The Rundown - PayPal Plans New 'Pay with Crypto' Feature, Tesla Signs $16.5B Chip Deal with Samsung

Episode Date: July 28, 2025

Stock market update for July 28, 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 Zaid Admani, and today is Monday, July 28th. In today's episode, we'll get you ready for this action pack week. We got big tech earnings, a Fed meeting, and a jobs report. We'll also tell you about the latest trade deal with the EU and Tesla's multi-billion dollar deal with Samsung. Then stick around to the end of the show to find out how much it costs to get some chicken fingers in the Hamptons. We get a great show for you today. Let's go. The summer rally continued last week with both the S&P and NASDAG jumping more than 1%

to finish the week at record highs again. Investors seem to be gaining confidence as more trade deals get finalized and companies report solid earnings. In fact, we got another major trade development over the weekend. President Trump announced that a trade deal with the European Union has been reached. And look, that's a big one, because the EU as a whole is the U.S.'s largest trading partner. Now, this deal would impose a 15% tariff on most European goods coming into the U.S., including cars. And as part of this deal, the EU has agreed to purchase $750 billion worth of U.S. energy

and also invest in additional $600 billion into the U.S. So this news could be a nice spark as we head into an action pack week for the markets. More than 150 S&P 500 companies are reporting earnings this week, including big tech names like Microsoft, meta, Amazon, and Apple. I think I'm looking forward to hearing from Apple the most. Now, while all that is happening, the Fed meeting kicks off on Tuesday of this week and wraps up on Wednesday afternoon where the Federal Reserve will decide on what to do with interest rates. Rate cuts aren't expected at this meeting, but investors are going to be looking for clues.

from Jerome Powell's press conference for possible rate cuts at the next meeting in September. I'm sure there's going to be a few questions about his interaction and relationship with President Trump. So we're going to be tuning into that. And then to wrap up the week, the July Jobs report comes out on Friday morning, which will give us more data on how the labor market is holding up. Now, the labor market has shown no signs of weakness, which is one reason why the Federal Reserve is held off on cutting interest rates. So yeah, this week is like the Super Bowl for the markets. It's one of those weeks where I'm drinking a dangerous amount of caffeine. and reading earnings reports to my kids as I put them to bed.

So make sure you guys are tuning into the rundown every day this week to stay in the loop. Let's run through some headlines, starting with PayPal. PayPal just announced that they will let their merchants accept 100 different cryptocurrencies at checkout, including the major ones like Bitcoin, Ethereum, but also stable coins like USDT and USDC. I was even surprised to see some meme coins make the list too. This new pay-with-crypto feature will roll out in the next coming weeks, and it'll let shoppers pay with their favorite crypto wallet.

And when a customer does pay in crypto, PayPal will instantly convert those funds into either US dollars or their own stable coin, P-Y-USD. And this could be great for merchants because it lowers fees and speeds up the settlement time, especially for international merchants. These crypto transactions will settle instantly, and the fees are going to be less than 1% per transaction. You compare that to a typical credit card transaction, which takes days to settle. and has fees of around 1.5%.

So for small businesses, especially those selling internationally, where fees can be as high as 10%, this could be a game changer. Now, to be fair, crypto payments have been a thing for a while now. There are multiple fintech startups that allow accepting crypto. But PayPal is one of the largest digital payment platforms in the world, with over 600 million users and over 36 million merchants. So for them to accept crypto as a payment is another sign that crypto is officially entered into the mainstream.

