The Rundown - Disney Gains Edge in Proxy Clash, Rubrik Files for IPO

Episode Date: April 2, 2024

Stock market update for April 2, 2024. 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, April 2nd. In today's episode, we get you caught up on the proxy fight going down at Disney and tell you who all the players are and when the showdown is expected to happen. And then another tech company is filing for IPO, taking advantage of this IPO window in 2024. And finally, we wrap the show highlighting some stocks making moves today. And a fun slash depressing fact about homeowners. insurance. I kind of feel bad for Florida homeowners right now. Stick around to the end of the show to

find out why. All right, let's get into it. Well, guys, Q2 off to a bit of a mixed start. The S&P and Dow both dipped on Monday while the NASDAG did squeeze out a small gain of 0.1%. It was especially a tough day for meme stocks. Trump media dropped more than 20% on Monday after the company reported a loss of $58 million in 2023 with just $4.1 million in revenue. So yeah, investors didn't really love that news. But even after the drop in the stock price on Monday, the company is still currently valued at $5 billion. Reddit also had a tough Monday.

The stock dropped more than 5%. And it's down more than 30% from the highs from last week. So, I mean, things move fast in the meme stock world these days. Both of these companies went to the moon and back in less than a week. And speaking of memes, Bitcoin is also having a tough start to the quarter. Bitcoin dropped more than 6% seemingly overnight to below $66,000. It's been hovering around the $70,000 price point for most of last week, but it took a tumble overnight.

No particular event driving down the price. It's just typical crypto volatility here. Meme coins also taking a bit of a hit as well. So it's been a tough start of the quarter for memes all around. Let's run through some headlines. There is a battle happening over at Disney to get some seats on the Disney board of directors. So this all started with activist investor Nelson Peltz. So this rich guy wanted two board seats at Disney.

He says that Disney. is underperforming and potentially costing shareholders more than $200 billion in value. And he thinks that the Disney magic can be restored if he and former Disney CFO Jason Rusulo are added to the board of directors. They got a lot of ideas on how to fix Disney. But here's the thing. Current Disney CEO Bob Eiger and the current board of directors of Disney don't really want pelts there. So now they're in something called a proxy battle. The shareholders of Disney will literally vote to see who gets the board seats. This whole thing, thing kind of sounds like an episode of succession or something. And this thing has turned into a pretty

expensive proxy fight. In fact, the pricest proxy fight in U.S. history. Disney disclosed that they expect this proxy fight to cost about $40 million. Man, they really don't want this guy on the board. And Nelson Peltz's investment firm Tryon is spending about $25 million on this proxy fight. Oh, and there's third party trying to get a board seat, investment firm Blackwell's capital. They've spent about $6 million. Now, the showdown is nearing the finish line. Disney's annual shareholder meeting is on Wednesday at 1 p.m. when the votes are going to be going down. And it looks like Disney has the lead right now. The current Disney board has already secured supports from major shareholders like BlackRock and Tiro Price. And apparently more than half of all shares have been voted with Disney in the lead.

But we'll know the official winner by tomorrow afternoon. So make sure you listen to the rundown on Thursday for an update on this situation. The other big news for today is Rubrics, a cyber security backed by Microsoft has filed for an IPO. The company provides cloud-based data security to enterprises. They have more than 6,000 clients, including clients like Nvidia, Home Depot, the Denver Broncos, and some governments as well. The company's latest valuation was $4 billion. That's based off an equity investment from Microsoft back in 2021. So we'll see how their valuation shakes out in the public markets. But something to note, Rubik's did log a net loss of $354 million for the year ending on January 31st. So, companies still losing money. But I think the overall takeaway from this

is that the IPO windows seems to be open. IPOs and Q1 have raised $9.6 billion on U.S. exchanges, one of them being Reddit, and we're already starting to see action in Q2. Let's talk about some stocks making moves today. Starting with canopy growth, the stock of this cannabis company is up more than 2% this morning after the Florida Supreme Court has decided to allow state citizens to vote on the legalization of cannabis. This vote is going to be on the November ballot, where Floridians are going to decide if they want to legalize recreational cannabis or not. This is kind of a big deal, because because Florida is the third largest state in the U.S. with over 22 million people.

So if this vote passes and recreational cannabis becomes legal in Florida, that opens up a lot of customers for canopy growth. You know, I remember when cannabis stocks were like all the rage, but I feel like some of that hype has kind of fizzled out a bit. I wonder if this legalization passes in Florida if some of that hype will come back. I mean, how do you guys feel about cannabis stock these days? We'll make that the Spotify poll today. If you're listening to this show on Spotify, first of all,

thank you so much because the podcast is now number eight on Spotify's business charge, which is incredible, but also tap on today's episode and vote in today's poll and let us know what you think. I'm genuinely curious what the vibe is right now around cannabis stock. Seems like most people have just kind of moved on to crypto or AI. Speaking of an industry that used to be hyped, but not anymore, EVs. The shares of Canoe, a relatively unknown EV maker, are down more than 25% this morning after the company's 2024 revenue forecast came in below estimates. Look, I'll be honest with you guys, I'd never heard of this company. And after looking into it, The vibes coming out of this company are pretty bad.

The company warned about the risk of discontinuing operations due to decreasing capital levels. That's corporate talk for we might have to close shop because we ran out of money. And the company has been providing this warning for like eight quarters now. So I don't really think that investors should have been caught off guard by this. What's crazy is that this company used to be worth $4 billion at its peak back in 2021, which, I mean, that was weird times, right? Currently, the market cap of this company is like below $200 million. And what's even crazier is that the CEO of this company spent $1.7 million on private jets in

23, while the company as a whole only made $886,000 in revenue for all of 2023. So to put that into perspective, the company's CEO is spending double the revenue of the entire company on just private jets. What is going on over there? All right, let's wrap the show with a fun fact. Today's fun fact is about home insurance. The average premium for U.S. home insurance is expected to hit $2,500 this year. That's up 6% from 2023 and up 20% from the past couple of years.

And it's even worse for high-risk places like Florida, where average premiums are approaching $12,000 a year, which is insane. The increase in insurance premiums are due to a few factors, such as intensifying natural disasters and the higher fees for home repairs. Yeah, so homeownership just continues. to become more expensive. Not only your house prices is just insane, but once you have the house, ensuring that house just continues to become more expensive. This was more of a depressing fact than a fun fact. So my bad for bumming out, everybody. All right, guys, that's all I got for you guys today.

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