Stocks Push Higher and Warner Brothers Plunges | Bloomberg Technology

Warner Bros. Discovery's Challenges

• Warner Bros. Discovery experienced a significant 9.4% decline in stock price due to a $9.1 billion write-down on its legacy TV networks.
• The write-down reflects the changing media landscape, where traditional linear TV is no longer valued as highly as streaming services.
• The company also missed out on a $76 billion deal to secure NBA media rights for the 2025-2026 season.
• Warner Bros. Discovery is currently suing the NBA, alleging breach of contract, and is confident in its legal position.

Market Sentiment and Earnings Season

• The speaker describes the current market sentiment as reasonably optimistic, citing strong consumer spending, a robust labor market, and continued liquidity from pandemic-era stimulus.
• The speaker highlights the importance of earnings season, particularly for technology companies that rely on industrial production.
• The speaker emphasizes the significance of artificial intelligence (AI) infrastructure investments, citing Microsoft's commitment to AI and the importance of not missing earnings estimates in the current environment.

The AI Story: Building, Delivery, and Deployment

• The speaker outlines three cycles in the AI story: building, delivery, and deployment.
• The speaker notes that the building phase involves semiconductor companies like Nvidia and memory semiconductor stocks.
• The speaker emphasizes the importance of hyperscalers like Alphabet and Meta in the delivery phase, as they build cloud infrastructure and benefit from AI-driven customer engagement.
• The speaker anticipates that hyperscalers will play a crucial role in the deployment phase, providing enterprises with cloud access for their data-intensive needs.

Samsung's Position in the AI Market

• The speaker mentions that the global market event on Monday highlighted the importance of Taiwan and Korea, specifically mentioning Samsung as a holding.
• Samsung is a large holding in both international and global funds due to its reasonable multiples and trading at around book value.
• Samsung is a major player in memory semiconductors, and the demand for memory is expected to increase significantly as AI compute expands.
• Samsung is well-positioned to benefit from the rising demand for memory, particularly in D-RAM, as they are on the cusp of a major breakthrough with memory technology.
• Samsung's Galaxy phones are expected to sell well as they will be AI-enabled, and the company is also involved in foundry display and other consumer electronics.
• The speaker believes that the growth in AI will drive demand for high bandwidth memory, which is a key area for Samsung.

Cyclical Areas: Automotive and Industrial Semiconductors

• The speaker is also interested in cyclical areas like automotive and industrial semiconductors, particularly companies like Samsung and Infineon Technologies.
• The speaker believes that the content of chips in automobiles will continue to grow, even if auto sales slow down, and that Samsung and Infineon are well-positioned in this area.
• The speaker also highlights the importance of industrial chips in areas like industrial automation and data centers, where Samsung and Infineon are strong players.
• The speaker notes that stocks in these areas, such as Infineon, have fallen significantly in recent months, creating an opportunity for undervaluation and growth upside.

Bumble's Stock Decline

• Bumble's stock experienced a record decline due to a severe cut in its outlook, reflecting a grim outlook for the dating app environment.

Nextdoor's Growth and Transformation

• Nextdoor's second-quarter revenue surpassed analysts' estimates, driven by improvements in ad technology and projected stronger-than-expected sales growth.
• Nextdoor's CEO announced plans for a complete transformation of the company's core social network.
• Nextdoor's user base grew by 8%, reaching over 45 million weekly active users.
• The company's revenue grew by 11% year-over-year, marking a return to double-digit growth.
• Nextdoor's CEO emphasized the company's potential as the essential neighborhood network, highlighting the importance of local connections in people's lives.
• Nextdoor is a social media platform that focuses on local communities.
• The company has 95 million verified neighbors in 11 countries.
• Nextdoor has been known for its utility, helping users solve everyday problems around their local area.
• The platform is used for finding services, staying safe, and connecting with neighbors during crises.
• Nextdoor is working to increase its daily active users by providing more value to users on a daily basis.
• The company is also investing in ad technology to improve the value proposition for advertisers.

