Today is Thursday, November 18, 2021.
Nvidia Achieves Record Revenue
Shares of Nvidia (Nasdaq: NVDA) jumped 5.16% in after-hours trading on Wednesday after the technology company posted positive earnings.
Financials: The company reported earnings of $1.17, which was better than expected. Revenue totaled $7.1 billion, which was better than projections and a record for Nvidia.
The Good: There were two big growth drivers for Nvidia in the quarter. The first was its data center revenue, which was up 55% from last year. Gaming revenue was the other big driver, up 42% from the previous year.
The Bad: Automotive revenue reached $135 million, down 11% from the previous quarter.
Numbers: In the past six months, Nvidia’s stock is up 106%. A few weeks ago, the company hit an all-time high.
Final Thoughts: Can Nvidia keep this up? Yes, the company has strong margins. But, is the stock overvalued? Can data center revenue continue to grow?
Notable Earnings Today: Alibaba Group (NYSE: BABA), Macy’s (NYSE: M), JD.Com (Nasdaq: JD), Kohls (NYSE: KSS), Canadian Solar (Nasdaq: CSIQ), Petco (Nasdaq: Woof), BJ's Wholesale Club Holdings (NYSE: BJ), Applied Materials (Nasdaq: AMAT), Intuit (Nasdaq: INTU), Workday (Nasdaq: WDAY), Ross Stores (Nasdaq: ROST), Farfetch (NYSE: FTCH), Williams Sonoma (NYSE: WSM), Palo Alto Networks (Nasdaq: PANW), Atkore (NYSE: ATKR), Autohome (NYSE: ATHM).
Notable IPOs Today: Sweetgreen, Inc. (NYSE: SG), KC Holdco, LLC (NYSE: KLC), Emerging Markets Horizon Corp. Units (Nasdaq: HORIU), Annovis Bio, Inc. (NYSE: ANVS), OceanPal Inc. Common Stock (Nasdaq: OP).
Notable Equity Crowdfunding Campaigns Ending Today: Germs (Wefunder), Uptown Network (Wefunder), Protein Quick (NetCapital).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Philadelphia Fed manufacturing index (8:30 a.m. ET).
Online Retail Could Dominant Holiday Shopping
The National Retail Federation (NRF) expects 57% of all holiday shopping to be online, not in-person, this year. Here are some stocks that could benefit from this prediction.
Affirmative: Buy now, pay later (BNPL) companies allow consumers to pay for purchases in small, spread-out increments. Affirm (Nasdaq: AFRM) has an exclusive deal with e-commerce giant Amazon (Nasdaq: AMZN), and could benefit this holiday season.
Keeping Shopping: There’s a reason why Shopify (NYSE: SHOP) is up 52% this year. The company plays a big role in the e-commerce universe and will benefit from a strong Cyber Monday.
ETFs: Can’t pick just one e-commerce company? Go with an exchange-traded fund (ETF) that tracks e-commerce companies. Some suggestions include Global X E-Commerce ETF and ProShares Online Retail ETF.
Final Thoughts: Online and other non-store sales will increase 11% to 15% this year, according to the NRF.
Cisco Forecast Sinks Stock
Shares of Cisco (Nasdaq: CSCO) fell 6.23% in after-hours trading on Wednesday after the tech company posted a weaker-than-expected forecast.
Financials: Cisco’s earnings per share was 82 cents, which was slightly better than what was expected. Revenue was $12.90 billion, which was slightly lower than projections.
Forecast: The weak spot was the forecast. Cisco said its revenue in the upcoming quarter will grow 4.5% to 6.5% and earnings per share will reach between 80 cents and 82 cents. Both numbers were lower than what analysts wanted.
Quote: “In Q1, we had robust growth and continued strong demand despite the very dynamic supply environment.”- Chuck Robbins, Chair and CEO of Cisco.
Numbers: Shares of Cisco are up 29% in 2021.
Final Thoughts: Cisco is a legacy tech company that is trying to reinvent itself. It is no longer the giant it used to be.
Trends to Watch
Scaring People Away: Retail Traders Slide Back Below 20% of Market's Total Volume (Bloomberg)
No More: Amazon to stop accepting Visa credit cards in UK (BBC News)
Oh, Canada: Fidelity clears regulatory hurdle to become Canada’s first institutional Bitcoin custodian (CoinTelegraph)
Trouble: SEC Reportedly Looking Into BlockFi’s Crypto Yield Products (CoinDesk)
More Money: Agilent Technologies raises dividend by 8.2% (Seeking Alpha)
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