← The Rundown
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Public.com presents the rundown, your daily market update in under 10 minutes. My name is Zadad Mani and Today is Tuesday, November 18th. In today's episode, we'll break down a few reasons why the market is selling off. We'll also recap earnings from Home Depot, Klarna and Amir Sports, then stick around to the end of the show to find out how much the company behind Baby Shark just IPO that. We got a great show for you today. Let's go. Well guys, there was more pain in the markets to start the week. Both The S&P 500 and Nasdaq lost around 1% on Monday as the sell off in the stock market continued. And this sell off on Monday was across the board. More than 400 stocks in the S and P were in the red, along with 10 of the 11 sectors. Now, we don't usually talk about technical analysis on this podcast, but the there was a pretty major trend reversal yesterday that all technical traders on Wall street are talking about. Both The S&P 500 and NASDAQ fell below the 50 day moving average, which is often seen as a sign that the momentum in the market is shifting downwards. And what's crazy is the S and P had been above the 50 day moving average for 138 trading days, which was the longest streak since 2007, which was right before the great financial crisis. So, so that's not a good omen. Now the pain in the stock market is bad, but it's way worse for crypto right now. Bitcoin keeps dropping. It briefly dropped below $90,000 this morning and it's now in the red for the year. It's given back all of its gains for 2025 and the altcoin market is down real bad. Some of these altcoins are trading at their lowest level since the pandemic, so it is brutal out in crypto land right now. The sell off in stocks and crypto seems to be a combination of investors worried about the AI bubble, also concerns around the labor market softening and a potential for no rate cuts in December from the Fed. Right now the markets are pricing in a 5050 chance of a rate cut happening. So with all these uncertainties, fear is setting in and investors are selling the riskiest investments, which includes crypto and overvalued AI stocks. So it's a very interesting time in the market right now. The vibe has shifted and we'll see if things can get back on track. Like I'm starting to think that even an Nvidia blowout earnings on Wednesday might not be enough to get the markets rallying again. So we're staying locked into the madness right now. Make sure you guys are subscribed to the podcast and tuning in every day to stay in the loop. I I turned 34 today. It would be great to see some green in the markets as a birthday gift because lately opening up the public app to check my investments hasn't been so fun. Let's run through some headlines, starting with Home Depot. Home Depot missed on earnings for the third straight quarter and they slashed their full year guidance. Well, in Q3, both their profits and comparable sales came in light and the company now expects earnings per share to fall 5% from last year. People just aren't spending big on home improvement these days and management is blaming that on the frozen housing market and a relatively quiet hurricane season. Now, fewer people buying homes means fewer big renovation projects, and fewer hurricanes means fewer last minute runs for generators, roofing supplies and plywood. Now we talk a lot about the frozen housing market. Buyers can't afford to buy because prices of homes and mortgage rates are too high and sellers won't sell their homes because they don't want to give up their 3% mortgage. We broke down the housing market and the affordability crisis on this past weekend's deep dive episode. So go check that out if you missed it. So yeah, all this is becoming a problem for Home Depot's business. People are delaying big ticket upgrades like kitchen remodeling until rates come down. Home Depot says their average ticket size was up 1.8% last quarter, but customer transactions fell 1.6%. Basically that means that people are spending a little bit more per trip every time they go to Home Depot, but but they're going to Home Depot less often, which is not ideal. Now there was one big bright spot in Home Depot's earnings. It's their online sales that was up 11% year over year. But overall, another disappointing earnings for Home Depot. And outside of interest rates coming down, I'm not sure what's going to spark a turnaround. Investors are definitely nervous about it. Home Depot stock is down 3% this morning at the time of this recording, and it's down more than 10% for the year. Let's shift gears and talk about Cloudflare because they just had a rough morning. The Internet infrastructure company was hit with a major outage that briefly took down parts of the Internet, including Chad, GPT, Claude and X. So I guess nobody got any work done this morning. Cloudflare says that everything should be working again, but they're still investigating the cause of the outage. Now, Cloudflare might not be a household name, but they're a pretty crucial part of the Internet infrastructure. They run security and traffic management for about 20% of the entire Internet. Their job is to protect websites from being overloaded by attacks or surges and traffic, and thousands of businesses rely on them all over the world. And this outage from Cloudflare isn't their first one. They had an outage back in 2019 and also one in 2022 where 19 of their data centers that handle significant Internet traffic were compromised. And to me, this is another reminder that the entire Internet is is held up by a handful of companies. There was the AWS meltdown that happened a few weeks ago that took down a bunch of websites. There was also the crowdstrike meltdown from last summer that put the entire world at standstill. So just a few companies are responsible for the entire Internet working. So when one of them goes down, it has a pretty significant impact on people's day to day lives. Honestly though, maybe a small reset from the Internet is needed for a few hours every few weeks. Cloudflare investors aren't really happy though. The Stock is down around 4.4percent this morning at the time of this recording. Let's talk about some stocks making moves today. Amir Sports is seeing a nice pop this morning after the sports equipment company delivered a solid beat on both top line and bottom line. Amir Sports owns brands like Wilson Salomon and Arc', Teryx, and their revenues were up 30% in Q3 to $1.8 billion, with all three major operating segments coming in ahead of expectations. So technical apparel and outdoor performance together make about 80% of Amir sports business, while ball and racket accounts for the remaining 20%. Their outdoor performance, which is led by these Salomon footwear brands, saw sales jump 36%. You know, we talk a lot on the show about on and Nike and Deckers, but with this kind of growth, it might be time to put Amer Sports in that elite category. Investors are definitely showing some respect to the company. Shares are up more than 10% this morning and after the earnings. Now on the flip side, shares of Klarna are taking a big hit this morning after the Buy now, pay later company reported its first earnings report since going public. Their numbers were pretty decent. Revenues were up 26% year over year to $903 million, which beat estimates. But Klarna did swing to a $95 million loss in Q3 after reporting a $12 million profit in Q3 of last year. Klarna says they're starting to do more long term loans instead of just short term and and those long term installment plans carry more risk. So Klarna is having to set aside more money to cover potential losses. The long term loan business is booming though. It's up 139% globally and it's up 244% in the U.S. so the growth is there, but it's expensive and risky and investors just hate the uncertainty around it. As a result, Klarna stock is down nearly 10% this morning and it's trading at its lowest level since the IPO. A lot of these hot IPOs from this past summer have just fizzled out lately. Klarna Circle Figma huh? It's not looking good right now. Let's wrap the show with the fun fact. The company behind baby shark just IPO'd in South Korea and the stock jumped 60% on its first day of trading. Pink Fong is the South Korean company that created the mega viral baby shark videos that I'm sure every parent is familiar with. The company raised more than $50 million from the IPO and has a market cap of around 4,500 million dollars. So turns out making baby brain rot videos can be pretty lucrative. Now some more fun facts about Baby Shark the original Baby Shark dance video is the most viewed video on YouTube with over 16 billion views. Feel like my son might be responsible for half of those views now. The original baby shark video from Pinkfong came out in 2016. These days there are thousands of baby shark videos. In fact, there's a whole baby shark universe with multiple characters. But a bonus fun fact, according to the CEO of Pinkfong, their new franchise bebefin, has actually overtaken Baby Shark in terms of content revenue. And I'm pretty sure my son watches Babyfin videos as well. So yeah, I might have to buy some Pinkfong stock given how obsessed my 2 year old son is with Pinkfong videos. 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. 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. 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.