The Rundown - Broadcom Delivers Weak AI Sales Outlook, Lululemon CEO to Resign

Episode Date: December 12, 2025

Stock market update for December 12, 2025.

Public.com presents the rundown. Your daily market update in under 10 minutes. My name is Zaid Admani, and today is Friday, December 12th. In today's episode, I'll explain why Broadcom stock is tanking despite a record quarter. I'll also get into the struggles at Lulu Lemon and why the news of a new CEO has investors excited. Then stick around to the end of the show to learn about an AI-powered web browser that Google is working on and why I am not a We got a great show for you today. Let's go. Well, guys, it finally happened. The S&P 500 climbed 0.2% yesterday and hit record highs the first time since October. Also, shout out to the Russell 2000 and the Dow Jones for hitting record highs as well. Still don't care about the Dow though. But I do really care about the NASDAQ.

And unfortunately, the tech heavy index was in the red yesterday, dropping 0.3%. dragged down by Oracle's really, really bad day. Oracle stock was down nearly 11% yesterday after their earnings report, which had investors worried about their debt load and questioning the overall AI trade. We broke down Oracle's earnings in detail on yesterday's episode, so go check that out if you missed it. Zooming out, though, the fact that the S&P is pushing to new highs without the tech sector leading the charge is nice to see. One of the concerns all year has been the concentration in the S&P being too top-heavy and dominated by big tech names. Now, the top 10 companies still account for 40% of the S&P, but that's starting to ease up a bit

because of the rotation out of Big Tech, which started last month, and it hasn't stopped yet. A good way to track this is looking at the equal weight S&P 500 index, where every company in the S&P gets the same weight. Over the last month, the equal weight S&P is up 3.2% compared to just 1.3% for the traditional market-cap weighted S&P index. So that tells you that more stocks are starting to participate in this overall rally. So this is definitely something that I'm keeping my eye on. as we enter into 2026.

Now, looking ahead to next week, we've got some big economic data coming up. The Bureau of Labor Statistics will release the November jobs report on Tuesday, followed by the CPI inflation report on Thursday. And the reason this is a big deal is because we haven't gotten fresh economic data from the government in a while because of the government shutdown. So investors are going to be paying close attention to these numbers. So these numbers will give us a better sense of how healthy the economy really is, how the labor market is doing, and how inflation is doing.

So we'll break down all those numbers here on the rundown next week. So make sure you guys are subscribe. to the podcast and tuning in every day to stay in the loop. And I should be back in my normal recording environment for Monday's episode. Not going to lie, though, I do really like the natural lighting in this New York hotel room. Let's run through some headlines, starting with Broadcom. Broadcom reported earnings last night, beating expectations across the board, yet their stock is still taking a hit this morning. Let's get into the numbers first. Q3 revenues were up 28% to a record $18 billion, driven by a 7.7.000.

74% increase in AI chip sales. Broadcom's fastest growing business segment is making custom AI chips for companies like Google, meta, anthropic, and even open AI. Broadcom says it expects AI revenue to double year over year in the first quarter of 2026 to about $8.2 billion well above Wall Street expectations. The company also said it has $73 billion in AI product backlog. So all that sounds great, right? But the stock is still dropping because the company refused to give a full year AI revenue forecast for 2026, calling it a moving target. And that's not something that investors want to hear. Broadcom CEO also said that their AI chips carry a lower margin than Broadcom's traditional businesses, and that non-AI revenue is expected

to be flat next quarter. So despite sales hitting record highs, margins could take a hit, and that has investors worry. As a result, Broadcom stock is down more than 7% this morning in reaction to the earnings. You know, we've definitely hit a part of the AI cycle, where even a strong earnings beat isn't enough to push the stock higher. We saw the same thing happen with Nvidia's earnings a few weeks ago. So yeah, I'm really curious to see what's going to happen to the AI trade in 2026. Let's shift gears and talk about Lulu Lemon because their shares are up more than 10% this morning after the company announced that their CEO, Calvin McDonald, will step down at the end of January, ending a seven-year run as CEO. Now, it can't be a great feeling for the

outgoing CEO in the stock rallies double digits after announcing that you're stepping down, but Lulu has been struggling for a couple of years now. stock is down 50% over the past year, and they've struggled to reignite growth and fend off competition from newer brands like Allo and Viori. Ane. Aneeddotally speaking, I see a lot of yoga moms rocking aloe these days instead of Lulu. At least that's what my wife tells me. I'm not like doing market research myself or anything.

