Today is Thursday, August 24, 2023.
The Early Bird Index today is 55.46.
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Nvidia's $25 Billion Buyback
Shares of Nvidia (Nasdaq: NVDA) jumped 6.57% in after-hours trading on Wednesday after the chipmaker posted better-than-expected financial results.
Financials: Nvidia reported earnings of $2.70 per share in the past quarter and revenue of $13.51 billion (a record); both were better than expected.
Details: Data center revenue hit a record $10.32 billion, which is up 171%. Nvidia also announced a $25 billion stock buyback, which investors really liked.
Outlook: The company expects revenue to hit around $16 billion in the current quarter, which is better than expected.
Final Thoughts: Nvidia is up 229% this year, including a 5% uptick in the last 30 days. The company is riding the artificial intelligence wave and it is working.
Notable Earnings Today: Dollar Tree (Nasdaq: DLTR), Marvell Technology (Nasdaq: MRVL), Burlington Stores (NYSE: BURL), Affirm (Nasdaq: AFRM), Toronto-Dominion Bank (NYSE: TD), Ulta Beauty (Nasdaq: ULTA), Hain Celestial (Nasdaq: HAIN), Frontline (NYSE: FRO), Futu Holdings (Nasdaq: FUTU), Intuit (Nasdaq: INTU), Royal Bank of Canada (NYSE: RY), Workday (Nasdaq: WDAY), OSI Systems (Nasdaq: OSI), Gap (NYSE: GPS), Petco Health and Wellness (Nasdaq: WOOF), Nordstrom (NYSE: JWN), Collplant Biotechnologies (Nasdaq: CLGN), Credo Technology Group (Nasdaq: CRDO), Weibo (Nasdaq: WB), NetEase (Nasdaq: NTES).
Notable IPOs Today: First Trust Exchange-Traded Fund (NYSE Arc: FCFY).
Notable Equity Crowdfunding Campaigns Ending Today: W Motorhome Sales North America (StartEngine), Pure Brands Company (StartEngine), Lowkey Burritos (Honeycomb), Island Brands (StartEngine), LuftCar (StartEngine).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Core Durable Goods Orders (8:30 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).
Some Tech Stocks Are Having a Bad Summer
Photo by Erik Witsoe / Unsplash
After starting the year hot, technology stocks have struggled since the start of July.
Details: The Nasdaq Composite, which holds a lot of tech stocks, jumped by 32% in the first half of the year. Since then, it is down 3%.
Powering the Story: Some tech stocks are struggling due to several factors, including higher yields and the prospects of higher interest rate hikes. Both of these things are bad for tech stocks. It doesn’t help that several tech stocks reported mixed financial results a few weeks ago.
Final Thoughts: The lesson here for investors is to build a more diversified portfolio. If your stock holdings are too concentrated in one area such as tech, there could be some serious losses.
The Jackson Hole Symposium is Here
They say stock investors shouldn’t fight the Federal Reserve, and that is especially true with the Jackson Hole Symposium this week.
Details: The Jackson Hole Symposium is an annual Fed event featuring an outlook from the Fed Chair, Jerome Powell.
Background: Powell and the Fed have had a major influence on stocks over the past year due to rising interest rates.
Powering the Story: We don’t know exactly what Powell will say at Jackson Hole, but an analyst said that Powell will likely refrain from giving specific guidance and instead focus more on economics, according to Kiplinger.
Final Thoughts: Powell will speak tomorrow at Jackson Hole. Investors will be watching closely.
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Trends to Watch
Comeback: Bitcoin Climbs 3% to $26.6K; SOL, NEAR, ADA Lead Crypto Market Gains (CoinDesk)
Delayed: Boeing says a new 737 Max flaw will slow airplane deliveries (CNBC)
Just Don’t Do It: Nike Stock Is on a Record Losing Streak. It’s Not the Only One. (Barron’s)
Some Snowy Hope: Snowflake stock gains as company sees ‘signs of stabilization but not recovery’ (MarketWatch)
Auto Good: Autodesk forecasts Q3 revenue above estimates on healthy product demand (Reuters)
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