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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, December 24th. In today's episode, we'll tell you what's behind the surprisingly strong GDP report. We'll also tell you about a Google backed AI company planning to IPO and why Tim Cook just bought the dip in Nike stock. Then stick around to the end of the show to learn a surprisingly shocking stat about the IPOs in 2025. We got a great show for you today. Let's go. Stocks are heading into Christmas on a high note. The S&P 500 had its fourth winning day in a row yesterday, adding 0.5% and closing at record highs. It was the 38th record close of the year for the index. And the Nasdaq also joined the party. It was up 0.6% yester, but it's still about 1 1/2% away from its own record. But you know, tech stocks have quietly been rallying over the last week or so, so we'll have to see if the Nasdaq can hit a record high before the end of the year. Now, the markets did get a boost yesterday from the surprisingly strong economic data. We got the latest GDP report for Q3 and it showed that the U. S economy was growing at a 4.3% annual pace. That's the fastest growth we've seen in two years and way above the 3.2% that economists were expecting. And unsurprisingly, the biggest area of growth in AI spending and consumer spending. Let's start with the AI stuff first. @ this point, we all know about the trillions of dollars that these big tech companies are spending on building AI infrastructure and things like data centers, chips, energy and all that spending is helping prop up gdp. But then you have consumer spending. That's always been the staple of the US Economy. But these days it's the spending from high earners that's really driving the growth. The top 10% of households are spending freely right now. They account for more than 50% of spending now, likely because they saw their wealth go up significantly over the last three years because of the bull market. So that's definitely something that I'll be watching heading into next year. Are big tech companies going to keep spending crazy amounts of money on AI if they don't start seeing a return on that investment soon? Or are they going to finally start cutting back? And will American consumers continue to spend freely, especially if the labor market continues to cool? I'm sure we'll be talking more about that over the next few weeks and months along with everything else happening in the markets. Now remember, the stock market is closing early today and will be closed all day tomorrow for Christmas. So show from us tomorrow, but we're going to be back here on Friday morning, so make sure you guys are subscribed to the podcast. To stay in the loop, let's run through some headlines, starting with some IPO news. The Google backed fleet management software company Motive just filed for an ipo. Now, Motive might not be a household name, but it's an interesting company. They sell AI powered software and dash games that help companies manage their fleets. Trucking companies use the AI powered software and dash cams and trucks to track vehicles, monitor maintenance and use AI to flag unsafe driving. Motive says that their tech has helped prevent 170,000 collisions over the past couple of years. Now as for the numbers, the company's revenues are growing nicely, but their losses are also widening. The company did $327 million in revenue in the first nine months of this year, which is up 23% year over year 20. But they lost $138 million in that same period. Now Motive was Last valued at $2.85 billion back in 2022. And earlier this year they raised another $150 million in a pre IPO funding to double down on AI and expand internationally. So it's going to be interesting to see how this IPO goes. I feel like if motive had IPO'd like six months ago at the height of the IPO and AI mania, they probably would have had a solid debut. But I'm not so sure anymore. In fact, a lot of the hot IPO names have been disappointing this year. We'll talk more about that later in the show. So yeah, this Motive IPO could be a test case to see if the IPO window is still open going into 2026. Now speaking of disappointment, let's talk Nike. The apparel giant has been struggling to turn things around. They recently reported earnings, which was a disappointment, but one of their board members clearly believes in the company and they just bought the dip in the stock. I'm talking about Apple CEO Tim Cook. He's actually been on the Nike board since 2005 and he just bought 50,000 shares at roughly 59 dol a share for a total value of approximately $3 million. Nike stock is down more than 20% this year. It's down nearly 60% in the last five years. So it's been a tough half decade for the Swoosh as they face slowing growth, increased competition, constantly changing strategies, different leadership, and big challenges in China. But I mean, Tim Cook buying the stock now could be a signal of a turnaround. I mean, if there's one thing that Tim Cook knows better than any American executive, it's how to operate in the Chinese market. I mean, Tim Cook spent decades building Apple's supply chain, navigating politics, partnerships, and also consumer demand. So maybe he shared some insight with Nike CEO Elliot Hill, who's been at the job for a little over a year now. And we'll see if things turn around. Nike stock is seeing a 3% pop this morning in response to the Tim Cook News. You know, I wonder how many pairs of Nike shoes that Tim Cook has in his closet. And I wonder what his favorite one is. If we ever get Tim Cook on the rundown, I might lead with that question, just totally catch him off guard. Let's talk about some stocks making moves today. The vaccine maker Dynavax is ripping higher this morning after the French drug maker Sanofi announced that they were acquiring them for $2.2 billion. You know, Sanofi has been on an acquisition spree this year as they try to diversify their business. And they targeted Dynavax because the company has an approved hepatitis B vaccine, which immediately boosts Sanofi's vaccine portfolio. Sanofi is paying $15.50 per share in cash for Dynavax, which represents about a 40% premium to where Dynavax was trading before the deal was announced. And as you'd expect, the Dynavac stock has surged right up to that level in pre market trading. Now, on the flip side, intel stock is taking a hit this morning after reports that Nvidia has decided not to move Forward with Intel's 18A chip manufacturing process. This is a tough one for intel because it could be a sign that Nvidia doesn't trust Intel's manufacturing capabilities. And that raises real questions about how competitive Intel's foundry business actually is compared to rivals like tsmc. You know, Intel's foundry business is a big part of their overall comeback story this year. And, but that just took a hit and intel stock is down around 3% this morning in pre market trading. Zooming out though, intel stock has gone up nearly 80% this year. So it was still a big year for the company. Let's wrap the show with a fun fact. More than two thirds of tech companies that went public this year are now trading below their IPO price. And some of them are down like 30, 40, even 50%. And this is happening in a year where the S&P 500 is up nearly 20%. So that's not great. You know, I was kind of surprised to see see that stat because 2025 was supposed to be a big comeback year for IPOs. And we did get a lot of high profile ones, but the performance has been surprisingly weak. A few big names like Figma and Circle had a lot of hype leading up to the ipo. They had big first day pops, but both those stocks are now down more than 60% from their peaks. Other high profile names like Klarna, StubHub and Chime are actually down from their IPO price. So I wonder if this might change the IPO activity going into next year. You know, some of these private companies might think twice before going public. I mean, 2026 is R to be a big year for IPOs with names like SpaceX, Anthropic, maybe even OpenAI potentially hitting the public markets. But I don't know, maybe these companies might be better off just staying private. Public market investors can be a lot less unforgiving. 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. Reminder one more time. The stock market will be closed tomorrow for Christmas so no show from us. But we are going to be back here on Friday to recap the week. Hope everyone's been having a fantastic holiday week so far. I mean it definitely helps the mood when the stock market hits all time highs. Merry Christmas to everyone celebrating happy holidays. 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 on.
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