The Rundown — Broadcom Delivers Weak AI Sales Outlook, Lululemon CEO to Resign

Hosted by Zaid Admani
Date: December 12, 2025

Episode Overview

Today's episode dives into the stock market's latest moves, focusing on Broadcom’s record-but-disappointing earnings and Lululemon’s surprising market rally after CEO news. Host Zaid Admani also covers the broader market’s shift away from tech, key economic data on the horizon, and noteworthy rallies and crashes among individual stocks. The episode wraps up with a segment on Google's latest AI-powered web browser and Zaid’s skepticism about its practical use.

Market Recap & Rotation Out of Tech

[00:16 – 02:33]

The S&P 500 rose 0.2%, reaching record highs for the first time since October, joined by the Russell 2000 and the Dow Jones.
- “Still don’t care about the Dow though. But I do really care about the Nasdaq and unfortunately the tech-heavy index was in the red yesterday…” — Zaid [00:29]
The Nasdaq fell 0.3%, dragged by Oracle shares plummeting nearly 11% after concerning earnings and rising debt worries.
Host references a market trend: Rally is broadening beyond big tech as more S&P 500 stocks participate—a positive sign for stability.
- “The equal weight S&P is up 3.2% compared to just 1.3% for the traditional market cap weighted S&P index. So that tells you that more stocks are starting to participate in this overall rally.” — Zaid [01:36]
Upcoming economic data: November jobs report and CPI inflation report next week, first major updates post-government shutdown—expected to offer crucial signals on the economy and labor market.

Broadcom’s Record Quarter & The “AI Disappointment”

[02:36 – 04:38]

Broadcom reported Q3 revenue up 28% to a record $18 billion, fueled by a 74% jump in AI chip sales—its fastest-growing segment.
- “Making custom AI chips for companies like Google, Meta, Anthropic, and even OpenAI.” — Zaid [03:07]
Company expects AI revenue to double year over year in Q1 2026 ($8.2B), with a $73B backlog.
Despite strong headline numbers, Broadcom stock plunged over 7%.
- The issue: Company withheld a full-year AI forecast, calling it a “moving target,” which spooked investors.
- “That’s not something that investors want to hear.” — Zaid [03:37]
CEO noted AI chips have lower margins than traditional products; non-AI revenue guidance is flat.
Echoes recent Nvidia performance, signaling “strong beats” in the AI sector are no longer enough to impress investors.
- “We’ve definitely hit a part of the AI cycle where even a strong earnings beat isn’t enough…” — Zaid [04:18]

Lululemon CEO Departs – Stock Surges

[04:39 – 06:10]

Lululemon’s CEO Calvin McDonald will step down at the end of January. Stock soared over 10% following the news, reflecting pent-up hopes for a turnaround.
- “Can’t be a great feeling for the outgoing CEO when the stock rallies double digits after announcing that you’re stepping down…” — Zaid [04:51]
Context: Lululemon shares have halved over the past year amid stagnating US growth and new competition (Alo, Vuori).
- “I see a lot of yoga moms rocking Alo these days instead of Lulu. At least, that’s what my wife tells me.” — Zaid [05:10]
Company founder and major shareholder Chip Wilson publicly criticized management, pushing for a shakeup.
Latest quarter beat expectations but warned on weak US sales and light Q4 guidance.
Company has started the search for a new CEO; CFO and CCO will act as interim co-CEOs.

Market Movers: Cannabis Stocks & Fermi Crash

[06:11 – 07:27]

Cannabis Stocks Rip:
- News of the Trump administration planning to reclassify marijuana as a Schedule 3 drug (down from Schedule 1) triggered huge rallies:
  - Tilray up 30%, Canopy Growth up 20%.
  - “You couldn’t tell that from walking around New York City, I’ll tell you that much…” — Zaid [06:37]
- Reclassification would mean less restrictive regulations and improved banking/tax treatment, but Zaid notes the industry’s long-term underperformance:
  - “Even after today’s pop, most cannabis stocks are still way down from their highs, no pun intended.” — Zaid [07:03]
Fermi Plummets:
- Fermi shares dropped over 40% after losing a $150M deal—their first major customer for the Matador power grid project, a next-gen grid targeting AI-driven data centers.
- “Losing your anchor tenant before the project even gets off the ground is as bad as it gets…” — Zaid [07:17]

Google’s “Disco” AI-Powered Web Browser — Host’s View

[07:28 – 08:52]

Google is developing “Disco,” an AI-first browser built around Gemini, with “Gen Tabs”—AI-generated workspaces based on browsing activity (e.g., shopping, article summaries, timelines).
- “It all sounds really interesting, but I don’t think I want this. This might be a Boomer take, but I think the browser is fine as it is.” — Zaid [08:11]
Zaid jokes about RAM usage and questions the need for always-on AI in browsers.
He notes that even Google isn’t positioning Disco as a Chrome replacement yet—currently, it’s in limited testing.
Trend noted: Major AI companies are rapidly rolling out browser products (Perplexity, OpenAI, now Google).
Speculates on hardware implications: “I think I have to invest in more computer memory companies because the need for RAM is going to explode as AI infiltrates everything.” — Zaid [08:40]
Invites listener feedback: “Would you guys want an AI-powered browser as your daily driver? And if so, how much RAM do you have on your computer?” — Zaid [08:48]

