Daily Update: Essence of Morning Meals Unveiled as Intended
| Tuesday's Market Insights || --- || S&P 5005,871 (-1.32%) || Nasdaq18,680 (-2.24%) || Dow43,445 (-0.7%) || Bitcoin91,386 (+3.46%) |
1. Driving AI Advancement
First advocated by TMF co-founder David Gardner in 2005, Nvidia's (NVDA -2.46%) Q3 earnings are set for release on Wednesday. Analysts predict earnings of $0.74 per share, marking an 83% year-over-year increase. Given that the shares have already surged 188% within the past 12 months (and an astounding 86,907% since that 2005 Stock Advisor recommendation), the company's future position might be crucial.
- Issues with overheating in specific server configurations: Undeniably, the new Blackwell AI chips launch is not without its challenges. Nvidia acknowledges the problem and is working on a solution.
- Possible increase in tariffs: Industry experts caution that higher taxes on imported chips from Taiwan Semiconductor (TSM 1.40%) could negatively impact companies like Nvidia and Advanced Micro Devices (AMD 0.46%).
2. Exciting Upcoming Earnings
Tuesday delivers a Q4 update from Walmart (WMT 1.37%), following three consecutive quarters of earnings surpassing expectations. Estimates suggest a degree of slowing, but a promising outlook nonetheless in a demanding year.
S&P 5005,871 (-1.32%)
- 50% drop in share value since its 2020 IPO: This week, Snowflake (SNOW 0.83%) will report Q3 results, with analysts predicting a loss per share despite Q2's revenue surpassing estimates.
- Anticipated return to growth in 2025: In Q3, revenue and earnings at Deere & Company (DE -0.81%) fell, with further declines expected in Q4 on Thursday.
3. Market Gains Fade
Nasdaq18,680 (-2.24%)
Since the election, the stock market experienced a rise, but last week saw a fall as Federal Reserve Chair Jerome Powell clarified that the Fed is not eager to make additional interest rate cuts in the near future.
- Dropped more than 2%: The S&P 500 relinquished some of its 2024 gains, but it remains up 23% for the year to date.
- Tech dip: The Nasdaq sank further, losing 3%. However, it is still up 24% for the year.
Dow43,445 (-0.7%)
4. Amusement Galore
Last Friday's Jake Paul versus Mike Tyson fight brought record viewership to Netflix (NFLX 0.39%), with 60 million households tuning in, peaking at 65 million streams.
Bitcoin91,386 (+3.46%)
- "The boxing extravaganza took social media by storm": According to Netflix, the fight's popularity even tested their buffering capabilities.
- "Live NFL games and Beyoncé at halftime": Netflix plans to attend its first live NFL games at Christmas, with the halftime entertainment provided by pop superstar Beyoncé for the Ravens-Texans match.
5. IPO Opportunities Regain Momentum
The market has experienced a lull in IPOs, but that may change. Investment bank stocks have risen, while the Destiny Tech100 (DXYZ 0.61%) fund, which invests in firms like SpaceX and OpenAI, has escalated 175% over the past month.
- Approximately $14.6 billion estimated valuation: Klarna Group applied for an IPO last week, with intentions to list on the New York Stock Exchange during the first half of 2025.
- "Considering IPOs for our local assets":Veon (VEON -1.44%) CEO Kaan Terzioglu hints that Veon's Ukraine-based Kyivstar could seek a U.S. IPO in the following year.
In the realm of finance, investors might consider diversifying their portfolios by investing in promising technologies, such as Nvidia's upcoming earnings from Q3, due to its exceptional growth trajectory over the years. Analysts predict a 83% year-over-year increase in earnings.
Furthermore, tech-focused companies are expected to report their Q3 earnings soon, including Snowflake, which has experienced a significant drop in share value since its 2020 IPO, despite its revenue surpassing estimates in the last quarter.
