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  • 🚦Nvidia Earnings: The Moment of Truth

🚦Nvidia Earnings: The Moment of Truth

+ Zuckerberg vs. The White House + Super Micro Gets Hit With Hindenburg Report

Good afternoon. Touchdown for Wall Street! NFL owners just gave the green light for private equity firms to buy into America’s favorite sports league. That’s right, the NFL is finally joining the big leagues—like the NBA and MLB—by allowing select firms to scoop up minority stakes in teams.

During a special session in Minnesota, NFL owners approved a plan that lets private equity groups, including big names like Arctos Partners and Ares Management Corporation, buy up to 10% of an NFL franchise. The move could free up some serious cash for teams looking to upgrade stadiums or splash out on other big projects. While no team is required to sell, this could be a game-changer for how NFL franchises are run.

MARKETS

*Stock data as of market close*

  • Stocks hovered near record highs on Tuesday as traders braced for Nvidia’s earnings report, expected tomorrow after the close. Investors are eager to see if the AI chipmaker, a major force behind the Nasdaq 100's gains this year, will meet Wall Street’s lofty expectations and keep the AI momentum going.

  • The S&P 500 and Nasdaq nudged up 0.16%, while the Dow ended flat, with everyone waiting on Nvidia’s big reveal. Meanwhile, consumer confidence climbed higher in August, signaling a resilient sentiment even as markets await Nvidia’s next move.

STOCKS
Winners & Losers

What’s up 📈

  • Trip. com ($TCOM) jumped 8.57% as U.S. shares of the China-based travel company popped after second-quarter revenue surpassed expectations.

  • Sony ($SONY) gained 3.51% after announcing a price hike of 19% for its flagship PlayStation 5 console, even as the device enters its fourth year on the market.

  • Bill. com ($BILL) rose 7.45%.

  • GoodRx ($GDRX) increased 5.40%.

  • Royal Caribbean Group ($RCL) edged up 4.30%.

  • Starbucks ($SBUX) added 3.11%.

What’s down 📉

  • Lumen Technologies ($LUMN) dropped 14.54% after Kerrisdale Capital announced a short position in the company, citing deep concerns about its financial stability and growth prospects.

  • Walgreens Boots Alliance ($WBA) decreased 8.86% as Bilt Rewards entered a strategic collaboration with the company.

  • Hims & Hers Health ($HIMS) slid 7.54% after Eli Lilly announced that Zepbound 2.5 mg and 5 mg single-dose vials—priced at a 50% or more discount compared with other weight-loss drugs—will be available for self-pay for patients with an on-label prescription.

  • Paramount Global ($PARA) dropped 7.15% after Edgar Bronfman Jr. abandoned his pursuit of a takeover, clearing the way for Skydance to follow through on its roughly $8 billion acquisition deal reached in July.

  • Bank of Montreal ($BMO) fell 6.16% after reporting a fiscal third quarter earnings miss on its top and bottom lines, with increased third-quarter credit loss provisions year-over-year.

  • Cava Group ($CAVA) declined 6.12% after CEO Brett Schulman and other corporate insiders sold off some of their shares, according to filings with the U.S. Securities and Exchange Commission.

  • Rocket Lab ($RKLB) declined 9.20%.

  • Ubiquiti Inc. ($UI) fell 10.22%.

EARNINGS
Nvidia Earnings — The Moment of Truth

Get your popcorn ready, folks. Nvidia ($NVDA) is about to take center stage with its latest earnings report, and Wall Street is buzzing like it's the season finale of your favorite show.

What’s on the Menu?

Nvidia's chips are the golden ticket for training AI systems, so expectations are high—really high. Analysts are predicting the company will report a whopping $28.84 billion in revenue for its fiscal second quarter, more than doubling last year’s number. For those keeping score at home, Nvidia’s stock has already skyrocketed 159% this year, and the stakes are only getting higher.

The real question isn’t about what Nvidia will say about last quarter—it’s about what they’ll promise for the next one. Investors want to see revenue guidance between $33 and $34 billion, and they’re especially interested in any gossip about the new Blackwell chips.

Bumps in the Road?

But it hasn’t all been smooth sailing for Nvidia. Concerns about delays in rolling out those next-gen Blackwell chips have investors a little jittery. Earlier reports of manufacturing hiccups set off alarm bells, but some analysts, like Morgan Stanley’s team, think this might be much ado about nothing. They’re banking on strong demand to keep the hype train on track, even if Nvidia’s new toys aren’t ready to ship until next year.

The Bigger Picture

Nvidia's rise has been meteoric, but it's also faced some turbulence. The stock tumbled over 25% during July and August as tech stocks took a hit from broader market rotations. Concerns about overspending on AI and potential delays with the Blackwell chips only added fuel to the fire.

Yet, Nvidia has a knack for bouncing back. The stock recovered from those earlier stumbles, and with its earnings report just around the corner, the market is bracing for a potential 10% swing in either direction.

