The Rundown - Tesla Drops Prices Globally, Cruise Ship Operator Seeks $10.8B IPO

Episode Date: April 22, 2024

Stock market update for April 22, 2024. Check out the ⁠⁠⁠⁠Leading Indicator⁠⁠⁠⁠ podcast by Public.com. Get started with Public: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Click here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ 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.

Public.com presents the rundown. Your daily market update in five minutes. My name is Zadmani, and today is Monday, April 22nd. In today's episode, we recap last week's brutal weeks in the markets and get you ready for one of the busiest weeks on Wall Street. Also, Tesla made some major announcements over the weekend as they tried to rebound from their terrible start to the year. And stick around to the end of the show

to find out all the records that Taylor Swift broke in 24 hours. All right, let's go. Well, I'm glad that we could put last week, behind us because it was a bad week for the stock market. The S&P dropped 3% last week, the worst week for the S&P in over a year. And things were especially bad for tech stocks. The NASDAQ dropped by 5.5% last week, the worst week since November of 2022. And AI stocks had it the worst, especially on Friday.

Invidia's stock dropped by 10% in a single day, losing more than $200 billion in market cap. And then SMCI, the other big hot AI company, dropped by more than 24%. So yeah, it was a brutal week last week, but we're on to a new week, and this week's going to be a big one. We are entering into the thick of earnings season. Over 150 companies in the S&P 500 are reporting earnings this week, including four of the seven magnificent seven companies. Tesla is reporting earnings on Tuesday after the market close, and I know all you Tesla shareholders are holding your breaths for that one, because that's going to be huge. Meta is reporting on Wednesday after the close, and Microsoft and Google are reporting on Thursday after the close. Not to mention other companies like Spotify, Visa, Boeing, AT&T, Verizon, GM, just to name a few.

So again, it's going to be a busy week. Make sure you guys are tuning into the rundown all week because we're going to be recapping the biggest earnings here every single day. And I really need these companies to come through because with the way things are going right now in the markets, my portfolio is counting on it. All right, let's run through some headlines. Tesla made some news over the weekend after having a terrible week last week where they had layoffs and recalls. They announced that they're going to be cutting prices of their cars in major markets all over the world, including the U.S., China, and Germany. But, you know, Tesla wasn't the only one to cut prices in China.

Chinese automaker Lee Auto also dropped prices on Monday for all their models. So the price wars are heating up in China. Here in the U.S., the price of the model S, the Model Y, and the model X are going to be dropping by $2,000. And the cost of the full self-driving software assistance is going to be dropping by over 30%, from $12,000 to $8,000. Now, while this is great news for potential Tesla buyers, investors weren't loving the news. Tesla stock is down more than 3% this morning, and Lee Otto's stock is down more than 7% this morning.

CEO Elon Musk went to Twitter, his favorite place, to defend the decision, saying that Tesla's prices must change frequently in order to match production with demand. We're going to learn a lot more about Tesla this week. They're reporting earnings on Tuesday. And, man, Tesla shareholders are hoping for some good news. We'll let you know how it goes on Wednesday's show, so make sure you guys tune in. Let's switch gears and talk about an upcoming IPO that's probably not on your radar. Cruise operator Viking is looking to raise about $1.1 billion in their IPO that would give the company a $10 plus billion dollar valuation.

Now, I know what you guys are thinking. Why should you care about a cruise company? Well, surprisingly, cruise ship companies have performed really well over the past couple years. Fun fact, Royal Caribbean was the third best performing stock in the S&P 500 in 2023, only trailing Nvidia and meta. It seems like cruising is all the way back after getting wrecked during COVID. More than 35 million passengers are expected to set sale in 2024. That's up 13% from last year. So Viking Cruise is trying to take advantage of the resurgence of the cruise ship industry, and they plan on listing at the New York Stock Exchange under ticker symbol V-I-K.

And just zooming out a bit, this is just another sign of life for the IPO market. After two years of very little activity, we're seeing a ton of companies IPO. We had Reddit earlier this year. We had Instacart IPO. late last year, and we're expecting Shee in and Stubhub to IPO later this year as well. So the IPO market seems to be all the way back. All right, let's talk about some stocks making moves today. Spotify stock is up more than 1% this morning after Morgan Stanley raised their price target for the company to $350 per share. Morgan Stanley expects higher subscription prices and a growing

market share to push Spotify closer to profitability and positive cash flow, something that Spotify hasn't ever done yet. Spotify currently trades at around $2,000. $79 a share. Spotify is expected to raise prices at the end of this month by a dollar or two for its premium plan. We're going to learn more about Spotify on Tuesday because they report their quarterly earnings. Another stock having a great morning is Riot Platforms. Riot Platform is a Bitcoin mining company and their stock is up more than 7% this morning after JP Morgan reiterated their price target of $15 a share for this company. J.P. Morgan expects Riot to increase their hash rate, which is like a fancy word for total computing power running transactions on Bitcoin. And that should

help them mine more Bitcoin. So we'll see how it plays out. All right, let's wrap the show with a fun fact. Today's fun fact is about Taylor Swift because you can't be a podcast without talking about Taylor Swift. Taylor dropped her new album, The Tortured Poets Department on Friday, 31 songs over two hours in new music. And her album broke Spotify, literally and figuratively, because I think Spotify went down for a few minutes when her album dropped. Her album broke the record for the most streamed album on Spotify in less than 24 hours. Doing over 300 million streams in a single day. And you know what's crazy?

Before this album, no other album had done over 200 million streams in a single day. So not only does she break this record, she absolutely crushed it. And look, I'm not ashamed to admit it. I contributed some streams to that. Also, her new single, Fortnite, which features Post Malone,

became the most stream song in a single day in Spotify history. So Taylor dominated the weekend. Can't wait to see what the Federal Reserve has to say about this and their next report about the impact that Taylor Swift's new album had on the economy. And I'm pretty sure there's going to be someone that asked Spotify executives about this on their earnings call on Tuesday. All right, guys, well, that's all I got for you guys today.

Busy, busy week ahead. I'm looking forward to it. I'm already getting pretty hyped. Make sure you guys are tuning in every day this week to stay in the loop of all the stuff that's happening during earnings season. Thank you guys again for listening. Shout out to Connor and Mike for all the 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. Learn more at public.com disclosures. In partnership with Zayid Mani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated,

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