The Rundown - Trump Media Shares Soar After Assassination Attempt, Alphabet Nears Its Largest Acquisition Ever

Episode Date: July 15, 2024

Stock market update for July 15, 2024.

Public.com presents the rundown, your daily market update in five minutes. My name is Zadadmani, and today is Monday, July 15th. In today's episode, we'll get you ready for another action-pack week in the markets and gear up for earnings season. Also, we'll recap Goldman Sachs earnings report and tell you why Google is planning to spend $23 billion to buy a company that's only four years old. Then stick around to the end of the show to find out how much Amazon is going to make on Prime Day. It's more than last year.

All right, let's go. Last week was another record-breaking week for the stock market. The S&P, NASDAQ, and Dow all finished higher last week. In fact, the Dow closed the week at record highs. Still don't care about the Dow, though. The markets continue their crazy hot streak. The S&P has been up for five of the last six weeks, and the NASDAQ has been up for 11 of the last 12.

So it's been a pretty great summer so far. And things are about to heat up over the next few weeks as we enter earnings season. This week, more than 40 S&P 500 companies are set to report earnings, including Netflix, TSM, and Domino's. So it should be a pretty fun week. As always, we'll be recapping everything here on the rundown every day, so make sure you guys are tuning in. Also, hit that notification bell on Spotify if you want to be notified as soon as an episode goes up every morning. And while you're at it, maybe hit us with that five-star rating as well. Let's run through some headlines.

And speaking of earnings season, let's start with Goldman Sachs's earnings report. They reported earnings this morning and be on both top line and bottom line. The solid earnings report was driven by better than expected revenues in fixed income trading, which was up 17%. And Goldman's taxes profits this quarter were up 150% compared to a year ago. Now, a big reason for the turnaround is that Goldman is moving away from their retail consumer banking unit, which was called Marcus. Goldman's CEO David Solomon, aka DJ D.D.Sall, yes, he's a real DJ,

made a big bet to grow the retail consumer unit, and that bet didn't pay off. was deemed a failure. And those losses were weighing heavily on Goldman's earnings last year. So over the last year or so, Goldman had started to offload a bunch of those assets and kind of move away from that business and get back to its roots and focusing more on investment banking and trading. So things are really starting to turn around at Goldman Sachs. Now diving a little bit deeper, Goldman's investment banking revenue was up 21%, but that did fall short of estimates and it was far below the growth that rivals like JP Morgan and City reported on Friday. Both of those banks reported investment bank fees growth of over 50%. But still, Goldman moving away from retail

consumer banking and back onto investment banking and trading has paid off. Goldman Sachs' stock is up 23% this year and it actually hit all-time highs on Friday. Now Goldman's CEO David Solomon, aka DJD Sol, said that he was stepping back from DJing last year to focus on running Goldman Sachs because they were struggling last year. But now with the stock at all-time highs, I mean, is he going to make a comeback? I wonder if he's going to pop up at any of these music festivals this summer. Let's shift gears and talk about Alphabet. The parent company of Google is nearing a $23 billion acquisition for Wiz. Now, if you've never heard of Wiz, don't worry, I've never heard of them either. They're a cybersecurity startup that was founded just four years ago. It helps customers

fend off cyber threats while using cloud computing products. And the thinking is that this acquisition would strengthen Google's cloud division, which has lag behind cloud rivals like Microsoft and Amazon. WIS has clients such as BMW, Morgan Stanley, and Slack, and WIS ranked in $350 million in annual reoccurring revenue in 2023. Now, if this acquisition actually happens, it would be Alphabet's largest deal ever, topping the $12.5 billion purchase it made for Motorola Mobility back in 2012. People forget that Google bought Motorola. Now, what's crazy is that Wizz raised $1 billion at a $12 billion valuation back in May,

just a couple months ago. And now Google is willing to pay them $23 billion? I mean, that is nuts. It sounds like a deal that would happen in 2021, but it's happening now. Now, cybersecurity has been an M&A focus for Alphabet. Alphabet's second largest deal behind Motorola mobility was Mandiant, which is a cybersecurity company and bought for nearly $5.4 billion two years ago. Alphabet also bought another cybersecurity firm this year called Simplify.

Simplify, yes. So Google buying cybersecurity companies is not anything new. Paying $23 billion for a company is pretty new, though. By the way, the founders of WIS have a pretty. strong track record. They sold their first startup to Microsoft back in 2015 for $320 million before starting Wizz. So these guys are just serial entrepreneurs. Let's talk about some stocks making moves today. Shares of Trump media are up big in the pre-market today following the attempted assassination of former President Donald Trump on Saturday. Crazy stuff, man. Trump media is

the parent company of the social media platform, crude social, which is Donald Trump's favorite platform, and he's also the largest shareholder in the company. The markets might be price in Trump's increased chances of winning the election after the failed assassination attempt. The stock is up more than 45% in the pre-market. So yeah, something to keep an eye on because this stock tends to have wild swings. On the flip side, Burberry is having a tough morning. The luxury company is down double digits after reporting disappointing earnings. Burberry's same store sales fail by 21% and the company cut its profit outlook for the year. Companies have to slow down and their business continues, they expect to report an operating loss for the first half of the year.

Things are so bad at Burberry right now that they suspended their dividend payment and are replacing their CEO. That's when you know things are bad. Cutting dividends and changing CEOs. Burberry stock is down 15% this morning on the London Stock Exchange. Let's wrap the show with a fun fact. Amazon Prime Day is starting tomorrow. Not going to lie, kind of snuck up on me this year. And this may be hard to believe, but the first Prime Day happened back July of 2015, almost a decade ago.

Now, according to Adobe Analytics, they expect sales this year to reach 14, $13 billion for Prime Day, which is up about 10% from last year, where Amazon did nearly $13 billion in sales. Now, I don't know about you guys, but for me, Prime Day just doesn't hit the same as it used to. Like, I remember when it first started, that it had some pretty great deals. I think the best thing I ever bought from there was those Instapot things. I used to cook everything in the Instapot. I feel like these days, the deals on Amazon Prime Day just aren't as good. And the only thing I really buy now is, like, kid stuff.

Like, I'm already getting a daily visit from my Amazon driver anyways, so this isn't really going to change much for me. But I don't know, maybe people really do take advantage of Prime Day. We'll make that the poll on Spotify for today. So if you're listening to us on Spotify, tap today's episode and vote in today's poll. Also, Spotify has this new feature where you can leave comments on podcast episodes. So let us know in the comments on what you guys plan on buying for Prime Day. Well, all right, guys, that's the rundown for today. This week should be a really fun week with all the earnings coming out.

We'll be covering it all here on the podcast. If you guys enjoy the show, don't forget to hit us with that five-star rating on Apple and Spotify. That engagement really does help the show. Thank you guys so much for listening. Shout out to Connor and Mike for all the help 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 the show reflect the opinions of the guests.

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