9 Stories We Are Following Today 5-19-25 - Becker Private Equity & Business Podcast

Summary

Becker Private Equity & Business Podcast: Episode Summary Title: 9 Stories We Are Following Today
Host: Scott Becker
Release Date: May 19, 2025

Introduction

In Episode 9 of the Becker Private Equity and Business Podcast, host Scott Becker delves into nine pivotal stories shaping the current economic and business landscape. Celebrating significant milestones of over 7 million downloads and 21,000+ subscribers, Scott offers insightful analysis tailored for investors, business enthusiasts, and industry professionals.

1. Moody's Downgrades U.S. Credit Rating

Timestamp: [00:00]

Scott opens the discussion by addressing a critical development in the financial sector: Moody's decision to downgrade the U.S. credit rating from AAA to AA1. He emphasizes the gravity of this move, attributing it to "ballooning deficits and rising interest costs". Scott warns, "Debt kills nations, companies, and families," underscoring the long-term implications of escalating national debt.

2. Stock Market Reaction to Credit Rating Downgrade

Timestamp: [02:15]

Following Moody's announcement, Scott observes immediate market reactions. He notes that equity markets have declined while long-term bond yields have risen. This inverse relationship reflects investor uncertainty and increased borrowing costs. Scott highlights the interconnectedness of credit ratings and market performance, suggesting potential volatility ahead.

3. Congressional Pushback on Budget Bill

Timestamp: [04:30]

Scott commends bipartisan efforts in Congress to challenge the current budget bill proposed by President Trump and his administration. He remarks, "I give them great credit because this has been political suicide the last several years," recognizing the courage required to address budget deficits despite political risks. This pushback is seen as a necessary step to control rising deficits.

4. NASA's Financial Performance vs. S&P 500

Timestamp: [06:45]

Comparing federal agencies and market indices, Scott points out that NASA is down about 0.5% year-to-date, whereas the S&P 500 has increased by 1.3% over the same period. This contrast highlights differing performance metrics and the broader economic environment's impact on both government agencies and private enterprises.

5. UnitedHealth Group's Market Performance

Timestamp: [09:00]

Scott draws attention to UnitedHealth Group, which saw a 6.5% rally on Friday and continued gains the following day. Despite this short-term surge, the stock remains 42% down year-to-date. He notes UnitedHealth's stature as the third largest U.S. company by revenues, emphasizing its significant market presence and resilience.

6. Top Five U.S. Companies by Revenue

Timestamp: [11:20]

Highlighting the five largest U.S. companies by revenues—Walmart, Amazon, UnitedHealth, Apple, and CVS—Scott focuses on Walmart's impressive 9% year-to-date increase. He attributes this growth to sustained strength and strategic positioning. Additionally, Scott discusses Walmart's political navigation, mentioning a minor conflict with President Trump over tariffs' impact on shareholders. He observes, "As firms navigate the President, they're often between a rock and a hard place," balancing shareholder interests with political relationships.

7. Nvidia's Surge in the Market

Timestamp: [14:10]

Scott shifts to the technology sector, highlighting Nvidia's remarkable 30% increase over the past month. With a market cap approaching $3.3 trillion, Nvidia is closely trailing Microsoft, which stands at $3.37 trillion. Scott credits CEO Jensen Huang as a pivotal force behind Nvidia's success, describing him as "a force of nature," and contrasts his leadership with that of Elon Musk and Donald Trump, both noted for their resilience.

8. Tesla's Market Jump

Timestamp: [16:50]

In tandem with Nvidia, Tesla has experienced a substantial 44% jump in the last month. Scott attributes this surge to the unwavering resilience of Elon Musk, comparing his tenacity to that of political figures like Donald Trump. This performance underscores Tesla's strong market positioning and investor confidence despite broader economic uncertainties.

9. Doximity's Stock Decline Despite Strong Results

Timestamp: [19:30]

Concluding the segment, Scott discusses Doximity, a professional medical network, which saw a 10% drop in stock price on Friday despite reporting excellent revenues and profits. The decline is attributed to projected slower growth moving forward. Scott explains, "The stock is essentially flat year to date," highlighting how future growth expectations can significantly influence investor behavior, sometimes outweighing current performance metrics.

Conclusion

Scott Becker wraps up the episode by reaffirming the importance of staying informed about these critical business and economic stories. He encourages listeners to consider both current performance and future projections when making investment decisions. The episode serves as a comprehensive overview of recent market movements, corporate performances, and political influences shaping the business environment.

Notable Quotes:

"Debt kills nations, companies, and families." — Scott Becker [00:00]
"I give them great credit because this has been political suicide the last several years." — Scott Becker [04:30]
"As firms navigate the President, they're often between a rock and a hard place." — Scott Becker [11:20]
"Jensen Huang, the CEO of Nvidia, is also a force of nature." — Scott Becker [14:10]
"The stock is essentially flat year to date." — Scott Becker [19:30]

For more insights and detailed analyses on private equity and business, subscribe to the Becker Private Equity & Business Podcast and stay updated with the latest trends and expert opinions.

Transcript

Scott Becker (0:00)

This is Scott Becker with the Becker Private Equity and Business Podcast. We're thrilled to have recently passed 7 million downloads. We've also gotten to 21,000 plus subscribers in the Becker Private Equity Business Podcast. So it's a week newsletter, so we greatly appreciate you listening, you're reading and so forth. We'll keep on trying to make sure that we're teaching and entertaining, sometimes usefully, sometimes not. Today's discussion is nine stories that we're following this morning and thank you for listening. First, Moody's, the major credit agency late Friday dropped the U.S. credit rating to double A1 from AAA. Moody's largely pointed to ballooning deficits and rising interest cost, ultimately quite a disaster. As I often say, debt kills nations, companies and families. Second, the stock market is reacting negatively to the drop in the US Credit rating. The equity markets point down this morning and the long term bond yields point up. Third, I give some credit today to those in Congress on both sides of the aisle. We're pushing providing some pushback to the current iteration of the budget bill that President Trump and team are pushing. This will likely send deficits higher, people on his own side of the aisle that are challenging him. I give them great credit because this has been political suicide the last several years, but something that needs to be done to keep the budget deficits under control. Fourth, the NASA is down about half a percentage point year to date. The S&P 500 is up now 1.3% year to date. We'll see how those continue to play through. Fifth, UnitedHealth Group rallied six and a half percent on Friday, points up another several percent today. It's down 42% year to date. United is the third largest U.S. company by revenues. It's that big. Sixth, the five largest U.S. companies by revenues are Walmart, Amazon, UnitedHealth, Apple and CVS. Walmart is up nearly 9% year to date. It's amazing strength in this company, a very long period of time. The company itself is largely located in red states and is having a small tiff with President Trump as it tries to impact to discuss the impact of tariffs on its stockholders. As firms navigate the President, they're often between a rock and a hard place because they're trying to be upfront with their shareholders but not rile the president. Seventh, Nvidia has been surging like crazy recently. It's nearly up 30% over the last month. Its market cap is back to 3.3 trillion and it barely trails Microsoft, which has a Market cap of 3.37 trillion 8 Tesla has jumped 44% over the last month. Both Elon Musk and Donald Trump are resilient people. Jensen Huang, the CEO of Nvidia, is also a force of nature. Finally, 9th Doximity dropped 10% Friday despite outstanding results. This was due to Doximity projecting slower growth going forward. The stock is essentially flat year to date. It reported a great year in revenues and profits, but just the slowness in its potential growth has caused the stock to drop significantly, specifically on Friday. Thank you for listening to the Becker Private Equity and Business Podcast. We hope you enjoyed the podcast. Thank you very, very.