The Rundown - Google Unveils New AI Chip, Blackstone Makes $10B Real Estate Bet

Episode Date: April 9, 2024

Stock market update for April 9, 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 9th. In today's episode, we talk about Google's plan to compete with Nvidia and why other big tech companies might be doing the same thing. Also, a Wall Street firm is buying apartment buildings, and it's a name that you might recognize. Then we wrap the show highlighting some stocks making moves, and a fun fact about Yukon basketball. I was a bit shocked to learn how much money the program lost last year. Yeah, stick around to find out what I mean.

All right, let's get into it. Well, Monday was kind of a slow day on Wall Street. The markets didn't really go anywhere. The Dow, S&P, and NASDAQ were pretty flat to start the week. I mean, let's be honest, everybody was kind of distracted yesterday with the eclipse happening in the middle of the day, including investors, that nobody was out here providing shareholder value. In fact, Monday was the lowest volume day for the New York Stock Exchange all year and the second

lowest volume day for the NASDAQ. So I do think the eclipse played a role in that. And I think we might be in for another slow day today as investors get. get ready for the CPI data which comes out on Wednesday morning. This is a pretty big CPI report coming out because investors have been on edge about inflation starting to maybe heat back up. So March's CPI report's going to paint a better picture of what's going on with inflation. If we get another month of hotter than expected inflation, tomorrow might be a tough day for your portfolio. We're going to cover all this in detail on tomorrow's

show, so make sure you guys tune in. Let's run through some headlines. Google is developing their own in-house AI chips. Just like every tech company in the world, Google Google's going all in on AI. Their main AI product is called Gemini, which is their chat GPT competitor. And Google is trying to integrate Gemini into everything. I'm talking Google Drive, Gmail. Even their search results, I feel like are like 50% AI now. Well, doing all this AI processing is very expensive.

It requires a lot of expensive custom AI chips to pull it off. And right now, the leader in those AI chips is Nvidia. Well, Google wants to reduce their reliance on Nvidia and other AI chip makers like Intel. So they decided to make their own AI chip. calling it Axion. This new hardware is going to run everything from Google advertising to big data analysis inside Google. And while Google's not planning to sell these chips directly to customers, it does plan to rent these chips out to its customers through its cloud services. And Google's not the only big tech company working on their own AI chips. Microsoft and Amazon are doing the same

thing. So while Nvidia is dominating this space right now, they're about to get some competition from these big tech companies. Google's currently hosting a cloud conference in Vegas for the next couple days, it's possible we get more information about this chip at this conference. The AI Gold Rush isn't going anywhere, and Google has decided to make their own shovel. I need to do better at my analogies. Switching gears a bit, we got Blackstone making news. Not to be confused with Black Rock. Blackstone is spending $10 billion to acquire an apartment real estate company, AIR communities,

ticker symbol AIRC. This would be Blackstone's largest real estate play in the multifamily market. Multi-family is a fancy word for apartment buildings. owns about 76 high-end apartment buildings in coastal areas like Miami, L.A., Boston, etc. And Blackstone plans to spend about $400 million to improve these apartment buildings. But overall, Blackstone investing $10 billion is assigned to the market that Blackstone is pretty confident of the future of high-end rentals. Blackstone buying more real estate. People are going to love that.

Yep. Let's talk about some stocks making moves today. American Eagle is up more than 3% this morning. after J.P. Morgan upgraded the stock to overweight with a price target of $31 a share. Right now, the stock trades around $25 a share at the time of this recording. J.P. Morgan issued the upgrade due to American Eagle's successful reduction in inventory and its brick and motor locations. And the expansion of the retailer's Airy brand, which includes lounge and aphleisure products. And on top of that, American Eagles planning

to remodel their stores. That's going to see up to 300 stores change over the next three to five years. American Eagles having a bit of a comeback. I mean, their stock is. is up more than 70% over the last year. I feel like there's been a resurgence of clothing retailers that were popular like 15, 20 years ago. If you look at Abercrombie stock over the last year, it's up more than 300%. So maybe we're seeing a comeback of mid-2000 retailers.

By the way, teenager me had a closet full of graphic teas from American Eagle. I knew I should have hung on to those graphic teas. The stock not doing so hot this morning is Tilray Brands. The cannabis company's stock is down more than 15% this morning after the company missed both earnings and revenue estimates for the quarter. And to make matters worse, they provided a weaker guidance for his fiscal year. The company said it can no longer expect to reach positive adjusted free cash flow levels in 24 due to a cash infusion delay from its asset sales.

All those words right there are something that investors don't want to hear. And it's not surprising that the stock is down more than 15% this morning. All right, let's wrap the show with a fun fact. Today's fun fact is about Yukon basketball. The University of Connecticut's men's basketball team won the national championship last night, beating Purdue 75 to 60. That makes it two titles in a row for them because they won it last year as well, becoming the first team to win back-to-back titles since 2007.

Yukon's men's basketball program now has as many national titles as Blue Blood programs like UNC and Duke, which is crazy because Yukon got their first title in 1999. So they've kind of dominated this century, much more than UNC and Duke. Now, Yukon's recent success hasn't really translated to more money for the university yet, according to the latest filings from the university. The men's basketball program generated $10.6 million in revenue in 2023. And they spent $13.9 million in 2023. So the program operated at a loss last year, which is kind of interesting given the fact

that they actually won the national championship last year as well. But I bet with back-to-back titles now, 2024 might be a profitable year. So shout out to the Yukon Huskies for. bringing home a title again. All right, well, that's all I got for you guys today. I hope you guys enjoyed that show. Tomorrow's show is going to be a big one. We're going to be talking CPI reports, so make sure you guys tune in for that. And if you guys enjoy the show, consider giving us a five-star rating on Apple and Spotify. Thank you guys again for listening and 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 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.