Bloomberg Businessweek — "Stocks Tumble as Year’s Winning AI Bets Take a Hit"

Date: December 13, 2025
Hosts: Carol Massar & Tim Stenovec

Overview

This episode of Bloomberg Businessweek dives into recent turbulence in the stock market, particularly in high-flying AI and technology names, and examines how investors are reacting. The hosts also discuss retail sector shakeups, including Lululemon’s CEO change, and explore the ambitious (and controversial) "Golden Dome" missile defense project proposed by President Trump. The episode features conversations with Stephanie Gill (Robinhood Markets), Poonam Goyal (Bloomberg Intelligence), Sana Pashanker (Bloomberg News), Wayne Sanders (Bloomberg Intelligence), and Andrew Kreis (Crescent Grove Advisors).

1. Tech Stock Selloffs and Investor Sentiment

Guest: Stephanie Gill, Chief Investment Officer, Robinhood Markets
Timestamps: 02:47–10:32

Key Points

• Investor Behavior on Robinhood

  • While there’s still net buying, activity is more subdued than before. Profitable AI-related stocks (notably Nvidia) are being sold, not just for profit-taking, but as prices drop and traders give up on the trade for now.
    • “They probably have embedded profits because they [held] all year. So I think that's like kind of giving up a little bit on the trade for now.” — Stephanie Gill (03:58)
  • Users shift away from AI names to diversified ETFs and T-Bill funds, signaling a “park and wait” mentality.
    • “Less playing the market and more like long-term diversified index funds.” — Host (04:53)

• Crypto Trends

  • Despite a 3% drop in Bitcoin (hovering around $90K), Robinhood users are buying equity proxies (like MicroStrategy) but selling crypto itself.

• Economic & Macro Takes

  • The economy appears “okay,” with strong consumer activity in cities and travel, but lower-income consumers continue to struggle.
  • The Fed faces a conundrum between inflation risks from strong markets and the plight of lower-tier consumers—a “Europe post-2008” scenario.
    • “The lower-end consumer is still not doing well… the Fed is caught between a rock and a hard place.” — Stephanie Gill (06:05)

• Sector Rotation & Equity Opportunities

  • There’s been a notable rotation out of the year’s biggest winners since late October.
  • Investors are eyeing retail stocks (e.g., Lululemon, On Holding, Gap) for value as tech names correct.
    • “We just think like there, there is value to be found there while we wait to see what happens in the tech world.” — Stephanie Gill (09:03)

Memorable Moment:

• Discussion of unusual behavior among Robinhood’s typically trade-heavy crowd, shifting to “parking” in ETFs when market confidence is low.

2. Lululemon’s CEO Departure and Brand Struggles

Guest: Poonam Goyal, Sr. Analyst, Bloomberg Intelligence
Timestamps: 14:05–21:44

Key Points

• CEO Transition

  • The CEO’s departure was expected, as Lululemon had been underperforming and innovation was lacking post-pandemic (15:11).
  • Critical for the new CEO to be “product-led” to restore uniqueness and competitive edge.
    • “Lululemon needs to bring its product back in play ahead of competition... where consumers feel like they're getting something they can't get anywhere else.” — Poonam Goyal (15:16)

• Pandemic and Innovation Stalls

  • Lululemon thrived during lockdowns, but as competition increased (Alo, Vuori), the brand lost ground due to insufficient product innovation.

• Brand Value Concerns

  • Chip Wilson (founder) released a statement criticizing the board for “not understanding its target customer anymore.”
    • “The erosion of premium brand value in the company's core markets demonstrates that the board does not understand its target customers anymore or what will drive shareholder value at Lululemon over the long term.” — Chip Wilson, via Goyal (19:13)

• Analyst Take

  • Goyal points to Lululemon’s international and menswear strength, but highlights a need for more new products for women (20:00).
  • Wilson, still a significant shareholder, retains influence, especially as Lululemon struggles to meet 2026 targets.

Memorable Moment:

• Discussion of Lululemon’s failed effort to emulate Sephora’s business model by introducing personal care products—a mismatch for the core activewear brand.

3. “Golden Dome” – America’s Missile Shield Mega-Project

Guests: Sana Pashanker (Bloomberg News), Wayne Sanders (Bloomberg Intelligence)
Timestamps: 22:03–33:38

Key Points

• Golden Dome Overview

  • Announced by President Trump, the “Golden Dome” aspires to shield the US from nuclear attacks by Russia, China, and North Korea via multilayered systems (space-, air-, and ground-based interceptors).
    • “There's a net on every single level that is hoping to engage those missile and destroy them.” — Sana Pashanker (24:29)

• Technical & Strategic Challenges

  • The current US arsenal is fragmented; interoperable sensor and tracking systems are lacking.
  • Existing systems (Aegis, Patriot, THAAD) don't communicate efficiently—a vulnerability with ultra-fast threats like hypersonic missiles.

