← The Rundown
The Rundown
FAA to Cut Flights by 10% at 40 Airports, Tesla Approves Elon Musk's $1T Pay Package
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Public.com presents the rundown, your daily market update in under 10 minutes. My name is Zadod Mani and Today is Friday, November 7th. In today's episode, we'll tell you why the markets continue to fall and why Nvidia might be the only company that can save it. We'll also discuss how many flights are expected to be canceled because of the government shutdown and a big win for Elon Musk at the Tesla shareholder meeting last night. Then stick around to the end of the show to get my reaction to GTA 6 being delayed again. We got a great show for you today. Let's go. Markets got crushed again yesterday, the second time this week. The S&P 500 lost more than 1% and the NASDAQ dropped nearly 2%. You know, as usual, tech and AI stocks are really taking a beating right now. And Nvidia, amd, Oracle and Amazon were some of the biggest losers yesterday. You know, this is one of those weeks where Wall street becomes worried about the AI bubble and some of the sky high valuations. Now we'll have to see if the sentiment carries over into next week or if it's just like a this week kind of thing. Beyond the AI stuff, investors are also getting concerned about the labor market. Normally we'd be getting the October jobs report today, but with the government still shut down, there's no official data. So we're left piecing things together from private reports and, and those numbers aren't looking so great. According to the firm challenger, US companies announced 153,000 job cuts in October. That's up 183% from September and the highest October total in 22 years. Not great. The biggest wave of layoffs came from the tech sector. So, you know, things are starting to feel a bit shaky right now. The AI trade is falling apart, at least temporarily. There's, there's still no end to the government shutdown and the labor market data hasn't been great. Now I'd like to get the official government jobs data, but I don't know when we're going to get that. So yeah, all of this is adding to the uncertainty and the next couple of weeks are going to be really interesting. I think it might all come down to Nvidia, which reports earnings on November 19th. Depending on how their earnings go, it could set the tone for the rest of the year. So yeah, definitely buckle up. It's going to be an interesting stretch. We're going to be staying on top of all the major stories that. So make sure you guys are subscribed to the podcast and tuning in every day. To stay in the loop, let's run through some headlines, starting with some government shutdown related news. The FAA announced that it's cutting 10% of flights at 40 major U.S. airports as the government shutdown drags into its six week, officially making it the largest shutdown in U.S. history. The FAA says this move is necessary because thousands of air traffic controllers and TSA workers are working without pay because of the shutdown, and fatigue is becoming a serious safety concern. I mean, being an air traffic controller sounds stressful as it is. Can you imagine doing it without getting paid? I mean, it's a problem. Now, the flight cuts are expected to start gradually. It's gonna be 4% today, 6% by Tuesday, 8% by Thursday, and then a full 10% by next Friday. Now, there are about 25,000 commercial flights per day in the U.S. so a 10% reduction means 2,500 flights a day will be canceled by next week. Pretty much every major airport is being impacted here. So we're, we're starting to feel the economic impacts of the government Shutdown. Now, the U.S. travelers association estimates the travel economy has already lost $4 billion because of the shutdown, and that number is climbing every day. Now, the airlines have said that if your flight is canceled that they will automatically rebook your flight, but it's definitely going to add chaos and confusion at the airports. And that's why I feel like the hard deadline for the government shutdown has to be before Thanksgiving. Right, because can you imagine what the airports will be like during the busiest travel period of the year if we're still operating at reduced capacities? So, yeah, the politicians in D.C. man, they gotta figure this out. As you guys know, I was traveling this week myself, and I'm just glad I got home before all this chaos. If any of you guys are traveling today or over the next few days or weeks, let us know in the comments on how it is. In fact, producer Mike is also traveling this weekend, so we'll see what he has to say when he makes it back next week. Let's shift gears and talk about someone who's not gonna be impacted by the flight delays and Elon Musk. The highly anticipated Tesla shareholder meeting took place yesterday in Austin, and 75% of Tesla shareholders voted in favor of granting Elon Musk the biggest pay package in corporate history, worth up to $1 trillion. Under this new pay package, Elon Musk could receive up to 423 million new shares of Tesla, which would boost his ownership stake and control of the company from 13% to. To around 25%. But I want to clear up some misinformation here. Elon Musk is not getting this money up front. He has to hit some very aggressive milestones in order to get the money. The payout is divided up into 12 milestones. He'll get 35 million shares of Tesla for every milestone that he hits. The first tranche is Tesla hitting $2 trillion in market cap, which could happen pretty soon. Tesla is around 1.5 trillion today. The other milestones are pretty wild though. 