Nvidia Achieves Record Revenue

November 18, 2021

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?

Notables

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

Photo by Pickawood / Unsplash

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

Thank you for reading! Please send any feedback to [email protected].