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HomeWorld NewsExpectations may be unreasonable. Just look at NVIDIA | Real Time Headlines

Expectations may be unreasonable. Just look at NVIDIA | Real Time Headlines

The Nvidia company logo is seen outside the company’s headquarters in Santa Clara, California, on Tuesday, November 19, 2024.

David Paul Morris | David Paul Morris Bloomberg | Getty Images

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

Market digests Nvidia earnings report
US market
Thursday’s rise after digestion NVIDIA Earnings Release. Its shares rose just 0.5%. letter U.S. Department of Justice calls on Google to take action, shares fall 4.7% Strip Chrome. Pan-European Stoke 600 Add 0.41%, Finish Four consecutive losses. british sports publisher JD Sports Shares plunged 15.5% after warning about its annual profits.

Bitcoin approaches $100,000
Bitcoin Breaking through the $99,000 mark Thursday before falling back to around $98,600. Cryptocurrencies have been hot ever since Donald Trump won the election due to his crypto-friendly stance. Galaxy Digital CEO Michael Novogratz believes Bitcoin will “inevitably” hit the $100,000 milestone, but “there will be a correct”.

Fed may incur Trump’s wrath
There are signs that the United States The deflation process is slowing. Coupled with Trump’s planned policies, which are seen as inflationarythe Federal Reserve may decide to keep interest rates unchanged. This in turn could anger Trump, who rebuke Fed officials During his first term, he failed to ease monetary policy quickly enough.

There is no blue sky for billionaires
As Elon Musk’s stature in American politics continues to rise, so does Bluesky’s popularity. That could make the social media platform, which has features similar to those of Musk’s X and Meta’s Threads, a target for acquirers. But Bluesky is ‘billionaire proof’, CEO Jay Graber told CNBC. “If someone buys it or Bluesky goes out of business, everything is open source.”

(PRO) Follow Nvidia’s Blackwell
Despite Nvidia’s revenue growth Rise slower Each subsequent quarter, analysts remained positive on the stock. Many even Increased target price For Nvidia, it’s because demand for the chipmaker’s next-generation Blackwell chips is so hot that supply can’t be met, Nvidia Chief Financial Officer Colette Kress said.

bottom line

and NVIDIA benefit After a month of craziness, including in the U.S., markets may be returning to some semblance of normalcy presidential electionFed lower interest rates Russia raises interest rates by 25 basis points nuclear rhetoricto name just a few incidents.

U.S. markets took everything in stride and took several steady steps forward on Thursday. this S&P 500 Index up 0.53% Dow Jones Industrial Average up 1.06% Nasdaq Index Mostly unchanged.

“I think the market is finally finding its footing for two reasons: one is recovering from the post-election hangover after the first week, and two is the reaction to Nvidia’s earnings,” Nuveen chief information officer Saira Malik told CNBC.

Nvidia reported incredible third-quarter financial results by most standards. Its revenue nearly doubled year-on-year and its net profit surged.

But we already know investor restraints on Nvidia already exist beyond the stratosphere. Despite Nvidia’s impressive profits, the chipmaker’s slowing growth and relatively conservative forecasts for its future sales have kept investors away.

Nvidia shares rose just 0.5% after falling in premarket trading.

For comparison, let’s look at data analysis software snowflake. it is Fiscal third quarter revenue With year-on-year growth of 28% (remember Nvidia’s growth rate of 94%), the company’s net loss has expanded. But investors were so excited that they pushed its shares up 32.7%, giving Snowflake its best day ever.

This difference may seem confusing. But this is not unusual for the market, as expectations determine stock price movements.

If investors expect a company to make a huge loss and the company makes a dollar of profit, the stock price is likely to rise. A bit of an exaggeration, but still. This is just the normal planning of the market.

—CNBC’s Jesse Pound, Samantha Subin and Alex Harring contributed to this report.

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