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Market Moves Yesterday
S&P 500 @ 5,303.27 ( ⬆️ 0.12%)
Nasdaq Composite @ 16,685.97 ( ⬇️ 0.074%)
Bitcoin @ $66,667.43 ( ⬆️ 0.26%)
Hey Scoopers,
Happy Monday! Here’s what we’re covering today:
👉 Nvidia’s upcoming earnings
👉 Is the meme stock mania over?
👉 El Salvador’s Bitcoin bet
So, let’s go 🚀
Market Wrap 📉
Stocks finished the week higher, with the Dow Jones surging 1.2%, notching its fifth straight weekly gain. Indices such as the S&P 500 and Nasdaq climbed 1.5% and 2.1% last week, clinching their longest winning streak in three months.
The weekly gains propelled the three indices into positive territory for Q2 despite a pullback in April. The S&P 500 and Nasdaq indices have surged 11%, while the Dow Jones is up 6% in 2024.
The information technology and real estate sectors drove gains last week, rising 1.8% and 1.7%, respectively. Alternatively, consumer discretionary and industrials ended the week negatively, falling 0.2% and 0.4%, respectively.
Equities inflows for the U.S. rose $12.35 billion last week, the biggest in seven weeks, according to Bank of America.
Trending Stocks 🔥
Reddit - The social media stock popped 10% after Reddit announced a partnership with OpenAI.
Doximity- The online networking platform soared 18% on strong earnings and a share repurchase announcement.
Take-Two Interactive - Shares of Take-Two Interactive rose 1% despite missing estimates for fiscal 2025 (ending in April). It expects sales between $5.55 billion and $5.65 billion in fiscal 2025, lower than estimates of $6.94 billion.
Will Nvidia Beat Estimates?
Semiconductor giant Nvidia is scheduled to announce its fiscal Q1 of 2025 (ended in April) results on May 22nd and is forecast to report sales of $24.57 billion and earnings of $5.57 per share in the quarter.
It suggests that despite its massive size, Nvidia is on track to increase sales by 277% and earnings by 468% year over year.
Valued at $2.3 trillion by market cap, Nvidia is among the largest companies in the world. Shares of the tech behemoth have surged over 700% since the bear market of 2022, primarily due to the AI (artificial intelligence) megatrend.
Nvidia more than doubled its sales to $60.9 billion in fiscal 2024 due to the surging demand for its AI chips. Despite restrictions on AI chip exports to China, Nvidia’s data center business grew sales by 5x in the January quarter.
Priced at 37x forward earnings, Nvidia stock is not too expensive, given its earnings are forecast to double in fiscal 2025.
GameStop Stock Is in Freefall
GameStop shares declined for the third consecutive trading session on Friday after the company announced plans to sell up to 45 million shares.
The trading frenzy that boosted meme stocks, including GameStop, early last week seems to have eased with lower retail investor purchases and options activity.
While shares may take off again, investors should note that GameStop is fundamentally weak and remains a high-risk investment.
The gaming retailer’s preliminary fiscal Q1 sales fell to $872 million-$892 billion, lower than prior-year sales of $1.2 billion.
Invest before this company becomes a household name
What if you had the opportunity to invest in the biggest electronics products before they launched into big box retail, would you?
Ring changed doorbells and Nest changed thermostats. Early investors in these companies earned massive returns, but the opportunity to invest was limited to a select, wealthy few. Not anymore. RYSE has just launched in 100+ Best Buy stores, and you're in luck — you can still invest at only $1.50/share before their name becomes known nationwide.
They have patented the only mass market shade automation device, and their exclusive deal with Best Buy resembles that which led Ring and Nest to their billion-dollar buyouts.
El Salvador Increases Exposure to Bitcoin
El Salvador was the first country to adopt Bitcoin as legal tender in 2021. Since November 2022, the government has purchased one Bitcoin every day like clockwork.
Source: MilkRoad
Moreover, El Salvador uses clean energy to mine the digital asset and shore up its crypto holdings.
With 20 active volcanoes, El Salvador has access to geothermal power and has used the excess energy to mine 474 BTC in the last three years. It currently holds 5,752 BTC.
Headlines You Can't Miss!
China pledges $42 billion to support its property sector
Economists worry as U.S. debt surges
Microsoft set to unveil vision for AI PCs
EV maker Xpeng to deliver flying car by 2026
Kraken might delist Tether amid EU regulations
Chart of The Day
Keeping up with credit card debt is becoming difficult for U.S. residents. Here are some key numbers regarding the same:
The total amount of credit card debt has now surged to $1.12 trillion
The average consumer credit balance stands at $6,218, up 8.5% year over year
Around 8.9% of credit card balances transitioned into delinquency in the past year
Serious delinquencies have touched the highest level since 2010
An additional 19.3 million new credit accounts were opened in Q4 of 2023
Meme of the Day
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.