Markets endured a turbulent week as Big Tech earnings triggered sharp swings, South Korea’s KOSPI index suffered a historic collapse, and SpaceX’s post-IPO unraveling raised questions about market support. The latest episode of DH Unplugged, titled “Rollercoaster Ride,” hosted by Andrew Horowitz and John C. Dvorak, delved into these developments, offering a skeptical take on the forces driving investor sentiment.
The Dow Jones Industrial Average swung 1,000 points higher and then 700 points lower within days, reflecting heightened volatility. Oil prices reacted to geopolitical shifts, while individual stocks showed extreme divergence: Palantir surged 26%, but AMD dropped 8% in after-hours trading. Horowitz, recovering from meniscus surgery, noted the whiplash effect on portfolios.
Earnings from Microsoft, Apple, and Amazon dominated headlines. Amazon crossed the $3 trillion market cap milestone, but Apple fell 7% after warning about rising memory chip costs. These mixed results left investors grappling with valuation concerns in a high-interest-rate environment.
Overseas, South Korea’s KOSPI experienced a meltdown, exacerbated by leveraged single-stock ETFs. Approximately 350,000 retail accounts were wiped out, underscoring the dangers of speculative trading. The hosts compared the situation to past market bubbles, highlighting systemic risks.
SpaceX, recently public, saw its shares slide from lockup expirations and a Starlink subscriber miss. The company priced $40 billion in new debt toward junk status. Horowitz characterized the move as a “rug pull,” pointing to insider selling and a lack of syndicate support from major banks like Goldman Sachs, Morgan Stanley, and Merrill Lynch around the $135 level before shares hit $108. This raised concerns about the stability of high-profile IPOs.
The episode also covered AI narratives from OpenAI and Anthropic, which have been promoting “hackathon” events and safety campaigns. Dvorak was skeptical, suggesting that the “AI is going to kill us all” marketing is a regulatory moat play. “Their large marketing campaign goes around the idea that their AI is going to kill us all. So buy now, don’t miss out on having the evil machine work for you,” he said, noting OpenAI has used this playbook since GPT-2. Horowitz countered that whether it’s manipulation or incompetence, it’s unsettling for investors.
Reddit plunged 20% on weak AI licensing demand, while Meta missed estimates tied to its Scale AI acquisition. These events highlight the volatility in AI-related stocks.
Other topics included housing market imbalances, with Miami showing roughly 140 sellers for every 100 buyers, and comparisons to unsold Beanie Babies. TSMC announced an additional $100 billion investment in Arizona, Delta expressed confidence in higher fares, and a salmonella recall affected 1.6 million dozen eggs. PCE inflation remained sticky at 3.3% core, and a fresh 50% tariff on Canadian goods was announced.
Dvorak and Horowitz provided a comprehensive overview of the week’s events, offering insights into market psychology and the potential for further turbulence. As always, the show remains a critical resource for investors navigating uncertain times.
