Raphael Stevens

Still flush with cash from Covid, and eager to own one-of-a-kind rides that stand out from the pack, today’s wealthy car buyers are willing to pay steep prices for special details.
CEO Adrian Hallmark said the average price of a Bentley sold has jumped 40% over the past four years.
Bentley is not seeing any signs of a demand slowdown from rising rates, falling stocks and recession fears.

Bentley CEO Adrian Hallmark.
Scott Mlyn | CNBC

After a record-breaking year in 2022, Bentley Motors reported surging profits in the first quarter due in large part to car customization, CEO Adrian Hallmark said.
Bentley reported its best-ever first quarter, with operating profits up 27% to 216 million euros, or about $232 million. Even more impressive, especially at a time when many car companies are seeing profit margins under pressure, Bentley reported its return on sales increased in the first quarter to 24.4% from 20.9% during the same period in 2022.

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The reason: Wealthy buyers are spending more to personalize their cars with special paint colors, leather, stitching and details.
“Customers are choosing one of our 62 paint colors, the 43 leathers we offer and lots of options,” Hallmark told CNBC. “So, it’s a total shift in the configuration of the vehicle. And they’re buying the top models, like the Speed version of the Continental GT, rather than base edition.”
Hallmark said the average price of a Bentley sold has jumped 40% over the past four years, but only 9% of that increase is due to model price increases. “The rest is content,” he said, meaning upgrades, options and personalization.
The rise of customization is driving record profits across the supercar segment, from Rolls-Royce and Ferrari to Lamborghini, Aston Martin and McLaren. Still flush with cash from the Covid-19 pandemic and eager to own one-of-a-kind rides that stand out from the pack, today’s wealthy car buyers are willing to pay steep prices for special details.
In its first-quarter earnings call, Ferrari said its adjusted EBITDA got a boost of 85 million euros, or about $91.6 million, from “higher personalizations whose contribution exceeded our projections.”

Rolls-Royce’s Bespoke department has become famous for meeting unusual client demands, from matching the paint color of a piece of ancient Japanese ceramic to copying an Hermès design scheme on a client’s private jet.
Bentley’s Mulliner Edition department at the company’s Crewe factory is turning out record numbers of one-of-a-kind Bentleys with special paint colors, metal finishes and embroidery. Some clients want their names or family crests embroidered on the seats, while others want special interior lighting or carbon-fiber details.
One of the company’s most-popular options for its Continental model is a rotating display, where a section of the dashboard flips from a plain carbon face to an infotainment touchscreen. Despite the steep cost, at over $6,000, the upgrade has been purchased by nearly three-quarters of buyers, according to the company.
“The whole world of luxury is changing,” Hallmark said. “It’s not just cars, it’s fashion, everything. If customers are going to spend that kind of money on something, they’d rather pay a little more for the upgrade or option to have something truly special.”
Beyond upgrades and personalization, Hallmark said Bentley is not seeing any signs of a demand slowdown from rising rates, falling stocks and recession fears.
“The order intake in the U.S., like most of our markets at the moment, is really strong,” he said. While prices for used or pre-owned Bentleys are coming down slightly, Hallmark said the adjustment is healthy.
“We can see on the secondary market that residual values, instead of being crazy and above retail like they were, are now normalizing. But the demand is really strong still.” More

Netflix’s stock rose Thursday following its pitch to advertisers this week.
The streaming service said it had five million monthly active users for its cheaper, ad-supported option and 25% of its new subscribers were signing up for the newest tier.
Netflix introduced a cheaper, ad-supported option late last year after subscriber growth stagnated.

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Netflix saw its stock rise more than 9% Thursday soon after unveiling details about its new ad-supported tier that suggested the business model is starting to pay off.
The streaming service this week said it had five million monthly active users for its cheaper, ad-supported option and 25% of its new subscribers were signing up for the tier in areas where it’s available.

The update came at Netflix’s inaugural pitch to advertisers Wednesday, the first time Netflix took part in the industry’s so-called Upfront presentations. This year, top media companies including Comcast’s NBCUniversal and Warner Bros. Discovery highlighted ad-supported streaming options at their presentations.

