The Rundown - Tesla Warns of "Rough Quarters" Ahead, Chipotle Shares Nosedive on Guidance Cut

Episode Date: July 24, 2025

Stock market update for July 24, 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 Thursday, July 24th. In today's episode, we'll recap earnings from Tesla and Google. One was a big hit, and the other had investors feeling pretty nervous. We'll also tell you about the impact that Sidney Sweeney is having on the stock market and the struggles at Chipotle. Then stick around to the end of the show to find out how much. much Ozzy Osbourne's DNA is being sold for on eBay. We got a great show for you today. Let's go. Markets got a solid boost on Wednesday off the backs of the trade deal with Japan. The S&P 500 was up 0.8%. The NASDAQ jumped 0.6%. Both of these indices finishing at record highs.

And even the dinosaur Dow was making moves. It was up 1%. But nobody cares about the Dow. Now, we did break down this trade deal with Japan on yesterday's show, so go check that out if you missed it. But the big takeaway is that the tariff on Japanese imports will be set to 15%, which was a big boost for Japanese carmakers like Toyota and Honda, which saw their stock jump big yesterday. I also find it funny that these days, a tariff rate of 15% sparked a market rally. I feel like three to four months ago, a 15% tariff probably would have caused a mini panic. But clearly, investors have come to terms that tariffs are here to see. stay and a 15% rate is easier to swallow than a 30 to 50% rate. Also, now that this deal with

Japan is done, there's a lot of optimism that a trade deal with the European Union is about to get worked out as well. Both the Financial Times in Bloomberg reported yesterday that the two sides are getting close and that a trade deal would set tariffs on European goods to 15% similar to that of Japan. So I have the push notifications on to all the major publications out there. So you guys don't have to. All you guys have to do is tune into the podcast every morning to stay in the loop. Let's run through some headlines. Starting with Tesla. Tesla dropped earnings last night and it wasn't so great. Tesla's automotive revenues were down for the second straight quarter this time dropping by 16% compared to last year and missing expectations. On top of that,

their profits dropped by 16% as well. Now Elon Musk didn't really sugarcoat it. He even said on the earnings call that Tesla might be in for a few rough quarters. He pointed to the fact that the 75 $500 federal EV tax credit is going away this fall, thanks to the big beautiful bill that was recently signed into law. That's going to make Tesla's less affordable for consumers and likely drag down sales even more. Not to mention, this new law will also impact all the money that Tesla makes from carbon credits, which they collect from other car companies to offset the sales of gasoline-powered

cars. Tesla's revenues from these carbon credits already fell by 50% from a year ago. And this new law is likely going to get many of these programs. So that revenue is likely to go down even more. So yeah, Tesla is going through a rough patch right now, and it's only going to get more challenging in the near term. Now, Elon did try to do the thing on the earnings call where he talked up the future to try to hype up investors.

You know, he highlighted Tesla's Robotaxy ambitions. Remember, Tesla launched a Robotaxy service in Austin about a month ago, and Elon said they expect to expand their service to about half the population of the U.S. by the end of this year. So that is a pretty big goal, given the fact that Robotaxi taxis in Austin are still invite only and cover a small part of Austin compared to Waymos. Now, Tesla is also working on an affordable low-cost EV, which is expected to come out soon and could help boost sales.

And usually Tesla investors eat up the hype coming from Elon Musk on these earnings calls, but it didn't work this time. Tesla stock is down more than 5% this morning in reaction to the earnings. There just seems to be too many short-term challenges for Tesla for investors to ignore. Tesla stock was already down more than 10% this year heading into these. earnings and they could be in for a rough second half of the year. Let's shift gears and talk about Google. They also reported earnings last night and unlike Tesla, they crushed it. The company's revenues were up 14% to over $94 billion and their profits jumped 20% to over $28 billion. You know,

there's been a lot of noise lately about how AI chat bots like chat GPD or perplexity would destroy Google's search engine advertising business and turn them into the next blockbuster or something. But according to the earnings, that doesn't seem to be the case at all. In fact, just looking at Google's search business, it grew by 12% to over $54 billion in Q2. So Google continues to prove all the haters and doubters wrong so far. And zooming out, the rest of Google's business is also posting solid growth. Google Cloud saw a 31% growth and their YouTube ad revenue was up 12%. And I haven't even mentioned Google's advancements in AI.

