Is the force with Disney’s “Star Wars” boss or not? On Monday, reports spread faster than the Millennium Falcon did the Kessel Run that Lucasfilm’s longtime president was out. But yesterday, sources told CNN that the rumors weren’t true. One thing that can’t be waved away by a Jedi mind trick: the final “Star Wars” installment was the lowest rated, as this chart shows.
The S&P 500 ended relatively unchanged yesterday as traders awaited Nvidia’s earnings. The Russell 2000 inched higher and the Nasdaq 100 closed up 0.2%. Tech was the best-performing S&P 500 sector ETF. Consumer staples, a defensively oriented sector that had been holding up quite well, was trounced and finished at the bottom of the sector leaderboard.
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Nvidia, which is the main character of the US stock market, crushed earnings yesterday, with earnings per share beating expectations by 6%, revenue coming in at $39.3 billion and besting expectations of $38.2 billion, and its data center revenue coming in 4.5% above expectations. It was a solid beat.
Perhaps, however, owing to Nvidia’s habit of utterly smashing expectations, or perhaps just because the AI boom is not news to anyone anymore, initial reaction after the close was at first mixed and then a teensy bit negative after the earnings call in after-hours trading.
The real action comes this morning, after traders sleep on that performance, and will certainly give us some insight into the broader market implications of Nvidia’s Q4. Here are some things we learned about the company in this report that are worth a think: |
- The company is making a lot of its money from a few big spenders. Its three largest customers are responsible for a combined 34% of its total revenue in fiscal year 2025, and it stands to reason that you can probably guess the names of those companies if you put your thinking cap on.
- The flagship of the AI armada sails with a skeleton crew: Nvidia ended the year with just 36,000 employees in 38 counties, which means it added only about 6,000 people last year and still managed to bring in $130 billion.
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Nvidia’s gaming business is pretty much the entire reason Nvidia is the behemoth that it is today, serving for decades as the earnings flywheel that provided the R&D funding that delivered the AI giant we have today. Even still, the $11 billion gaming chip business is pretty much on par, in terms of scale, with a Chipotle, or an eBay, or a Kellanova.
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So, what should traders really take away from this report?
The earnings release came at a moment of fragility in the market, when a worrisome earnings outlook here or a data center glut red flag there has investors staring into Nvidia’s swirling green eye for guidance and comfort. Traders wanted answers, not questions, coming out of this report. The ambiguous after-hours reaction leaves us wondering: did they get them?
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❤️ Y Combinator Dropout Raises $14M from Investors to Disrupt the $5B Implantable Cardiac Monitor Market |
Meet Future Cardia, a bold and scrappy innovator redefining implantable cardiac monitoring — taking on billion-dollar giants in the $5B+ estimated annual market.1 How’s It Going?
✅ 39 successful human implants — evidencing its breakthrough technology in real-world patients. ✅ 60,000+ hours of real-world cardiac data collected — delivering exceptional insights for early disease detection. ✅ Accelerated by Stanford StartX and Incubated by Johnson & Johnson’s JLABS The Even More Exciting News? Future Cardia has already raised $14M across all offerings, and now, investors have the chance to own a stake in the next big innovation in heart health.
This is the future of cardiac care — invest today.2 |
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❤️ Y Combinator Dropout Raises $14M from Investors to Disrupt the $5B Implantable Cardiac Monitor Market |
Meet Future Cardia, a bold and scrappy innovator redefining implantable cardiac monitoring — taking on billion-dollar giants in the $5B+ estimated annual market.1 How’s It Going?
✅ 39 successful human implants — evidencing its breakthrough technology in real-world patients. ✅ 60,000+ hours of real-world cardiac data collected — delivering exceptional insights for early disease detection. ✅ Accelerated by Stanford StartX and Incubated by Johnson & Johnson’s JLABS The Even More Exciting News? Future Cardia has already raised $14M across all offerings, and now, investors have the chance to own a stake in the next big innovation in heart health.
This is the future of cardiac care — invest today.2 |
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What were the best movies of 2024, according to Letterboxd reviewers? |
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Yesterday’s Big Daily Movers |
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- Q4 GDP (second estimate)
- January durable goods
- January pending home sales
- Earnings expected from Soundhound, Dell, HP, Duolingo, Norwegian Cruise Line, and Warner Bros. Discovery
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Advertiser's disclosures:
1 The Total Addressable Market is estimated to be $5.3 billion dollars. This product is not yet available for purchase and requires review and clearance before being marketed or sold.
2 Please read the offering circular and related risks here. This is a paid advertisement for Future Cardia’s Regulation CF Offering. This Reg CF offering is made available through StartEngine Primary, LLC, member FINRA/SIPC.
Investing in private company securities is not suitable for all investors because it is highly speculative and involves a high degree of risk. It should only be considered a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid, and there is no guarantee that a market will develop for such securities. |
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