Anyways, pressure has been building for months now for a leadership shakeup at Lulu Lemon. The founder of Lulu Lemon, Chip Wilson, who is a major shareholder. He's been openly critical of management. He even took out a full-page ad in the Wall Street Journal earlier this fall, saying the company had lost its edge. So investors are hoping that a new CEO taking over will result in a strategic shakeup and a bounce back for the company. Now, it's worth noting that Lulu Lemon's latest quarter, which they reported yesterday, wasn't

a disaster. Lulu actually beat expectations with stronger than expected profits and comparable sales, driven largely by international growth. But the core U.S. business continues to lag, and fourth quarter guidance did come in light. So we'll see what the new CEO ends up doing to reignite growth. The company says they're now working with an executive search firm to find a permanent replacement. In the meantime, the CFO and the chief commercial officer will serve as interim co-CEOs. Let's talk about some stocks making moves today.

Weed stocks are absolutely ripping this morning after reports that the Trump administration plans to reclassify marijuana as a Schedule 3 drug. This is a big deal because Schedule 3 drugs come with far fewer restrictions than marijuana's current classification. Because believe it or not, weed is still lumped in with Schedule 1 drugs like heroin at the federal level. You couldn't tell that from walking around New York City. I'll tell you that much. Now, if this reclassification does happen for marijuana, it would dramatically improve the tax treatment for cannabis companies, making it easier for banks to work with them, and also potentially unlock more institutional investment. According to multiple reports, this reclassification could happen early next year. Investors are clearly loving this news. Shares of Tillray are up more than

30% this morning, and canopy growth is up more than 20%. That being said, though, the cannabis industry has absolutely burned investors for years. Even after today's pop, most cannabis stocks are still way down from their highs. No pun intended. On the flip side, shares of Fermi are getting crushed this morning after the energy infrastructure company said they lost a $150 million deal with its first major customer tied to its planned Matador Power Grid project. Fermi has been pitching Matador as a next generation power grid designed to support AI-driven data centers by connecting nuclear and other energy sources. But losing your anchored tenant before the project even gets off the ground is as bad as it gets.

And as a result, their stock is down more than 40% this morning. Let's wrap the show with a fun fact. Google is building a new AI-powered web browser because, of course they are. This project is called Disco, and it's an AI-first browser built around Google's Gemini Chatbot. And the big feature inside Disco is something called Gen Tabs, which basically turns your open tab, into a mini AI powered workspace. Essentially, GenTabs looks at what you're browsing and builds a custom web app around it. So if you're shopping online, it might create a custom page for you that compares prices or finds discounts.

If you're researching something, it could generate summaries of articles and create timelines or make study tools. It all sounds really interesting, but I don't think I want this. This might be a boomer take, but I think the browser is fine as it is. In fact, I don't think I want AI running in the background hogging up all the RAM. KOMarty takes up way too much RAM anyways. But that hasn't stopped all these AI companies from launching AI browsers, like Perplexity has one, Open AI has one, and now Google's working on one. Now, I do think there are some use cases for it, like with research and stuff. It could be very useful, but I don't think I want to make an AI

powered browser as my daily driver. In fact, Google actually admits this themselves. Google says that Disco isn't meant to replace Chrome, at least not yet. And right now, Disco is only available to a small group of testers. And Google says that Gen Tabs is just the first of many AI features that they're working on. I think I have to invest in more computer memory companies because the need for RAM is going to explode as AI infiltrates everything. Let me know in the comments of what you guys think about an AI powered browser. Would you guys want an AI power browser as your daily driver? And if so, how much RAM do you have on your computer? Well, all right, guys, that's the rundown for today. That's the rundown for this week. Hope you guys enjoyed today's episode. If you did,

and you have like five extra seconds, consider giving us a five-star rating on Apple, Spotify, YouTube, wherever you listen to your podcast. If you are listening on Spotify, don't forget to vote in today's Spotify poll. Leave us a comment on Spotify. All that engagement really does help us out, and it helps other people find the show. Don't forget, we're posting a deep dive this weekend about Oracle, and we also have an interview coming up as well. So keep an eye on your podcast feed for that.

Thank you guys so much for listening, watching, and commenting. Shout out to Mike and Connor for all the work behind the scenes, And we'll see you guys back here tomorrow. Frozen lasagna, medium power, 15 minutes. Sounds like Ojo time. Let's play. Feel the fun with Play-Ojo. The online casino with all the latest slot and live casino games.

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