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Netflix stock rallied on Thursday soon after the company offered new details about its ad-support streaming tier.

Netflix launched its ad-based option late 2022, following quarters of stagnating subscriber growth that sent its stock tumbling.
The company posted mixed financial results in its most recent quarter, but said it added 1.75 million subscribers. Netflix is also preparing for the broader rollout of its password-sharing crackdown, another move to boost its revenue.
Media companies, once focused on subscriber additions for their fledgling streaming services, have now pivoted their attention toward making the businesses profitable. To do so, some have been cutting costs on content spending and leaning on advertising models.
Last week, when Disney reported earnings, CEO Bob Iger noted the company viewed the ad-supported option of its Disney+ streaming service as another way to help the streaming business reach profitability. Disney+ lost four million subscribers during the quarter.

Netflix’s ad tier, which costs $6.99 a month and features commercials of 15 or 30 seconds in length before and during content, marks a reversal for the company’s management, which had long said it wouldn’t put ads on the platform.
Netflix launched the ad option in partnership with Microsoft. Its content will be rated by Nielsen later this year to help advertisers better understand its reach.
Soon after the launch, Netflix founder and former CEO Reed Hastings admitted he was slow to come around to advertising on the platform. When Netflix launched the ad tier in November, it was $1 cheaper than Disney+ and Hulu’s ad-supported options.
Netflix Co-CEO Ted Sarandos has said the company is likely to offer multiple subscription plans with ads in the future, highlighting the potential to add more subscribers.
— CNBC’s Alex Sherman contributed to this report. More

Peloton shares climbed Thursday after the company said it would release a rear safety guard for its recalled Tread+ treadmill.
The Tread+ treadmill has been at the heart of safety concerns surrounding Peloton in recent years, after a young child died under one in 2021.
The new safety guard will be available later this year.

Maggie Lu uses a Peloton Tread+ treadmill during CES 2018 at the Las Vegas Convention Center, January 11, 2018.
Ethan Miller | Getty Images

Peloton said Thursday it would release a rear safety guard for its Tread+ treadmill, working with the U.S. Consumer Product Safety Commission.
The stock closed nearly 3% higher on Thursday.

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The Tread+ treadmill has been at the heart of safety concerns surrounding Peloton in recent years. Sales for the treadmill have been halted since a young child died under a Tread+ treadmill in 2021.
Since the recall, there have been 279 more reported incidents and 61 reports of injuries, Peloton and CPSC said in a joint statement.
The safety guard will be offered free of charge to people who own a Tread+ treadmill, the company said in a release.
Customers can register in advance to receive the guard. It is still being manufactured and is expected to be available in the fall.
Following the 2021 recall, Peloton told Tread+ treadmill owners to stop using the product.

The new guard has a breakaway design that moves away from the treadmill when it touches an object, which turns off power and decelerates the belt. It aims to eliminate the potential for entrapment near the treadmill’s rear, which is primarily what caused incidents in the past.
“As a brand dedicated to empowering Members on their fitness journey, Peloton remains committed to ensuring they have access to our world-class fitness experiences in the safest way possible,” the company said.
In addition to the Tread+ treadmill’s woes, other safety concerns have plagued Peloton in recent years.
Amid the mounting concerns, the company changed its stance on recalls in recent weeks.
Last week, when the CPSC recalled 2.2 million Peloton bikes over safety concerns, Peloton cooperated, saying it was “important to proactively engage the CPSC to address this issue and to work swiftly and cooperatively to identify a remedy.”
A part defect on model number PL01 bikes led to 12 reported injuries, including one wrist fracture, according to an internal Peloton memo.
Previously, the company was slow to cooperate with officials and expressed disagreement over potential flaws. Peloton said it took action, despite the relatively small number of affected bikes, because it was a “member-first company,” according to the internal memo.
Earlier this month, the company posted a wider-than-expected loss for its fiscal third quarter while forecasting its first-ever decline in subscribers. More

Horizon Therapeutics expects its $27.8 billion sale to Amgen to close as early as the end of the third quarter of this year, earlier than previously planned, if the Federal Trade Commission’s attempt to block the deal fails.
The FTC filed a lawsuit in Illinois federal court seeking to halt the acquisition, arguing it would “stifle competition” in the pharmaceutical industry.
If a federal court denies the FTC’s request by Sept. 15, Horizon expects the deal to close by “end of Q3 or early in Q4 of 2023.”

