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Momentum Monday - AI Indigestion and SpaceX IPO Fever Begins

Momentum Monday - AI Indigestion and SpaceX IPO Fever Begins

Howard Lindzon
December 15, 2025

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Good morning…

The market has a case of AI indigestion.

That’s ok and normal. Investors have been chasing a lot of promises and noise.

One look at Microsoft, Nvidia and Oracle stock prices versus Google the last 5 months will explain what I mean. I walk through that in our weekly show below.

Not to worry, money does not seem to be coming out of the market, just rotating. Financials, biotechs, energy, solar and industrials are all doing fine.

Elon is a big benefactor of all the confusion as Tesla this morning is breaking out to all-time highs. The political overhang seems to be gone and Elon being back and focused on his businesses seems to be good for the global markets. He has leaked out that SpaceX plans to be public next year so there is $1 to $2 trillion in private capital that is excited to possibly be ‘free’ / liquid sometime next year.

What will the ‘ticker’ be for the IPO from SpaceX?

— (@)

The Stocktwits community likes $MARS $SEX (so Elon), $X $SPACE, $SX, $SPAX

McDonald’s launched a new size of fries in Thailand called ‘F*ck Ozempic’:

— (@)

The other thing I noticed is that certain retailers like $LULU and Deckers ( $DECK ( ▲ 2.31% ) ) who have been crushed by tariffs - might be bottoming. In LULU’s case, their China business is exploding.

Welcome back to Momentum Monday!

In today’s episode of Momentum Monday, Ivanhoff and I discuss the following:

Market Rotation and Tech Sell-Off Recap
Semiconductors, AI Stocks, and Small Cap Strength
Spotlight on Google, Microsoft, Financials & IPO Hopes
Cannabis and Degenerate Economy Stocks
Global Growth: China, Tech, and Healthcare Moves
Retail Watch, Commodities, and Closing Thoughts

In This Episode, We Cover:

Market Rotation and Tech Sell-Off Recap (0:00)
Semiconductors, AI Stocks, and Small Cap Strength (2:00)
Spotlight on Google, Microsoft, Financials & IPO Hopes (5:00)
Cannabis and Degenerate Economy Stocks (8:00)
Global Growth: China, Tech, and Healthcare Moves (10:30)
Retail Watch, Commodities, and Closing Thoughts (13:00)
Here are Ivanhoff’s thoughts:

As expected, the Fed cut the overnight rate again by 25bps. The biggest winners were gold and silver miners. It is the market’s way of saying that maybe the higher-than-average inflation problem is not likely to be resolved any time soon, as government deficits continue to balloon. We saw a big rotation – out of big tech and into small caps. Russell 2k broke out from a multi-month base to new multi-year highs. Big tech lagged, dragged by worse-than-expected earnings results from Oracle and Broadcom.

Volatility and choppiness have increased substantially lately. Most AI-related stocks are under severe pressure and are easily giving back gains – CEG, APH, VRT, NVDA, CRDO, GEV, etc. JPM had a big drop during the week after warning of higher expected expenses in 2026 due to a fragile consumer environment. It quickly recovered the decline by the end of the week as the financial sector made new all-time highs.

SpaceX IPO chatter sparked interest in space stocks. They were among the best performers last week and continue to look constructive – ECHO, ASTS, RKLB, PL.