Consider this my out-of-office. No newsletter tomorrow or Monday. Enjoy the long weekend, America.
Oh, and enjoy the next 4 minutes and 10 seconds of blue-chip news and commentary.
Keep on snapping necks and cashing checks,
– tyler
PS, want to get your company in front of more than 100k rich, good-looking, and intelligent newsletter subscribers for Q4? We’re booking ads for October, November, and December right now. Reach out via this form and I’ll be in touch.
+ US stocks were“lower on Wednesday as investors awaited chipmaker Nvidia's earnings report, seen as crucial to keeping confidence in the broader market aloft.” (Yahoo! Finance)
+ The 10-year Treasury yield “was little changed on Wednesday as investors awaited a key U.S. inflation report due later in the week.” (CNBC)
+ Oil “settled 1% lower on Wednesday after a smaller-than-expected draw in U.S. crude stockpiles and as concerns over Chinese demand persisted, though losses were capped by supply risks in the Middle East and Libya.” (Reuters)
+ Bitcoin “dropped on Wednesday, extending a sharp downturn from the prior session after the movement of a large volume of tokens onto a popular exchange rattled sentiment with the prospect of a major sale event.” (Investing)
+ The three most talked about stocks on WallStreetBets in the past 24 hours were: 1) Nvidia -2.1% // -6.8% after hours2) Super Micro Computer -19.0%3) C3.ai -2.2%
The market moves you need to know about…
– Footlocker’s taking its talents to South Beach. During an earnings call where it announced it would move its HQ to Miami, Footlocker shared promising results. The mall staple reported a top and bottom line beat, and same-store sales rose for the first time in a year and a half… but shares still shed10.2%.
–Shocker… CrowdStrike, fresh off of causing one of the biggest outages in internet history, said it expects the epic f*ck up to weigh on sales. Shares fell2.6% after hours, despite beating expectations for the most recent quarter.
– Abercrombie & Fitch continues to break the brain of anyone who came of age in the early aughts. Not only has it changed its style, but shares have mooned nearly 800% over the past 5 years thanks to skyrocketing sales. And this quarter was no different. Sales jumped 21% and the good times show no signs of slowing down. But shares tumbled16.9% on the day. Why? Because CEO Fran Horowitz warned of an “increasingly uncertain environment.”
Source: Giphy
Not unlike Rick Ross, Nvidia is suffering from success…
Jensen Huang went all “Are you not entertained?” after dropping earnings yesterday. And all the WallStreetBets power users (who couldn’t access their favorite subreddit during NVDA’s earnings)attending earnings watch parties (I sh*t you not) responded ‘no.’
Shares of Nvidia (-2.1% // -6.8% after hours) fell after hours despite a beat…
Why?
Well, it certainly wasn’t because it had a pathetic quarter…
Once again, the chipmaker put on an absolute clinic. It beat the Street’s expectations, which is table stakes at this point for the company that controls the fate of the entire global economy. No pressure.
Nvidia’s sales grew 122% (not a typo) vs. the same quarter last year. Super Micro Computer wouldn’t even lie about numbers that epic.
‘Oh, so it must have been the outlook that had investors heading for the exits?’
Try again. Sales estimates beat the Street’s expectations.
‘Well, I bet those Blackwell rumors are true…’
Actually, it turns out NVDA’s new Blackwell chips, which were rumored to be delayed, will start to ramp in Q4… and will add billions in revenue in the current quarter.
‘I bet the company isn’t optimistic about the future…’
*Jensen Huang authorizes $50B share buyback*
Ok, so what are investors so butt hurt about?
It could be that gross margins slipped a bit (to 75.1% from 78.4%)… I guess. Although, that narrative kinda falls apart when you consider it was below 50% just two years ago.
Or, more likely, because it was literally impossible for Nvidia to meet investors’ real (unreal?) expectations…
+ Sure, it’d be great to find a cure for mpox. But I think some resources should be earmarked for getting to the bottom of what’s killing all the big tech CFOs…
Earlier this week, we found out that Apple CFO Luca Maestri would be “stepping down.”
