Artificial intelligence chip designer Nvidia added a staggering $277 billion in market capitalization on Thursday, setting a record for the biggest one-day jump in history.
The California-based firm’s shares spiked by 16.4% to end the session at a fresh record high of $785.38, pushing up its market value to just under $2 trillion. The single-day addition in Nvidia’s stock was itself bigger than the market cap of peer Advanced Micro Devices and eclipsed a $196 billion jump notched by Facebook-owner Meta Platforms earlier this month.
In total, $65 billion worth of Nvidia shares exchanged hands, making up about a fifth of all trading in S&P 500 stocks, Reuters reported.
Powering the frenzy was a 265% increase in fourth-quarter revenues at Nvidia, as well as commentary from Chief Executive Jensen Huang, who said that demand for AI is “surging worldwide across companies, industries, and nations.”
Reddit unveiled a narrowing loss as it filed its initial public offering documents with the Securities and Exchange Commission on Thursday ahead of a highly-anticipated debut on the New York Stock Exchange later this year.
The firm, which was founded in 2005 on the idea of creating “the home page of the internet,” plans to trade on the New York Stock Exchange under the ticker symbol “RDDT.” Reddit is aiming to launch its IPO in March, according to recent media reports.
In the filing, Reddit said that the amount of shares sold to retail investors and users on the platform would be “significant,” although it flagged that the participation could result in “increased volatility” of its market price. Typically, IPOs are mostly bought by institutional investors.
For the year ended Dec. 31, 2023, the social media company reported a loss of $1.54 a share from a loss of $2.77 a share a year earlier, as revenue, which is mainly driven by advertising sales, rose to $804M from $666M a year earlier.
Oil prices were lower in European trade on Friday, and were set to close the week a shade lower as concerns over sluggish demand largely offset bets on tighter supplies linked to disruptions in the Middle East.
A string of weak economic readings from across the globe spurred more concerns over slowing demand, especially after data released last week showed the U.K. and Japan both entering recessions in the fourth quarter.
Expectations of higher-for-longer U.S. interest rates also weighed on the outlook for demand in the world’s largest oil consumer, as several signals from the Federal Reserve showed the bank was in no hurry to begin trimming interest rates.
$OLED- TD Cowen analyst Krish Sankar raised the firm’s price target on Universal Display to $210 from $165 and keeps an Outperform rating on the shares. The firm said results were inline and while investments in the business do curtail the earnings power, the long-term prospects for Universal Display remain strong due to smartphone recovery, TV and IT panel growth, and the eventual commercialization of Blue.
$SQ- TD Cowen raised the firm’s price target on Block to $90 from $82 and keeps an Outperform rating on the shares. The firm said strong execution and urgency in cost optimization are appreciated while messaging continues to center on more focused, profitable growth.
$TTD- BTIG raised the firm’s price target on Trade Desk to $98 from $91 and keeps a Buy rating on the shares after its “strong” Q4 results last week. After relatively subdued Q3 agency checks, the firm’s December field data was more bullish, with agencies anticipating momentum to continue into Q1, the analyst tells investors in a research note. BTIG is also raising its FY24 revenue view for Trade Desk to $2.40B from $2.29B.
$BKNG- David Goulden, Booking Holdings CFO, stated on last night’s earnings call: “We believe the introduction of a dividend will allow us to enhance our capital return program and further expand our base of investors. In terms of composition of capital returns, we expect the share repurchases will represent the vast majority of our total capital return to shareholders going forward. We continue to expect to complete the $24 billion share repurchase authorization we announced early 2023 within 4 years of when we started, which would be before the end of 2026. We reiterate our previously stated gross leverage target 2x, and our goal to move to a 1x net leverage over time. The initiation of a dividend does not change our thinking around these targets.”
$INTU- Susquehanna analyst James Friedman raised the firm’s price target on Intuit to $775 from $700 and keeps a Positive rating on the shares. The firm said they posted exceptional Q2 results but the consolidated results were muted somewhat by timing differences in the Consumer segment which houses TurboTax seemingly dampened by a 1 week delay in the start of the IRS Tax Season.
$DELL- BofA raised the firm’s price target on Dell Technologies (DELL) to $98 from $82 and keeps a Buy rating on the shares ahead of the company reporting Q4 results after market close on Thursday, February 29. Nvidia (NVDA) recently reported strong data center revenues and spoke of strong AI-related demand that should sustain for years, notes the analyst, who sees continued momentum in Dell’s server business and expects orders continued to grow in Q4.
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