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Public.com presents the rundown, your daily market update in under 10 minutes. My name is Zaydad Mani, and Today is Wednesday, April 1st. In today's episode, we'll recap a wild end to Q1, including some of the biggest losers of the quarter. We'll also break down Nike's earnings and explain why the stock is tanking. Then stick around to the end of the show to learn about a new AI feature from Public that could change the way that you invest. No, this is not an April Fool's Day joke. We got a great show for you today. Let's go. Well, what a way to end the quarter. Stocks absolutely ripped higher on Tuesday with the S P 500 jumping 2.9%. The Nasdaq surged by 3.8%. And I'm even gonna show the Dow some love because it was up over 1100 points. The two main triggers for the rally were both related to the war with Iran. First, President Trump signaled was ready to end the airstrikes in Iran. Trump told reporters that the US Forces would leave Iran in two to three weeks. But I think the main catalyst yesterday was that Iran's official news agency said the country's president is open to ending the conflict. So that headline was enough for the markets to start celebrating. We got an epic relief rally with over 400 stocks in the S, P 500 finishing in the green and oil prices pulling back. It's days like yesterday that make investors afraid of being too bearish because a couple positive lines can lead to a massive surge. But let's zoom out a bit though, because while yesterday was great, the overall quarter was still pretty brutal. The S&P 500 fell 4.6% in Q1. The Nasdaq dropped 7.1%. That was the worst quarter for stocks in nearly four years. Now we'll have to see what happens moving forward and if the markets can build off of yesterday's rally. Personally, I'm still pretty nervous. You know, the straight up Hormuzzi is still closed and now we're getting reports this morning that Iran is now threatening to target US Tech companies operating in the Gulf region, including Nvidia, Apple, Microsoft, and Google. So we're not out of the woods just yet. But at this point, though, the market is just reacting headline to headline on a daily basis. We're staying on top of it for you guys, recapping everything happening. 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 Nike. Nike reported earnings last night, and it was a reminder to investors that the company's turnaround plan still needs a lot of work. Now, technically, their quarter was fine. Revenues came in at $11.3 billion, basically flat from a year ago, but slightly better than expected. And earnings per share also beat estimates. The problem, though, is the outlook. Nike says that sales will drop 2 to 4% this quarter, while while Wall street was expecting a growth of almost 2%. And then for the rest of the calendar year, the company expects sales to keep declining. The biggest problem for Nike right now is China, which is Nike's third largest market, making up about 15% of their total revenue. Revenue in China fell about 7% last quarter to $1.6 billion. And now Nike is warning that sales in China could drop another 20% this quarter. The company is dealing with operational missteps and also tougher competition from local brands like Anta and which is forcing Nike to discount heavily. And then you have the war with Iran that's also impacting Nike. They said they're dealing with elevated inventories in Europe and the Middle east and the war in the region is creating more disruption. And then on top of all of that, rising oil prices and tariffs are putting more pressure on their margins and consumer demand. In fact, Nike's gross margins fell for the sixth straight quarter, down 1.3 percentage points to 40.2%. So not a lot of things to be excited about when it comes to Nike, there were a couple bright SP North America, which is Nike's biggest market, grew 3% to just over $5 billion in revenue. Wholesale revenue also grew 5% to $6.5 billion, which suggests that Nike's effort to rebuild relationships with retail partners is starting to pay off. Nike CEO Elliot Hill took over the company about a year and a half ago, and since then he's pulled back on promotions, refocusing the company on core sports like running and basketball. And he's trying to fix the product pipeline. But on the earnings call, he did admit the turnaround is taking longer than expected. And he said investors won't see the full results of his team's work until spring of 2027. Investors don't seem to have the patience for that right now. Nike stock was already down around 17 for the year heading into this report, and it's down another 10 this morning, putting shares near their lowest levels in over a decade. Now let's shift gears and talk about Open AI. They just closed a 122 billion dollar funding round, which is one of the largest in history. And it values the company at 8. $52 billion, making them the most valuable private company in the world. OpenAI had a ton of investors for this funding round. Nvidia put in 30 billion, SoftBank put in 30 billion and Amazon has committed up to 50 billion. Other investors include Andreessen Horowitz, TPG, T. Rowe Price, and for the first time ever, OpenAI also let individual retail investors participate, raising over $3 billion through back channels and Cathie Woods Ark Investment ETF. OpenAI needs all the money that they can get right now. Leading AI models is expensive. OpenAI is committed to spending more than $1.4 trillion in AI infrastructure, including data centers and chips over the next coming years. Now, the good news for OpenAI is that business is growing fast. ChatGPT has 900 million users and they're generating about $2 billion a month in revenue. What I want to watch though is enterprise sales. Right now, 40% of OpenAI's revenues are through the enterprise and they expect for that to hit 50% by the end of the year. How fast OpenAI can grow their enterprise revenue is going to be key to. Anthropic currently dominates the enterprise market, making about 80% of their revenue as of January. And look, OpenAI has a pretty good consumer business as well. Here's something interesting. We've mentioned how OpenAI has started testing ads in Chat GPT over the last few weeks. Well, the company recently said that ads hit $100 million in annualized revenue in just six weeks. So, you know, I wouldn't be surprised if OpenAI turns up the dial on ads on Chat GPT to make even more money. So yeah, the AI wars are heating up. I just can't wait for these companies to go public. Remember, OpenAI and Anthropic are expected to go public as soon as this year. And I just can't wait to see how the stocks are going to perform on a day to day basis. Let's talk about some stocks making moves today. Shares of Encino are soaring this morning after the banking software company crushed earnings and raised their guidance. Encino is a software company. They make software that banks use to handle things like loan origination, account opening and compliance. Think of them as the operating system that runs behind the scenes at your local bank. And Encino is seeing a tailwind right now because of AI. And because of that, their annual contract value grew 17% to about $602 million, reversing a slowdown from earlier quarters. Now, Encino stock did fall about 40% over the last six months, but it's up more than 23% today at the time of this recording. Now on the flip side, our age is getting crushed after the luxury furniture company missed on earnings because of tariffs and bad weather. The company says that tariffs caused resourcing problems, leading to higher than expected back orders and inflicting a $30 million impact on Q4. And then bad weather caused the company to lose $10 million. And just to add to the problems, the outlook for the company aren't great. RH is guiding for revenue to decline 2 to 4% this quarter when Wall street was expecting growth. And I think if you add in the fact that we have a stagnant housing market with high interest rates, it's just a tough environment to sell $4,000 couches. RH stock is down around 20% this morning and if you zoom out, shares have lost over 40% over the past 12 months. Let's wrap the show with the fun fact you can now use AI to trade stocks. Public.com just rolled out a new feature that lets you use AI agents to automate trades in your brokerage account. So for example, you can tell the AI to buy a stock if it dips below a certain price. You can have the AI set stop losses for you. The AI can even automatically move your cash into bonds when yields are attractive. It's a really cool tool. You just type in your strategy, you review the workflow and you let the AI do its thing. I think this could be a game changing feature for retail investors because you can now get automated portfolio management and investment strategies which are tools that were previously only available to hedge funds. The AI agent feature was announced yesterday. They're starting to roll it out now. I highly recommend you guys check it out and get on the waitlist. As soon as I get access, I'm going to be testing this thing nonstop. So yeah, if you're not already using Public, it's a great time to try them out now. And I'm not just saying that because they make this show possible. They really are innovating at an incredible pace and giving users access to some really powerful tools. If you want to learn more about the new features, go check out the link in the description. 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, Spotify, YouTube, 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.