user experience — I’m a Spotify user myself — and content is king. They own some of the best podcasting properties out there.
It’s a great company, but you have to be careful on price, because you’re going to see fluctuations like the ones you’re pointing out.
ANDREW: What about Air Canada? Let’s put up a one-month chart. Cuba is a meaningful destination, but the airline is obviously diversified. Still, it highlights the humanitarian crisis unfolding there.
GRANT: It’s a very challenging time for Cuba. From an investment perspective, this is one of the reasons I don’t love investing in airlines. There are so many issues that can come up and throw a wrench into operations, and this is just the latest example.
Air Canada is diversified and will be fine over the long term. Suspending flights to Cuba isn’t the end of the world, but it highlights the risks airlines face — fuel costs, labour, operating expenses and geopolitical issues that can emerge suddenly.
We have Air Canada as a hold. It’s a well-run airline with strong management, but it’s a challenging industry with constant curveballs. If you already own it, I’d keep it as a hold. I don’t love the setup right now, but if you like airlines, Air Canada is one of the better operators.
ANDREW: And Coca-Cola — maybe let’s even put up a 20-year chart. Investors weren’t thrilled with the latest results.
GRANT: Coca-Cola is an amazing business. You can be very happy owning it for a long time. In the short term, it’s dealing with some challenges, but those are the normal ebbs and flows you see with a great company.
You don’t buy Coca-Cola thinking you’re going to own it for six months. You buy it because of its consistent free cash flow, strong product development and long-term durability. Emerging markets will be key, and I’m interested to see how some of their newer products perform over the next year.
There are growth challenges, and that’s why it’s a hold for us right now. We wouldn’t be adding today, but it’s a company you can comfortably own for 20 years and do very well.
ANDREW: What are clients saying about AI, especially those who own high-growth software names like ServiceNow, Salesforce or Adobe?
GRANT: It’s a challenging time for SaaS companies, but software isn’t going away. The challenge is figuring out which companies will thrive in this environment. Margins are being compressed, and valuations are being reset.
A company trading at 30 or 35 times free cash flow could reprice to 17 times. That’s painful, but it also creates opportunity. There will be winners, and companies like Salesforce can do very well if they adapt properly.
With AI, the proof is going to be in the pudding. We’re moving from speculation to execution. The companies that integrate AI effectively will win, and the ones that don’t will struggle. Picking the winners will be difficult, so sticking to quality really matters.
ANDREW: Finally, one stock you like right now is Fairfax Financial. Why?
GRANT: That reflects where we are in the markets. I’m leaning toward quality, and it doesn’t get much higher quality than Fairfax. It’s a great business with great management and consistent free cash flow.
We have Fairfax as a buy. As a core holding, especially in a year where volatility is likely to remain elevated, it’s a stock you can feel very confident owning. I’m also looking forward to their earnings later this month.
ANDREW: Grant, thank you very much. Grant White of Endeavour Wealth Management.
---
This BNN Bloomberg summary and transcript of the Feb. 10, 2026 interview with Grant White are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
