Breakfast News: FOMO Slows
November 21, 2024
| Tuesday's Markets | |
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| S&P 500 5,917 (+0.4%) |
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| Nasdaq 18,966 (-0.11%) |
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| Dow 43,269 (-0.28%) |
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| Bitcoin 94,456 (+2.27%) |
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Source: Image created by Jester AI.
1. Nvidia Beats But Pace Depletes
Nvidia (NVDA -0.02%) delivered an eighth consecutive quarter that beat expectations, but the lofty bar set by investors meant the stock fell ahead of market open, albeit not nearly as much as we saw after Q2 results. Given the stock is up almost 200% in 12 months, a little profit-taking isn’t too surprising.
- Finances increasing, but at slower rate: Reported revenue was $35.08 billion, which surpassed the $33.16 billion forecasted. Adjusted earnings per share came in at $0.80 versus $0.75 expected.
- “The FOMO trade is waning for Nvidia”: Fool analyst Seth Jayson observed “This is a great performance … but unfortunately, the market expects more.”
2. Snowflake Isn’t Melting Away
Snowflake (SNOW 1.38%) is up close to 20% in pre-market trading after beating expectations for earnings and giving an upbeat outlook relating to AI integration. This move would recover almost all its losses over the past year, though it still ended yesterday nearly 50% down since its IPO.
- Existing customers increasing usage: The company posted a 28% jump in revenue for the quarter, and although earnings fell by 20% versus the same period last year, this was less than was expected. It also announced a new partnership with Anthropic, boosting AI potential.
- “In my opinion, it's exactly the sort of momentum investors have been craving”: Fool analyst Tim Beyers highlighted “a blistering 55% year over year increase in remaining performance obligation.”
3. China Taps International Investors
The Ministry of Finance in China issued $2 billion in sovereign debt in Saudi Arabia for the first time ever, with the issuance being 19.9x oversubscribed by investors.
- Sentiment starting to shift: The successful move is seen by some as a positive sign of international investors' intent towards China, at a time when others are skeptical. Starbucks (SBUX -0.26%) announced it was seeking to partner with locals in the Chinese market to address growth concerns.
- Mixed bag forecast for poster child: Chinese tech company Baidu (BIDU -1.54%) reported better-than-expected revenue and profit this morning. Analysts were expecting revenue to rise to $4.78 billion, and earnings to fall from $2.79 last year to $2.49.
4. Next Up: Intuit & New TMF Recs
Intuit (INTU 1.73%) will report after the closing bell, with the shares up over 11x since it was first recommended in Stock Advisor 12 years ago, almost to the day.
- Numbers to watch for: Intuit is forecasted to deliver revenue of $3.14 billion with earnings of $2.36 per share, with focus on the take-up of AI-driven financial tools.
- Third Thursday of every month: Stock Advisor subscribers will get their second recommendation of November today, while members of Epic and above will also receive this month’s Rule Breakers rec!
5. Foolish Fun
At the market close on Wednesday, Nvidia’s market capitalization was $3.58 trillion, the largest market cap for any publicly traded company. Rounding out the top 5 companies in terms of market cap: Apple ($3.46 trillion), Microsoft ($3.10 trillion), Alphabet ($2.16 trillion), and Amazon ($2.13 trillion). Which company will be the first to reach $10 trillion dollars in market cap? Debate with friends and family, or become a member to hear what your fellow Fools are saying!
