The Rundown - Peloton Reports Sales Growth for 1st Time in 9 Quarters, Zoom Shares Jump on Earnings Beat

Episode Date: August 22, 2024

Stock market update for August 22, 2024.

Public.com presents the rundown your daily market update in five minutes. My name is Zadadmani, and today is Thursday, August 22nd. In today's episode, we discussed why the job market might be much weaker than we initially thought. The new data revisions has some people concerned. Also, Peloton might be back from the dead. Their sales are growing again. We'll give you those details.

And Walmart Plus is ready to compete with Amazon Prime with a new offering. We'll tell you more about that. Then stick around to the end of the show to find out. how much money you need to have to be considered rich by Americans. The number keeps going up. All right, let's go. Stocks went on a wild ride on Wednesday. Things started off in the green, then dip lower after some new jobs data, more on that in a bit, then jumped up again after the Fed meeting minutes indicated a pretty high chance of rate cuts in September. So after all, the up and down, the S&P NASDAG both finished up about 0.5% on Wednesday. But let's talk about the new data from the Bureau of

Labor Statistics, that was making a lot of headlines. This new data revised the previous job growth data down by 818,000 jobs. See, previously, the Bureau of Labor Statistics said the economy added around 242,000 jobs per month in the 12-month period ending in March. This number was based on survey data. But then the Bureau went back, looked at better data, and said that we are bad. The economy only added 173,000 jobs per month, which is 30% lower than they originally estimated. Now, data revisions happen all the time, but this was the biggest revision since the financial crisis in 2009. And, you know, it's just another sign that the job market might be even weaker than economists and investors had originally thought. And I guess it gives more motivation for the Federal

Reserve to cut rates. Now, what's interesting is that the markets didn't really have much of a meltdown after these numbers came out, because, you know, you would think that these numbers would spook the market, stocks would crash. That's not really what happened. I think investors are now even more confident of a rate cut in September, maybe even a 50 basis points cut. And remember, if the Fed, along with other central bankers all over the world, are meeting in Jackson Hole this week. We're going to hear from Jerome Powell tomorrow. So we'll recap Jerome Powell's comments on Monday's episode of the rundown.

So make sure you guys are subscribed to the pod. Hit the notification bell so you're notified as soon as an episode goes up every morning. Let's run through some headlines. Let's start with Peloton, because shares of Peloton are up this morning after the company reported an increase in sales last quarter. That's the first increase in sales the company has had since the holiday quarter of 2021. So it's been a while. Now, to be fair, sales were only up 0.2% this past quarter, but that did beat estimates.

And considering that this is the slow season for fitness companies, I say that's pretty encouraging. Peloton also narrowed their losses to $30.5 million last quarter. That's way down from the $240 million the company lost in the same quarter last year. The company said that they're focusing on profitability moving forward and they plan to come back on marketing spend and trim their workforce. I guess these efforts are paying off, but that will hurt the company's growth moving forward. The company says they don't expect to see subscriber growth this year. Currently, Palaton has around 3 million subscribers. Overall, investors are pretty happy

with the result. The stock is up more than 15% this morning in reaction to these earnings. Just don't zoom out of the chart because it's a pretty brutal picture. The stock is still down like 95% from all-time highs. So hopefully you didn't buy back then. Let's shift gears and talk about Walmart. Walmart is really trying to beef up their offering for Walmart Plus. That's their competing service to Amazon Prime. Walmart Plus started off by offering free delivery, then you got free Paramount Plus, and now they're offering 25% off at Burger King and a free Whopper. Starting this week, Walmart Plus members will get 25% off all their digital orders at Burger King. And starting in September, Walmart Plus members will get a free Wopper once every three months with a Burger

King purchase. Take that Amazon Prime. Now, Walmart Plus has a long way to go before they get to Amazon Prime levels. In fact, Walmart Plus, the subscriber growth kind of fell off last year. They currently have around 8 million subscribers, and I'm not going to lie, I'm one of them. I use it pretty often. Walmart Plus, by the way, starting to get pretty pricey. It's $98 a year, but still much cheaper than the $139 for Amazon Prime. Now, some of the other Walmart Plus perks include free Paramount plus. You get free shipping. There's travel benefits with Expedia. There's back-to-school shopping discounts, which is what I used it for. And now there's this Burger King discount.

So let's see if this results in Walmart Plus getting back to growth this year. But I don't know, man. Like, I can't imagine if someone was on the fence of getting Walmart Plus, now getting it because they're getting a free Whopper. Now, if it was Chipotle or maybe Kava, you know, I think we're talking here. I don't know if Burger King kind of has that cachet. Could be wrong here, though. But I don't know.

What do you guys think? Would you guys be interested in a Walmart plus subscription at $98 a year? Let us know. Maybe I'm undervaluing Burger King here. Let's talk about some stocks making moves today. Shares of Zoom are up this morning after the company reported better than expected earnings. Revenues for the video conference company jumped by 2% thanks to large accounts spending even more money. Apparently, Zoom has almost 4,000 customers spending more than $100,000 each quarter.

Honestly, I'm pretty surprised by these numbers from Zoom. Because, you know, I thought with more workers being called into the office, that companies buying some, for Zoom would go down. Also, there's so many other video conferencing tools these days, too, with Microsoft Teams having that built in, there's Google Meet, so I just wasn't expecting more spending on Zoom, but their revenues went up and investors were liking it. Zoom stock is up more than 8% at the time of this recording. I guess not everyone has Zoom fatigue. Now, stock not doing so good this morning is Urban Outfitters. Shares of the retailer are plummeting after the company reported same store sale decline of 9.3% for the Urban Outfitters brand. That's 1% lower than what was

Now, the good news is that their free people brand experienced an increase of 71% in sales and anthropology grew by 6.7%. But dude, I'm so old that I have never heard of these two brands. I mean, I know Urban Outfitters, because people used to wear that when I was a teenager. Free People, Anthropology, never heard of them. But I guess that's what the kids are wearing these days. Urban Outfitters also beat estimates on earnings and revenues for the quarter. But that still wasn't good enough for investors and shares are down more than 14% this morning on this news. Let's wrap the show with a fun fact. Americans think that it takes $2.5 million to be considered wealthy.

That's according to a survey from Charles Schwab. That $2.5 million number is 14% higher than what the survey said last year. So that number keeps going up. When I was a kid, I thought a million dollars was the most amount of money possible. But a million dollars really isn't cool anymore. You need at least two. And by next year, you're probably going to need three. Well, all right, guys.

that's the rundown for today. I hope you guys have enjoyed the show. I think we just crossed 30,000 subscribers on Spotify and over 3,000 five star ratings. So thank you guys so much for all the support. We did it before the S&P 500 hit all the time highs. I mean, I would have taken either one, but I'm pretty hype right now. Thank you guys so much for all the support. Remember, new episodes come out every morning the stock market is open. Thank you guys so much for listening. Shout out to Connor and Mike for all the help behind the scenes. And we'll see you guys back here tomorrow. This is the rundown, your real-time resource for news events and trends in the markets. All views presented in the 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. Run-down guests 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 disclosures. In partnership with Zayidemani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.