The Rundown - Roaring Kitty Reveals Over $100M GameStop Stake, Nvidia Unveils Next-Gen AI Chip

Episode Date: June 3, 2024

Stock market update for June 3rd, 2024.

Public.com presents the rundown, your daily market update in five minutes. My name is Zadadmani, and today is Monday, June 3rd. In today's episode, we're talking about GameStop. Warring Kitty just posted his portfolio on Reddit, and oh my God, he has a massive stake in GameStop. Also, we give you the latest on NVIDIA's newest AI chip, and then stick around to the end of the show for a fun fact about Sheehan. It's going to be another fun week. All right, let's go. So there's an old Wall Street saying, sell in May and go away.

Well, I hope you guys didn't listen to that one because the S&P 500 had its best May since 2009. Now, last week, the stock market went lower, snapping a five-week winning streak, but the S&P 500 was still up 4.8% in May. We are now in June, summer is here, and earnings season is pretty much over. But there's still some action happening this month. The May jobs report is coming out on Friday, so we'll see how many jobs were added to the economy last month, then the unemployment rate, and then next week, the Fed meeting is happening from June 11th to June 12th. So there's still a lot of action happening in the markets.

Speaking of action, let's run through some headlines. We have to talk about GameStop because GameStop is pumping again this morning after Roaring Kitty, aka Keith Gill, the original OG meme stock trader who started this whole thing back in 2021, posted on Reddit on Sunday night that he has a $100 million plus position in GameStop. He posted a screenshot of his portfolio. And actually, let me run through the whole thing. He has 5 million shares of GameStop, which was worth $115 million as of market close on Friday. It's worth a lot more now, more than that in a second.

But not just that. He also has 120,000 call options on GameStop for a strike price of $20, which expires on June 21st. And as a Friday, that was worth $65 million. And again, it's worth significantly more now. This story just gets crazier. You know, when Roaring Kitty came out of hiatus like three weeks ago and posted on Twitter for the first time since 2021, he was just posting memes and movie trailers, and that was enough for GameStops to spike for like a week. But eventually the rally fizzled out. But this is the first time since 2021 that Roaring Kitty actually showed off how much GameStop stock he actually owns.

And that was enough to get the meme traders hyped again. And the stock right now is up more than 70% in the pre-market, trading around $40 a share. So who knows if this price will hold or keep pumping or what? But one thing is for sure, Roaring Kitty's portfolio is about to go up massively. If the price stays around $40 a share, his portfolio is worth close to $400 million. And according to some back of the napkin math, if GameStop hits $100, Roaring Kitty will be a billionaire. So just keep an eye out for that, you know?

A dude in his basement wearing a bandana, live streaming on YouTube and posting on Reddit, might end up becoming a billionaire because of meme. It's incredible, you know. Yeah, I thought we were going to have a relatively slow week. But no, Roaring Kitty made it exciting. So shout out to him. Remember, you guys can track the GameStop price and the conversation around the company on the public app.

Also, AMC stock is like up 25% this morning as well because, of course it is. Let's see how long the rally last this time. Let's shift gears and talk about another very hype topic, AI, because all the biggest chip makers were in Taiwan over the weekend at the Computex Tech Conference. And we got some big announcements from Nvidia and AMD. Let's start with Nvidia. They announced their newest AI chip Rubin.

NVIDIA's CEO, Jensen Huang, was there in person to talk about the chip. He was rocking his classic leather jacket. And he said that Rubin is the follow-up to Blackwell, which was actually just announced earlier this year and hasn't even come out yet. So, Nvidia is just pushing the pace of development. The new Rubin chip will launch on high bandwidth memory, which will help improve performance and energy efficiency. And they're expected to launch in 2026. Even though Nvidia is the market leader in the space, and they've seen their stock go up by like $500. in the last 18 months, they're not slowing down. Jensen said that NVIDIA will be releasing new AI

chips on a one-year basis. Previously, the company was doing new AI chips every two years. Maybe Apple should take some notes here, you know? Apple's been on like a five-year timeline. Now, not to be left behind, AMD also announced some new AI chips, one of them being the Risen AI 300. It's their next-gen chips for AI laptops. Still not really sure what an AI laptop is and how it's different from a normal laptop, but it's all the raise right now. AMD also showed off some new desktop chips. So yeah, the AI wars are heating up and every chipmaker is trying to catch up to Nvidia. It kind of reminds me of like the streaming wars where every company was trying to catch up to Netflix. How'd that turn out? Just saying. Let's talk about some

stocks making moves today. Starting with Paramount. Paramount shares are up as the bidding war for the entertainment giant continues. David Ellison, the owner of Skydance Media, revised his bid for Paramount by offering $15 a share for non-voting stakeholders. Previously, he had offered $2 billion to Sherry Redstone, which owns the majority of the voting shares. But that was going to upset a lot of the non-voting shares. This whole thing is kind of confusing. Previously, there was a joint bid from private equity firm Apollo and Sony.

They came together to offer $26 billion for the company outright. So I don't know what Paramount is going to go with. I mean, this drama has been happening for months now. But Paramount's shareholder meeting is right around the corner, so let's see if this offer from David, Nelson is good enough for them. Investors are liking it so far. Shares are up more than 5% in the pre-market on this news. On the flip side, stock not doing so great this morning is Boston beer. Shares are falling after the Wall Street Journal reported the company was in talks to sell

itself to Japanese whiskey maker Suntory. I hope I'm saying that right. Suntory owns Jim Bean in the Maker's Mark whiskey brands and acquiring Boston beer would give them exposure to U.S. beer, spike drinks, and other alcohol category. Boston beer owns the Sam Adams. beer brand. I feel like I haven't seen the Sam Adams commercial in a while. They used to be everywhere on TV. They also own truly hard sellsters, dogfish head, and more. Now, no deal has been confirmed yet. Talks are still early. Boston Beer currently has a market cap about $3 billion, and the deal would likely be above that, according to the Wall Street Journal. But because of the uncertainty of this deal going through, the stock is down more than 10% in the pre-market.

After jumping 27% on Friday when this acquisition news initially came out. So I think the markets are a little bit uncertain if this deal is actually going to go through. Let's wrap the show with a fun fact. Today's fun fact is about Xi'in. They're planning to IPO in London. According to Sky News, the Chinese fashion giant is preparing to confidentially file for IPO on the London Stock Exchange. Now, just to be clear, this filing doesn't necessarily mean they're fully committed to an IPO, but if they decide to move forward with the IPO, the process will be quicker. Previously, Sheen was looking to IPO in New York, but there's been some heightened tensions with U.S. lawmakers over the firm's connections to the Chinese government. So they're pushing that back

and instead planning to IPO in London. But UK lawmakers are questioning this IPO as well. Some are basically calling the company for running a sweatshop. The firm is trying to change their image. They actually move their headquarters to Singapore, but I don't think that's making a difference so far. If the IPO does happen, Sheehan will be valued at over $63 billion, according to Sky News.

Well, that's the rundown for today. What a way to start the week. I'm hyped right now. If you guys enjoyed today's show, please consider giving us a five-star rating on Apple and Spotify. And don't forget to vote in today's Spotify poll. the engagement really does help the show. Thank you guys so much for listening.

Shout out to Connor and Mike for all the hard work behind the scenes. 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 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. Rundown 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.

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