• Cost Realities

  • Trump’s price tag: $175B. Bloomberg analysis: More like $1.1 trillion for a shield against all three adversaries; $844B for just one.
    • “That technology doesn’t even exist yet. So you would need a lot of, you know, research and development money as well.” — Sana Pashanker (29:04)
    • “Phase one can happen … but space-based [interceptors], no.” — Wayne Sanders on 2029 deadline (33:19)

• Ongoing Maintenance

  • The system would require continuous upgrades, AI integration, cybersecurity bolstering, and scaling up production of interceptors and satellites.

Memorable Moment:

• Comparison of the project to Reagan’s “Star Wars” and the blunt assessment by multiple experts that not only the price, but the physical feasibility, is wildly underestimated.

4. The Future of AI Investing – From Bubble to Diffusion

Guest: Andrew Kreis, CIO, Crescent Grove Advisors
Timestamps: 37:13–44:08

Key Points

• AI Trade: Fully Priced?

  • Most AI leaders’ shares already reflect “perfection” in expectations. Oracle’s use of debt for AI spending is seen as a possible risk.
    • “The risk going forward is that so much is in the price at this point.” — Andrew Kreis (38:16)

• Investor Concerns

  • Many clients feel uneasy about the rally, wonder if it’s time to take profits in tech, and seek rotation opportunities.

• Next AI Investment Phase

  • Investors are advised to look for “second- and third-order effects” — diffusion of AI into sectors like health care, industrials, traditional manufacturing, and business services.
    • “The next play … is the diffusion of AI through the economy into more of these legacy old economy type names.” — Andrew Kreis (40:19)

• Private Equity Angle

  • PE and VC are seeking to deploy AI to traditional businesses (e.g., small/medium businesses) for productivity boosts.

• Global Perspective

  • AI innovation is set to spread globally; Europe, Japan, and China have their own value and fiscal catalysts. Deglobalization leads to “re-regionalization” and local AI strategies.

• Biggest 2026 Risk

  • Inflation, specifically if the 10-year yield revisits 5%, would force painful repricings in long-duration assets.

Notable Quote:

• “If you see inflation expectations really rerating to the upside … that's the big concern. Then all of the knock-on effects that come alongside longer duration securities repricing as a function of elevated inflation expectations.” — Andrew Kreis (43:39)

Standout Quotes & Moments

• On the AI trade stalling:
  “We're seeing still net buying, but it's, it's been more muted … in the AI oriented names.”
  — Stephanie Gill (03:12)

• On product-led turnarounds in fashion:
  “Retail is about product and Lululemon needs to bring its product back in play ahead of competition.”
  — Poonam Goyal (15:16)

• On the scale of the missile shield plan:
  “You would need a lot of, you know, research and development money as well. And we didn’t even include that in our analysis.”
  — Sana Pashanker (29:04)

• On AI’s future in markets:
  “Let’s think about areas where we can rotate into things that offer better value right now in markets … while maintaining some of your exposure.”
  — Andrew Kreis (41:00)

Episode Flow & Tone

• Hosts maintain a brisk, practical, but probing tone, mixing street-level investing insights with broader macro and geopolitical considerations.
• There's skepticism about quick-fix narratives—whether in AI mania, CEO shakeups, or grandiose defense projects.
• Guest contributions are candid, discussing both data and the often “anecdotal, but real” feel of markets today.

Useful Timestamps

• Robinhood platform trends & investor behavior: 02:47–05:47
• AI/Tech market rotation: 04:29–05:47
• Crypto activity: 05:06–05:47
• Macro/fiscal policy and sector rotation: 06:05–10:32
• Lululemon CEO & brand discussion: 14:05–21:44
• Golden Dome missile shield analysis: 22:03–33:38
• AI themes and value rotation (Andrew Kreis): 37:13–44:08

TL;DR — Main Insights

• AI stocks are seeing profit-taking as valuations peak, while investors “park” in ETFs and look for value in beaten-down sectors like retail.
• Lululemon’s CEO exit is part of a broader struggle to reignite innovation and recapture brand cachet.
• America’s planned “Golden Dome” missile shield is likely far costlier and technologically out of reach than advertised.
• The real opportunity in AI may be in legacy sectors and global deployments, rather than simply chasing the winners of 2025.
• Inflation is the biggest risk heading into 2026 for markets and investors.

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