The Rundown - Musk Calls Out Trump's Tax Bill, CoreWeave Soars on Massive AI Data Center Deal

Episode Date: June 4, 2025

Stock market update for June 4, 2025. This video is for informational purposes only and reflects the views of the host and guest, not Public Holdings or its subsidiaries. Mentions of assets are not recommendations. Investing involves risk, including loss. Past performance does not guarantee future results. For full disclosures, visit ⁠⁠⁠⁠⁠⁠Public.com/disclosures⁠⁠⁠⁠⁠⁠.

Public.com presents the rundown. Your daily market update in under 10 minutes. My name is Zadadmani, and today is Wednesday, June 4th. In today's episode, we'll tell you about the drama happening in Washington, D.C., and why investors are ignoring it for now. We'll also tell you about this AI stock that has jumped 200% in the last month. Then stick around to the end of the show to find out McDonald's latest moves to boost their struggling sales. We get a great show for you today.

Let's go. Well, guys, the market kept the rally going on Tuesday. The S&P 500 was up 0.6% and the NASDAQ was up 0.8%. And with that move on Tuesday, the NASDAQ has officially completed the comeback for 2025 and turned positive for the year after being down more than 20% at one point. And the S&P 500 is now 30 points away of being back up 6,000, which hasn't happened since February. So stocks keep climbing despite no major. major news or trade announcements.

Now, there is some drama unfolding in Washington, D.C. when it comes to President Trump's big, beautiful bill that's working its way through the Senate. Elon Musk is now coming out against the bill. The former government employee tweeted yesterday that the bill is a disgusting abomination and more than defeats all the cost savings achieved by the Doge team. So yeah, clearly he's not a fan of this bill and now he's publicly tweeting about it. And then when it comes to trade, President Trump hopped on truth social last night at like 3 o'clock in the morning and posted in all caps that President Chi of China was very tough and extremely hard to make a deal with.

So yeah, that doesn't sound great. And then President Trump also posted in all caps this morning that Fed Chair Jerome Powell needs to lower the rate. But the markets don't seem to be worried about any of that. Now, I do think the markets will care about the jobs report that's coming out on Friday morning. This report will tell us how many jobs were added to the U.S. economy in the month of May. And if those numbers come in strong, I mean, markets could be looking at all. all-time highs. So we'll recap that report for you on Friday's episode, so make sure you guys tune in for that. Let's run through some headlines. Starting with CoreWeek. CoreWeave has been

one of the hottest stocks in the market lately. Their stock was up 25% on Tuesday. It's up another 6% today at the time this recording. Now, if you guys remember, Corweave is an AI infrastructure company, and the IPOed earlier this year back in March, and that IPO was pretty underwhelming, went public at $40 a share and pretty much traded in that range for a while. And some people took that as a sign that the AI boom was over. Well, they were wrong because the stock has officially boomed with Corweave now trading above $150 a share. The stock is now up 270% since their IPO.

And it seems like retail investors might be what's driving this rally. Corweave has been the second most traded stock in volume on public.com since May 15th, which was the day after the company reported earnings. And speaking of their earnings, I mean, their business is booming right now, thanks to the demand from AI. Core Reeves revenue was up 420% in Q1, blowing expectations out of the water. But despite that, Wall Street isn't a big fan of the stock.

The company does have a high debt load, and the majority of the revenues come from just three companies, one of them being Microsoft. So that's why institutional investors on Wall Street are actually shorting this stock. About 30% of the shares available for trade have been shorted, according to the financial data firm S3 partners. So yeah, the big dogs on Wall Street don't think this run will last. But that's not stopping CorWeb from expanding.

They just signed the deal with Applied Digital to provide space and 250 megawatts of power to expand their data centers in North Dakota. And by way, CoreWaves' business is relatively simple if you think about it. They essentially buy up a ton of Nvidia chips. They load them into a data center and they rent out AI capacity to companies like Microsoft. I kind of think of them like a blockbuster, but for GPUs. Now, let's just hope that things work out better for CoreWeave than they did for Blockbuster. I mean, it's working out pretty well so far.

So shout out to you guys that got into CoreWeave early on. Let's shift gears and talk about Nintendo. The Nintendo Switch 2 is finally launching on Thursday, and the company believes they'll sell 15 million units by March of 2026. I mean, look, Nintendo really needs the Switch 2 to be a hit because they generate almost all of their revenue from the Switch and its games. The first Switch was a big hit. It sold over 150 million units since its release in 2017.

But the new Switch 2 does cost 50% more than the original, with a price tag of $450 instead of the $300 first gen. And I think the bigger issue for me is the cost of games. Mario Kart World on the Switch 2 will cost $80, according to Bloomberg. I remember back in days of Xbox 360s and PS3s, you could buy a game for like 50 bucks. And now you got to pay 80? I mean, that's a 60% markup. But I guess despite the cost of the games, there still seems to be a ton of hype for the Switch 2.

Pre-orders in Japan alone reach 2.2 million applications. You know, I kind of want to get one just to show my kids that I can ball out at Mario Kart, but I also don't know if I can stomach paying $80. Is it worth paying $450 than another $80? to show off to your kids? Yeah, maybe, maybe. I might have to get it. You might see me in line

at a local game stop in the Houston area this weekend. Let's talk about some stocks making moves today. HPE shares are up this morning after an earnings beat, which got a boost from their AI data server sales. You know, HP's best known

for their computers and printers, but they actually spun out the consumer side of their business back in 2015 into a company called HPQ. The company that I'm talking about is HPE. They focus on Enterprise, which is why it's called HPEE. They took a page from Dell's playbook and got into the AI server game. That's working out pretty well for them.

And shares of HPE are up north of 5% today. Now, on the flip side, CrowdStrike shares are falling after the cybersecurity company issued a weaker than expected sales outlook for Q2. Now, CrowdStrike did keep their full year sales guidance, though, but that wasn't enough to save the stock today. It's down nearly 7% in reaction to the earnings. Now, everyone remembers CrowdStrike from their debacle. they had last summer when the company botched a software upgrade. That caused millions of computers to crash all over the world, sending airports and train stations and banks into chaos. That whole debacle caused their stock to drop 40%. They've fully recovered from that. In fact, their stock hit

all-time highs last week. For those of you guys that bought the dip in Crowdstrike last summer, you're looking pretty good right now. Let's wrap the show with a fun fact. McDonald's is bringing back the snack wrap. Now, McDonald's first introduced the snack wrap, 20 years ago, but then they discontinued it in 2016 because it slowed down their kitchen. But recently, the company has been dealing with slowing sales. Their same store sales were down 3.6% according to their latest earnings report. So they're hoping that by bringing back the fan favorite snack wrap, it's going to help boost their revenue. Snack wraps will go on sales starting July 10th.

And now I just hope they bring back the parfait because that was my personal favorite. Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. By the way, I've been in New York for the past couple days. I got a chance to visit the New York Stock Exchange yesterday. Great experience. I'm going to post a little behind the scenes vlog about it on the rundown Instagram account. So make sure you will follow us there if you want to get my experience at the New York Stock Exchange.

I'll just say that it wasn't what I expected, but I had a good time. And then I'll be visiting the NASDAQ next. So really looking forward to that. Probably do a little vlog about that as well. So if you guys want to check that out, make sure you guys follow the Instagram account. Thank you guys so much for listening. Shout out to Mike. Connor for all the help behind the scenes, and we'll see you guys back here tomorrow.