The Rundown - Microsoft and Apple Drop OpenAI Board Roles, TSMC Sales Surge on AI Demand

Episode Date: July 10, 2024

Stock market update for July 10, 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, July 10th. In today's episode, we tell you why a legendary investor is calling Tesla a meme stock, and we also recap Jerome Powell's comments to the Senate. We also tell you why Microsoft and Apple have decided to drop their board seat at OpenAI, and why CNN is going all in on digital. Then stick around to the end of the show to learn why it's not a great idea to time the market, especially in 2024.

It's good to be back. Shout out to JD for holding the down while that was out. All right, let's go. The stock market has been on a hot streak this summer. Both the S&P and NASDAQ moved higher on Tuesday, making record highs, and that's the sixth straight positive day for the S&P. And one of the hottest stocks in the world right now is Tesla. Tesla has been up for 10 straight trading sessions in a row. The last time the stock had a down day was June 24th, and the stock has been up 43% since then. Just crazy stuff. In fact, the run-up in Tesla stock over the last couple weeks has legendary investor Bill Gross now calling Tesla a meme stock. You could probably make the case that Tesla has been somewhat of a meme stock for years now, but it definitely has meme stock

vibes right now. I mean, have 10 days in a row, up 40-something percent, adding over $250 billion to its market cap. I mean, that's pretty wild. But let us know what you guys think. Do you think that Tesla has now become a meme stock? We're actually going to put up a poll on Spotify. So if you're listening to this on Spotify, tap today's episode and vote in today's poll. In other economic news, Jerome Powell testified in front of the Senate yesterday, and honestly, it was kind of more of the same. He talked about how strong the economy was and how the Fed is still watching for signs of cooling inflation and weakness in the job market, which is something that he's been saying for months now. The biggest takeaway for me was that Jerome Powell said the weakening labor market is just as much

of a risk to the economy as high inflation, which is pretty strong words, you know? The labor market has been strong, but there are signs of weakening. Now, obviously, the senators wanted to know when is the Fed going to have a potential rate cut, and Jerome Powell didn't commit to anything. I feel like he's a pro at giving non-answeres when it comes to interest rates at this point. Overall, it doesn't look like the markets reacted strongly to Jerome Powell's comments, but Jerome Powell will be back on Capitol Hill today as he will be testifying in front of the House. We'll let you know if he says anything notable on tomorrow's episode of the rundown. Let's run through some headlines. Starting with Open.

Open AI. In a pretty surprising move, Apple and Microsoft are dropping their role on OpenAI's board. Microsoft had a non-voting board seat, which they got like eight months ago during the whole Open AI firing Sam Altman drama that happened during Thanksgiving last year. You guys remember that? And so Microsoft, which has invested like $13 billion into Open AI so far, understandably wanted a board seat. Apple, on the other hand, just got their board seat as part of their deal to integrate chat GPT into the iPhone and other Apple devices according to the financial times. But these big tech companies have been getting a lot of heat from regulators both in the U.S. and Europe about their role in AI. Apple and Microsoft decided that they didn't want the smoke from regulators, so they decided just to drop their board seats. OpenAI

says that they will host regular stakeholder meetings with their partners and investors, such as Microsoft and Apple. The Open AI board consists of eight people, which includes Open AI CEO Sam Altman, also former U.S. Treasury Secretary Larry Summers, and also the CEO of Instacart. I'm telling you, man, OpenAI always has some sort of drama once every few weeks. Speaking of drama, let's shift gears and talk about CNN. They're going all in on digital. The news organization, which is owned by Warner Brothers, is merging both its digital news and TV division as cable continues to decline, and they're putting all their content on CNN.com and offering a new subscription service.

On top of this internal merger, the company is also planning to cut around 100 jobs. It seems to me that CNN's current CEO, Mark Thompson, who took over as CEO back in October, is running the same playbook he did at the New York Times. Mark Thompson was the CEO of the New York Times from 2012 to 2020, and during his time, the digital subscriptions went from 600,000 to over 6 million. And I think he's trying to do the same thing for CNN. Just not sure if it's too late. But CNN has to do something because their viewership has been on the decline as more and more people cut cable.

Let's talk about some stocks making moves today. Starting with TSMC. The biggest chipmaker in the world is up this morning after reporting a 33% sales jump in June and an overall second quarter sales jump of 40% both those numbers beat analyst estimates. TSM manufactures chips for Apple and Nvidia and business has been booming thanks to all the demand for AI chips. TNCMC stock is up more than 2% in the pre-market

and up more than 80% this year. In fact, TSM's market cap is getting pretty close to the $1 trillion mark. They're about $50 billion away. Something to keep an eye on. On the flip side of stock not doing so good this morning is LegalZoom. The DIY online legal service company stock

is down after they cut their full year sales outlook and they announced that they're replacing their current CEO. So yeah, that's never great. Replacing your CEO and cutting Salesforce. Yes, no surprise here, but the stock is down more than 25% in the pre-market. I'm not going to lie to you guys. I had no idea that Legal Zoom was even a publicly traded company. But I looked it up and they went public back in 2021 and the stock has been down more than 75% since going public. 2021 was just crazy times. All right, let's wrap the show with the fun fact. There's been been 130 trading days so far in 2024. And just 14 of them are responsible for the S&P 500's entire year-to-date gain of nearly 17%. This is according to the research firm, Data Trek.

So you know the cliche time in the market is better than timing the market? Well, it's hard to argue against that in 2024 because you want to be invested so you don't miss that on those 14 days. And a great place to invest is the public app. Pretty seamless plug there, huh? Well, all right, guys, that's the rundown for today. Thank you guys so much for listening. If you guys enjoyed today's episode, don't forget to hit us with that five-star rating on Apple or Spotify or both. And if you have a few more seconds, then don't forget to leave us a review. That engagement really does help the show. Again, shout out to JD for filling in over the last couple of days while I was out.

As some of you guys know, I live in Houston, Texas, and we got hit with the hurricane on Monday. Ended up doing a lot more damage than anticipated. Millions of people are still without power here, which has been pretty brutal because it's like 100 degrees here. And so a lot of homes don't have power or AC. But we're starting to slowly get back to normal. Hurricanes, man. They're no joke. Thank you guys again for listening.

Shout out to Connor and Mike for all the help behind the scenes. 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 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.

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