The Rundown - Musk Sues OpenAI's Altman, S&P 500 Win Streak Continues

Episode Date: March 1, 2024

Stock market update for March 1, 2024. Elon Musk sues OpenAI and CEO Sam Altman over contract breach (CNBC) Dell Jumps on Server Sales Fueled by Excitement for AI Work (Bloomberg) NYCB Stock Sinks After Finding ‘Material Weaknesses’ in Its Loan Review Process (Barron's) 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.

Welcome to the rundown, your daily market update in under five minutes. My name is Zadadmani, and today is Friday, March 1st. In today's episode, we're going to recap the stock market's performance in February. Spoiler alert, it was another great month. Then we talk about the latest drama in the world of AI. Elon is suing his old buddy Sam Altman for a breach of contract. It's an interesting lawsuit, and we're going to get into it. And then we end the show highlighting some stocks making moves today.

One of them is a bank stock that is not. not doing so hot right now. All right, let's get into it. Let's start with a quick recap of stocks on Thursday. We got record highs again, baby. The S&P 500 and NASDAQ both closed at all-time highs. Take that leap day. And if you didn't understand that reference,

go listen to the end of yesterday's episode. This was the first time the NASDAQ has closed at record highs since November of 2021. It's been over two years, over 569 trading days since the NASDAQ has made fresh highs. And obviously we have AI and then, video to thank for that. It's crazy to see what's happening right now in the markets. We got Bitcoin closing in at all-time highs. The NASDAQ just hit all-time highs. I feel like I've time-traveled

back to 2021 or something. Now, taking a step back and looking at stocks for the month of February, all three indices finished February in the green, making that the fourth straight month of gains. The Dow was up 2%, but who cares about the Dow? The NASDAQ was up 6% and the S&P gained 5%. In fact, this is the best two months start to the year for the S&P 500 since 2019. And if you Stick around to the end of the show. I'll reveal the best performing stock in the S&P 500 in February. And no, it wasn't in video, surprisingly. Let's hope the good vibes in the stock market keep rolling in the month of March.

All right, let's talk AI because we got a bombshell this morning. Elon Musk is suing Open AI and his old buddy Sam Altman for a breach of contract. Now, when I first saw this headline, I thought that maybe this had to do with some sort of deal that Open AI must have done with Tesla or Twitter. And Elon was not happy about that. But no, this is a lot weirder than that. See, Elon Musk was actually one of the co-founders of Open AI back in 2015. He co-founded the company with Sam Altman, Greg Brockman, and a few other people. Back when the company was founded, it was set up as a non-profit.

And famously, Open AI's corporate structure has been in the limelight. I think we could probably do a whole episode on Open AI's corporate structure. We're not going to get too much into that right now. But in the company's founding agreements, the company was supposed to develop AI for the benefit of humanity. And over the years, Elon donated millions of dollars to Open AI. to achieve that goal. Well, then Elon left Open AI in 2018 to focus on Tesla. And then Sam Altman decided to shift Open AI's priorities to profit instead of, you know, saving humanity. At least that's what Elon claims. The lawsuit points to OpenAI's partnership with Microsoft and says that Open

AI is developing its AI not for the betterment of humanity, but to make more profits for Microsoft. And Elon wants Open AI to get back to adhering to the company's founding agreement and develop AI for the benefit of humanity and not necessarily for profit. Look, I don't even really know how to react to this lawsuit. You know how I said that AI was like the main reason the NASDAQ was hitting all time highs because AI has captured the attention of investors. Well, AI makes for some really good drama too. I didn't even know that like a company's founding documents was like a legally binding thing. So I don't really know if this lawsuit's going to get Sam and Open AI to change their deal with Microsoft. I really hope they don't take away chat GPT because I use it all the time.

And keep in mind, Elon is also working on his own AI now called GROC. So maybe there's, you know, something there. So I don't know how this lawsuit's going to play out. I'm sure it's going to drag out in court. But get your popcorn ready. Maybe we'll get some spicy Twitter exchanges between Elon and Sam over the next few days. All right, let's talk about some stocks making moves. Starting with Dell.

Dell stock is up more than 20% after they reported better than expected Q4 earnings. They beat on top line and bottom line. The revenues came in at 22.3. billion dollars and their net income came in at 1.16 billion dollars that's up 89% from a year ago and the cherry on top for investors dell is going to be increasing their annual dividend by 20% to 1.78 a share and it wouldn't be a tech earnings call without a mentioning of AI Dell mentioned that they were most hyped about their AI optimized servers of course they are they're saying that that division is growing by 40% and Dell expects that the company's going to return to growth by 2025 and I guess

that was enough to get investors hype, and the stock is up more than 25% as a result. On the opposite spectrum, there's a stock that's getting crushed right now. Regional Bank, New York Community Bank stock is down more than 20% today. They're having some internal problems right now. The banks said they identified a material weakness in its loan review process. You know, I feel like having a good loan review process seems like a pretty important thing for a bank. They're also abruptly changing their CEO. So, you know, they're going through it.

They're going through it. All right, let's wrap up the show with a fun fact. I teased it earlier in the show. Today's fun fact is about the best performing stock in the S&P 500 in February. And you know, you would think it would be Nvidia because of all the hype. No, in fact, Nvidia was third. The best performing stock was an energy company called Constellation Energy, followed by Ralph Lauren.

Constellation Energy was up 38% in February. Ralph Lauren's stock was up 27% in February, and Nvidia came in third at 26%. But look, it's still, way more impressive on what Nvidia did because Nvidia added like $500 billion to its market cap while Constellation Energy's entire market cap is like 50 billion and Ralph Lauren's market cap is like less than $12 billion. But still, shout out to Constellation Energy and Ralph Lauren investors out there. All right, guys, that's all I got for you guys today. What a fun week. We had crypto drama.

We had AI. We had stocks making all the time highs. I just want to thank all the listeners again. This podcast is now number 19 on Spotify's top business podcast in the U.S. That is, that's crazy. Really hope you guys are enjoying the show. And if you got like five seconds, here's with that five star rating on Spotify and Apple Podcast. Thank you guys again for listening. Have a great weekend.

We'll see you guys back here on Monday.