The Rundown - Disney+ Delivers Surprise Profit, Apple’s ‘Let Loose’ iPad Event Kicks Off

Episode Date: May 7, 2024

Stock market update for May 7, 2024. Check out the ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Leading Indicator⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ podcast by Public.com. Get started with Public: ��⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Click here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ 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.

Public.com presents the rundown, your daily market update in five minutes. My name is Zadmani, and today is Tuesday, May 7th. In today's episode, we recap Disney's Q1 earnings, and some investors were probably wishing for better results. We also get you ready for today's iPad event from Apple, and then stick around to the end of the show to find out how much a ticket to the Met Gala cost. Spoiler alert, it's a lot. All right, let's go.

Well, guys, the stock market got off to a nice start this week, both the, The S&P 500 and the NASDAG jumped more than 1% on Monday. Just nice to see some green on the screen to start off the week. It was especially a great day for airlines. Airlines stocks were flying high. United, American, Southwest were all up around 5%. And it was also a great day for semiconductors. SMCI popped more than 6% and Nvidia jumped almost 4%.

Now a quick note on Nvidia, billionaire investor Stanley Drunken Miller said that he sold some of his position in Nvidia in late March. He mentioned this during his appearance on CNBC Squawk Box this morning. Now, some people have Drunken Miller on their Mount Rushmore of investors. He's one of the greatest investors of all time. So when he makes moves, people like to pay attention. And Stanley Drunken Miller's timing on his investment in Nvidia could not be better. He said that he was first introduced to Nvidia back in the fall of 2022. One month before ChatGPT came out.

And Chat GPT, as you guys know, was like the Canon event for AI and AI companies. That's when the hype really got started. And NVIDIA's stock has been up more than 500% since then. And that was enough for Drunken Miller to take some profit. Hard to blame him there. Stanley Drunken Miller also said that he thinks that AI might be a little overhyped right now, but underhyped long term. That's a bar.

And I feel like a lot of people are feeling this way right now. I can't wait for Nvidia to report their earnings. It's supposed to come out May 22nd. So we still have to wait a couple more weeks. And just like last time, the expectations going into these earnings are sky high. Let's run through some headlines. Let's start with Disney. They just reported their Q1 earnings and kind of a mixed bag.

Let's start with the good news first. Disney Plus had its first ever profitable quarter, and nobody was really expecting that. Disney Plus delivered a $47 million profit, and Wall Street was expecting a $100 million loss. So that's a nice surprise. Disney Plus added 6.3 million global subscribers, bringing the total excluding India to 117 million.

But that number was lower than what analysts were expecting. Now, Disney does plan to crackdown on password sharing this summer to help boost those numbers. Thanks, Netflix. Now, zooming out to the overall streaming business, which includes Hulu and Disney Plus, that lost $18 million in the quarter. Not great, but that was much narrower than the $659 million that was lost last quarter. So losses are decreasing, and management says that they expect streaming to be profitable by Q4.

So that's pretty encouraging. Getting streaming to be profitable has been at the center of, Disney's turnaround plan. But they're still kind of struggling with the burden of the traditional TV business. The traditional TV unit, which includes ABC, Disney Channel, National Geographic, and other networks saw sales dip by 8%. And operating income plummet by 22% because of lower advertising revenue. So the bad news from the traditional TV business overshadowed some of the positive news coming out of the streaming business. As a result, Disney stock is down more than 7% this morning at the time of this recording. Investors are focusing on the bad news more so than the

good news. Oh, I forgot to mention Disney's experience division, which is their theme parks and their cruises. That continues to crush it. The revenues for that grew by 10% to $8.4 billion in operating income jumped to 12%. So, theme parks and cruises continue to be a nice

bright spot for Disney. Let's shift gears and talk about Apple. We have an Apple event today. Apple's event today is named Let Loose, and the company is expected to deliver updated versions of the iPad Pro and iPad Air. I really hope to come out with an iPad mini because that's really what I want to buy. Now since the iPad was first released back in 2010,

Apple has either upgraded the device or rolled out a new model every single year except for 2023. So there is some pent up excitement. All the tech nerds like myself are waiting for the iPad Pro with the OLED screen. And there's some rumors that Apple might put their brand new M4 chip in the new iPads with AI capabilities. I mean, that could be huge and could be a good way to help increase iPad sales because iPad sales were down pretty big. Their latest earnings report, they show that iPad sales fell 17% from a year ago. So I'm excited. We'll recap this event in tomorrow's episode of the rundown.

So make sure you guys are tuning in. Let's talk about some stocks making moves today. One of the big winners this morning is Rivian. Shares of the EV maker are up more than 7% this morning after the Digital Times reported that supply chains were speculating that Apple is considering collaborating with an EV company. And that company might be Rivian. I mean, that would be crazy. Now, Apple famously canceled their plans for an EV car earlier this year, and they cut hundreds of jobs in the process.

So maybe they're trying to get back in the EV game, but instead partnering with a company instead of making their own car. Arrivian actually reports earnings after the closing bell today, so maybe we'll get lucky and hear some more news about this. This speculation is wild. It's no surprise the stock is up big this morning. Rumors like this can definitely make a stock pop. A stock not doing so good this morning is an internet favorite, Palantir. The stock is down more than 11% this morning. after the company reported their Q1 earnings last night

and provided lower than expected revenue guidance for 2024. Palantir points to headwinds in Europe after its international commercial unit sales fell by 3% in the quarter. The commercial division focuses on software sales to businesses and not governments. Palantir noted that Europe's GDP is headed towards a 0% growth

over the next few years, which management noted as a problem for the company because 16% of Palantir's revenue comes from Europe. And if there's no growth in Europe's economy, it might be hard for Palantir to grow their revenues in Europe. Investors weren't loving that news and stock is down big this morning. Let's wrap the show with a fun fact. Today's fun fact is about the Met Gala.

The Met Gala took place in New York last night. So let's break down the money behind the event. Now get this. A single ticket to the Met Gala cost $75,000. And what's crazy is that it was $50,000 last year. So talk about inflation. Oh my God. Now, you could also ball out and buy a table for 10,

which is going to cost you $350,000. I see what they're doing there. One ticket, 75, table for 10, 350? Seems like the table for 10 is a bargain. On top of the really expensive entrance fee, the event is invite only. So, like, even if you have the 75 Gs to drop on a ticket, you can't just go.

You have to be invited. Each year, there's a new theme that guests have to follow for their outfits. This year, it was Sleeping Beauty or something like that. Looking at the pictures, I probably could not have guessed at. But yeah, I hope everyone at the Met Gala I had fun. Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did, please consider giving us a five-star rating on Apple and Spotify. The engagement

really does help the show, especially those reviews on Apple. Those go a long way, because you guys know everybody reads the reviews before they buy or listen to something. So if you guys leave us a kind review, I would really appreciate that. Thank you guys so much for listening. Shout out to Mike and Connor for all the work behind the scenes. See you guys 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 Zayid Mani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.