Now, on the earnings call CEO Sundar Pichai typed up Google, Google's AI efforts saying that products like Gemini and AI powered search are already generating revenue. You also talked about how Google Gemini's mobile app has now over 450 million monthly active users and Google is planning to invest a massive $85 billion into AI this year. That's $10 billion more than they previously expected. But that's what it takes to compete in the AI wars. So overall, Wall Street liked what they heard from Google and the stock is up more than 3%

this morning at the time of this recording. By the way, Google stock had been on a hot streak this summer heading into these earnings. The stock was up more than 15% in the last month, second only to Nvidia in The Magnificent 7. So if they keep this up, I mean, Google could be in for a huge second half of the year. Let's talk about some stocks making moves today. Shares of American Eagle are ripping this morning after the clothing retailer launched a new jeans campaign with actress Sidney-Sweeney. This campaign is going to feature 3D billboards and a Sydney-Sweeney Snapchat filter, which they're hoping is going to help sell American Eagles' new fall collection.

This collection is going to include a Sydney-Sweeney themed denim jacket and jeans. Now, when this campaign was announced yesterday afternoon, it caught the attention of Wall Street bets, which sent the stock booming up more than 20% in after-hours trading. Nothing like a Sydney-Sweeney collab to get investors bulled up. Now, shares are starting to lose some steam, though. Currently, the stock is up only 8% this morning at the time of this recording. You know, maybe Tesla should do a collab with Sidney Sweeney. That might help them get out of their slump.

Now, speaking of a slump, let's talk about Chipotle. Their shares are plummeting after the fast, casual Mexican chain cut their same store sales outlook for 2025. Chipotle says they now expect same store sales to come in flat for the year. On top of that, the company also reported that traffic fell nearly 5% in Q2 and that their revenues missed expectations for the quarter. So yeah, that has investors pretty concerned and Chipotle's stock is down more than 12% this morning. I don't want to overreact, but we might be witnessing the decline of Chipotle.

Because I feel like he just hasn't been the same lately. Let's wrap the show with a fun fact. The legendary singer and performer Ozzy Osbourne died this week at 76 years old and one of his last business deals was selling his DNA on cans of liquid death, the edgy water bottle company. Essentially, Ozzy Osbourne drank out of a liquid death can, signed it, and then Liquid Death sold those cans for $450. All 10 cans that were part of this campaign sold out immediately. Liquid Death was marketing this as a way to clone Ozzy Osbourne in the future using his DNA. Anyways, I bring this up because now these same cans are being sold for nearly five grand now that Ozzy Osbourne has passed away. Turning $450 to $4,500 in a span of a month, pretty solid investment, I would say.

You know, what's funny about Ozzy Osbourne is I don't really know him as a singer or performer. I was too young to really get into Black Sabbath. I know him more for that reality TV show that he had in the 2000s. I would see commercials for that show all the time. Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. We got one more episode this week as we get through earnings season. And then I'm really looking forward to next week because we got a touchdown.

ton of big tech earnings and a Fed meeting and the tariff deadline. So we're going to be busy over the next seven to 10 days. So make sure you guys are subscribed to the podcast, tuning in every day to stay in the loop. And if you guys have been listening to the show for a while and want to support us and have like eight extra seconds, consider giving us a five star rating on Apple, Spotify, or wherever you listen to your podcast. And if you are listening on Spotify, don't forget the vote in today's Spotify poll. Leave us a comment on Spotify. All that engagement really does help us out, and it helps other people find the show. Also shout out to our YouTube listeners and watchers.

We see you. So thank you guys again for listening and watching. Shout out to Mike and Connor for all the help behind the scenes. And we'll see you guys back here tomorrow.