Will Nvidia deliver another mic-drop moment? Or will it leave investors wanting more? We shall find out very soon…

NEWS
Market Movements

TECH
Zuckerberg vs. The White House

Mark Zuckerberg, the CEO of Meta ($META), just dropped a bombshell, claiming that the Biden administration pressured Meta to censor Covid-19 content on Facebook and Instagram. In a letter to the House Judiciary Committee, Zuckerberg alleged that senior officials from the White House repeatedly pushed Meta to remove certain Covid-19 posts, including humor and satire, and expressed frustration when the platform didn’t comply.

Meta’s Regrets and the White House's Response

Zuckerberg said that while it was ultimately Meta’s decision to take down content, he believes the government’s pressure was inappropriate. He expressed regret over not being more outspoken about it at the time and acknowledged that Meta made some decisions during the pandemic that, with the benefit of hindsight, it might not make again. “We should not compromise our content standards due to pressure from any administration,” Zuckerberg said, vowing to push back if faced with similar demands in the future.

The White House responded to Zuckerberg’s claims by defending its actions, stating that during the pandemic, the administration encouraged responsible measures to protect public health and safety but didn't directly enforce censorship. “Our position has been clear and consistent: we believe tech companies should make independent choices about the information they present,” a spokesperson said.

The Ongoing Debate Over Free Speech and Content Moderation

This latest revelation underscores the ongoing debate about the role social media companies should play in moderating content. The House Judiciary Committee, led by Rep. Jim Jordan, has accused big tech firms of colluding with the government to censor speech. Meanwhile, Zuckerberg is taking a more neutral stance moving forward, noting that he doesn’t plan to make political contributions in the upcoming U.S. presidential election to avoid appearing biased.

The saga continues as Meta and the government navigate the tricky waters of content moderation, free speech, and the responsibilities of tech giants. It’s a reminder that in the digital age, the lines between public health, free expression, and political pressure are as blurred as ever.

STOCK
Super Micro Gets Hit With Hindenburg Report

Super Micro Computer Inc. ($SMCI) is facing some serious heat after Hindenburg Research revealed a short position in the company and dropped a bombshell report accusing the AI server maker of some sketchy financial practices. According to Hindenburg, their deep dive uncovered "glaring accounting red flags," undisclosed related party transactions, and failures around export controls. Naturally, the market freaked out—shares of Super Micro plummeted as much as 8.7% before clawing back some losses to close down 2.6%. Not exactly the kind of day you want to have.

But if you were hoping for a response from Super Micro, don’t hold your breath. The company has chosen to stay mum on the whole ordeal, calling it all “rumors and speculation.” Hindenburg, meanwhile, is no stranger to shaking things up. They’ve taken down big names before, like Carl Icahn’s empire and India’s Adani Group. So, when they set their sights on Super Micro, investors understandably got the jitters.

Riding the AI Wave…for Now

Super Micro has been surfing the AI wave like a pro, becoming a major player in the server market with its high-powered gear and cozy relationship with Nvidia ($NVDA). Business has been booming—revenue more than doubled to $14.9 billion in the last fiscal year thanks to a surge in demand for AI servers. But Hindenburg’s report casts a shadow over that success, hinting that beneath the surface, there might be some not-so-savory practices that could trip up Super Micro as competition heats up.

And it’s not just Hindenburg throwing shade. Analysts have been whispering about the company’s hefty spending to support the next gen of AI chips and its slimmer profit margins on those high-cost servers. There’s also growing concern that the big tech companies might start tightening their belts on AI spending if they don’t see the dollars rolling in soon. For now, Super Micro’s got some serious explaining to do if it wants to keep riding high in the AI game.

Calendar
On The Horizon

Tomorrow

Forget the rest—there's only one name on everyone's lips this earnings season: Nvidia. The AI chip giant has the entire market holding its breath. Why the hype? With its dominance in the tech world, Nvidia isn't just another player; it’s a heavyweight champ. It’s no surprise that Nvidia alone makes up over 6% of the S&P 500’s market cap. In a market brimming with contenders, all eyes are glued to this one star.

Wednesday: Nvidia ($NVDA), Salesforce ($CRM), CrowdStrike ($CRWD), HP($HPQ), Bath & Body Works ($BBWI), J.M. Smucker Company ($SJM), and Chewy ($CHWY).

Get ready for the main event—Nvidia:

  • ($NVDA) is about to unveil its earnings, and all eyes are on the numbers. The tech giant is expected to report a whopping $28.84 billion in revenue, more than doubling last year's figure. Data center revenue is projected to hit $22.6 billion, showing just how hot the demand is for Nvidia's AI chips. Net income? That's forecasted to soar to $14.95 billion, again more than doubling year-over-year. But there might be a plot twist: whispers of delays with their new Blackwell AI platform could throw a curveball. With the potential for a big market reaction, this is one reveal you won't want to miss.

NEWS
The Daily Rundown

RESOURCES
The Federal Reserve Resource

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