Robinhood's Resilience and Deposit Surge

• Robinhood reported $5 billion in net new deposits in the recent quarter.
• Robinhood's CEO stated that July volumes were 20% higher than June, and August has continued at a similar pace.
• Robinhood saw a surge in deposits in the first week of the market downturn, with about half a billion dollars coming in on Monday alone.
• The 24-hour market on Sunday night saw three times the typical volume, indicating that customers were actively buying the dip.
• Robinhood's technology held up well during the market downturn, while some competitors experienced outages.
• Robinhood's CEO highlighted the company's resilience and ability to handle high volumes, attributing it to past challenges and investments in infrastructure.

Anduril Industries' Funding and Expansion

• Defense tech startup Anduril Industries raised $1.5 billion in a new funding round, valuing the company at $14 billion.
• Anduril plans to invest hundreds of millions of dollars in a new facility to ramp up manufacturing of rockets, underwater vehicles, and other autonomous weapons.

Microsoft and Palantir's Partnership

• Microsoft and Palantir are partnering to sell software to U.S. defense and intelligence agencies by integrating Palantir's products with Microsoft's Azure cloud services.

Meta's Bond Sale and AI Investments

• Meta sold $10.5 billion of investment-grade bonds, increasing its cash reserves as it invests heavily in artificial intelligence.

Joby Aviation's Dubai Expansion and Certification Progress

• Joby Aviation, an electric vertical takeoff and landing (eVTOL) aircraft company, announced a new project in Dubai.
• The speaker is excited about the company's expansion into Dubai, where they have a six-year exclusive agreement to provide air taxi service.
• The company plans to launch the service by the end of next year.
• The speaker emphasizes the company's rigorous financial discipline and methodical production ramp-up.
• They have enrolled the third aircraft off their pilot manufacturing line and have the fourth and fifth coming soon.
• The company is driving certification with the FAA and has completed the first three stages.
• They are currently working on the fourth stage, which is 37% complete.
• The speaker believes that as they move into commercialization, they will begin to generate meaningful revenues and reduce cash burn.

Joby Aviation's Partnerships and Future Plans

• The speaker highlights the bipartisan support for electric vertical takeoff and landing (eVTOL) technology in Washington, D.C.
• They mention a successful flight test in New York City from the Wall Street helipad.
• The speaker emphasizes the partnership with Delta Airlines and the Port Authority to build best-in-class infrastructure at New York's JFK and LaGuardia airports.
• The speaker states that the ability to take an eVTOL from Wall Street to an airport in the real world is coming very soon.
• They are making progress with the Port Authority on permitting takeoff and landing locations connected to Delta hubs.
• The speaker envisions a seamless transition from a Delta flight to a Joby flight, allowing passengers to reach Manhattan in minutes.

Nvidia's Stock Performance and CEO Ownership

• The stock performance of Nvidia has surpassed Monster Beverage Corp. as the best performing stock on the S&P 500 this century.
• Nvidia's CEO holds a 3.5% stake in the company, which is a significant amount of ownership.

Klaviyo's Strong Earnings and Growth

• Klaviyo, a software company that helps businesses manage customer relationships and drive revenue, reported strong earnings.
• Klaviyo's stock price increased by 27.25% on the day of the earnings report, marking its best day since going public.
• Klaviyo's software helps businesses like Samsonite, a luggage company, organize data and deliver personalized experiences across various channels.
• Klaviyo's recent success is attributed to its advanced capabilities, including AI features like Klaviyo AI, which help businesses generate revenue.
• Klaviyo has seen significant growth in Europe, the Middle East, and Africa due to its strategic expansion, product launches, and localization efforts, including the addition of French language support.
• Klaviyo plans to replicate its successful European playbook in other regions, including Asia and the Americas.
• Klaviyo is committed to building a product experience that is native to its users, including expanding SMS capabilities and doubling the number of countries where it supports text messaging.
• Klaviyo is a Boston-based company with a global presence, with offices in Denver, San Francisco, London, and Sydney, and plans to open more offices in the future.
• Klaviyo is actively hiring talent globally, focusing on individuals who are ambitious, eager to learn, and possess high-slope potential.
• Klaviyo utilizes AI both for its customers and internally, resulting in productivity gains across the company.
• Klaviyo's stock price increased by over 27%, marking its best day since going public in September.

