The Rundown - Broadcom Surges Past $1 Trillion Market Cap, Google Raises Price of YouTubeTV

Episode Date: December 13, 2024

Stock market update for December 13, 2024. Download Alpha

Public.com presents the rundown. Your daily market update in five minutes. My name is Zadmani, and today is Friday, December 13th. In today's episode, we tell you about Trump's plans to loosen bank regulations, which might include eliminating the FDIC. I also vent about the rising prices of streaming services. Then stick around to the end of the show to find out why Broadcom is worth nearly $1 trillion in how much hot ones just sold for.

All right. Let's go. Well, unfortunately, the stock market could not keep the rally going on Thursday. After a nice pop on Wednesday where stocks were hitting record highs, markets were back to trading in the red on Thursday. And things were down across the board. The S&P 500, NASDAQ, and Dow were all down around 0.6%. In fact, more than two-thirds of stocks in the S&P 500 were down on Thursday. And I just want to point out, the Dow Jones has dropped for six straight trading days in a row.

Long-time listeners, probably know how I feel about that. Maybe it's time that we all stop caring about the Dow, you know? By the way, President-elect Donald Trump visited the New York Stock Exchange yesterday to ring the opening bell. And before he rang the bell, he did give a speech where he hyped up his upcoming administration and all their pro-business policies. There have been reports that the Trump team is looking to shrink or eliminate bank regulators and agencies like the FDIC. The Wall Street Journal reported that Trump's Doge team, which is being led by Elon Musk and Mivik Ramoswamy have asked potential financial regulators if Trump could either eliminate the FDIC

or merge it with the Department of Treasury. I mean, the FDIC is a pretty important agency. It ensures your bank account for up to $250,000 in case the bank that you're using goes bankrupt. So that would be a pretty big shakeup. The Trump team is also looking to merge the OCC, which is the comptroller of the currency with the Federal Reserve. I mean, all of this would be a pretty big shakeup and likely require congressional action. So we'll have to be a very big shakeup. So we'll have to. to see if any of it actually happens, but a lot of big changes are being thrown out there right now. Let's run through some headlines. And we should start with YouTube TV. Google announced yesterday that they're planning to raise the price of YouTube TV from $73 a month to $83 a month.

This upset a ton of YouTube TV subscribers, including me. I got the email from Google yesterday. And I'm not going to lie, I am second guessing my subscription now. I mean, it's upsetting, but it's hard to be surprised at this point. I mean, every streaming service just continues to raise prices, and it doesn't seem to be stopping. Netflix, Disney Plus, Hulu, Max, they've all raised prices over the last couple of years. But they're still growing their subscribers, though, so it's hard to blame them. You know, when YouTube TV first launched back in 2017, it was only $35 a month, making it way cheaper than cable. But now that it's $83 a month, I mean, that's like what cable used to cost, you know? Streaming was supposed to be cheaper than cable? It definitely isn't the case anymore.

don't get me wrong. I still think that streaming is still more convenient than cable. Like, you don't need a cable box to watch YouTube TV and you can watch it on your phone, which is nice. And you can cancel any time, which if you guys remember, canceling a cable subscription was the hardest thing in the world. They would put you on hold for two hours. So you don't have to worry about that anymore. But man, it's still hard to justify subscribing to these services at these prices. Like, I only have it right now to watch sports and a little CNBC in the morning. So I'm going to start looking for alternatives. We'll have to see if these price hikes end up impacting YouTube TV's subscriptions moving forward. Now, speaking of raising

subscription prices, let's talk about Costco because they reported earnings last night and the numbers are pretty good. The company beat on both revenue and profits for the quarter and their e-commerce sales grew by 13% compared to the same quarter last year. No, Costco continues to have a very loyal customer base despite raising membership fees. Their membership renewal rate was 90.4% worldwide, which is pretty incredible. Costco's management team said that consumers are still careful though when it comes to purchases, but they're still willing to spend the money on newer items for the right value. You know, what really stood out to me was that Costco reported strong growth for things like gold and jewelry, sporting goods, furniture, and luggage. All of those categories grew by double

