The Rundown - Bitcoin Rejoins $1 Trillion Club, Shake Shack's Outlook Sparks Hype

Episode Date: February 15, 2024

Stock market update for February 15, 2024. 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 Thursday, February 15th. In today's episode, we discussed the latest economic data showing a slowdown in consumer spending. We also discussed Bitcoin's recent surge and getting back above the $1 trillion market cap. Shout out Bitcoin. And speaking to market caps, we end this show with some really fun and kind of shocking stats about Nvidia's market cap. Some of these numbers just are hard to believe. All right, let's get into it.

Let's start with a quick stock market recap from yesterday. The markets treated us with a nice Valentine's Day rally after the brutal day that was Tuesday. I mentioned this in yesterday's show, but it seems like to me every time we've had a bad day in the market, stocks have found a way to bounce back. It's just another sign that stocks continue to be resilient. So let's hope that keeps going and the markets can regain some momentum. Seems to be a pretty mixed day today. The Dow and S&P are seeing green, but the NASDAQ is down at the time of this recording around noon Eastern.

All right, let's run through some headlines. We got some new economic data come out this morning, and well, it seems like we all bought less stuff in January. According to the latest retail sales data, January retail sales dropped by 0.8% when you compared to December. That drop was more than what economists were expecting. Now, my initial reaction to all this was like, yeah, I mean, of course we spent less money in January compared to December. People spend money like crazy in December. It's the holidays. But actually, the Commerce Department, which releases these numbers, adjust for holiday spending using historical patterns. So the 0.8% is seasonally adjusted.

So it is kind of concerning that retail spending dropped off so significantly in January. Some economists think the drop in sales could be because of bad weather that we had in January. Now to zoom out a bit, consumer spending has been strong over the last six months. Pretty much every month until this January report, consumer spending came in higher than what the economists were expecting. So it could just be an outlier. This data didn't really seem to impact the stock market so much. Let's shift gears a little bit and talk about Bitcoin. Bitcoin's market cap is now back above $1 trillion.

for the first time since 2021. Bitcoin has been on a run recently. The price crossed $52,000 this week for the first time since December of 21, and it's up 17% for the year. If you multiply the price of Bitcoin by all the Bitcoins that are in circulation, that number is now above $1 trillion. One of the drivers of the recent surge in Bitcoin seems to be the Bitcoin ETFs that launched over a month ago at this point. The estimates are that Bitcoin ETFs have brought in about $9.5 billion of new money since the ETF started trading back on January 11th. So I guess the ETFs are starting to do what people said they were going to do. Bitcoin going up is also lifting up the rest of the crypto market.

The overall crypto market cap is now above $2 trillion. It's great to see Bitcoin surging. And I've said this on a previous episode, but like it just feels a little bit different in this time. There's just not that same level of mania that we've seen in the past. Maybe we'll get there. Maybe it's just a matter of time, but I'm not seeing it just yet. Let's talk about some stocks that are making moves today.

Big winner today, Shake Shack. Shake Shack stock is up more than 20% at the time of this recording. around noon Eastern after reporting better than expected Q4 earnings. Shakechak Q4 revenues were up 20% to $286 million, and their net income came in at $6.8 million. ShakeShack also expects a strong 2024 for their business. They're opening 80 new restaurants, and they expect their revenues to increase by 11 to 15%. So shout out to everybody eating ShakeShack. I'm sure the Shake Shack investors really appreciate it.

I've actually never had Shake Shack before, but I might have to try it now. Let's talk about one of the losers in the stock market today. that would be Twilio. Twilio's stock is down more than 15% at the time of this recording around noon eastern after releasing their Q4 earnings. And honestly, their earnings for Q4 actually beat analyst estimates. Twilio's Q4 revenues and earnings were both higher than what Wall Street was expecting. But yet the stock dropped because Twilio expects their Q1 numbers to do worse than what

Wall Street was expecting. Remember, investors don't necessarily care about what a company has done. They care about what the company's going to do in the future. And Twilio does not expect their business to grow as fast as some investors were expecting. By the way, Twilio, if you're unfamiliar, makes communication tools for businesses. You know those text messages that you keep getting from random retailers to advertising their 40% off sales? Yeah, Twilio makes the tools for businesses to send those messages.

They're kind of annoying. I'm not going to lie. A quick pro tip on that, if you reply STOP, they should stop coming. I did that a lot, especially after the holidays. All right, let's wrap up the show with a fun fact. Today's fun fact is about NVIDIA. Fun fact is that NVIDIA is now the third largest company in the world. With a market cap of $1.8 trillion, they started.

surpassed Amazon and Google this week. There's only two companies now worth more than them. Microsoft and Apple, and this is the part that blew my mind. Invidia this year alone has added $600 billion to its market cap, which is equivalent to Tesla's entire market cap. I mean, the rise in Nvidia's stock going back last year is insane, but if you just look at this year, it's also crazy. Nvidia's earnings, which are coming up on February 21st,

that's next week, are probably the most anticipated earnings of any company so far. The expectations are so high at this point. And NVIDIA over the last three quarters have continued to exceed expectations. I don't even know what they expect here. One thing I can tell you, I will definitely be covering NVIDIA's earnings on one of the episodes of the rundown next week. So make sure you guys are tuning in. And shout out to all the NVIDIA shareholders out there. What an incredible run by this company.

All right, guys, that's all I got for you guys today. Thank you guys so much for listening. And we'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. In paid partnership with Zaid Admani, brokerage services for U.S. listed, registered securities are offered by Open to, to the Public Investing Incorporated, member FINRA and SIPC.