Steno Research -> Big miss from FedEx leading to a >10% nosedive in the stock price
FedEx is the economy and air freight was particularly disappointing here Given the strong correlation between FedEx and the cyclical economy, this speaks against expecting a strong comeback in 2024 Source: Steno Research, Macrobond, Bloomberg
Earnings should return to growth in 2024 across all major global markets after a difficult 2023, led by emerging markets
All major regions are on track for earnings declines in 2023, creating easy comparisons for 2024. Source: Gina Martin Adams, Bloomberg
The P/E ratio on the S&P 500 is currently 21.3, with a multiple expansion of 9% in 2023
The average P/E ratio for the S&P 500 since 1989 is 19.2. Source: Charlie Bilello
Nvidia quarterly report lifts earnings estimates support for mega-cap tech valuations, i.e nvdia / "mag 7" are trading cheaper AFTER Nvidia blowout results
Source: Macrobond, TME
$NVDA Q3'24 Highlights
"NVIDIA GPUs, CPUs, networking, AI foundry services and NVIDIA AI Enterprise software are all growth engines in full throttle. The era of generative AI is taking off" – Co-founder & CEO, Jensen Huang Revenue +206% *Data Center +279% *Gaming +81% *Professional Vis. +108% *Automotive +4% EBIT +1,633% *marg. 64% (26%) EPS +1,274% Source: Quartr
Moments ago nvidia reported blowout Q3 earnings with revenue tripling as AI chip boom continues
However, it warns of "significant" China slowdown, guidance matches whisper range; stock is down 1% after-hours... The blowout earnings were certainly good news... but the warning about declining China sales and the guidance which only tagged the top end of the whisper guidance, that was not quite as exciting, and as a result, the stock initially dumped as much as $30 after hours, before recovering most of its losses, but has since resumed drifting 1% lower, setting up the stock for its first post-earnings drop since the advent of ChatGPT almost exactly one year ago. Source: App Economy Insights
Today is the BIG DAY with Nvidia ($NVDA) earnings results after the bell
With the Nasdaq up more than 13% from the lows, $NVDA at all-time-high, 95% of sell-side analysts with a BUY rating on $NVDA (!) sentiment of AI probably at record optimistic level after Microsoft "aqui-hire" of openai and the $VIX historically low at 13.5, there is indeed room for a short-term pullback... Source: www.investing.com, kakashiii111
Nvidia stock hits All-Time High ahead of earnings:
The stock has gained 24% in November, on pace for its best month since a blowout earnings report in May. Nvidia has gained 245% in 2023, pushing its market value above $1.2tn. Source: Bloomberg, HolgerZ
