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💡 But first, the macro wrap-up:
US stocks had a slow start to the week, whilst investors continued to digest the hotter-than-expected inflation figures. But on Wednesday, Nvidia’s earnings excited investors, as it showed the AI boom is still in full swing, a key market mover. The S&P 500 gained 0.1% this week and remains 5% up year-to-date.
Nvidia becomes the third most valuable US stock 🤖
On the podium: Shares in Nvidia surged 15% after Wednesday’s earnings, with the chipmaker surpassing Alphabet as the US’s third-most-valuable stock, behind Microsoft and Apple.
Beating estimates: Nvidia’s revenue gained 265%, totalling $22bn. It also forecast a 233% jump in revenue for this upcoming quarter, exceeding analysts' estimates. Turnover for the year also doubled, at $61bn.
Tripled: Over the past year, the stock has tripled, as tech giants continue to snap up its supercomputing tech. Tesla, Microsoft and Amazon show no signs of stopping, whilst Meta alone has spent an estimated $9bn+ on Nvidia chips.
Coinbase dips 6% as Cathie Wood offloads shares 🪙
Cashing in $90m: Cathie Wood, CEO of Ark Invest who possess over $7bn in assets under management, offloaded 500k Coinbase shares this week, amounting to $90m.
Potential high point? The move comes after Coinbase beat on Q4 earnings last week. Does Wood think the stock has reached a high point?
Incoming ETH ETF? But, major investment analysts such as KBW, Wedbush and JMP Securities increased their rating on Coinbase, amid rumours ETH ETFs could be on the way.
Walmart jumps 4% after upping dividend 🛒
Exceeding earnings: On Tuesday, America's largest retailer beat Q4 earnings, with online sales jumping 23% to surpass $100bn. It also confirmed a dividend increase and a multi-billion dollar acquisition of smart TV maker Vizio.
Dividend increase: The retail giant upped its dividend by 9%; its largest jump in over a decade. It means shareholders will receive a payout 9% higher than usual, raising investor excitement.
Taking on Amazon: Walmart also confirmed it will buy smart TV maker Vizio, in a $2.3bn deal. Why? Because it wants to accelerate its Walmart Connect ad business, competing against key players like Amazon.
What have we learned this week? 🤓
Nvidia excels in B2B: Nvidia’s largest customers include Meta, Tesla, Amazon, and Microsoft - four companies that have near-endless funds, helping Nvidia gain revenue.
ETFs help Coinbase: We saw it with Bitcoin, and we’re seeing it with Ethereum. Crypto ETFs help tokens gain regulated exposure, which is good for Coinbase’s business.
Walmart wants in on ads: Walmart receives serious footfall, and it wants to monetise this by allowing businesses to showcase ads in its physical stores.
Stock announcements 👀
Here are the key earnings dates to look out for next week:
Monday: Zoom
Tuesday: Lemonade, Virgin Galactic
Wednesday: AMC, HP, Salesforce
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*Figures and ratings correct as of February 22nd 2024.
Past performance does not guarantee future results. Capital at risk when investing. This content is for educational purposes only. Shares does not provide investment advice. If you are unsure about anything, please seek advice from an authorised financial advisor.
