← The Rundown
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Public.com presents the rundown, your daily market update in under 10 minutes. My name is Zadmani and today is Tuesday, September 16th. In today's episode, we'll tell you about Nvidia's latest deal with coreweave that is raising some red flags about the AI industry. We'll also preview Meta's new AR smart glasses and why Oracle stock keeps keeps pumping. Then stick around to the end of the show to find out what Amazon is doing to get more people to watch sports and why I wish more companies did this. We got a great show for you today. Let's go. Markets were off to a great start on Monday with the S P 500 adding 0.5% and the Nasdaq jump point nine percent. The rally got a big boost from both Google and Tesla stock which were up about 4% yesterday. Google stock hit all time highs and their market cap hit $3 trillion for first time ever, joining Nvidia, Microsoft and Apple as the only companies worth more than 3 trillion. Now all the attention turns to the Fed meeting which kicks off today. We've been talking about this meeting for over a week now and there's been some last minute updates that we didn't cover yet. Fed Governor Lisa Cook will be attending and voting this meeting as usual. Remember, Trump tried to fire her last month, but a federal judge blocked her removal for now. So she will continue to carry out her responsibilities as a Fed governor. Also, there's going to be a new face joining the Fed board. Last night the Senate confirmed Trump nominee Stephen Moran to the Fed board right in time for him to vote at this month's meeting. I got a feeling he's going to be voting for some big rate cuts. Now, Jerome Powell is still the chair of the Federal Reserve and he's going to continue to do so until his term expires in May of 2026. So we're still going to get the press conference from him tomorrow afternoon once the Fed meeting wraps up. So I'll be watching the press conference closely tomorrow afternoon and I'll keep you guys in the loop. Later this week, let's run through some headlines, starting with Core Weave. Core Weave has agreed to a $6.3 billion deal with Nvidia and this deal is raising some eyebrows. Now this deal was originally signed back in 2023 and under this deal, Nvidia has agreed to buy up all of CoreWeave's extra cloud capacity through 2032. See, Core Weave is one of these up and coming neo cloud companies. Their entire business model is buying up AI chips from Nvidia to build out AI data centers, rent out capacity to those data centers to large companies. In fact, Core Weave has multibillion dollar deals with both Microsoft and OpenAI. And now according to this latest deal, Nvidia is going to be buying up all the excess capacity that Core Weave has left over. And what makes this deal kind of weird is that Nvidia is also an investor in Core Weave. So try to follow along with me here because I'm starting to see some red flags. Nvidia has invested hundreds of millions of dollars in into Core Weave, which then Core Weave uses that money to buy Nvidia's chips to build out their data centers. And now it seems like Nvidia is going to be giving Core Weave billions of dollars more, which will essentially serve as a backstop to any slowdown that Core Weave has in their business. And I'm assuming that Core Weave will then use that money from Nvidia to buy more Nvidia chips. Look, I'm not trying to say anything shady is happening here, but it does sound like circular accounting anyways. The investors don't seem to care that much about it though. Core weave stock jumped 8% on this and Core Weave stock has more than tripled since its IPO earlier this year. But don't be surprised if we start seeing some more red flags and some short sellers call out these circular cloud deals. Maybe I'm misunderstanding the situation here. So let me know in the comments on Spotify or YouTube if you guys are seeing the same red flags that I'm seeing or if you think that I'm blowing it all out of proportion. Now, sticking with the AI theme here, let's talk about Meta. The Meta Connect event kicks off tomorrow and we already got some leaks as what to expect. The star of the show will be Meta's AI powered SM glasses. Mark Zuckerberg is expected to debut the company's first consumer ready glasses with a built in display. The glasses will overlay notifications and AI assistant responses right in your field of vision. Imagine like a Tony Stark's heads up display but for text messages and calendar invites. Now these glasses are expected to cost about $800, so that's a big jump from Meta's current smart glasses that cost about $300. No, Meta has a partnership with Slo L Exotica and these current glasses have been a huge hit with over 2 million pairs sold since since launching in 2023. By the way, I have a pair of the Meta Smart Ray Ban glasses and I use them almost daily. So Meta, I'd love to get a review of these new versions because you know, I'm a big fan of the last ones shooting my shot in case someone from Meta is watching this now these new glasses aren't expected to be a big seller since they do cost $800. Analysts say that sales might only be a few hundred thousand units, but that's still enough to test the waters and get developers building apps for them. And over time Metal will try to reduce the cost, but to make them into a full on hit consumer product. You know, Meta's Reality Labs unit, which is the division behind all of these products, lost $4.5 billion just last quarter, bringing their total losses to near 70 billion since 2020. So investors are going to want to see if these smart glasses can become a real consumer category since the VR headset stuff failed to break through. Personally, I'm pretty bullish on smart glasses, and the overall