The Rundown - All Eyes on Nvidia Earnings, Reddit IPO Incoming

Episode Date: February 21, 2024

Stock market update for February 21, 2024. Reddit Plans to Sell Stock to Loyal Users in Unusual IPO Wager (WSJ) FuboTV sues Disney, Fox, Warner Bros. over sports joint venture (CNBC) Garmin’s Proposed Dividend Increase Is Just One Reason Why the Stock Is Rising (Barron's) Palo Alto Networks Plunges by Most Ever After Cutting Outlook (CNBC) The content of the podcast is for general and informational purposes only. All views presented in this show reflect the opinions of the guest and the host. You should not take a mention of any asset, be it cryptocurrency or a publicly traded security as a recommendation to buy, sell or hold that cryptocurrency or security. Guests and hosts are not affiliated with or endorsed by Public Holdings or its subsidiaries. You should make your own financial and investment decisions or consult respective professionals. Full disclosures are in the channel description. Learn more at Public.com/disclosures. Past performance is not a guarantee of future results. There is a possibility of loss with any investment. Historical or hypothetical performance results, if mentioned, are presented for illustrative purposes only. Do not infer or assume that any securities, sectors or markets described in the videos were or will be profitable. Any statements of future expectations and other forward-looking statements are strictly based on the current views, opinion, or assumptions of the person presenting them, and should not be taken as an indicator of performance nor should be relied upon as an investment advice.The content of the podcast is for general and informational purposes only. All views presented in this show reflect the opinions of the guest and the host. You should not take a mention of any asset, be it cryptocurrency or a publicly traded security as a recommendation to buy, sell or hold that cryptocurrency or security. Guests and hosts are not affiliated with or endorsed by Public Holdings or its subsidiaries. You should make your own financial and investment decisions or consult respective professionals. Full disclosures are in the channel description. Learn more at Public.com/disclosures. Past performance is not a guarantee of future results. There is a possibility of loss with any investment. Historical or hypothetical performance results, if mentioned, are presented for illustrative purposes only. Do not infer or assume that any securities, sectors or markets described in the videos were or will be profitable. Any statements of future expectations and other forward-looking statements are strictly based on the current views, opinion, or assumptions of the person presenting them, and should not be taken as an indicator of performance nor should be relied upon as an investment advice.

Welcome to The Rundown, your daily market update in under five minutes. My name is Zad Admoning, and today is Wednesday, February 21st. In today's episode, we're going to discuss why NVIDIA might be the most important stock in the world. NVIDIA is reporting earnings after the close today, and everyone is on edge. We also discuss Fubu TV's lawsuit to block the Super Sports streaming app from Disney, Fox, and Warner Brothers. And then we end this show with a fun fact about the Dow Jones. There are some changes happening in the Dow that you might want to know about. All right, let's get into it.

Well, stocks are having a tough start to the week. The Dow, S&P, and NASDAQ were all in the red on Tuesday. Right now, it seems like the entire stock market is being dragged down by NVIDIA. NVIDIA's stock was down more than 4% on Tuesday, losing more than $75 billion in market cap. Some people are calling NVIDIA the most important and influential stock in the world right now. Because NVIDIA is reporting their Q4 earnings after the market closes today, and how those earnings go might have an impact on the rest of the market. Nvidia has been one of the biggest beneficiaries of the AI craze. Nvidia's stock was the best performing stock in the S&P 500 last year.

It's been the best performing stock in the S&P 500 this year so far. It's added over a trillion dollars to its market cap over the last 12 months. I mean, the hype around the stock has been absolutely insane. So investors have extremely high expectations for Nvidia's Q4 earnings today. For my NBA fans, this is like Victor Wenbanyama coming into the league this year. The expectations are through the roof. If Nvidia misses earnings, it could drag down the entire market. Like, I'm just getting nervous thinking about it.

