The Rundown - Krispy Kreme is Coming to McDonald's, Trump Media Begins Trading

Episode Date: March 26, 2024

Stock market update for March 26, 2024. Truth Social owner Trump Media will begin trading under DJT ticker Tuesday (CNBC) McDonald’s to sell Krispy Kreme nationwide; doughnut maker's shares jump (CNBC) Cocoa Breaks $10,000 Record, With Pricier Chocolate to Follow (Bloomberg) 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 Tuesday, March 26. In today's episode, we talk about meme stocks. Are they back? Because with the way Reddit and GameStop are acting, it sure seems that way. We'll talk about it. We also dive into how former President Donald Trump added $4 billion to his net worth because of a SPAC. Yeah, those might be back too.

And then we end the show highlighting some stocks making moves today. Like how Krispy Cream's latest partnership has investors hyped right now. All right, let's get into it. Well, guys, stocks kicked off the week with a bit of a thud. The Dow, S&P, NASDAQ, we're all in the red to start the week. Markets seem to be taking a bit of a breather right now. I mean, it's a short week, and we're headed to the end of Q1. So maybe some investors are just taking some profits, you know?

Now, despite the overall markets being down, we might have a little mini resurgence of meme stocks. Like Reddit stock closed up 30% yesterday, and it's trading higher again. 10 this morning. I mean, maybe Reddit might be the next meme stock, which would be very fitting, given the fact that the subreddit Wall Street bet started this whole meme stock thing a few years ago. Some people are attributing the surge in Reddit stock price to the debut of options trading for Reddit. High volume of options trading can lead to volatility in a stock price. And apparently 90,000 options for Reddit stock changed hands just yesterday. This is going to be a wild ride.

I mean, I don't know. What do you guys think? Do you guys think that Reddit will turn into a full-on meme stock? We'll make that the Spotify poll of the day. So if you're listening to this episode on Spotify, tap today's episode, a poll will pop up, and let us know what you think. And speaking of a classic meme stock, GameStop shares jumped 15% on Monday. No real news on why. GameStop is reporting their earnings after the bell today. So we'll get a feel for how the company is performing this afternoon.

What is interesting, though, is that the company's management has opted not to host a conference call. Usually after every earnings, a company has an investor's call. GameStop decided not to do one this quarter. So, I don't know. I don't know what's going on, but GameStop shares are up 50%. Yeah, I'm getting some, you know, it might not be full-blown meme stock mania, but it's given that vibe a little bit. Tune into tomorrow's show to see how GameStop earnings went. I can't believe we're still talking about this.

Speaking of things that were popular back in 2021, SPACs are back. And this time, former president Donald Trump just used a SPAC merger to add $4 billion to his net worth. All right, let me try to explain how this all went down. So there was this company called Digital World Acquisition Corp. It's a shell company currently trading on the stock market, and its purpose is to merge with another company. It's kind of how Spacks work. Well, this shell company just merged with Donald Trump's Trump Media and Technology Group. It's the company that owns Truth Social.

This combined company will start trading on the NASDAQ today under ticker symbol DJT. And because of this merger, Donald Trump adds about $4 billion to his net worth. See, he owns at least 58% of the company. And based on Monday's stock price, that values around $3.9 billion. Now, that valuation will go up and down based on what the stock does. But as of right now, on paper, Donald Trump added about $3.9 billion to his net worth. That would put him on Bloomberg's 500 richest people list for the first time with a net worth of around $6.5 billion. But there's a couple things to note here.

Number one, Trump won't be able to sell his shares in the company until a six-month lockup period ends. So you just can't dump all of his shares today. Secondly, Truth Social has a long ways to go before it hits profitability. True Social has around 5 million active members per research firm, similar web. It generated around $3.4 million in revenue, but lost $49 million in the nine months through September of last year. There's a lot of work to do for this company to hit profitability. So I guess the trend of social media companies that lose money being worth billions of dollars

is the thing right now. You had Reddit IPO earlier this month, never made a profit before. true social. So yeah, just right in the wave right now. All right, let's switch gears and talk about a company that also wasn't very profitable for a long time, but is very profitable today. Amazon. You like that transition there? Pretty proud of myself. Amazon announced that they are expanding their same-day pharmacy delivery to New York and L.A. as it tries to accelerate its push into health care. The service, which sends prescriptions for common conditions that has diabetes, is already available in Miami, Austin, Indianapolis, Seattle, and Phoenix. But they didn't have

New York and L.A., which was kind of surprising because, you know, it's the two most populated cities in the United States. Now, Amazon's push into the healthcare space isn't really new. They sold online prescriptions since 2020. And when they initially entered the industry, everyone thought they were going to dominate. But, you know, I feel like Amazon's prescription business hasn't really lived up to the height. A lot of people thought that CVS and Walgreens were in trouble. Doesn't seem to be the case. The pharmacy space is a pretty competitive space. I mean, not only do you have giant pharmacies like CVS and Walgreens and Wright Aid, you also have giant retailers like Walmart that sell prescriptions as well. So it really hasn't been that easy for

Amazon to come in and dominate. I also think that like most people feel comfortable picking up their prescription drugs directly from a pharmacy instead of waiting for it to come in a mail. Maybe that's just me because I don't really know anybody that buys their prescriptions through Amazon. But maybe Amazon's push into this will change consumer behavior. I don't know. I guess we'll see. But I'm all for more competition in the space. All right, let's talk about some stocks making's moves today. Krispy Cream shares are up more than 20% in pre-market trading. after McDonald's announced a plan to sell the company's donuts across all of its locations by 2026. Right now, Krispy Cream currently sells its donuts to 6,800 partner stores.

Well, McDonald's has around 13,500 locations in the U.S. So that should help increase sales for Krispy Cream. Imagine getting a Krispy Kreme donut with a McGrittle in the morning. Another big winner today is not a stock. It's Coco. It depends how you look at it. Because the price of cocoa keeps going higher. Pull up a chart for Coco.

It looks like a meme. stock or something. Coco futures sort past $10,000 a ton for the first time ever. The prices of cocoa keep going higher because it's the third straight year of being in a supply deficit, meaning there's not enough supply to meet the demand for cocoa. A lot of this has to do with supply constraints because of weather and disease impacted crop harvest in Africa. And on top of the weather issues, potential European Union laws regarding the safety of forest and wildfires can make the process harder to obtain cocoa. All of that has led to cocoa prices going through the Cocoa Futures are up 140% this year.

Acting like Nvidia stock at this point. All right, let's wrap up the show with a fun fact of the day. Today's fun fact is about Apple. 20% of Apple's global sales come from China. That's pretty huge. And Apple just opened up its 57th store in China last week. The new shop is in Shanghai

and it's Apple's second largest in the world, second only to the flagship store on New York City's 5th Avenue. It just goes to you how big China is to Apple's business And it's no wonder that Tim Cook is going to be in China this week to meet with Chinese President Xi. Maybe Apple should buy TikTok. That would be something. All right, guys, that's all I got for you guys today. Thank you guys so much for listening.

This is the part of the show where I chill for five-star ratings. We are almost at 500 five-star ratings on Spotify. Thank you, everybody that's already rated as five stars on Spotify and Apple. We really appreciate it. It means a lot. The engagement really helps the show grow. And if you haven't rated as five stars yet and you enjoy the show, hit us with that five stars. Spotify, Apple Podcast, wherever you listen to your podcast.

We'll take it all. Oh, and quick note, since the stock market will be closed on Friday, we will not have a show this Friday. But don't worry, we back on Monday to recap all the market news. Thank you guys so much for listening today and we'll see you 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 holding.

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 Zaid Admani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.