Podcast Summary: "What's Your Number? – What's up with the WYNDEX?"
Release Date: July 9, 2025
Hosted by Yonatan Adiri and Michal Lev-Ram
Produced by Ark Media
1. Introduction
In this episode of "What's Your Number?", hosted by Yonatan Adiri and Michal Lev-Ram of Ark Media, the hosts delve deep into their proprietary index, the Windex, shedding light on its creation, methodology, and the insights it offers into the Israeli economy through a global lens. The episode is packed with market analysis, significant updates, and a comprehensive exploration of the Windex.
2. Week’s Numbers
The show kicks off with the traditional "Number of the Week" segment, where Yonatan and Michal share significant statistics that frame the episode's discussions.
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Yonatan's Number:
[00:11]
Yonatan Adiri reveals a monumental investment by Nvidia:"It's a big number. It's 2 million, 2 million square feet that Nvidia decided to invest in growth in Israel. That's basically doubling its size in Israel. It's about to become the biggest employer taking over Intel."
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Michal's Number:
[00:24]
Michal Ivram counters with a substantial figure from the quantum computing sector:"It's $300 million capital raised by quantum computing startups in Israel so far in 2025."
The hosts acknowledge that both numbers are impressive, setting an optimistic tone for the episode.
3. Market Overview
a. Green Movers
Yonatan provides a snapshot of the current market trends, highlighting positive performances:
- Nasdaq: Up by 1.18%
- S&P 500: Up by 1.39%
- Windex: Leading the pack with an 1.78% increase
[02:52]
Major Gainers:
-
SolarEdge:
"It's 39.9% up in a single week."
[03:22]
Driven by retail interest and favorable legislative changes affecting green incentives. -
SimilarWeb:
Growing by 16.32%, representing the robust tech landscape in Israel. -
ICL (Israel Chemicals):
An industrial heavyweight, rising by 8.33%.
b. Red Movers
While the overall market shows strength, there are notable declines:
- Zim (Israeli Shipping Company):
Declined by nearly 4.5% due to investor anxiety ahead of its quarterly report.
[04:45]
4. Nvidia’s Massive Investment in Israel
A significant portion of the episode focuses on Nvidia's unprecedented investment in Israel, emphasizing its potential impact on the local economy.
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Investment Details:
Nvidia plans to build a 2 million square feet tech campus in northern Israel, effectively doubling its current workforce from 5,000 to approximately 10,000 employees.
[06:05] -
Strategic Implications:
Yonatan discusses the strategic placement of the new campus, highlighting Israeli government negotiations to maximize benefits and the importance of regional distribution."Nvidia's decision underscores the strength and density of the Israeli tech ecosystem."
[07:26] -
Ecosystem Strength:
The investment is a testament to Israel's robust semiconductor and tech sectors, with historical ties to giants like Intel and Apple."There's a genuine unique, definitely in terms of density, the know-how is really enormous."
[09:51]
5. Central Bank of Israel’s Interest Rate Decision
The central bank of Israel has opted to hold interest rates steady at 4.5%, amidst a landscape of recovery and ongoing uncertainty.
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Economic Context:
The decision reflects a moderate recovery pace and a decrease in Israel's risk premium post-Operation Rising Lion."Economic activity continues to recover at a moderate pace against the background of high domestic and global uncertainty."
[12:52] -
Implications:
Yonatan outlines three main factors influencing this decision:-
Strong Shekel:
While beneficial for Israelis abroad, it hampers exports and the tech industry.
[13:00] -
Utilization of Foreign Reserves:
With significant reserves being depleted, there's pressure to manage currency exchange rates effectively. -
Housing Market Dependency:
High-interest rates adversely affect housing affordability, leading to social unrest and economic strain."4.5% is very high. So he pushed, kind of kicked the can down the road one month, hoping there will be significant less fog on the day after the war."
[14:42]
-
Yonatan expresses concerns about the sustainability of the current rate and its long-term effects on the economy and society.
6. Deep Dive: The Windex Index
The core of this episode is an extensive exploration of the Windex, a custom index crafted by Yonatan, capturing the essence of the Israeli economy.
a. Creation and Purpose
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Origins:
Yonatan explains that the Windex was born from the need to view the Israeli economy through a numerical lens, capturing its unique characteristics that aren't reflected in traditional stock indices."Numbers lead the way, the big short, the long."
[17:18] -
Unique Attributes:
The Windex encapsulates Israel's status as a small market with high technological output and a disproportionate representation on global exchanges like NASDAQ and NYSE."Tiny country, highly technological, in need of capital."
[17:18]
b. Composition and Sectors
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Overview:
The Windex comprises 51 companies, totaling a market cap of $353 billion, equivalent to the entire Tel Aviv Stock Exchange."The entire Windex is the size of the entire Israeli stock exchange."