So regardless, if you have any Nvidia stock or not, you're going to want to pay attention to the Nvidia's earnings when they come out after market closed today. Or you can just listen to this podcast tomorrow because I'll be recapping everything. Everyone's portfolio is counting on Nvidia to come through this afternoon. No pressure, InVideo. There's still a lot of nervous energy around Wall Street right now,

and stocks continue to slide today. All through major indices are down at the time of this recording, around 10 a.m. Eastern. All right, let's run through some headlines. You guys remember that report that Disney, Fox and Warner Brothers are partnering together to launch a super sports streaming app. Well, there's one company who didn't like that announcement, and that was Fubo TV. Fubo TV is a streaming company that specifically targets sports fans.

They're suing Disney Fox and Warner Brothers because they claim that Fubo TV had to pay higher licensing fees for the sports content, and they were forced to include channels from these companies that they didn't want, which hurt consumers. And they're saying that it's anti-competitive for Disney Fox and Warner Brothers to partner up to launch a sports-only streaming app. Fubo TV has a lot to lose if the streaming app comes out, so I can see why they're following. lawsuits to block this app from coming out. Fubo TV stock has been down on more than 20% since the announcement of the streaming app came out a few weeks ago. And I wouldn't be surprised if this sports streaming app gets more scrutiny from regulators

in the next few weeks. So who knows if this Disney Fox Warner streaming app even launches? Seems to be facing a lot of uphill battles. Sticking to the sports topic, Apple today just launched a free sports app. It's a way to keep track of all the scores happening throughout the sports world. RIP to all the other sports apps that are out there. All right, let's talk about some stocks making moves today. stock is a big winner today. The stock is up more than 12% at the time of this recording around

1030 Eastern after reporting better than expected Q4 earnings. Garman makes smart watches and GPS systems. Garman's revenues came in at $1.48 billion and they had earnings up $1.72 a share. Both of those were better than what Wall Street was estimating. On top of that, Garmin is expecting revenues of $5.75 billion for 2024. And that's also higher than what Wall Street was estimating. The cherry on top, they're proposing increasing their dividends as well. And investors love love to hear that. And that's why Garmin is the best performing stock in the S&P 500 today. I'll be honest with you guys. I didn't realize that this company was still around. I thought that maybe the smartphone killed it. But no, they're out here and they seem to be thriving.

Let's talk about a company not doing so hot today. This was a shock to a lot of people. Paulo Alto Network is down more than 25% at the time of this recording around 1030 Eastern after they released their Q4 earnings. Paula Alto Network is a cybersecurity company. Their Q4 numbers actually beat estimates. The revenues in Q4 were up 19% to $1.98 billion. And earnings per share came in at $1.46. Again, both were better than what Wall Street was estimating. But here's what investors didn't like to hear. Paulo Alto Network's forecast for 2024 was not good. They expect revenues of $8 billion, and Wall Street wanted to see revenues of around $8.18 billion.

Investors seem to be worried that companies are cutting back on cybersecurity spending. Even the CEO made comments that the customers are facing spending fatigue when it comes to cybersecurity. Funny enough, I also face spending fatigue every time I walk into Target with my wife. Okay, that was a bad joke. Polo Alto Network, it's on track to have its worst day ever, and other cybersecurity stocks are also taking a hit today. All right, let's wrap up the show with a fun fact. Today's fun fact is about the Dow Jones.

Yes, the index that we talk about on every show. Did you guys know that the Dow Jones is made up of just 30 companies? Well, there's a change happening at the Dow Jones. Amazon is replacing Walgreens as one of the 30 companies in the Dow Jones. This is going to happen starting on Monday. I'm not going to lie, the fact that the Dow is only 30 companies makes it my least favorite index. But hey, that's just me. I might just be a hater. All right, guys, that's all I got for you guys today. Remember, Nvidia earnings dropped this afternoon. I'll be recapping all of it

in tomorrow's episode, so make sure you guys tune in. Thank you guys so much for listening. I'll see you guys back here tomorrow. This is Public Live, your real-time resource for news events and trends in the markets. All views presented in this show reflect the opinions of the guests. You should not take any mention of a publicly traded security as recommendation to buy, sell, or hold that security. Public live hosts are not financial advisors and are not affiliated with public holdings or its subsidiaries. You should make your own financial and investment decisions or consult. Respective professionals. Learn more at public.com slash disclosures.

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