The Rundown - GameStop Earnings Disappoint, H&M Rallies on Profit Beat

Episode Date: March 27, 2024

Stock market update for March 27, 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 Zadadmani, and today is Wednesday, March 27th. In today's episode, we talked about what to expect at Apple's developer conference in June. Also, President Xi of China wants U.S. CEOs to invest in China. We give you a recap of his meeting with U.S. CEOs, including Tim Cook. And finally, we wrap the show with stocks making moves today and tell you why right now might be the best time to visit Japan. All right. it. Well, stocks had another down day on Tuesday, even though for most of the day, it looked like we

were headed for a positive close. But then, in the last 30 minutes of the trading day, we saw stock sell off and the Dow, S&P, and NASDAQ all dropped in the red, making that the third straight down session in a row. But we did have some bright spots like Krispy Kreme stock jumped nearly 40% on Tuesday because of their expanded partnership with McDonald's. And Donald Trump's media company, which owns Truth Social, also jumps 16% in its debut. And at one point, it was up nearly 40% for the day. We actually go into detail of both those stories in yesterday's episodes. If you want to learn more about those topics, go check out yesterday's show. Oh, and Reddit was up another 8% after jumping 30% on Monday. So unprofitable social media companies having a week. I wonder which company's

going to perform better for the rest of the year. Actually, let's make that the Spotify poll of the day. Which stock do you guys think will be a better investment for the rest of 2024? Reddit or Trump media. If you're listening to this show on Spotify, tap this episode and vote in today's poll and let us know what you think. This is going to be a very interesting vote. But overall, we're kind of in a dead part of the finance calendar. There's not a lot of news going on. Not a lot of economic data is expected right now, except for the PCE inflation index, which comes out on Friday. But beyond that, not really much going on. I think investors are just taking the time to chill out a bit until we start getting into the thick of Q1 earning season, which starts in mid-April.

So right around the corner. All right, let's run through some headlines. And I'll be honest with guys, not a lot going on in the world of finance right now. Like I mentioned, I think people are just kind of taking a chill this week and getting ready for the long weekend. So we're going to talk about some podcast favorites like Apple. Apple officially set the dates for the worldwide developer conference. The developer conference is going to be held from June 10th to June 14th. Now, typically during this conference, Apple announces their next operating system for the iPhone, the next operating system for the Mac. Sometimes we'll get some new apps. And sometimes we'll also get new hardware announcements. This year, many people are expecting the conference

to be about Apple's AI product, something that CEO Tim Cook has said is coming soon. Maybe this is a conference that Apple will hard launch their AI partnership with Google. We talked about this last week. Apple and Google are talking about potentially teaming up to power the AI in the next iPhone. But those are just rumors. Nothing's confirmed. Maybe we'll get confirmation at the developer conference in June. And I've already started to see a bunch of hype videos from Apple fanboys about how the next iOS

is going to have all these AI features and how it's going to be the biggest iOS change since the launch of the iPhone, which I mean, I feel like I hear that every year at this point. There's also supposed to be some new software updates for the Apple Vision Pro, which I don't think anybody uses anymore. I don't think I've seen a single video about after like the first week it launched. What I'm looking forward to the most though is to see if Apple subtly claps back at the DOJ and the EU because of the recent regulatory crackdowns. They're probably not going to do that. Okay. I'm just trying to create drama for no reason. Speaking of Apple and Tim Cook, he was one of the various U.S. business leaders that was in Beijing this week to meet with Chinese President Xi. Other executives and

include the CEO of FedEx, Blackstone, and Qualcomm. Now, during this meeting, President Xi said he wants more American investments in China. And he said that although China's economy has had some problems recently, it can be handled by the Chinese government. President Xi also noted that he doesn't believe that Washington and Beijing's ties need to be severed. So, you know, trying to project an optimistic outlook. Now, there's no doubt about it.

There's been some drama between the two countries lately, like the U.S. has an export banned on AI chips to China. And just last week, China, China, blah. block the use of Intel and AMD chips in their government devices. There was also a Chinese raid on American consulting firms operating in the country on allegations of spying. That's just some of the stuff right now. Like I said, there's a lot of drama to work out between the two countries. All right, let's talk about some stocks making moves today. Starting with H&M. H&M stock is up more than 13% after they reported their earnings.

Their profits was the bright spot. They made a profit of $196 million versus the $140 million that was expected. And their operating margin rose to 3.9% from the 1.3% that it was previously. The company said they're targeting a profit of 10% this year. So investors were pretty hyped about that. H&M still has some challenges to work through, like the rise of Chinese fast fashion retailers like Shien, but they seem to be finding some momentum now. If you zoom out a bit on H&M stock, it's been an absolute roller coaster. The stock was down 37% in 2022 and then a rebounded up 57% in 2023. So wild ride for the company. Speaking of wild rides, GameStop is down more than 16% today after the company reported earnings

and missed on both earnings and revenue estimates for the fourth quarter. The earnings disappointment came because of increased use of e-commerce when it comes to video game purchases. A lot of people just do digital downloads now and not going into GameStop to buy these games. On top of the missed earnings, the video game retailers said that it had cut various jobs to the company, but did not provide a specific number. So not good stuff happening at GameStop right now. All right, guys, let's wrap the show with a finance factor. of the day. Today's finance fact is about the Japanese yen. The yen hit a 34-year low against the

dollar. Currently, $1.152 yen. That's the highest it's been since 1990. The currency has gotten so low that the bank of Japan is now considered intervening to help prop up the currency. Now, there actually are some benefits of a weaker yen. Like, this is a good time for U.S. tourists to visit Japan since your dollar will go further. I mean, I've seen some great deals on flights to Tokyo lately. Also, a weaker yen makes Japanese products more attractive for U.S. buyers. But on the flip side, a weak yen increases the import cost for Japan. But if you've ever thought about visiting Japan, this might be the best time to go, because you're going to get the best bang for your buck. All right, guys, well, that's all I got for you guys today. This is the part of the show

where I've chill for five-star ratings. If you guys enjoy the show, consider giving the show a five-star rating on Spotify and Apple Podcasts. And if you're on Spotify, hit us with that follow button and turn on that notification bell. So every time a new episode goes up, Spotify will let you know. We really do appreciate everyone hitting that follow button, giving us five stars and voting in the polls. That engagement really helps grow the show. So thank you very much. And thank you guys again for listening. We'll 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 the 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. Run-down 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 Zaidamani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.