tech industry seems to be as well. A ton of tech companies are rushing to get their smart glasses to market. Apple is working on their own version, and Google announced a $150 million partnership with Warby Parker back in May to build their own smart glasses as well. So maybe in just a couple of years we're all going to be walking around with a computer on our face. You know what, I'm not really sure how I feel about that anymore. Let's talk about some stocks making moves today. Oracle shares are climbing this morning on speculation that the tech giant could be buying Tick Tock. Remember President Trump posted on Truth Social yesterday that a deal has been made with China to keep keep TikTok in the US which would require a US company buying TikTok from Chinese parent company ByteDance. Now I even speculated on yesterday's show that it'll be Oracle buying TikTok, and the markets are running with that rumor. And for good reason here, because President Trump himself has even floated the idea of Oracle founder Larry Ellison being the perfect buyer for TikTok just a few months ago. Now nothing official has been announced yet, but that hasn't stopped investors from buying the hype or Oracle stock is up more than 5% this morning in pre market trading after already jumping 3% yesterday. Oracle stock is just on a tear now. On the flip side, Dave and Buster stock is plummeting after the arcade chain reported a 3% drop in same store sales, putting the company's growth story into question. The company did get a new CEO, Tarun Lau, who joined back in July and This was his first earnings call and Lal didn't sugarcoat Dave and Buster's struggles. In fact, he blamed past missteps like too many promotions, weak employee training, and the company trying to push more appetizers instead of entrees for the bad results. Personally, I don't see anything wrong with pushing appetizers, but I guess it does hurt overall revenue. The problem here is that Dave and Busters has been struggling to grow for multiple quarters now. In fact, same store sales fell by more than 7% in 2024, which is one reason why the company stock was down more than 20% year to date before this report. And obviously this report didn't help things. The stock is down another 15% this morning as investors are clearly losing patience on the turnaround. Let's wrap the show with the fun fact Amazon prime will begin streaming soccer matches with augmented reality this week. Tuesday's Champions League matchup between Tottenham Hotspurs and Villarreal will debut some new on screen animations on Prime Video. This will include speed of the players and the ball, a live tactical map of where everyone is on the pitch, and and even a momentum bar showing which team is most likely to score a goal next. Kind of sounds like a FIFA video game, but like in real life, which it sounds pretty cool, honestly. I'm probably going to tune in to check it out. Amazon is doing this to attract more younger fans to watch the games because According to a YouGov survey, only 31% of 18 to 24 year olds regularly watch live sports. You know, kids these days have so many options for entertainment, whether it's video games, YouTube, TikTok, Instagram, social media. So live sports has to compete for that attention. So I think the thinking is that by making these live broadcasts look more like video games, it could get young people to watch. You know, I think this is a good idea. As a big sports fan, I want there to be more experimentation when it comes to sports broadcasting. A good example of this has been the Nickelodeon stream from last year's NFL playoff game between the LA Chargers and my Houston Texans. I watched that with my kids and they absolutely loved it, seeing spongebob talk about football. So don't be surprised if we see more sports broadcasts and especially these streaming companies like Amazon, maybe Netflix try new things to get more people to watch. But I don't know, maybe I'm in the minority here. Let me know in the comments if you guys prefer this experimentation or if you just want the boring normal sports broadcasts. Well, all right guys, that's the rundown for today. Hope you guys enjoyed today's episode. By the way, I forgot to mention on yesterday's show, please check out the interview that I did over the weekend with Mark Gurman. You're going to love this interview, especially if you're an Apple investor and a tech fan like I am. Mark Gurman is the most plugged in man at Apple. He dropped some very interesting insights about the company, even speculated on how long Tim Cook will stay on as CEO and who the next CEO of Apple is going to be. So if you haven't checked out that interview yet, please go do so. We dropped it on Sunday morning. I think it might be the best interview that I've done, so please go check it out and drop some feedback in the comments. And while you're at it, don't forget to leave us a five star rating on Apple Spotify wherever you listen to your podcast. All that engagement really does help us out and it helps other people find the show. 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.
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Limu Emu and Doug Here we have the Limu Emu in its natural habitat helping people customize their car insurance and save hundreds with Liberty Mutual. Fascinating. It's accompanied by his natural ally Doug Limu.
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Is that guy with the binoculars watching us.
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Cut the camera. They see us.
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Only pay for what you need@libertymutual.com Liberty.
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Liberty Mutual Insurance Company affiliates. Excludes Massachusetts.