The Rundown - Meta Gives U.S. Military Access to AI Tech, Boeing Strike Ends

Episode Date: November 5, 2024

Stock market update for November 5, 2024.

Public.com presents the rundown, your daily market update in five minutes. My name is Zaid Admani, and today is Tuesday, November 5th. In today's episode, we tell you about the stock markets pre-election jitters. We also discussed the Boeing strike coming to an end and meta giving the U.S. military access to its AI technology. Then stick around to the end of the show to find out why Palantir is soaring and a fun fact about Nvidia and Election Day. All right, let's go.

Seems like the stock market is feeling some pre-election jitters. Both the S&P and NASDAQ dropped 0.3% on Monday. And it was an up and down kind of day with stocks starting the day off in the green before moving lower in the afternoon. You know, markets tend to get pretty volatile around election day. Investors don't really like uncertainty, so don't be surprised if we see more volatility today and the rest of the week, especially if it takes a few days for the election results to be before.

finalized. But yeah, it's Election Day in the U.S., and I'm sure we're all going to be refreshing the news websites in our Twitter feeds every few minutes and watch all the map bros on cable news go ham on the touchscreen, as they tell us about counties in Pennsylvania. You know what I'm looking forward to the most to finally be able to watch a football game without being bombarded with a ton of political ads? Let's run through some headlines. Let's start with Boeing. They got some good news this week, more than 30,000 striking Boeing workers finally came to an agreement on a new employment contract, ending a near two-month work stoppage. These workers will receive a 43% pay increase over the

next four years, along with other benefits. And these Boeing workers plan to come back to work by November 12th. So some good news for Boeing, because this work stoppage has been costing them a ton of money. Boeing recently reported they lost over $6.1 billion last quarter. The strike had forced Boeing to pause production of some of their most popular planes. But hopefully they can get back on track now. Boeing stock is up nearly 2% in pre-market trading in reaction to this news. Let's shift gears and talk about meta. Meta is allowing defense contractors and U.S. government agencies, including the U.S.

military, to use its AI models. Meta's AI product is called Lama, and it is open source, meaning that they're free for developers to use and create their own tools using this technology. But the company's acceptable use policy forbids people to use the AI tech related to military warfare and espionage amongst other things. But Zuck seems to have a change of heart here and is making an exception making Lama available to more than a dozen U.S. agencies and defense contractors, including Lockheed Martin and Palantir. We're actually going to talk more about Palantir in a bit. They're also opening this up to government agencies in the UK, Canada, Australia, and New Zealand. Now, there's

been reports that China has been using Meta's AI open source technology to build their own tools for their military. This is against Meta's wishes, obviously. And that could be one of the reasons why Meta is opening up this technology to U.S. defense contractors. But you know, I guess we shouldn't be surprised by all this. It was only a matter of time before AI entered the battlefield. And it looks like the arms race for AI has just begun. Let's talk about some stocks making moves today. We got to start with Palantir. Their shares are soaring after the software company beat earnings estimates and raise their guidance driven by, you guessed it, strong AI demand. Now, no one really knows what Palantir does, but I guess the general idea is that they make high-tech software used by

militaries and government agencies all over the world. I'm talking like CIA and MI6. Palantir's U.S. commercial business grew by 54% year over year, and its U.S. government division experienced a 40% bump in revenue. So they're seeing a high demand not just from the government, but also commercial customers as well. CEO Alex Carb said that they absolutely eviscerated this quarter driven by unrelenting AI demand that won't slow down. Yeah, there you have it. Investors are loving these results. Palantir stock is up 15% this morning in reaction to these earnings.

And their market cap has crossed over $100 billion. Now, shares of him and hers are also rallying after the telehealth company posted better than expected earnings and raised their full year guidance. The platform grew its subscriber based by $2 million, up 44% from a year ago. Now, Hymns has been a major beneficiary of GLP1s, which is a super popular weight loss drugs. They've been able to legally make copycat treatments due to the shortage. Now, I'm not sure how much longer they can do that for because federal drug regulators recently said that Eli Lilly's obesity drugs were no longer in shortage, which means that Hymns could

soon be restricted from providing their own GLP ones. Now, on the earnings call, the company's executives did say they've received over 80,000 reports on their platform from consumers that are unable to obtain the name brand GLP ones, like OZMPIC and Manjaro. So they think there's still a shortage, and I can see why, because they've been able to capitalize on the shortage by being able to provide their own GLP ones, which has really helped their business. Him's stock is up almost 3% this morning in reaction to these earnings, but we'll have to see how much longer they can provide their own gLP ones. Now on the flip side, shares are Marquetta are plummeting

after the payment processing company provided a weak sales outlook for Q4, citing high scrutiny in the banking environment. Now, Marquetta is not really a household name, but they're an up-and-coming fintech company, which does payment processing, and they also issue credit and debit cards. Obviously, things aren't working out for them right now, and investors are bailing. Their stock is down around 35% in reaction to these earnings. Let's wrap the show with a fun fact. Today's fun fact is about the election and NVIDIA. Last election day in 2020,

Nvidia made up just 1% of the S&P 500, with a market cap of around $300 billion. Fast forward to Election Day 2024, and NVIDIA now makes up 6.9% of the index weight with a market cap of over $3.3 trillion. This is according to research firm Data Tech. So simply put, Nvidia has 10x in the last four years. I think the bigger picture here is that the S&P 500 has now become more tech heavy over the last few years.

On election date 2016, the tech sector made up only 21% of the S&P 500. Now it's almost 32%. I think that's a pretty good illustration of how the tech sector has come to dominate the economy over the last few years. The S&P 500 these days are starting to look more like the NASDAQ. Maybe the dinosaur Dow Jones can learn a thing or two. You know what? Don't get me started back on the Dow. I already did my rant about the DOS.

out on yesterday's episode. So go check that out if you missed it. Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. Make sure you guys tune in tomorrow and the rest of the week to see how the markets react to all the stuff that's happening. Tomorrow is going to be an interesting day. And if you guys enjoy these daily updates, keep an eye on your feed on Saturday morning because we're going to be dropping our first weekend deep dive episode. The format's going to be similar. The episode's going to be five or seven minutes long, but we're just going to focus on one topic. It'll be short, informative. And, and, you're going to be short, informative, and, you know, filled with a few jokes here or there.

If you guys enjoy these daily market recaps, I think you guys are going to like the weekend deep dive. So drop us a comment on Spotify or YouTube and tell us what topics you're interested in and we'll try to cover those on a weekend deep dive pretty soon. Thank you guys again for listening. Shout out to Mike and Connor for all the help behind the scenes.

Actually, a double shout out to Connor for running the New York City Marathon over the weekend. 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 public 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 Zayidamani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.