The Rundown - Apple Slumps in China, Musk Loses Richest Man Title

Episode Date: March 5, 2024

Stock market update for March 5, 2024. Apple iPhone sales plunge 24% in China as Huawei smartphone business resurges, report says (CNBC) Biden to launch joint FTC-DOJ task force to crack down on ‘unfair and illegal pricing’ (CNBC) Target Stock Is Soaring. A Better 2024 Is Coming. (Barron's) Stitch Fix and ThredUp shares fall, as both companies navigate ambitious transitions (MarketWatch) Jeff Bezos Surpasses Elon Musk as World’s Richest Person (WSJ) 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 Zadadmani, and today is Tuesday, March 5th. In today's episode, we're going to talk more about Apple. They've had a tough start to the week, and their week just got worse from the latest news coming out of China. We also talk about the White House's new task force to fight back against shrinkflation. And then we wrap the show highlighting some stocks making moves today, like Target. And then we end the show with a billionaire fun fact. Guys, we have a new number one in the world.

rich guy rankings. Stick around to find out who it is. All right, let's get into it. Let's do a quick recap of the stock market on Monday. Stocks got off to a tough start. The Dow, S&B, and NASDAQ all dropped off the backs of the decline in the Magnificent 7. The stock of six of the seven companies in the Magnificent 7 dropped yesterday. Microsoft, Apple, Google, Amazon, meta, Tesla were all down on Monday. Tesla especially had a bad day. It was down more than 7%. The only company that was up? Invidia, up 3%. It looks like nothing is going to stop. in video right now. Now, stocks are coming off four straight months of gains, 16 of 18 positive weeks, so one bad day isn't indicative of a reversal. So nothing to really freak out about.

If there continues to be softness in the Magnificent 7, which honestly should be called the Magnificent 6 because of how bad Tesla is doing, it might make investors nervous of the overall market. We're going to keep an eye on it, okay? Now, nothing seems to be stopping Bitcoin's path to the moon, though. Bitcoin jumped to over $67,000 yesterday. I think it hit $68,000 for a minute. And Ethereum crossed $3,500 as well. Bitcoin is so close to its all-time highs of $69,000. People seem to be optimistic that Bitcoin's going to hit $70,000 this week for the first time ever. I keep hearing the term FOMO rally being thrown around. I don't know if it means that we're in the FOMO rally right now or if the FOMO rally is about to happen. Regardless, the hype is here

and Bitcoin is on the verge of all-time highs. Now, as for stocks today, I'm recording this episode before the market opens around 9 a.m. Eastern. And the future is for the Dow. S&P and NASDAQ are all flashing red, which indicates a lower open. I think crypto is just taking all the attention from the stock market right now. All right, let's run through some headlines. We got some quick hit stories to talk about today. Starting with Apple. We talked about Apple in yesterday's episode. They got hit with a $2 billion antitrust fine yesterday by the EU. And today, things just seem to get worse. According to the latest reports, iPhone sales are down 24% in China. Apple has been facing some big time competition in China from local Chinese smartphone makers like Huawei,

Opo, Vivo, and Xiaomi. I really hope I didn't butcher any of those names. And because of these decline in sales, Apple is doing something that they very rarely do to increase demand. They're offering discounts. Crazy, right? We never get discounts from Apple, but they're trying it in China. They're cutting prices to get more people to buy an iPhone, but it's too soon to tell if that's working. Apple, I really wouldn't mind some price cuts in the U.S., you know? Speaking of cutting prices, the White House is launching a new task force to take on unfair and illegal corporate pricing. This new task force is going to be co-led by FTC chair, Lena Khan, and Assistant Attorney General for antitrust Jonathan Cantor.

Now, this council's official meeting is occurring today, there's no word on what exactly will be done. Maybe besides, like, cyberbullying these corporations that the White House has been doing on Twitter. But, you know, keep an eye out for more news from the White House regarding this task force. By the way, not condoning cyberbullying here, but the backlash that Wendy's got last week because of the whole surge pricing thing, they backtracked. So whatever we did, worked. One thing is for sure, though, this new White House task force probably won't be bothering Costco anytime soon. Shout out to the $1.50 Costco soda hot dog combo.

I hope it sticks around forever. And lastly, wrapping up with these headlines, JetBlue and Spirit are officially calling quits on their merger. Remember, a judge blocked this merger a few weeks ago, citing antitrust issues, and JetBlue and Spirit thought about it. appealing the decision? They've officially decided to not appeal this decision and end all merger plans. JetBlue is going to pay Spirit a $69 million breakup fee and maybe an extra $60 for baggage. Okay, that was a lame joke. I had to do it though. All right, let's talk about some stocks making moves today. Starting with Target. Target reported their Q4 earnings and they beat estimate on top line and bottom line. The revenues were up 1.7% in Q4, better than expected, and their net income

was up 58% in Q4. That's huge. The sales are going up and their profits are going way up. Now, Target points to lower freight and shipping costs along with a broad base efficiency efforts that saved him over $500 million in costs over the last year. And that's led to such a huge jump in profits. Investors are loving the news and the stock is up more than 8% in pre-market trading today. It's a nice bounce back from Target because they saw their growth decline and poor profits for most of 2023. You know, with more people spending money on groceries, there's less people buying random Target-type stuff, you know, like organic bar soaps or something like that, you know?

But cost-cutting and offering better prices seems to be working so far. Looking forward, Target expects their sales to grow by 0 to 2%. Oh, and they're also working on a new membership program that's going to allow same-day delivery to people's home within two hours or less. Man, I really hope my wife does not find out about this. A stock not doing so hot today is Stitchfix. You guys remember Stitch Fix? Because I'm not gonna lie, I didn't even know they were still around.

Well, they're not doing so great right now. The company reported worse than expected earnings and the stock is down more than 12% in pre-market trading. And they also reduced the company's outlook for this year. The company is trying to bounce back though by trying to become a more, quote, fun destination for customers. I have no idea what that means. I'll tell you one thing though.

Investors aren't having fun right now because the stock is down big today and down more than 30% over the past year. All right. now it's time for everybody's favorite segment, the fun fact of the day. Today's fun fact is about billionaires, specifically Jeff Bezos. Jeffrey Bezos is once again the richest man in the world, overtaking Elon Musk, first time since 2021. Now look, a lot of Elon's net worth is tied up in Tesla stock, and if you haven't noticed, Tesla stock not doing so hot lately. And because of the drop in Tesla stock, Elon dropped to number two on the rich guy list. Actually, if you look at the top

three on the rich guy list. It's a very close race. Jeff Bezos is number one at 200 billion. Elon is number two at 198 billion. And Bernard Arnault, the founder of LVMH, is number three at 197 billion. So these guys are within like one to two percent of each other. And the leaderboard to get shuffled around depending on how the stocks of Amazon, Tesla, and LVMH do today. But Jeff Bezos is back at number one, at least for right now. So shout out to him. I hope he's having fun in Miami, you know, saving taxes. Or I mean, you know, on his boat. All right, guys, that's all I got for you guys today. If you guys enjoyed this show,

make sure you guys ready as five stars on Spotify and Apple Podcast. Thank you guys again for listening. We'll be back here tomorrow. This is the rundown, 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. Rundown guests 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 disclosures. In partnership with Zaidid Mani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.