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Public.com presents the rundown. Your daily market update in 10 minutes. My name is Zadmani, and today is Tuesday, May 12th. In today's episode, we'll break down the April CPI report and tell you why prices are surging at the fastest pace in three years. We'll also tell you about the AI chip company that has Wall street fighting to get a piece of the ipo. Then stick around to the end of the show to find out why Netflix is changing up their business model. We got a great show for you today. Let's go. Stocks had a case of the Mondays yesterday. The S P was up just 0.2%. The NASDAQ was up just 0.1%. Not a ton of movement yesterday. Best performing sectors yesterday were energy and tech. Energy got a boost because oil prices are going up again. President Trump rejected Iran's latest peace proposal and said the ceasefire is on massive life support. WTI crude is back above $100 a barrel this morning and Brent is back above one a barrel. Both are up more than 40% since the war started back in late February. And gas prices have climbed to 4.52 cents a gallon nationally, which is up from the $3 a gallon before the conflict started. And that brings us to today's big economic headline. The April CPI inflation report, which dropped this morning and it came in hot prices jumped 3.8% in April compared to a year ago. It was the highest inflation rating since May of 2023 and above the 3.7 economists were expecting. No surprise here, but energy was the biggest driver, accounting for 40% of the monthly price increase. But, you know, here's the problem, though. Other categories are also seeing increases. Airfares jumped 2.8% in one month and it's up 21 from a year ago. Apparel costs are going up. Household goods are going up. So the inflation is starting to spread beyond just energy. And that makes sense, right, because energy is an input cost on pretty much everything. By the way, if you look at core inflation, which strips out food and energy, that was up 2.8% from a year ago. You know, the market has largely ignored the Iran war and the higher energy prices over the last few weeks. But this inflation reading could bring that worry back, front and center. I mean, just looking at the early reactions of the market, the US treasury yields are moving higher and traders are now pricing in a 35% chance of a rate hike this year from the Federal Reserve. So, yeah, Kevin Warsh is inheriting a tough situation when he takes over the Fed chair on Friday. So we'll stay on top of all the inflation stuff and keep you guys updated. By the way, if you guys have any questions for us, drop them in the comments on Spotify or YouTube. We're going to try to answer some listener questions on Friday. Let's run through some headlines, starting with an update on GameStop and eBay. EBay has officially rejected GameStop's takeover offer, calling it neither credible nor attractive. Those are their exact words. Now, a quick refresher here. Last week GameStop CEO Ryan Cohen made a $55 billion offer to buy EB, and from the jump, the math wasn't really mathing. For one, GameStop themselves only has a market cap of about $10 billion, so it's a much smaller company than ebay. On top of that, GameStop only has about $9 billion in cash, and they did secure a $20 billion in financial commitment from TD bank, but apparently that letter was not binding. So there was a lot of questions about how solid the offer even was. And then, not to mention GameStop CEO Ryan Cohen's interview on CNBC last week went pretty poorly. He couldn't really explain the math in the interview either. So eBay has formally rejected the offer, pointing to the shaky financing. They also said they were doing fine on their own. You know, for some reference, eBay stock is up 55% over the past year, while GameStop is down 16%. So who knows, maybe at some point eBay will end up buying GameStop, because I do think the two should team up. Let's shift gears and talk about an IPO this week that is seeing huge demand. The AI chip maker Cerebra Systems is going public this week and they just bumped up their estimated price range for the IPO this week to between 150 and $160 a share. That's up from the 120 they were estimating just a week ago. So at the top of this new range, Cerebrus would raise around $4.8 billion from the IPO and be valued at about $34 billion. That would make Cerebras the biggest IPO so far in 2026. The demand has been so hot for this IPO that Reuters is reporting that the offering has drawn orders for more than 20 times the number of shares available. Now. While that is a POS near term, don't forget Figma's IPO from last summer was 40 times oversubscribed and despite jumping 250 on day one, the stock is now down 40% from its listing price. But you know, Cerebrus couldn't have timed the IPO any better because of this generational heater that chip stocks are on right now. Cerebrus can definitely capitalize on that because they make specialized AI chips designed to compete directly with Nvidia. In fact, the key difference between the two is that Cerebras chips are optimized for inference, which is a part where AI models actually respond to your queries. That's where all the demand is coming from right now. And look, the customer list for Cerebra speaks for itself. It includes OpenAI and Amazon. In fact, OpenAI is an investor in Cerebras. And as for the financials, Cerebras posted revenues of $510 million in 2025, which was up 76% from 2024. They also posted a profit of about $88 million. The IPO is expected to be priced tomorrow and shares will begin trading on Thursday