1 million robots sold, 1 million robo taxis in operation, 10 million full self driving subscriptions. Tesla getting to $8.5 trillion in market cap. I mean, these are some wild targets and it's not guaranteed that Elon is ever going to hit them. The Tesla board wanted Elon Musk to get this pay package to incentivize him to keep, you know, focusing on the company. Now, I'm a little skeptical on if he can pull off all of these milestones, especially the $8.5 trillion market cap, but if he does, he'll be the first trillionaire in history. I wonder if a banking app can even show a number that big. Like how small does the font get when you open up to check your balance? I guess if you're that rich, you're probably not checking your bank balance very often. Anyways, let's talk about some stocks making moves today. Airbnb stock is up this morning after the company reported a 10% jump in revenue last quarter to $4.1 billion. That was higher than Wall street estimates. The big driver for their growth were travelers planning their trips earlier. Airbnb said that guests are booking further in advance thanks to their new reserve now pay later option, which lets people lock in a trip without paying upfront. That's a big change from earlier this year, when a lot of travelers were waiting until the last minute to book their trips because of economic uncertainty. Airbnb only saw a 6% growth in Q1, then a 13% growth in Q2, and now it's 10% in Q3. So investors are liking that the company's back to growth, and the stock is up around 3% this morning. Now, longtime listeners know I'm not a big Airbnb fan. I still prefer hotels over Airbnbs. I unless I'm traveling with a lot of people. Fun fact about Airbnb, they IPO'd back in December of 2020, almost five years ago. They had an opening price of $146, and the stock is currently below that level. So if you invested in Airbnb on its first day of trading, you're still in the red, which is kind of wild. Speaking of things that are wild, let's talk about Take two Interactive, the parent company of Rockstar Games. Their stock is down this morning after they announced yet another delay for GTA 6. The release date has been pushed back from May of 2026 to November of 2026. This is the second delay for the game after it was originally expected to drop in late 2025. We were supposed to be playing GTA 6 by now, but now we're going to have to wait another year at least, because who knows what they're going to do. The company said they're delaying the game to give developers more time to deliver the polish players expect and deserve. Honestly, I don't want the polish. Just give me the game. Gamers and investors are not taking this news well. Shares of Take Two Interactive are 5% this morning following this announcement. GTA 6 is expected to be one of the best selling video games of all time. If it ever comes out, we might need to do a GTA 6 economic deep dive or something. Let's wrap the show with a fun fact. 10% of Meta's revenues last year came from ads that were scams and frauds. This is according to internal company documents reviewed by Reuters. Just doing some simple math here. That means that meta made around $16 billion in 2024 from scam ads. This includes ads for things like fake investment schemes, illegal casinos, and even banned medical products. On an average day, Meta users see about 15 billion high risk ads, according to the Reuters report. Now, Meta did push back, saying that those internal numbers were rough estimates and that it's reduced its scam ads by 58% this year. But also, there's like no incentive for Meta to fully fix this issue because I bet these type of ads are probably like the high paying ones and if they try to get rid of too many of them, that's probably going to hurt their revenue and they need all the revenue they can get right now with all the money they're spending on AI. So yeah, just, just be careful out there because I think this problem is going to get even worse with AI. You know, I've seen some ads on Instagram and Facebook for some sketchy products and services with famous influencers in the ad, but the influencers had no association with it. It was a scam product using AI to incorporate the influencer so, yeah, Meta needs to really figure this out before it turns into a massive problem. 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. And 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 got a couple weekend episodes coming up. We're doing a deep dive on the economic impact of the government shutdown so far and an interview with a Citibank analyst regarding Palantir. I think you guys will enjoy those episodes. 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 for the deep dive.