digits. I've said this before. Every time I go to Costco, their gold bars are sold out. So there seems to be a pretty big demand for this stuff. Nothing like going to Costco to buy some rotisserie chicken and buying a $3,000 gold bar. So yeah, Costco is doing great right now. And as a result, shares of Costco are up around 2% this morning in reaction to these earnings. Let's talk about some stocks making moves today. Shares of Broadcom are surging this morning after the chipmaker reported earnings last night. The earnings numbers were pretty decent. Revenues were up 51%, which was actually less than what was estimated, but their profits jumped 23%, which beat analyst's estimates. But I think what was making investors really excited is that Broadcom announced plans to

create custom AI chips for three large cloud companies. So yeah, they are jumping into the AI chip game and ready to compete with Nvidia. Broadcom expects sales of their AI products to increase by 65% in the first quarter. And that had investors buzzing. Shares of Broadcom are up around 15% in the pre-market. You know, I feel like Broadcom really isn't a household name, despite the fact that this company is worth nearly a trillion dollars, I feel like the company just doesn't have any Riz. I have no idea if I use that word, right? But you know what I mean?

I feel like not that many people know about Broadcom, but they're a pretty big player in the tech space. They make chips for smartphones, for cars, for data centers. One of their biggest customers is Apple. So I wanted to learn more about Broadcom, and I started doing that using this new app called Alpha from public.com. The app just came out this week. And the way I described this app is like if the Apple Stocks app

was infused with AI. You can get quick summaries of why the markets are moving a certain way, why certain stocks are going up and down. And this app can do a lot more than that. Like, I use it to get quick summaries of earnings reports.

And I also love their chat feature where I can ask it questions about companies to learn more about that company, which is how I started learning more about broadcom. So if you guys want to learn more about broadcom or any other company

for that matter, check out the Alpha app and start utilizing AI for market research. We'll put a download link in the episode description and check it out. Now, we usually highlight one stock that's having a down day, but I'll be honest, nothing seems to be really jumping out

this morning. I think the only noteworthy thing is that the Russell 2000 is down around 1% this morning. In fact, the index is down north of 2% over the last five days. So investors not really loving small cap stocks this week. Let's wrap the show with a fun fact. BuzzFeed is selling the parent company of the popular YouTube show Hot Ones for $82.5 million. The parent company of that show is called First We Feast, and it's being bought by multiple investors, including the host Sean Evans, but also the Soros Fund. I'm not going to lie, I didn't realize how popular this show was, but apparently it makes around $30 million per year, according to Bloomberg. But BuzzFeed is still having to sell it because they have over $120 million in debt. And a ton of that debt is due this

month. So they're planning to use some of that $80-plus million from selling the show to pay off their debt and I guess try to turn the company around because things have not been so great for BuzzFeed. Honestly, bus feature just call it a day at this point. They had their moment a decade plus ago with their quizzes and their listicles and their clickbait headlines, but the internet's kind of moved on, you know? I mean, the company is struggling big time. Their stock is down around 90% from when they IPO back in 2021. And they currently have a market cap of just $130 million. Well, all right, guys, that's the rundown for today. That's the rundown for this week. If you enjoyed today's episode and you have like 12 extra seconds, consider giving us a five-star rating on Apple, on Spotify,

leave a comment on Spotify, vote in today's Spotify poll. All that engagement really helps us out and it helps other people find the show. And if you have an extra 10 seconds on top of that, try out the Alpha AI app that I mentioned earlier in the show. Guys, this is a great app to have for all kinds of investors. You can use it for a lot of stuff, like getting quick overview to the markets or finding out why a certain stock is going up or down. I personally use it to get quick summaries of earnings reports.

So it's a pretty useful app and it's going to continue to just get better. So go try it out and let us know what you think. We'll put a download link in the episode description. Thank you guys so much for listening. Shout out to Mike and Connor for all the help behind the scenes. Have a great weekend, everybody. And we'll see you guys back here on Monday. This is the rundown.

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