The Rundown

The labor market shows signs of cooling as unemployment hits a four-year high. Ford faces a staggering $19.5 billion write-down, prompting a shift back to hybrid vehicles. PayPal is gearing up to enter the banking world, hoping to offer new lending options. Meanwhile, Nasdaq is pushing for 23-hour trading to better cater to global investors. In tech news, Tesla advances its robo-taxi program, while Roku benefits from a significant upgrade amid changing advertising strategies.

The market is buzzing with small caps outperforming big tech as investors shift gears. Netflix defends its acquisition of Warner Bros amidst antitrust concerns, promising no studio closures. Exciting news for SpaceX as they interview banks for a potential $1.5 trillion IPO in 2026, driven by ambitions for space data centers. Meanwhile, Micron sees a stock rally following upgrades and tight memory supply. iRobot struggles with a Chapter 11 filing, and a $4.5 trillion merger-and-acquisition boom is reshaping the landscape.

Eric Berger, senior space editor at Ars Technica and author of Liftoff, discusses SpaceX's potential IPO and why Elon Musk is rethinking his stance on public markets. The rise of Starlink revenue and the AI arms race are pivotal factors pushing for this move. Berger explains how SpaceX is transitioning into space-based data centers, leveraging solar power and Starlink technology. He also highlights SpaceX's dominance in the industry, its competition, and predictions for future lunar and Martian endeavors.

Oracle is dramatically shifting its focus to become a leader in AI infrastructure while accumulating heavy debt. With significant ties to OpenAI and Nvidia, it faces both massive opportunities and daunting risks. A $523 billion backlog reflects potential growth, but fears arise from high leverage and customer concentration. The discussion highlights Oracle's battle with cloud competitors and whether it can maintain a neutral stance in the AI ecosystem. Will it be the backbone of AI or illustrate the pitfalls of hype and debt?

The market faces S&P record highs and NASDAQ struggles as sector rotation unfolds. Broadcom posts a strong quarter, but investors are anxious due to the lack of full-year AI guidance. Lululemon's CEO resignation triggers a stock rally as optimism rises. Cannabis stocks are gaining traction with possible reclassification, while Fermi crashes after losing a major deal. The latest developments in Google's Disco AI Browser spark curiosity and concern about its performance.

The podcast dives into the Fed's recent decision to cut rates by 25 basis points, stirring market reactions. Oracle's disappointing sales figures raise concerns amid AI infrastructure growth. Disney's groundbreaking $1 billion deal with OpenAI for AI-generated character content steals the spotlight. Additionally, Eli Lilly celebrates promising results from its new weight-loss drug, potentially reshaping its market stance. The episode also highlights challenges facing Oxford Industries and skims on SpaceX's soaring valuation and looming IPO.

In a twist of tech intrigue, DeepSeek is accused of smuggling Nvidia chips to enhance its AI capabilities. OpenAI partners with Adobe to integrate creative tools into ChatGPT, aiming at expanding user engagement and revenue potential. Meanwhile, the Fed's upcoming meeting stirs market anticipation, and Oracle's earnings may reveal issues tied to its hefty debt. Silver prices soar to record highs, contrasting sharply with GameStop's disappointing performance amid changing retail investor dynamics.

The market shows intriguing moves as the 10-year Treasury yield climbs, hinting at potential inflation risks. Trump greenlights Nvidia's H200 chips for China, albeit with a hefty revenue cut for the U.S. Meanwhile, Google hints at launching smart glasses in 2026, vying to capture consumer interest in wearable tech. Ares Management celebrates a spot in the S&P 500, while Toll Brothers struggles with soft housing demand. And in entertainment, Netflix rolls out a live mobile game show, aiming to boost user engagement.

In a lively discussion, the host breaks down last week's market rally, showcasing near-record highs for the S&P and NASDAQ. Exciting developments include Netflix's $72 billion acquisition of Warner and Trump's concerns about antitrust implications. Paramount is making waves with a $108 billion hostile bid for WBD, putting shareholders in a tough spot. Additionally, IBM’s recent $11 billion acquisition of Confluent boosts its cloud and AI strategies. The episode also touches on wealth distribution, revealing that Americans over 70 control a staggering 31% of national wealth.

Netflix's monumental $83 billion acquisition of Warner Bros and HBO is under the microscope. The discussion explores the implications of taking on $75 billion in debt and the mixed reactions from Wall Street. Zaid delves into competitive pressures, particularly from Paramount, and potential regulatory hurdles. Insights into subscriber growth, iconic intellectual property, and advertising opportunities present both optimistic and cautious perspectives. Ultimately, the analysis balances bullish potential against long-term risks for investors.