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- 💪 Nvidia crushes earnings, briefly reaches $2T market cap
💪 Nvidia crushes earnings, briefly reaches $2T market cap
PLUS: Reddit is going public, EV market is taking a major dive, and more.
Steven Van & Jacob Goldschein
February 25, 2024 • Estimated Reading Time: 6 minutes
This week’s market performance 👀
S&P 500: +1.15% 📈
Nasdaq: +0.54% 📈
Dow 30: +0.98% 📈
Russell 2000: -1.62% 📉
TOP STORY
💰️ Nvidia earnings recap… Taking a look back at their historic week
via Bloomberg
This week, NVIDIA ($NVDA) surged up 6.4% after reporting earnings, adding to its impressive year-to-date performance (+63.63%), and became the 3rd most valuable public company in the world by market cap.
Here’s a breakdown of NVIDIA’s Q4 2024 earnings:
✅ Revenue: $22.1B (vs. $20.62B expected)
✅ EPS: $5.16 per share (vs. $4.64 expected)
✅ Q1 Revenue Guidance: $24B +/- 2% (vs. $21.9B expected)
✅ Data Center Revenue: $18.48B (vs. $17.21B expected)
✅ Gross Margin: 76.7% (vs. 75.4% expected)
1️⃣ $NVDA revealed they spent over $9.2B spent on share buybacks.
2️⃣ $NVDA added $277B to their market cap after earnings, the biggest one-day market cap gain in the history of the stock market.
3️⃣ This historic run left short sellers with around $3B in unrealized losses.
4️⃣ Jensen Huang, the company’s CEO, added $9.6B to his net worth just on Thursday.
5️⃣ NVIDIA ($NVDA) is up 27.91% in the past month.
IPO
📱 Reddit ($RDDT) is going public at a $5B valuation… The biggest winner is Sam Altman.
Earlier last week, Reddit announced they’ll be going public on the New York Stock Exchange ($NYSE) under the $RDDT ticker in the very near future.
Here are some of Reddit’s achievements so far:
👪️ 100,000+ communities.
💵 $804M in annual sales for 2023.
🤳 73M+ daily active users.
🤯 $10B valuation.
Here’s where Altman comes in:
Altman first invested in Reddit in 2014 and even stepped in as the company’s CEO for 8 days.
Sat on the Reddit board from 2014 until 2022.
Today:
He’s the 3rd largest stakeholder (8.7%).
Holds 12M Class A & B shares.
He invested at least $60M since 2014, meaning his stake would be worth $435M~ if Reddit hits its valuation target.
1️⃣ Reddit is the first social media platform to go public since Pinterest ($PINS) went public in 2019.
2️⃣ Reddit is allowing power users and its most active users to purchase shares in its IPO.
3️⃣ Sam Altman wrote a blog post about his decision to invest in Reddit back in 2014.
This week's sector performance 🏆️
Semiconductors ($SOXX): +0.48% 📈
Bonds ($TLT): +1.52% 📈
Technology ($QQQ): 0.46% 📈
Dividends ($SCHD): +0.20% 📈
Emerging Markets ($EEM): +1.12% 📈
Energy ($XLE): +0.07% 📈
Financials ($XLF): +1.51% 📈
Gold ($GLD): 1.93% 📈
Industrials ($VPU): +1.19% 📈
ELECTRIC VEHICLES
🚗 Rivian and Lucid Earnings Dud add Fuel to the Dwindling EV Market…
This week, Rivian ($RIVN) and Lucid ($LCID) were down 38.2% and 18.6% after their not-so-impressive earnings report.
Rivian ($RIVN):
✅ Revenue: $1.32 billion (vs. $1.25 billion expected)
❌ Earnings: -$1.36 per share (vs. -$1.33 per share expected)
❌ 2024 Production Guidance: 57,000 vehicles (vs. 80,472 expected)
“Our business is not immune to existing economic and geopolitical uncertainties, most notably the impact of historically high interest rates, which has negatively impacted demand..”
1️⃣ $RIVN also announced they will be cutting 10% of their workforce.
Lucid Motors ($LCID):
❌ Revenue: $157.2 million (vs. $179 million expected)
✅ Earnings: -$0.29 per share (vs. -$0.30 expected)
❌ 2024 Production Guidance: 9,000 vehicles (vs. 22,594 vehicles expected)
2️⃣ Including Rivian and Lucid, 6 of the top 7 biggest EV stocks were down this week.
🟥 Tesla ($TSLA): 📉 down 5% this week
🟥 NIO ($NIO): 📉 down 13.3% this week
🟥 VinFast Auto ($VFS): 📉 down 5.4% this week
🟥 Xpeng ($XPEV): 📉 down 10% this week
Here’s what else you may have missed…
🏆️ Elon Musk ($TSLA) was nominated for the Nobel Peace Prize for his role in restoring free speech
👀 Warren Buffet’s Berkshire Hathaway ($BRK.B) has a $167.6B cash balance.
👊 Apple ($AAPL) is expected to be hit with a $540M antitrust penalty from EU regulators.
😭 Warner Bros Discovery ($WBD) drops by 14% this week after fumbling their earnings bag.
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