And I'm sure PayPal executives are hoping this results in a bounce back for their stock price, which is still down more than 70% from its 2021 highs. The company seems to be leaning more and more into crypto to unlock value. PayPal launched their stable coin over two years ago before stable coins were making headlines every other week. And now they're allowing payments in crypto as well. So we'll see if investors jump back into the stock from all the crypto hype. Definitely a name to keep your eye on. Let's shift gears and talk about Tesla and their latest partnership with Sam,

Samsung. Samsung just signed a $16.5 billion multi-year deal with Tesla to manufacture Tesla's next-generation AI chips in Samsung's new chip facility in Tyler, Texas. This new Tesla chip is called the AI6, and this chip is expected to power Tesla's future self-driving systems, and it's expected to be a key piece of Elon Musk's long-term plan to make autonomous vehicles into a reality. Elon Musk even said the value of this deal with Samsung is just the bare minimum, and that the actual output could be several times higher. So he's pretty hyped about it. And this is a huge win for

Samsung whose foundry business has been lagging behind TSM. Right now, TSMC is the dominant chip manufacturer with nearly 68% of market share while Samsung sits around 8%. So landing Tesla is a major credibility boost for Samsung as it tries to clawback market share from TSM. But here's the thing, though, Tesla still hasn't started the production of their current AI5 chip yet. The AI5, the chip is going to be built by TSM, and that's expected to go into production by the end of 2026. The newly announced AI6 chip design is still in development, so Samsung's role won't kick in until that's ready, which could be years away. In other words, this is a big headline for now, but the impact is expected down the road. And in tech, a lot can change in just a couple of years.

Samsung investors were still pretty hype, though the stock jumped more than 6% today after this deal was announced. Let's talk about some stocks. making moves today. Shares of Nike are up this morning after J.P. Morgan upgraded the stock to a buy rating expecting the company to make a multi-year comeback. The bank thinks that Nike's earnings could grow in the 20% range between 2026 and 2030. That's a big turnaround considering the fact that Nike's sales fell around 10% in fiscal 2025. J.P Morgan raised Nike's price target to $93. And for some contacts, Nike stock is currently trading around the $79 range. So, Dr.P. Morgan thinks that Nike has some room to run. No pun intended. Nike stock is up more than 4% this morning in reaction to this

upgrade. Now, on the flip side, QuantumScape just got hit with a downgrade from Goldman Sachs, who slapped the EV battery maker with a sell rating. Goldman Sachs says that QuantumScape won't be generating any serious revenue until 2028, and then by then, the battery tech landscape might look completely different, which means that quantum. QuantumScape's current tech could be old news by then. So Goldman is giving QuantumScape a $3 per share price target. And for some context, QuantumScape currently trades over $11 a share. So that's a pretty steep haircut.

And as a result, shares of QuantumScape are down nearly 4% this morning. Let's wrap the show with a fun fact. It costs $150 to get chicken fingers in the Hamptons. The Hamptons is this area located a few hours outside of New York City, where a lot of the city's rich, elites and CEOs and hedge fund managers live in the summer. And of course that also attracts a lot of influencers as well. I've seen a lot of Hampton's content on my feed this summer. And man, some of the prices that I've seen are insane. Now there are a lot of towns in the Hamptons, but the most popular and notable one is Montauk. And there are restaurants in Montauk selling lobster

Cobb salad for a hundred dollars. And there's also another spot that sells a chicken finger tower for $150. I mean, look, I know the stock market is hitting record highs and doing well, but 150 bucks for chicken fingers is wild. So as someone who's never been to the Hamptons, I don't know if the vibes or the beaches and the Hamptons are worth paying that much for food. You know, I guess if you're in a tax bracket that takes a helicopter to the Hamptons, I'm sure the food cost doesn't matter.

But if you're hopping on the Long Island rail to get out, I don't know if it's worth it. Actually, if you've been to the Hamptons recently, let me know in the comments on what your experience was. And if you recommend someone who's never been there to check it out. I mean, I just came back from Florida a couple weeks ago. Beaches were great, and I didn't have to pay $150 for chicken fingers. Well, all right, guys, that's the rundown for today.

Hope you guys enjoyed today's episode. Hope you guys are ready for this week. We got a lot of content coming up. So make sure you guys are following us here and our Instagram account. We'll post clips of this episode and bonus content there as well. So make sure you guys check that out. If you guys have been enjoying our show and our content, don't forget to hit us with a five-star rating on Apple, Spotify,

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