The Rundown - OpenAI Unveils New Video Platform, Coinbase Returns to Profitability

Episode Date: February 16, 2024

Stock market update for February 16, 2024. 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, February 16th. In today's episode, we talked about inflation. There was some data come out this morning that does not paint a pretty picture. We also talk AI, because there was some major announcements in the world of AI yesterday from Google and Open AI. Seriously, what Open AI showed off yesterday, I still haven't stopped thinking about. It's crazy stuff. We also go over some winners and losers in the stock market today.

And then we end this show with an interesting fact about Japan's, economy. They're not doing so hot right now. All right, let's get into it. Quick recap from stocks on Thursday. We had another nice rally. Dow, S&P, NASDAQ, we're all on the green. The Dow closed at its second highest level ever. The S&P actually closed at record highs again. The markets seem to have fully shaken off the huge drop that we had from earlier in the week. I've talked about it on pretty much every show this week. Markets seem to bounce back every time we have a major drop. I didn't expect to happen so quickly, but I'm not going to complain about it. Today's stocks are having a bit of a mixed day. The S&P's in the green, the Dow seems to be pretty flat, and the NASDAQ is in the

red at the time of this recording around noon Eastern. Now, depending on how the afternoon goes, the stock market's five-week winning streak might be in jeopardy. It'd be great to see another record closed, but regardless, we've had a good five-week run. Okay, so let's talk about that not-so-great inflation data that came out this morning. The U.S. Department of Labor reported that the producer price index rose by 0.3%. That number is much higher than what was expected, and it's the biggest move in that index since August of last year. producer price index essentially measures prices received by producers. Some people refer it to as wholesale prices. So the fact that wholesale prices came in hotter than expected, along with the hot CPI print

that we got earlier this week, it means that the Fed still has work to do in their fight against inflation. And I think it's pretty safe to say we're not getting a rate cut anytime soon. Sorry guys. Tough week for macroeconomics here. Let's shift gears a little bit and talk about AI. We got some major AI announcements yesterday. Starting off with Google, Google announced they made some major improvements in their large language model called Gemini. They're releasing Gemini 1.5. It's supposed to be significantly better than their previous version. And, you know, that started getting people pretty excited. But then OpenAI just had to one up Google by showing off their new text to video model called SORA. It's hard for me to describe to you in audio how

cool this thing is. I saw a bunch of examples on Twitter or X, whatever you want to call it. This thing is insane. What this thing can do is create one minute long, full of the thing. on video, and I'm talking highly produced Hollywood-style videos, with just a text prompt. You tell it to give you a video of a woman walking through Tokyo? Boom, you have a highly produced one-minute-long video of a woman walking through Tokyo. You tell it to give you a video of a car driving through the mountains, boom, you have a video of a car driving through the mountains that looks super realistic. Again, it's hard for me to describe to you in audio how cool this thing is. You have to go check it out yourself. Yeah, it's getting a lot of people

excited. Some people nervous, obviously. The speed at which AI is progressing is just insane. All right, let's talk about some stocks making moves today. Coinbase is a big winner today. Their stock is up more than 15% at the time of this recording around 1130 Eastern. After reporting better than expected Q4 earnings. Coinbase's revenues came in at 950 million, which is up 50% from the same quarter from a year ago. And their net income was $273 million. That's actually their first profitable quarter since Q4 of 2021, which I think was like the peak of

crypto hype. Now, diving into Coinbase's business, they make most of their money from trading fees. and when crypto prices go higher, more people tend to trade, which is why Coinbase is seeing a jump in revenue and profits. On the flip side, the stock not doing so hot today is Roku. Their stock is down more than 24% at the time of this recording, around 1130 Eastern. Roku released their Q4 earnings after the bell yesterday, and honestly, their earnings weren't so bad. They beat analyst estimates. Roku's revenues were up 14% to $984 million, and their losses narrowed to $78.3 million.

The revenues going up, loss is coming down. That's good. But unfortunately, Roku had a poor forecast for their business moving forward. For Q1, they expect their revenues to come in at $370 million, and that was less than what analysts thought. And I guess that was enough for the stock to drop by more than 20% today. Just be like that sometimes, you know? All right, let's wrap up the show with a fun fact. Today's fun fact is about Japan. It is no longer the third largest economy in the world.

They have been overtaken by Germany after latest data showing that Japan's economy unexpectedly shrank in Q4. In fact, Japan's economy is now in a recession. Japan's GDP has shrank for two quarters in a row. So now Germany holds the bronze medal for largest world economies. The U.S. and China are number one and number two. All right, guys, that's all I got for you guys today. Thank you guys so much for listening this week. Remember, Monday is President's Day, so the stock market will be closed, and there will be no show that day.

But we'll be back on the airwaves on Tuesday. Have a good weekend. We'll see you then. 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 Zaid Admani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.