Robert Galbraith | Reuters

Horizon Therapeutics expects its $27.8 billion sale to Amgen to close as early as the end of the third quarter, earlier than previously planned — if the Federal Trade Commission’s attempt to block the deal fails — according to a document filed Thursday with the Securities and Exchange Commission. 
The FTC on Tuesday filed a lawsuit in Illinois federal court seeking to halt the acquisition, arguing it would “stifle competition” in the pharmaceutical industry.

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Horizon, which is based in Ireland, said in the new SEC filing that the deal could close by the “end of Q3 or early in Q4 of 2023” if a federal court denies the FTC’s request by Sept. 15. The companies agreed not to close the acquisition until that date or the second business day after the court rules on the lawsuit.
Horizon’s estimate is earlier than when the companies and Wall Street analysts were initially expecting the deal to close after the FTC sued. The parties previously said it could close around mid-December.
Horizon’s share price was about 1% higher in afternoon trading Thursday. California-based Amgen’s stock price dipped 1% lower.
If completed, the deal would give Amgen access to Horizon’s blockbuster thyroid eye disease drug, Tepezza, and its gout medicine, Krystexxa.
Those treatments could help Amgen offset possible revenue declines driven by several patent expirations for key treatments over the next decade. 

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They’re also at the center of the FTC’s lawsuit seeking to block the deal. The agency said the deal would allow Amgen to “entrench the monopoly positions” of those two fast-growing drugs from Horizon.
Amgen would be able to offer rebates on its existing medicines to pressure insurers and pharmacy benefit managers into favoring the two Horizon products, a strategy known as “cross-market bundling.”
On Tuesday, Amgen said in a statement it has “overwhelmingly demonstrated” that the merger poses no competitive issues.
Horizon, in a separate statement, said it “does not and has no plans” to engage in cross-market bundling. More

Warner Bros. Discovery CEO David Zaslav is standing behind CNN’s decision to air a town hall with former president and Republican frontrunner Donald Trump last week.
“We need to show both sides of every issue,” Zaslav said at an investor conference Thursday.
Veteran CNN journalist Christiane Amanpour said Wednesday she told CNN CEO Chris Licht she disagreed with his decision to have Trump speak in a town hall format with screaming fans.

David Zaslav
Bloomberg | Bloomberg | Getty Images

Warner Bros. Discovery CEO David Zaslav supported CNN CEO Chris Licht during an investor conference Thursday as tension at the network rises over the decision to air a live Donald Trump town hall packed with his supporters.
Zaslav said Licht “is working really hard” to improve CNN’s brand and image, citing a recent YouGov poll that said trust in CNN has improved by 11 percentage points in the past year. For context, trust in Republican-leaning Fox News improved 17 points and trust in Democratic-leaning MSNBC improved 16 points in the same period. Trust in CBS, ABC and NBC all improved by more than CNN, as well.

Zaslav emphasized CNN’s desire for more balance on the network, citing a common refrain that he wants to ensure CNN isn’t an “advocacy network.”
“We need to show both sides of every issue,” Zaslav said.
Zaslav continues to be supportive of CNN’s decision to host the Trump town hall, according to a person familiar with his thinking. Trump is leading early polls to win the 2024 Republican nomination for president. Zaslav told CNBC earlier this month Trump, who continues to falsely claim he was the victim of election fraud in the 2020, should absolutely appear on CNN.
“He’s the frontrunner — he has to be on our network,” Zaslav said on CNBC’s “Squawk Box.” “We’re happy he’s coming on our network.”

Amanpour slams ‘bothsidesism’

His comments came a day after veteran CNN journalist Christiane Amanpour publicly challenged the notion of covering “both sides” of the political spectrum if both sides weren’t factual. Amanpour spoke Wednesday at Columbia Journalism School’s commencement.

