The Rundown – Episode Summary

Podcast: The Rundown
Host: Zaid Admani
Date: October 9, 2025
Episode: Pepsi's Turnaround Shows Signs of Hope, Ferrari Shares Plunge on Weak Outlook

Overview

In this brisk daily market update, Zaid Admani covers key market drivers and company updates, focusing on:

• The continued AI-fueled stock rally
• Potential for air traffic controllers to end the government shutdown
• Earnings reports from PepsiCo and Delta Airlines
• Major pharma and luxury auto stock moves (Akero/Novo Nordisk & Ferrari)
• Fun, personal anecdotes and a look ahead to the F1 Grand Prix

Key Discussion Points & Insights

1. Market Update & AI-Fueled Rally

[00:45]

• The stock market "came roaring back" with the S&P 500 up 0.6% and Nasdaq over 1%, both hitting new all-time highs.
• AI stocks such as CoreWeave (+9%) and AMD (+11% on the day, +40% for the week after a new OpenAI partnership) remain the chief drivers of this surge.
  • Quote: “Stop me if you’ve heard this before, but AI stocks continued to power this rally.” — Zaid, [00:23]

2. Government Shutdown Impact

[01:17]

• Ninth day of the government shutdown, with little urgency from lawmakers since most people haven’t felt its effects yet.
• Key emerging issue: Essential workers like air traffic controllers are working unpaid, leading some to call in sick for side gigs, causing a rise in flight delays/cancellations.
  • Quote: “Some air traffic controllers have started calling in sick to pick up side gigs like driving an Uber so, you know, pay their bills. That’s leading to staff shortages at airports..." — Zaid, [01:58]
• If the crisis at airports worsens, it could force Congressional action.
• Congress still receives pay during the shutdown.
  • Quote: "Lawmakers in Congress still get paid during a government shutdown. Their paychecks are not impacted." — Zaid, [02:31]
• Wall Street remains unconcerned for now, but prolonged shutdown may impact economic data (e.g., CPI release next week).

3. PepsiCo's Earnings: Glimmers of a Turnaround?

[03:10]

• PepsiCo beat Wall Street estimates, led by a rebound in the beverage segment—US beverage sales up 2%, strongest growth in nearly 2 years.
• Drivers: Flagship Pepsi, Zero Sugar, and a $2B health soda acquisition (Poppy). Host admits he doesn’t "get the Poppy hype.” [03:37]
• Challenges:
  • Overall sales volumes down (NA beverage -3%, snacks -4%)
  • Year-to-date sales up less than 1%
  • CEO expects only "low single digit growth" for 2025
  • EPS down 29% in 2025 so far
• Strategic changes include launching healthier snack options (new Doritos/Cheetos without artificial ingredients) and slashing jobs/products to trim costs.
• Pressure from activist investors (Elliott Management, $4B stake).
• Zaid's view: Hard for big conglomerates to compete with agile, social-first small brands; Pepsi is showing "some signs of a turnaround, but not nearly enough."
  • PepsiCo stock "moved less than 1% [...] and is down nearly 20% over the last year." [04:43]

4. Delta Earnings: Luxury Pays Off

[05:05]

• Delta posts strong revenue ($15.2B, +4% YoY) and profit ($1.4B, +11% YoY).
• Growth fueled by premium seating (First/Comfort+ up 9%) vs. main cabin down 4%.
  • "The premium cabins continue to be Delta's cash cow." — Zaid, [05:32]
• CEO signals premium demand remains strong, prices likely to rise further.
• Corporate travel "back in full swing," +8% last quarter, expected to carry into 2026.
• Major turnaround from April, when Delta pulled guidance after "tariff shock."
• Airlines cut unprofitable routes to manage supply; Delta stock up >5% today and up ~69% from April lows.

5. Pharma M&A: Novo Nordisk & Akero Therapeutics

[06:44]

• Novo Nordisk acquiring Akero for up to $5.2B ($54/share cash + $6/share for FDA approval of MASH drug).
• Akero's stock up 19% pre-market; market skeptical on FDA approval component.
  • "If you think that Akero's liver drug will get FDA approval, there's an easy way to make $6 a share." — Zaid, [07:15]

6. Ferrari's Outlook Disappoints

[07:25]

• Ferrari shares plummet >12% (potential worst day ever for stock since IPO) after cutting guidance:
  • FY2030 operating income foreseen at €2.75B (<€3.2B expected)
  • FY2030 revenue outlook €9B (<€10B estimate)
  • EV target slashed: only 20% of cars to be fully electric by 2030 (down from 40% target)
• Zaid humorously admits, "I didn’t even know Ferrari was planning to make an EV." [07:55]

Memorable Quotes & Anecdotes

• On government shutdown & airlines:
  “Some air traffic controllers have started calling in sick to pick up side gigs like driving an Uber so, you know, pay their bills.” — Zaid, [01:58]
• On new sodas:
  "I'm not going to lie though. I don't get the Poppy hype. All right? I don't think it's that good, but it's helping PepsiCo sales right now." — Zaid, [03:37]
• On conglomerate struggles:
  "My take here is that it's really hard for these food giant conglomerate companies to compete with smaller brands that are launching on a weekly basis using social media." — Zaid, [04:29]
• On luxury travel:
  "The premium cabins continue to be Delta's cash cow. Sales from first class and comfort plus seats jumped 9% while the main cabin actually saw a drop of 4%." — Zaid, [05:32]
• On Ferrari's EV plans:
  "I'll be honest with you guys, I didn't even know that Ferrari was planning to make an EV." — Zaid, [07:55]

Timestamps for Important Segments

• Market/AI Rally: [00:23]–[01:13]
• Government Shutdown Impact: [01:13]–[03:05]
• PepsiCo Earnings: [03:05]–[05:05]
• Delta Earnings: [05:05]–[06:44]
• Akero Therapeutics/Novo Nordisk Deal: [06:44]–[07:25]
• Ferrari Shares Plunge: [07:25]–[08:32]
• Fun Fact: Ferrari World and F1 Sponsorship: [08:32]–[09:47]

Notable Moments & Tone

• Zaid uses humor and plain language ("I don't get the Poppy hype", "I didn't even know Ferrari was planning to make an EV") creating a personable and accessible summary of complex financial events.
• The show closes with a story about Zaid's personal visit to Ferrari World Abu Dhabi (“I actually went to Ferrari World back in 2022 and yeah, it's legit. You know, they have the fastest roller coaster in the world…” [08:35]) and a plug for Public.com sponsoring the Aston Martin F1 team at the US Grand Prix.

In Sum:
This episode offers an accessible, fast-paced look at trending market news, illustrating not just the data but the human and business stories behind the tickers. PepsiCo shows faint signs of hope, but faces headwinds; Delta soars on luxury and business travel; Ferrari suffers its worst trading day ever with EV ambitions cut; and the ongoing government shutdown looms as a potential market disruptor if it drags on. As always, Zaid combines expert insight with wit and a dash of personal flair.