[19:42] -
Sector Breakdown:
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Cybersecurity (7 Companies):
Dominates the index with 66% of the total market cap ($236 billion). Notable players include Palo Alto Networks and CyberArk."Seven companies in the index are cyber companies and they account for 2/3 of the total market cap."
[20:11] -
Digital Consumer Goods (9 Companies):
Encompasses firms like Wix, Monday.com, and eToro, collectively valued at $50 billion."Lemonade, Wix, eToro... engaging millions of customers worldwide."
[21:39] -
Life Sciences (6 Companies):
Currently the weakest segment, with a cumulative value of $23 billion, primarily led by Teva."Teva being the big dog. 20 billion out of the 23."
[23:44]
-
c. Analysis of Sectors
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Cybersecurity:
The heavy weighting in this sector underscores Israel's global reputation as a cybersecurity powerhouse. Yonatan praises the sector's resilience and growth potential. -
Digital Consumer Goods:
Although smaller in market cap, this sector is witnessing growth and increasing IPO activity, signaling a shift towards consumer-facing technology solutions. -
Life Sciences:
Facing challenges due to high capital requirements and market dynamics, life sciences remains a tough arena for Israeli companies seeking IPOs and significant growth.
d. IPOs and Exits
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Challenges:
Life sciences companies face hurdles in securing IPOs due to the need for extensive capital and market dependencies, particularly on the U.S. healthcare system."Life Sciences is very, very hard. But it also is an opportunity."
[25:00] -
Success Stories & Critiques:
The hosts discuss the trend of early exits versus sustained growth, emphasizing the ecosystem's support for entrepreneurs to reinvest and foster new ventures. Yonatan defends early exits by highlighting the continued vibrancy and mentorship within the Israeli tech scene."From that perspective, I think the ecosystem is very, very vibrant."
[29:34]
e. Private Sector Considerations
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Unrepresented Value:
A significant portion of Israeli private companies aren't included in the Windex, pointing to potential areas for future growth and representation."There is a ton of value in the Israeli private sector that is not accounted for at all in the Windex."
[27:16] -
Ecosystem Strength:
Despite some companies opting for acquisitions over IPOs, the continuous reinvestment and support for new startups underscore a robust and dynamic economic environment.
7. Challenges and Opportunities in the Israeli Economy
-
Economic Pressures:
High interest rates and a strong shekel present challenges for exports, tech, and the housing market, potentially leading to social unrest. -
Investment Climate:
The central bank's cautious stance reflects a balancing act between fostering economic growth and managing inflationary pressures. -
Future Outlook:
Yonatan and Michal express optimism about the long-term prospects, citing the strong foundational ecosystem and ongoing investments like Nvidia's as positive indicators.
8. Closing Remarks and Quote
The episode concludes with a reflection on global and domestic challenges, highlighted by a controversial quote from President Trump praising a legislation while using contentious language. Yonatan emphasizes the resilience and sovereignty of Israel amidst rising global tensions and anti-Semitic incidents.
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President Trump's Quote:
"No death tax, no estate tax, no going to the banks and borrowing from, in some cases a fine banker, and in some cases, shylocks and bad people."
[35:22] -
Hosts' Response:
Yonatan condemns the use of derogatory terms and underscores the importance of standing against rising anti-Semitism."We are going to stand up when synagogues are burned unlike any other time in the previous, you know, 2,000 years."
[37:31]
Michal echoes the sentiment, emphasizing the need for solidarity and strength in challenging times.
Conclusion
"What's Your Number?" offers a comprehensive and insightful analysis of the Israeli economy through the lens of the Windex. Yonatan Adiri and Michal Lev-Ram provide listeners with a nuanced understanding of market dynamics, investment trends, and the unique characteristics that define Israel's position in the global economic landscape. This episode serves as both an informative update and a deep dive into the factors shaping the future of Israeli tech and beyond.
Notable Quotes:
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[00:11] Yonatan Adiri: "It's a big number. It's 2 million, 2 million square feet that Nvidia decided to invest in growth in Israel. That's basically doubling its size in Israel. It's about to become the biggest employer taking over Intel."
-
[02:52] Jonathan Adiri: "So overall, one of those weeks where all three are in the green, Nasdaq S&P 500 and the Windex all above 1%."
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[07:26] Jonathan Adiri: "This story from Nvidia really tells the story of the strength of the Israeli ecosystem."
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[12:52] Jonathan Adiri: "The chairman held off on any decision as it relates to the interest. I'll just give our listeners three things, three forces that are kind of countering his thought process."
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[35:22] Michal Ivram: "No death tax, no estate tax, no going to the banks and borrowing from..."
Disclaimer:
This podcast offers general business and economic information and is not a comprehensive summary for investment decisions. It does not recommend or solicit any investment strategy or security.