“Be truthful, but not neutral,” Amanpour told the graduates. She said the phrase was “her mantra.”
“Bothsidesism is not always objectivity. It does not get you to the truth. Drawing false moral or factual equivalence is neither objective or truthful. Objectivity is our golden rule, and it is in weighing all the sides and hearing all the evidence, hearing everyone and reporting everything, but not rushing to equate them when there is no equating.”
Amanpour said she met with Licht this week to convey her disappointment with airing a Trump town hall in the format in which it happened. She said Licht told her that “the execution was lacking a little,” as CNBC reported earlier this week. Amanpour noted the live audience should not have been allowed to cheer Trump’s every sentence, calling the behavior “appalling.”
At one point, Trump called town hall host Kaitlan Collins a “nasty person.” Amanpour said she would have dropped the microphone and walked out if he’d done that to her.
Amanpour said airing a taped Trump interview would have been a better solution, as it would have allowed CNN to better fight off Trump’s “disinformation and propaganda machine.” Trump is facing multiple criminal investigations and was found liable earlier this month for sexually abusing and defaming writer E. Jean Carroll. Trump has denied Carroll’s accusations. He was also indicted in New York for allegedly falsifying business records.
Amanpour is the first significant CNN journalist to publicly criticize Licht and Zaslav’s decision to air the town hall. Several of her colleagues jumped to support her comments on Twitter, showcasing an undercurrent of dissent within the CNN ranks.
“Speaking truth to power is a fundamental part of our job but to speak truth to the power that signs your checks? ⁦@amanpour⁩ showing everyone how it’s done,” tweeted Nima Elbagir, CNN’s chief international investigative correspondent.
CNN anchor Sara Sidner tweeted “she’s a real one” about Amanpour, which CNN correspondent Erica Hill echoed.
CNN Hong Kong anchor Kristie Lu Stout said Amanpour delivered “a masterclass in journalism.”

Falling ratings, rising discontent

Licht has inherited a CNN employee base largely put in place by former chief Jeff Zucker and his predecessors. Zucker was popular as a leader with many current staff members and led the network in a hands-on style that Licht has purposefully eschewed.
Zaslav’s mission with CNN has been to shed its “left-leaning” image to a more neutral brand, he reiterated Thursday. He touted the amount of Republicans CNN has interviewed recently in his comments Thursday.
Still, the changes aren’t helping CNN’s ratings. The network’s overall audience trailed not only Fox and MSNBC but also the much smaller conservative channel Newsmax on Tuesday in the 7 p.m. ET and 8 p.m. ET hours.
CNN’s profit fell below $1 billion last year, The New York Times reported, marking a six-year low. Slumping ratings won’t help its advertising revenue this year. Warner Bros. Discovery held its upfront presentation for ad buyers this week. Licht spoke at the event.
While the business struggles, Zaslav’s comments about CNN being more politically down the middle, especially when it comes to Trump, have irritated journalists who don’t equate fighting lies with partisanship.
It’s unclear whether CNN staff members’ show of discontent with Licht and Zaslav’s recent decision making will amount to anything other than public grousing.
But as the network struggles with falling ratings and millions of Americans cancelling traditional TV each year, which eat away at CNN’s revenue and profit, Zaslav may have an unwanted distraction on his hands that may only get worse as the U.S. edges closer to the 2024 presidential election.
Disclosure: NBCUniversal is the parent company of NBC, MSNBC and CNBC.
WATCH: CNBC’s full interview with Warner Bros. Discovery CEO David Zaslav More

The $18-million listing known as the Invisible House is the most expensive home for sale in Joshua Tree, California.
The modern residence is named for its mirror-clad exterior that creates the illusion of the home disappearing into the landscape.
It was one of Airbnb’s most wish-listed properties in 2023 and generated $1.4 million in revenue between guest rentals and production shoots.

One of Airbnb’s most wish-listed properties in 2023 is on the market.
The Joshua Tree, California-home is for sale at an asking price of $18 million, making it the most expensive home to ever hit the market in the town located about two hours southeast of Los Angeles in San Bernardino County. 

The record-breaking listing is called the Invisible House named for its mirror-clad facade which reflects the desert surroundings and can effectively disappear into the rocky landscape.

