The Rundown - Musk Wants 25% Control of Tesla, Uber Shutters Drizly

Episode Date: January 16, 2024

Stock market news for January 16, 2024. Uber shutting down alcohol delivery service Drizly (Axios) Peacock sets record for U.S. streaming (WSJ) Musk wants 25% voting control of Tesla (Musk on X) The content of the video 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 Tuesday, January 16th. Hope everybody had a fantastic weekend and staying warm out there because it looks like 80% of the U.S. seems to be frozen right now. I'm in Texas and it's like 20 degrees here. Like, it's not supposed to get this cold here. Speaking of things that are not cold was the stock market last week. That's a pretty solid transition, right?

Stocks were back in the green last week as the S&P 500 climbed 1.8% and the NASDAQ was up 3.1. The S&P 500 is now positive for the year and it's pretty close to making all-time highs again. Now, the Dow was down. 0.3% last week, but mostly due to Boeing dragging it down. Stocks seem to be off to a mixed start this week. As the Dow is trading lower, the S&P is pretty much flat and the NASDAQ is flashing green at the time of this recording around 11 a.m. Eastern Eastern Eastern. I want to talk a little bit of football because it was a big weekend for the NFL and for streaming. I watch pretty much all the NFL playoff games over the weekend.

Shout out to my hometown Houston Texans for winning on Saturday afternoon. But then on Saturday night, as I was getting ready to watch the Kansas City Chiefs play the Miami Dolphins, I realized that the game was exclusively streaming on Peacock. Like, they weren't going to show it on normal TV. And, you know, I'm one of the few millennials out there that still has a cable subscription through YouTube TV, mostly to watch sports. So, you know, I was kind of annoyed that I had to go to Peacock to watch football. And I wasn't the only one that was annoyed. People online were very frustrated.

Now, thankfully for me, I have a Peacock subscription because I'm addicted to buying every streaming service imaginable and never canceling. so I was still able to watch the game. But I was thinking, like, why is the NFL doing this? Because you would think they'd want their games on TV to attract the largest audience possible, right? Well, NBC paid the NFL $110 million just to stream this one game exclusively on Peacock. But honestly, the bet might have paid off for NBC.

Because according to NBC, this game was streamed by 23 million viewers, making it the most streamed U.S. event ever. I really want to know what number two is. And this stream also accounted for 30% of U.S. US internet traffic, whatever that means. And the 23 million viewers is actually pretty respectable because NFL wildcard games typically get around 25 million to 30 million viewers

when it's on normal TV. So this game exclusively streaming on Peacock and not resulting in dramatically lower viewer numbers, I'd say it's probably a success. And this probably means we're going to get another exclusive playoff game next year on whatever streaming service decides to pay the NFL nine figures for just one game. The NFL just keeps winning.

Now, this news hasn't really impacted the stock, though. NBC Universal's parent company, Comcast's stock is flat at the third. time this recording around 10 a.m. Eastern. All right, a couple more quick stories. Uber is making moves today by announcing that they're shutting down the alcohol delivery service, Drizley, that they bought for $1.1 billion three years ago. Now, Drizley wasn't really like an alcohol delivery app, like how Uber is. It's more like a software for liquor stores to make their own deliveries. So it's kind of an odd fit for Uber in the first place. Drizley was operating

as a separate app under the Uber umbrella, but Uber's like, you know what? We're just going to shut it down to go all in on Uber Eats, which provides food deliveries, grocery deliveries and alcohol deliveries. So Drizli was kind of redundant anyways. And finally, let's talk Elon real quick because Elon is looking for a payday from the Tesla board of directors. Elon Musk wants the Tesla board to give him a 25% control in the company. Currently, Elon owns about 13% of Tesla.

Elon said that unless he gets 25% control of Tesla, he would prefer to build products outside of Tesla, referring to AI products. You know, it's kind of a weird time for these comments, especially since Tesla stock has been off to a rough start this year, down more than 20. 12% year to date. But hey, that's, that's Elon, you know. Tesla stock is bouncing back today up more than 1% at the time of this recording, or on 11 a.m. Eastern. All right, let's talk about some stocks making moves today.

Today's winner is AMD. The stock is up more than 8% today at the time of this recording around 11 a.m. Eastern. 2024, so far, seems to be the year of semiconductor stocks, just like 2020 was. AMD's rival, Nvidia's stock is up more than 15% to start the year, adding more than $150 billion to its market cap. And now AMD seems to be getting in on the action as a hype around AI and semiconductors continues to build.

Remember, AMB shut off their AI chips last year to compete with Nvidia's AI chips, and AMD's chips should be shipping sometime this year. Let's talk about some stocks that are not doing so hot today. That would be Boeing. Boeing stock keeps dropping because of safety concerns regarding the Boeing 737 Max. We all know about the plug door flying off the Alaskan Airlines flight mid-flight. After that, all the Boeing 737 Max 9s were grounded. Well, now the FAA is investigating the 737 Max 9 production lines.

So Boeing is not going to get out of this mess anytime. soon. The stock is down 6% today at the time of this recording around 11 a.m. Eastern and down more than 18% year to date. Let's wrap up the show with a fun fact of the day where I share something that I thought was kind of interesting. Today's fun fact is that the average price of a new car sold in the U.S. in December was $48,753, which kind of sounds like a lot, but that number is actually down a record 2.4% from a year ago. And December marks the fourth consecutive month that new vehicle prices were lower year over year. As someone who's been thinking about potentially buying a car, it's great to see prices finally come down, even though I think I'm going to hang on to my 2011 Accura-T-L for a while

longer. All right, guys, it's all I got for you guys today. Excited to kick off another week. Thank you guys so much for listening. Stay warm out there, and I'll see you guys back here tomorrow. This is Public Live, 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. Public live hosts 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 slash disclosures. In paid partnership with

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