under ticker symbol cbrs. So I'll be watching that one closely. We'll provide you guys an update later in the week. By the way, we're going to be doing a full deep dive on Cerebras and their IPO and business model, so make sure you guys are subscribed to the podcast. Even consider hitting the notification bell so you don't miss when that episode drops on Saturday. Let's talk about some stocks making moves today. Wendy shares are skyrocketing this morning on reports that activist investor Nelson Peltz is looking to take the company private. Peltz and his firm, Tryon Fund Management, already own about 16% of Wendy's, and back in February, Try on filed a regulatory document saying that the fast food chain was undervalued and that it was considering a takeover bid at the time. Fast forward to today and the Financial Times is now reporting that Try on has been in talks with outside investors, including some in the Middle east, about financing the potential takeover. Now, Wendy's stock has lost nearly half its value in the past year and more than 70% in the past five years. And the reason for that is because Wendy's is getting squeezed from both sides. On the lower end, McDonald's has been winning with better value meals and an innovative menu. And then on the higher end, fast casual chains like Chipotle and Cava are taking market share. So Wendy's is kind of caught in the middle. And their earnings last week didn't help either, citing higher beef costs and weak traffic. Now, to be clear, there's no formal offer on the table yet. Nelson Peltz is only fundraising at this time. Investors seem to be excited. Shares of Wendy's are up more than 20% this morning at the time of this recording. Now on the flip side, shares of HIMS are tanking after the telehealth company reported a steeper than expected loss and weak earnings guidance. HIMSS posted a loss of $92 million in the first quarter, which is a stark contrast to the $50 million profit they reported in Q1 of last year. Meanwhile, revenue was up just 4% to $608 million, with the average revenue per user declining from $85 to $80. See, HIMS is going through a major transition right now, especially in their weight loss business. The company made a name for itself over the last couple years selling cheap, copycat versions of popular weight loss drugs. But now HIMS is shifting its business towards selling the branded drugs from companies like Novo Nordisk and Eli Lilly. In March, HIMS announced a partnership with Novo Nordisk to offer the FDA approved obesity drugs like Wegovy. And then last month they expanded that to include weight loss drugs from Eli Lilly as well. And strategically, I think it made sense, especially since Hims was constantly in legal battles with the pharma giants. The market celebrated those deals. HIM stocks spiked 40% following the Novo deal and 7% following the Eli Lilly deal. The problem though is that Pivot hasn't been cheap. Him took a 33 and a half million dollar restructuring charge this quarter tied to writing down old inventory and switching over to the branded stuff. The company also cut its full year profitability guidance. The CEO continues to be optimistic, saying the transition is worth it and that demand for weight loss treatments is at near record levels. Investors seem to have second thoughts though. HIM stock is down about 14% this morning at the time of this recording. Let's wrap the show with the fun fact. Netflix says that they have spent $135 billion making films and TV shows over the past decade. They say that money went into productions across more than 50 countries, employing over 425,000 people, plus hundreds of thousands of extras and day laborers. Now, Netflix is highlighting all these stats on a new website called the Netflix Effect. And it's clearly like a PR campaign to get on the good side of Hollywood and probably politicians too. Netflix has been catching a lot of heat from the entertainment industry lately, especially after they tried to buy Warner Brothers earlier this year. They're basically trying to show the positive economic impacts of their content. They point to the success of K Pop Demon Hunters last year and how it led to a 25% spike of in flight bookings to South Korea, and then duolingo reporting a 22% jump in Korea language studies. Now, I'm not sure if Netflix should get all the credit for that, but they're taking it. So we'll see if this new PR website helps their reputation in Hollywood, because a lot of people blame Netflix for destroying movie theaters and the traditional studio model by putting everything on streaming. What's funny is Netflix is actually shifting on that too. Earlier this month, they announced that their new Narnia movie will get an exclusive theatrical run of almost two months, which is the longest that Netflix has put a movie in theaters. So that's a pretty significant shift to their business model. And honestly, I think it's a smart move. In fact, I think Netflix should also stop releasing entire seasons of their shows all at once and start doing the weekly episodes like we used to do back in the day. I don't know. That's just my take, though. Let me know in the comments on what you guys think. Well, all right, guys, that's the rundown for today. 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, Apple, Spotify, YouTube, wherever you listen to your podcasts. You know, all that engagement really does help us out and it helps other people find the show. And don't forget, drop your questions in the comments. We'll try to answer some of those later in the week. 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.