The Invisible House’s mirror-clad facade creates the illusion of the home disappearing into the desert landscape.
Brian Ashby

The modern glass architecture is situated on 67.5 acres just steps away from the Joshua Tree National Park. The living space spans almost 5,500 square feet with three bedrooms, four baths and a 100-foot indoor pool, according to the sale listing.
“This is one of the coolest houses in the world,” said co-listing agent Aaron Kirman, CEO of AKG Christie’s International Real Estate.
Kirman told CNBC the $18 million listing is all about show-stopping modern architecture and the illusion created by the 10,500 square feet of wrap-around mirrored glass on the home’s exterior.

Brian Ashby

The home was designed by film producer and current owner, Chris Hanley, and Frank Gehry-collaborator, architect Tomas Osinski. The glass-and-steel structure is 225 feet long, 25 feet wide and 21 feet tall.

Inside, there are smooth concrete floors and steel beams that criss-cross 12-foot ceilings. Those walls of mirrored-glass on the home’s exterior are transparent from the inside and they deliver panoramic views of a rock-filled landscape. The home’s west-facing wall of glass can slide open to reveal a symphony of boulders, tangled brush and stoic trees.
The minimalist design surrounding the 100-foot indoor pool makes a swim across the living room to one of the bedrooms even more lavish. 

A view of the indoor pool and the panoramic views framed by floor-to-ceiling panels of glass.
Brian Ashby

Finding real-estate comps for such unique architecture located in a remote desert town with a population of just thousands, is impossible, according to Kirman.
“So let’s just be clear, there are no comps. We are not comping this house based on Joshua Tree,” he said.
According to co-listing agent Matt Adamo, the highest price ever achieved for a home in Joshua Tree was $3.5 million. So a sale anywhere near the Invisible House’s asking price would shatter the local record.
The closest comps, Kirman said, are homes by built Richard Neutra, John Lautner and Rudolph Schindler — “some of the great architects from the past.”

The Invisible House’s mirrored facade reflecting the desert sunrise.
Brian Ashby

The Invisible House’s $18 million price tag amounts to almost $3,300 per square foot, which puts the Joshua Tree residence above some of the priciest listings in Los Angeles — on a per-square-foot basis — where the top 10% of all single family homes that sold during the first quarter averaged just under $2,400 a square foot, according to the Elliman Report.
And even before a potential sale, the modern desert home, which has its own Instagram account and boasts about 35,000 followers, is already a money-maker.
The home is frequently rented out to guests on Airbnb and for production shoots.
“In 2021, this house generated over $1.4 million in total revenue,” Adamo told CNBC, adding about 15% of that came from production.

The Invisible House in Joshua Tree, California is a mirrored 22-story horizontal skyscraper. Recently the unique property was listed for sale for $18 million.

The home’s Airbnb listing starts rentals at $2,500 a night and includes a small guest house on the property. Adamo said the rate for production is even higher, with past rentals earning $1,000 an hour or as much as $12,000 for a full day.
Between those two rental avenues, the brokers told CNBC the home has hosted quite a few notable guests including musicians and actors like Ariana Grande, Demi Lovato, Lizzo, Diplo and The Weeknd, as well as a long list of social media influencers.
“When you do the math, you’re buying significant architecture, uniqueness, grounds, plus the ability to make money on all of that,” Kirman said.
In the four months since the home has hit the market, it hasn’t seen any takers, but both agents are confident the record-breaking asking price will deliver the highest priced sale Joshua Tree has ever seen.
“I feel like $18 million is 100% the right price,” said Kirman.
“Don’t look at this as a house. It’s a piece of art, and look at what art sells for.”

Here’s a look around the Invisible House:

Giant wind-worn boulders rest at the home’s entrance. Once inside visitors are greeted by a dramatic 100-foot indoor pool.

The home’s west-facing glass wall slides open to the desert landscape.
Brian Ashby

Off the pool area and at the center of the kitchen is an oversized island with high-end cabinetry crafted in Italy by Boffi.

