OpenAI Files for IPO, Apple Disappoints at WWDC

**Zaid Admani** (0:00)
Public.com presents The Rundown, your daily market update in 10 minutes. My name is Zaid Admani, and today is Tuesday, June 9th. In today's episode, we'll talk about OpenAI filing for an IPO and what it means for the AI hype cycle. We'll also recap Apple's WWDC keynote and why investors weren't impressed with the new Siri. Then stick around to the end of the show to find out why some universities are about to cash in big on the SpaceX IPO. We got a great show for you today.
Let's go.
Markets bounced back to start the week. The S&P 500 was up 0.3%, while the NASDAQ was up nearly 1%.
So the headline numbers were pretty decent, but under the hood though, it was a mixed bag. Eight of the 11 sectors finished in the red. In fact, more than 300 stocks in the S&P 500 closed lower yesterday. But the overall index still finished higher because Tech and Chip Stoxx were up big. Names like Intel, Micron and Marvell were up around 10%, making up for the big losses from Friday. And speaking of Marvell, they're gonna be added to the S&P 500 later this month. Now zooming out, the big thing to watch moving forward is if the market rally will broaden out or will investors keep piling into Chip Stoxx and other AI companies. Switching gears a bit, a quick update on the Iran situation. The war has now crossed a hundred days and things are still in limbo. On one hand, you have President Trump saying last night that a peace deal with Iran could come in two or three days and that the Strait of Hormuz would reopen immediately after. But then on the other hand, Iran and Israel literally attacked each other over the weekend. So who knows how much longer this is gonna drag on for. Oil prices have settled in the low $90 range, which if I bet if you told someone two months ago that the Strait of Hormuz would still be closed in June, they'd probably expect prices to be much higher. At least I thought it would have. But still oil prices are higher than what they were before the war started in late February. And that's led to inflation creeping back up. The April CPI report showed that inflation was running at 3.8%, which was the hottest inflation reading since 2023 And energy prices were a big reason for that. Now tomorrow, we're getting the May CPI report. And then on Thursday, we get the PPI report, which measures wholesale inflation. So we'll get a fresh set of inflation data from the market to react to. We'll break down the CPI report on tomorrow's show. So make sure you guys are locked into the podcast and tuning in every day to stay in the loop.
Let's run through some headlines. Starting with OpenAI. OpenAI has officially filed for an IPO. The company confidentially submitted its paperwork with the SEC on Monday. And since it was a confidential filing, we won't get our hands on their financials until a bit later. Also, OpenAI didn't give a timing for when they plan to actually IPO. I gotta imagine though, it's gonna be pretty soon because they want to take advantage of the AI hype in the market right now before the music stops. We now have three of the most valuable private companies in the world all racing to go public. SpaceX is IPO-ing this Friday at a valuation of around $1.8 trillion. Anthropic filed to go public last week, and now OpenAI this week. I really wonder how the OpenAI IPO will go because this year Anthropic really stole OpenAI's thunder and overtook them in revenue and valuation. Not to mention, according to a report from the Wall Street Journal a few weeks ago, OpenAI missed their internal revenue targets as well. But despite OpenAI's recent struggles, they seem to be making a comeback. I've heard a lot of good things about their Codex tool, which seems to be seeing enterprise adoption, and OpenAI is still by far the leader in consumer AI with over 900 million weekly active users on ChatGPT. In fact, I think many people just know AI as ChatGPT, and they aren't even aware of Clawd or Gemini. So OpenAI is still in a pretty strong spot, and I'm really looking forward to seeing what their financials look like when the S1 drops, which hopefully will be soon. Big picture though, I do wonder how the dynamics of the AI hype cycle will change once OpenAI and Anthropic become publicly traded companies, and they have to start reporting quarterly earnings. Now part of me is worried that it could mark the top of this cycle. I'm hoping I'm wrong though. We'll see what happens. First up though, we had to get through the SpaceX IPO Friday, and depending on how that goes, that could set the mood for the rest of the summer. Let's shift gears and talk about another multi-trillion dollar company, Apple. Apple kicked off WWDC yesterday, and the big headline from the keynote was all the AI features coming to Siri. Apple's actually rebranding Siri to be called Siri AI, and it's supposed to be way smarter. Now I watched the keynote and they gave some decent demos showing Siri doing things like identifying things in photos and having a back and forth conversation. Basically stuff that Google and ChatGPT have been doing for a while now. But the thing is, Siri is deeply integrated into the iPhone and it has access to all the data on your iPhone. So with these AI features, it can pull up a specific picture that you asked for or resurface a relevant text conversation or a relevant email, all the things that ChatGPT and Claude and Gemini can't do because they don't have access to that information on your phone. Now, Apple did confirm that some of its new AI systems were built using Google's Gemini model, but Apple executives were very careful to say that they aren't using the same Gemini models that Google has released to the public. Apple used Gemini to then build their own custom AI models. Overall though, I'd say it was a pretty lukewarm keynote. I mean, the market didn't love it either. Apple initially popped 3% during the keynote, but then faded, finished in the day down about 2%. I think one of the issues is that Apple didn't give a firm launch date for this new Siri. They just said fall of this year, and it's gonna be launching as beta. You know, keep in mind, Apple first showed off their AI features back in 2024, and they never shipped them. So I think investors are still skeptical, and they probably expected something flashier from Apple this year. Personally, I think the best feature I saw from the keynote yesterday was their improved parental control that Apple was planning to roll out. As someone with two little kids, that was really nice to see. And look, as an Apple fanboy, I'm hoping that Siri gets good, or at least usable, you know?