Notable Quotes

“The equal weight S&P is up 3.2% compared to just 1.3% for the traditional market cap weighted S&P index. So that tells you that more stocks are starting to participate in this overall rally.” — Zaid [01:36]
“We’ve definitely hit a part of the AI cycle where even a strong earnings beat isn’t enough to push the stock higher.” — Zaid [04:18]
“Can’t be a great feeling for the outgoing CEO when the stock rallies double digits after announcing that you’re stepping down…” — Zaid [04:51]
“You couldn’t tell that from walking around New York City, I’ll tell you that much...” (on federal marijuana laws) — Zaid [06:37]
“It all sounds really interesting, but I don’t think I want this… I think the browser is fine as it is.” — Zaid [08:11]

Key Timestamps

| Timestamp | Segment | Summary | |-----------|---------|---------| | 00:16-02:33 | Market Recap | S&P 500 hits records, equal-weight participation, upcoming jobs/CPI data | | 02:36-04:38 | Broadcom Earnings | Big AI chip sales, cautious 2026 outlook, margin & growth worries | | 04:39-06:10 | Lululemon CEO News | CEO exit, stock surges, founder’s critique, future strategy | | 06:11-07:27 | Stock Movers | Cannabis stocks jump on reschedule news, Fermi plummets on deal loss | | 07:28-08:52 | Google Disco Browser | Host’s AI browser skepticism, features, tech/hardware speculation |

Overall Tone

Zaid maintains a fast-paced, conversational, and lightly humorous style, balancing market analysis with approachable explanations and candid personal views.

Conclusion

This compact episode delivers insightful market trends, sharp company analysis, and a thoughtful take on tech innovations, making it valuable for investors seeking context and clarity amid busy news cycles.

Transcript

A (0:00)