The sleek kitchen includes a marble-clad island with Italian-designed lower cabinets, but no overhead cabinetry that would obstruct the panoramic views. 
Brian Ashby

The home’s two guest rooms feature king-sized beds raised on  platforms of black and white striped marble that are built into the wall.

A guest bedroom with a built-in marble platform and king-sized bed.
Brian Ashby

Two caissons lift the home’s primary bedroom high above the desert floor and deliver dramatic panoramic views from a king-sized bed that sits on a platform constructed completely of glass.

Listing agent Aaron Kirman (L) and CNBC’s Ray Parisi discuss the caissons that lift the Invisible House’s primary bedroom above the desert floor.

The primary bedroom’s open floor plan includes a stainless steel rain shower and king-sized bed that sits on an all glass platform.
Brian Ashby

The room’s open layout includes an oversized soaking tub, floating double sinks and a stainless steel rain shower with a glass wall that frames a picturesque view.

The primary bedroom’s soaking tub and floating sinks.
Brian Ashby

The glass-encased shower in one of the home’s guest bedrooms.
Brian Ashby

The minimalist bathrooms feature showers clad in stainless steel. 

The guest bedroom’s minimalist ensuite bath includes cement floors and a stainless steel shower.
Brian Ashby

The roof of the off-the-grid estate is lined with 92 solar panels that store energy in 3 Tesla batteries.

The rooftop of the Invisible House is equipped with an array of solar panels that supply the home with electricity, heat and hot water.

Steps away from the main residence is a one-bedroom, pre-fab guest house with its own kitchen and bath, bringing the estate’s total room count to four bedrooms and five baths.

The Invisible House in the distance and its one-bedroom guest house in the foreground. More

Bath and Body Works’ stock jumped more than 10% in premarket trading after it raised its guidance for the full fiscal year.
The longtime mall retailer, known for its soaps and hand sanitizers, saw year-over-year declines in sales and profit.
The company attributed the raised guidance to “better-than-expected” earnings per share results and the impact of an early debt pay off in the first quarter.

Bath & and Body Works entrance.
Jeff Greenberg | Getty Images

Bath and Body Works’ stock jumped more than 10% in premarket trading Thursday after it beat fiscal first quarter earnings expectations and raised its guidance. 
While sales and net income fell year over year, the retailer is now expecting full year 2023 earnings per share to be between $2.70 and $3.10, compared to the range of $2.50 to $3.00 given during the previous quarter. It expects adjusted earnings per share to be between $2.68 and $3.08 for the year.

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The longtime mall shop, known for its lotions, hand sanitizers and soaps, attributed the rosier guidance to “better-than-expected” earnings and the impact of an early debt pay off in the first quarter.
“We delivered first quarter sales in line with our expectations while our EPS was better than anticipated as we saw benefits from our work to improve merchandise margin as well as early benefits from our cost optimization initiatives,” CEO Gina Boswell said in a statement. 
The company’s fiscal 2023 will include a 53rd week and the its outlook includes that additional week, which it estimates will impact earnings by 7 cents per share, the company added.
Here’s how Bath and Body Works did in its first fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

Earnings per share: 33 cents adjusted vs. 26 cents expected
Revenue: $1.40 billion vs. $1.40 billion expected

The company’s net income for the three-month period that ended April 29 was $81 million, or 35 cents a share, roughly half of the $155 million, or 64 cents a share, it reported in the year-ago quarter.

Sales dropped to $1.40 billion, down 4% from $1.45 billion a year earlier.
The retailer expects earnings per share of 27 to 32 cents in the next quarter, compared to an estimate of 32 cents a share. It expects sales to decline in the low to mid single digits, compared to an estimate of down 3%.
It reaffirmed its full year sales forecast of flat net sales to a mid-single digit decline.
As consumers become more cautious and retail discounts and promotions tick up against a tough macroeconomic backdrop, Bath and Body Works margins dropped. They fell by about three and half percentage points to 42.7%, compared to 46.1% in the year ago quarter.
It’s not clear why margins dropped, but they were better than the 41.2% analysts had expected, according to a research note from Simeon Siegel, a retail analyst for BMO Capital Markets. Margins also topped above pre-Covid levels, Siegel noted. More