And yesterday, Salesforce’s (-2.0% // +4.2% after hours) president and CFO Amy Weaver said she was walking away. Marc Benioff claims another victim. The godfather of CRM doesn’t exactly have the best track record with potential heirs to the throne…
On the bright side, Amy cooked the books one last time went out on top. Salesforce beat easily on the top and bottom lines.
+ Hear me out… maybe Charlie Munger was holding back Warren Buffett this whole time?
Less than a year after Charlie took a new gig at the big conglomerate in the sky, Berkshire Hathaway (+0.8%) became the first non-tech company to hit a $1T market cap. To be fair, its biggest holding is Apple…
Berkshire’s 28% rally in 2024 has helped it join the 4-comma club alongside Apple, Nvidia, Microsoft, Alphabet, Amazon and Meta.
+ “Ok, maybe Hindenburg was onto something, after all.” - the haters and non-believers
Just 24 hours after short seller Hindenburg shredded Super Micro Computer (-19.0%) for having the worst governance since WorldCom, the server maker went “On second thought, let us take another look at our reporting…”
SMCI announced that it would be “unable to file its Annual Report within the prescribed time period without unreasonable effort or expense.”
Why, you ask? Because management needs time to review “the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024.”
Oh, and…
+Google to relaunch tool for creating AI-generated images of people after pulling service due to inaccuracies.You might recall that the first time they tried it, this happened. In response, Google dropped a blog post called ‘Gemini image generation got it wrong. We'll do better.’
+OpenSea receives Wells notice from SEC, regulator says NFTs are securities.‘Wtf is a Wells Notice? Asking for a friend’
+ Netflix to launch NBA sports series 'Starting 5' featuring star players.How original…
+37% of hiring managers say this is a red flag: ‘Don’t make apologies for it,’ says LinkedIn career expert.
+Netflix co-founder: Why stepping down as CEO was ‘the smartest decision I ever made’ at the company.Well, it certainly wasn’t for financial reasons…
🔥79% of Americans who make this one move won’t run out of money in retirement, researchers say.And to the rest of you:enjoy living in a dumpster…
FYI, TWC might be compensated if you click on the links above. So, what are you waiting for? Start clicking.
⏪ Yesterday, RBC, Li Auto, JM Smucker, and Chewy dropped earnings before the bell. And Nvidia, Salesforce, CrowdStrike, HP, Okta, and Affirm reported after the close.
⏩ Today we’re keeping an eye on…
+ Dollar General, Brown-Forman, Best Buy, and Campbell Soup report before the bell
+ Dell, Lululemon, Ulta, and MongoDB drop earnings after the bell
Oh, and on Friday…
+ The Fed's preferred inflation report, the core PCE price index, will drop
Yesterday, I asked, “Is giving each of your groomsmen a Super Bowl futures bet for their favorite team the best groomsmen gift ever?”
61.6% of you said yes.
Here’s what some of you guys had to say (and my thoughts in italics)…
No: "We all got a mini version of Frodo's sword. Keep it in my car just in case an orc wants the smoke." Tell me you've never felt the tender touch of a woman without telling me.
No: "I was given a flask at a dry wedding and it was already filled. Best gift ever."
No: "Have to go with free plays instead. You really think the groomsman who is a Panthers fan was excited for his Super Bowl bet slip?"
No: "A bag of mushrooms and K." Ok, this just turned into an intervention...
Yes: "I'm a Jets fan, this is one more thing to be disappointed about."
Here’s today’s question…
Send me a GIF that best explains how to plan to spend the last weekend of summer…
You can reply directly to this email. I’ll share some of the best on Tuesday.
+Raise your hand if you have this kind of relationship with a coworker…
Oh, and one more thing…
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This is not financial advice. Nothing in this newsletter is an investment recommendation. All content is created for entertainment, educational, or informational purposes only. Do your own research, or do yourself a favor and hire a professional.
