The Rundown - Nvidia Plans to Release New H20 Chip in July, Sweetgreen Tanks on Weak Guidance

Episode Date: May 9, 2025

Stock market update for May 9, 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 Zad Admani, and today is Friday, May 9th. In today's episode, we'll recap Trump's trade deal with the UK and why it was kind of underwhelming. We'll also discuss NVIDIA's plans to re-enter the Chinese market. Then stick around to the end of the show for an earnings recap of Pinterest, Lyft, and Sweet Green, and find out how much the Pope.

gets paid. We get a great show for you today. Let's go. The markets were up for the second day in a row on Thursday with the S&P 500 up 0.6% and the NASDAG jumping over 1% thanks to President Trump announcing a trade framework with the UK. This was the first trade deal we've seen since Liberation Day. And I got to say, while the headlines look very promising, it's not a massive tariff relief from everything that I've seen. Now the final details are still being negotiated, But even under this new deal, UK imports are going to face a 10% baseline tariff. Cars coming in from the UK will face a slightly lower tariff. And Trump says this agreement will expand access for American exports into the UK market.

So, you know, baby steps. At least things are headed in the right direction. President Trump did say there are more deals coming. And there are rumors the next deal might be China. Remember, Treasury Secretary Scott Besson is spending the weekend in Switzerland, meeting with Chinese officials. And there are rumors that those talks go well, that tariffs on China could be slashed from 145% down to 60% as early as next week.

So that would be a massive cut. It's making investors pretty bullish. And President Trump is pretty bullish. In fact, he told everyone to go out and buy stocks. You better go out and buy stock now. Let me tell you, this country will be like a rocket chip that goes straight up. This is going to be numbers that nobody's ever seen before. So investors are taking them seriously.

and stocks are rallying right now. And it's not just the stock market that's heating up right now. Crypto is making a comeback too. Bitcoin is back above $100,000 for the first time since January. Ethereum is closing it on $2,500. Solana is over $150. So we're seeing a strong rally in the crypto market as well. And I feel like there's been an overall vibe shift over the last couple weeks.

Like just three to four weeks ago, everyone was freaking out projecting a recession. and now we're getting close to all-time highs again. It just shows you how fast things can change and why the buy-the-dip mantra is so popular. And listen, if Scott Besson is able to strike a deal with China this weekend, I mean, next week could get real fun. We'll keep you guys posted on Monday. Let's run through some headlines.

Nvidia is working on a downgraded version of their H20 AI chip specifically for China. See, the original H20 chip was the most powerful AI chip that Nvidia had the green light to sell to China until the Trump administration dropped the hammer and banned that as well. So now Nvidia is going back and tweaking the H20 chip, making it a little bit less powerful so they could still sell it in China. See, Nvidia doesn't want to lose the Chinese market. China account for 13% of Nvidia's revenue. I mean, they've already taken a hit because two years ago, that number was 22%, but they don't want that

number to drop any further. And look, Nvidia has a track record of making modifications to their chips to get around export controls, and their plan is to roll out the modified H20 chip sometime in July. Now, Nvidia did get a win this week from the White House. The Trump administration announced plans to scrap Biden's AI diffusion rule, which Nvidia was not a fan of. That rule would have limited chip exports to over 120 countries, markets that account for about a quarter of Nvidia's sales. I talked more about that policy decision on yesterday's episode, so go check that out if you missed it. But overall, Nvidia's having a pretty good week. Crypto is also having a good week, but the same can't be said for Coinbase. Their stock is down a bit this morning

after the company missed on revenue estimates for Q1. Consumer trading volume was down 17%, institutional trading dropped 9%. And because of those lower volumes, Coinbase saw a quarter over quarter drop for a transaction revenue and their net income plummeted by 95% quarter over quarter. Now remember, these are Q1 results and Q1 wasn't that great for crypto. So now with Bitcoin back above 100,000 in a broader crypto market rally, maybe Coinbase's earnings will bounce back in Q2. You know, typically higher prices leads to FOMO, which leads to more trading volumes. So we'll have to wait till Q2 earnings to see if they bounce back. Now, Coinbase is trying to level up their business.

Yesterday, they announced a $2.9 billion acquisition of Deribit, which is a crypto derivatives exchange. This would mark the largest crypto deal ever, and it's a clear sign that Coinbase is looking to boost growth beyond just spot trading, especially outside of the U.S. And it makes sense because right now, there are revenues and profits are tied to what Bitcoin does. Let's talk about some stocks making moves today. Pinterest shares are popping this morning after the company beat on earnings for Q1

and provided a strong guidance moving forward. Pinterest has been known as this mood board website, but the company has been doubling down in boosting Pinterest shopping capabilities and trying to turn Pinterest into a shopping destination for Gen Z. That strategy seems to be working and shares of Pinterest. are up nearly 10% this morning on this news. I'll be honest, man, I totally missed the whole Pinterest wave. Now, another winner this morning is Lyft.

Their stock is riding high after the company announced a $750 million share buyback program. The company plans to buy back $500 million worth of shares within the next 12 months. Now, the company did miss on earnings for Q1, but both bookings and total rides came in above expectations. In fact, Liv says the final week of March was their busiest week ever. So the company did miss on earnings, but investors were willing to overlook that because of the share buyback program. And as a result, lift stock is up more than 20% this morning. Now, on the flip side, shares of Sweet Green are getting crushed after the salad chain cut its full year sales guidance.

Same store sales dropped by 3.1% in Q1 compared to the 5% growth last year. Turns out, adding French fries to the menu wasn't the boost they thought it was going to be. Shares of Sweet Green are down around 20% this morning in reaction to these earnings. I've also never had sweet green before. I'm not gonna lie, not really in a rush to drop 18 bucks for a salad. Let's wrap the show with a fun fact. A new pope was elected yesterday, and for the first time in history, we have an American Pope. Pope Leo the 14th is from Chicago, so the Vatican might have to start serving deep dish now.

Now here's the interesting part about being Pope. The Pope doesn't actually get a salary, instead the Vatican covers his housing, food, and travel. But Pope Leo is inheriting a food, and travel. is inheriting a messy financial situation, the Vatican's budget deficit has tripled since Pope Francis was elected back in 2013. And their pension fund is basically underwater, despite multiple rounds of cost cutting. I guess we'll see what Pope Leo the 14th does about this financial situation. He does have a math degree from Villanova. So maybe he can figure it out. Well, all right, guys, that's the rundown for today. That's the rundown for this week. I know I say this every week,

but this was a wild week. So much happened. There was a Fed meeting. We got a ton of earnings. A trade deal was finally announced. And there might be more trade deals right around the corner. So we'll probably have a lot more

to talk about next week. Also, keep an eye on your podcast feed this weekend. We're going to drop a deep dive episode about Palantir. I know people have been asking for that one. So that'll be coming out pretty soon. And again, if you guys enjoy the show, consider giving us a five-star rating on Apple or Spotify. We are so close to 5,000 five-star ratings on Spotify.

So if you haven't given us a five-star ratings on Spotify, So if you haven't given us a five-star rating yet, right now would be the perfect time. Also, I appreciate everyone being patient with us lately. I know we've been late getting these episodes out over the last couple weeks, but we're working to clean that out, Ben, and get these out sooner. Thank you guys again for listening. Shout out to Mike and Connor for all the help behind the scenes, and we'll see you guys back here tomorrow.