Public.com presents the rundown, your daily market update in under 10 minutes. My name is Zadad Mani and Today is Friday, December 12th. In today's episode, I'll explain why Broadcom stock is tanking despite a record quarter. I'll also get into the struggles at Lululemon and why the news of a new CEO has investors excited. Then stick around to the end of the show to learn about an AI powered web browser that Google is working on and why I'm not a fan of it. We got a great show for you today. Let's go. Well guys, it finally happened. The S&P 500 climbed 0.2% yesterday and hit record highs the first time since October. Also shout out to the Russell 2000 and the Dow Jones for hitting record highs as well. Still don't care about the Dow though. But I do really care about the Nasdaq and unfortunately the tech heavy index was in the red yesterday, dropping 0.3%, dragged down by Oracle's really, really bad. Oracle stock was down nearly 11% yesterday after their earnings report which had investors worried about their debt load and questioning the overall AI trade. We broke down Oracle's earnings in detail on yesterday's episode, so go check that out if you missed it. Zooming out though, the fact that the S and P is pushing to new highs without the tech sector leading the charge is nice to see. You know, one of the concerns all year has been the concentration in the S and P being too top heavy and dominated by big tech names. Now the top 10 companies still account for 40% of the S and P, but that's starting to ease up a bit because of the rotation out of of big tech which started last month and it hasn't stopped yet. A good way to track this is looking at the equal weight S&P 500 index where every company in the S and P gets the same weight. Over the last month. The equal weight S and P is up 3.2% compared to just 1.3% for the traditional market cap weighted S and P index. So that tells you that more stocks are starting to participate in this overall rally. So this is definitely something that I'm keeping my eye on as we enter into 2026. Now, looking ahead to next week, we've got some big economic data coming up. The Bureau of Labor Statistics will release the November jobs report on Tuesday, followed by the CPI inflation report on Thursday. And the reason this is a big deal is because we haven't gotten fresh economic data from the government in a while because of the government shutdown. So investors are going to be paying close attention to these numbers. These numbers will give us a better sense of how healthy the economy really is, how the labor market is doing, and how inflation is doing. So we'll break down all those numbers here on the rundown next week. So make sure you guys are subscribed to the podcast and tuning in every day to to stay in the loop. And I should be back in my normal recording environment for Monday's episode. Not going to lie though, I do really like the natural lighting in this New York hotel room. Let's run through some headlines, starting with Broadcom. Broadcom reported earnings last night, beating expectations across the board, yet their stock is still taking a hit this morning. Let's get into the numbers first. Q3 revenues were up 28% to a record $18 billion, driven by a 74% increase in AI chip sales. That's Broadcom's fastest growing business segment is making custom AI chips for companies like Google, Meta, Anthropic and even OpenAI. Broadcom says it expects AI revenue to double year over year in the first quarter of 2026 to about $8.2 billion, well above Wall street expectations. The company also said it has $73 billion in AI product backlog. So all that sounds great, right? But the stock is still dropping because the company refused to give a full year AI revenue forecast for 2026, calling it a moving target. And that's not something that investors want to hear. Broadcom CEO also said that their AI chips carry a lower margin than Broadcom's traditional businesses and that non AI revenue is expected to be flat next quarter. So despite sales hitting record highs, margins could take a hit and that has investors worried. As a result, Broadcom stock is down more than 7% this morning in reaction to the earnings. You know, we've definitely hit a part of the AI cycle where even a strong earnings beat isn't enough to push the stock higher. We saw the same thing happen with Nvidia's earnings a few weeks ago. So yeah, I'm really curious to see what's going to happen to the AI trade in 2026. Let's shift gears and talk about Lululemon because their shares are up more than 10% this morning after the company announced that their CEO Calvin McDonald will step down at the end of January, ending a seven year run as CEO. Now can't be a great feeling for the outgoing CEO when the stock rallies double digits after announcing that you're stepping down. But Lulu has been struggling for a couple of years now. Their Stock is down 50% over the past year and they've struggled to reignite growth and fend off competition from newer brands like Aloe and Viori. Anecdotally speaking, I see a lot of yoga moms rocking Aloe these days instead of Lulu. At least that's what my wife tells me. I'm not like doing market research myself or anything. Anyways, Pressure has been building for months now for a leadership shakeup at Lululemon. The founder of Lululemon, Chip Wilson, who is a major shareholder, he's been openly critical of management. He even took out a full a full page ad in the Wall Street Journal earlier this fall saying the company had lost its edge. So investors are hoping that a new CEO taking over will result in a strategic shakeup and a bounce back for the company. Now, it's worth noting that Lululemon's latest quarter, which they reported yesterday, wasn't a disaster. Lulu actually beat expectations with stronger than expected profits and comparable sales, driven largely by international growth. But the core US Business continues to lag and fourth quarter guidance did come in light. So we'll see what the new CEO ends up doing to reignite growth. The company says they're now working with an executive search firm to find a permanent replacement. In the meantime, the CFO and the chief commercial officer will serve as interim co CEOs. Let's talk about some stocks making moves today. Weed stocks are absolutely ripping this morning after reports that the Trump administration plans to reclassify marijuana as a Schedule 3 drug. This is a big deal because Schedule 3 drugs come with far fewer restrictions than marijuana's current classification. Because, believe it or not, weed is still lumped in with Schedule 1 drugs like heroin at the federal level. You couldn't tell that from walking around New York City, I'll tell you that much. Now, if this reclassification does happen for marijuana, it would dramatically improve the tax treatment for cannabis companies, making it easier for banks to work with them and also potentially unlock more institutional investment. According to multiple reports, this reclassification could happen early next year. Investors are clearly loving this news. Shares of Tilray are up more than 30% this morning and Canopy Growth is up more than 20%. That being said, though, the cannabis industry has absolutely burned investors for years. Even after today's pop, most cannabis stocks are still way down from their highs, no pun intended. On the flip side, shares of Fermi are getting crushed this morning after the energy infrastructure company said they lost a $150 million deal with its first major customer tied to its planned Matador power grid project. Fermi has been pitching Matador as a next generation power grid designed to support AI driven data centers by Connect nuclear and other energy sources. But losing your anchor tenant before the project even gets off the ground is as bad as it gets and as a result their stock is down more than 40% this morning. Let's wrap the show with a fun fact. Google is building a new AI powered web browser. Because of course they are. This project is called Disco and it's an AI first browser built around Google's Gemini Chatbot. And the big feature inside Disco is something called Gen Tabs, which basically turns your open tabs into a mini AI powered workspace. Essentially, Gen Tabs looks at what you're browsing and builds a custom web app around it. So if you're shopping online, it might create a custom page for you that compares prices or finds discounts. If you're researching something, it could generate summaries of articles and create timelines or make study tools. It all sounds really interesting, but I don't think I want this. This might be a Boomer take, but I think the browser is fine as it is. In fact, I don't think I want AI running in the background. Hogging up all the ram. Com already takes up way too much RAM anyways. But that hasn't stopped all these AI companies from launching AI browser like Perplexity has one, OpenAI has one and now Google is working on one. Now I do think there are some use cases for it like with research and stuff it could be very useful, but I don't think I want to make an AI powered browser as my daily driver. In fact, Google actually admits this themselves. Google says that Disco isn't meant to replace Chrome, at least not yet. And right now Disco is only available to a small group of testers. And Google says that Gen Tabs is just the first of many AI features that they're working on. I think I have to invest in more computer memory companies because the need for RAM is going to explode as AI infiltrates everything. Let me know in the comments of what you guys think about an AI powered browser. Would you guys want an AI powered browser as your daily driver? And if so, how much RAM do you have on your computer? Well all right guys, that's the rundown for today. That's the rundown for this week. Hope you guys enjoyed today's episode. If you did and you have like five extra seconds, consider giving us a five star rating on Apple, Spotify, YouTube, wherever you listen to your podcasts. If you are listening on Spotify, don't forget to 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. Don't forget we're posting a deep dive this weekend about Oracle and we also have an interview coming up as well, so keep an eye on your podcast feed for that. Thank you guys so much for listening, watching and commenting. Shout out to Mike and Connor for all the work behind the scenes and we'll see you guys back here tomorrow.