Siemens' Strong Performance and Automation Outlook

• Siemens' CEO discussed the company's strong performance in the recent quarter, driven by growth in its electrical business and a strong software business.
• The CEO acknowledged that some of the growth was due to large wins that are unlikely to repeat, but confirmed the company's full-year guidance.
• The CEO highlighted the unpredictability of the automation business due to destocking in distribution channels and a muted market, particularly in China.
• Despite the temporary slowdown, the CEO expressed confidence in the long-term growth of the automation market due to increasing demand for automation and digitization.

NASA's Backup Plan for Astronaut Return

• NASA is working with SpaceX to develop a plan to return two astronauts to Earth in February 2025 after technical complications left them stranded on the International Space Station for two months.
• NASA will make a final decision on the backup plan in mid-August.
• NASA has a backup plan for returning astronauts from the International Space Station (ISS) in case the Boeing Starliner spacecraft is unable to do so.
• The backup plan involves using a SpaceX Crew Dragon spacecraft for the return mission.
• The speaker emphasizes the importance of having a backup plan, especially given the current global geopolitical environment.
• The speaker also highlights the importance of both Boeing and SpaceX prioritizing human safety in their operations.

NASA's Review of Boeing Starliner Data

• NASA is currently reviewing data from a recent test of the Boeing Starliner spacecraft's thrusters.
• The review is being conducted to determine whether the spacecraft is safe for a crewed return mission.
• NASA will make a decision in mid-August based on the data analysis, prioritizing human safety and a safe landing.
• The speaker acknowledges that there are differing opinions within NASA regarding the best course of action.
• The speaker explains that NASA has a responsibility to review and authorize decisions related to the spacecraft, as the astronauts are NASA employees and the companies have contracts with NASA.
• The speaker notes that the Boeing Starliner project has faced cost overruns and delays.

NASA's Focus on Space Launch System (SLS)

• The speaker discusses the importance of the Space Launch System (SLS) working properly before NASA can gain public confidence in the program.
• The speaker emphasizes that NASA will not make a decision on the SLS until a thorough analysis of recent firing tests is completed.

China's Satellite Constellation Ambitions

• The speaker discusses the implications of China's satellite constellation ambitions and how it might compete with SpaceX's Starlink constellation.
• The speaker argues that the existence of SpaceX's constellation has allowed for discussions and solutions regarding radio astronomy, night sky visibility, orbital debris, and space sustainability.
• The speaker believes that the United States is in a better position to prepare for China's constellation due to the experience gained from SpaceX's constellation.

Apple's New Mac Mini and AI-Focused Chips

• The speaker concludes by mentioning that Apple is planning a new version of the Mac Mini, which will be its smallest desktop computer yet.
• The speaker states that this new Mac Mini is part of a broader overhaul of the Mac line with AI-focused chips.
• Apple is redesigning the Mac Mini, which was last revamped in 2010.
• The new Mac Mini will be smaller than an Apple TV box and will feature the M4 Pro chip.
• The M4 Pro chip will have better graphics, AI processing, and CPU performance than the new iPad Pro.
• The Mac Mini is designed for people who want to connect a computer to their TV or use it as a desktop replacement.
• The Mac Mini will be able to handle tasks such as web browsing, email, photo editing, and video editing.

Rise of Small Language Models

• Some startups are developing "small language models" that are trained on a smaller dataset and are designed for specific tasks.
• Small language models can automate tasks like summarizing meeting notes or writing corporate emails.
• Companies are increasingly using smaller, more refined language models for specific tasks.
• These models are more energy-efficient and focused, making them more helpful for companies.
• Companies like RCAI are specializing in customizing open-source small models for specific customer needs.
• RCAI has worked with companies like Guild to create a career coaching chatbot.
• Sokana.AI, a Japanese company, is also working on small language models.
• Larger tech companies are releasing smaller versions of their flagship models, such as OpenAI's Mini.