Reddit IPO

Reddit joins the stock market

This week, Reddit finally hits the stock market, Nvidia unveils a new AI chip, and Google talks partnership plans with Apple. 

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But first, the macro wrap-up:

Investor excitement rose this week with the Fed holding US interest rates at 5.25% to 5.5%, whilst projecting three rate cuts later this year. Stocks ticked up, with the S&P 500 gaining 2.4%.

Reddit joins the New York Stock Exchange 💻

Reddit did it: Yesterday, Reddit shares began trading on the NYSE at $34 a pop, valuing it at $6.4bn and making it one of the largest social media IPOs ever. It closed the day up 48%, taking its new valuation to $9bn, which is just $1bn short of its private valuation in 2021.

Nvidia unveils new chip 💾

Meet the Blackwell: During its highly anticipated GTC event, Nvidia unveiled its latest AI chip, The Blackwell GPU, as it looks to continue dominating the AI industry, amid increased competition from AMD and Intel. 

  • 2.5x the power: The Blackwell has 208bn transistors, compared with 80bn in last year’s H100 chip. It means AI is about to become a lot more powerful and CEO Jensen Huang predicts this will be “the most successful product launch in Nvidia’s history”.

  • Humanoid robots: During the unveiling of the chip, Huang also invited humanoid robots on stage, detailing them as “the next generation of robotics”. Blackwell GPUs will power these types of robots, with CEO Jensen Huang predicting “everything that moves in the future will be robotic”. 

Alphabet & Apple’s AI alliance 🤖

Teaming up: Google is in talks with Apple about licensing its Gemini AI model for use in iPhones. Shares in Alphabet, Google’s parent company, rose 7% on the news.

What have we learnt this week? 🤓

  • Reddit’s rocky road: On one hand, Reddit’s well positioned to turn a profit. On the other, its own users are betting against its decision to go public. The next few weeks could result in turbulent times for the stock.

  • Humanoid robots are coming: So far, most of our AI experiences take place through a digital device. That’s likely to change as new GPUs will help power AI robots.  

  • Apple’s striking a partnership: Apple has reportedly spoken with Microsoft-backed OpenAI about having ChatGPT integrated into the iPhone, but Google looks to be Apple’s first choice. Which will it partner with? Time will tell.

Stock announcements 👀

Here are the key earnings dates to look out for next week:

  • Tuesday 26th March: GameStop

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*Figures and ratings correct as of 21st March 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.

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James Ashoo

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James has been investing for over five years. His aim is to explain the hard stuff, easily! When he's not chewing your ear off about stocks and crypto, he'll most likely be telling bad jokes.

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