📊 Nvidia's Triple Digit Growth

1) Magnificent 7's Revenue Growth 2) The Worst Months Are Coming 3) Warren Buffett vs. S&P 500 and more!  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

September 01, 2024   |   Read Online In partnership with Happy Sunday! The Dow Jones ended the week on a high note, closing at an all-time high of 41,640 on Friday, as renewed optimism about a soft landing helped boost investor sentiment. With earnings season now behind us, the next major event that could move markets is the upcoming Presidential Debate between Kamala Harris and Donald Trump, tentatively scheduled for September 10th. Some key data bites from this week that you should know: 76% of employees at Nvidia $NVDA are millionaires. Dollar General $DG plummeted over 30% due to a cash-strapped consumer. Apple's $AAPL global revenues is expected to surpass $400B in 2024. UBS $UBS Wealth Management has increased US recession odds to 25%. 497,000 Americans now have $1M in their Fidelity 401(k) accounts. The number of Crypto millionaires doubled to 172,300 over the last year. Uber $UBER has to pay a $324M fine for data transfers to US. Canada will impose a 100% tariff on imported Chinese electric cars. OpenAI is looking to raise new financing at a $103B valuation. Costco $COST has hit an all-time high and crossed $900/share. Berkshire Hathaway $BRK.B recently sold $982M worth of Bank of America $BAC. The top 15 global defense contractors are projected to generate $52B in free cash flow in 2026. In today's newsletter: 🦾 Nvidia's Q2 FY25 Earnings 📈 Nvidia's Revenue Growth 📊 Magnificent 7's Growth Compared 📉 The Worst Months Are Coming 👴🏻 Warren Buffett vs. S&P 500 We all live to see another day. Nvidia, who sits at the center of the AI boom, reported earnings this past Wednesday in what was arguably the most important day of the quarter. Here are the key numbers: EPS: $0.68 vs. $0.64 Est. Revenue: $30.04B vs. $28.7B Est. Data Center Revenue: $26.3B vs. $25.24B Est. Gaming Revenue: $2.9B vs. $2.7B Est. Cash, Cash Equivalents, & Marketable Securities: $34.8B At a glance, the figures are astounding. Revenue soared by 122%, and net income jumped 169%. Nvidia also authorized an additional $50B share buyback, reinforcing its confidence in future growth. But it wasn't just the quarter that impressed—guidance was solid too. For the current quarter, Nvidia expects revenue to increase 80% YoY to $32.5B, outpacing the $31.7B estimate. Despite these strong results, shares dipped roughly 5% by the end of the week. After a nearly 150% climb YTD, a 5% pullback is hardly surprising as some investors may be locking in profits after another stellar run. Some investors may also be cautious due to signs of slowing growth. The projected 80% revenue increase next quarter would mark the first dip below 100% YoY growth after five consecutive quarters of triple-digit gains. The company is also projecting full-year gross margins to be in the "mid-70% range," against analyst projections of 76.4%. When a company has skyrocketed as much as Nvidia has in the last five years, expectations are sky-high. Even the slightest indication of a slowdown can make investors jittery, and they'll look for any reason to be cautious in an overheated market. Just how impressive is Nvidia's revenue growth? The company's revenue has skyrocketed, especially over the last two years, reaching $96.3B in the last twelve months. Since 2010, revenue has jumped by approximately 2,600%, translating to a 28% compound annual growth rate. The company is now on the brink of hitting an annualized $100B in revenue. Now, let's put Nvidia's revenue growth in the context of the rest of the Magnificent 7. With earnings reports in for the entire tech group, it's clear Nvidia's triple digit revenue growth stands out. The next closest contender, Meta, posted 22% growth, followed by Microsoft at 15%. Not all members of the Magnificent 7 are experiencing rapid growth. Both Apple and Tesla are seeing single-digit sales increases, highlighting the varied performance within this popular group. 📣 A Message From Earnings Hub Track Company Earnings Like a Pro Earnings Hub is designed for investors to give you everything you want to know about company earnings, including: An Earnings Calendar Expectations & Actuals Listen to Earnings Calls Live (or replay) Earnings Call Transcripts & AI Summaries Realtime News on your favorite stocks Alerts delivered via Text or Email Most of the features are FREE! Premium features are 50% off right now at just $49 for an entire year. See Earnings Hub Calendar The next few months could get shaky. According to historical data from TrendSpider, September and October are historically the worst two months for the S&P 500 during an election year, based on the last 25 years of data. In September, the S&P 500 has had just a 33% win rate, with an average return of -2.95%.  October looks even worse, with only a 17% win rate and an average return of -3.62%. Interestingly, this follows a typically strong August, where the index has ended in the green with a 100% win rate. This past month, the index ($SPY) increased by 2.34%. While the data seems grim, there are three important factors to consider. First, the lower win rate in September is partly due to the 2008 Lehman Brothers bankruptcy.  Second, we may be on the verge of rate cuts, which many anticipate could begin as early as this September.  And third, it's crucial to keep a long-term perspective. An analysis by T. Rowe Price shows that the median annual return of the S&P 500 during presidential election years is 14%, based on data between 1927 to 2023. Shoutout to @chartrdaily for the visual idea! This week Warren Buffett turned 94! Buffett received perhaps the best birthday gift he could ask for: Berkshire Hathaway reached a $1T market cap.  The company has had a stellar year, rising 31% YTD, far outpacing the S&P 500's 19% gain. Over the last five years, Buffett has continued to outperform, with Berkshire returning 134% compared to the S&P 500's 93% return. Zooming out even further, Buffett's legacy is unparalleled.  Over nearly six decades, from 1964 to 2023, Berkshire Hathaway returned an astounding 4,384,748%, crushing the S&P 500's 31,223% overall gain. Berkshire's outperformance has narrowed in recent years, partly due to its sheer size and the challenge of finding investments that can move the needle. Despite this, Buffett is proving that even at 94, he can still work his magic. ⛈️ Super Microstorm. Super Micro $SMCI plummeted after delaying its annual report amid financial manipulation accusations by Hindenburg Research - F ✌️ Maestri's Exit. Luca Maestri will step down as the CFO of Apple $AAPL after 10 years - BBG 💉 Slim Savings. Eli Lilly $LLY has released a cheaper option of its weight loss drug Zepbound - CNBC 😷 COVID Censorship. Mark Zuckerberg said the Biden Administration pressured Meta $META to censor COVID-19 content - R 📱 iLaunch. Apple $AAPL will reveal its new set of iPhones and products at its annual launch event on September 9th - TR 🏈 Equity Touchdown. The NFL will allow private equity firms to buy into teams - WSJ Notable Companies Reporting Earnings This Week: Tuesday (9/3): ZScaler $ZS, GitLab $GTLB Wednesday (9/4): Copart $CPRT Thursday (9/5): Broadcom $AVGO, Samsara $IOT All of the companies that are reporting earnings next week can be viewed here. 📣 A Message From 1440 News for humans, by humans. Today's news. Edited to be unbiased as humanly possible. Every morning, we triple-check headlines, stories, and sources for bias. All by hand with no algorithms. Sign up now! Major Trades Published 08/26 - 08/30. Trades may be those of family members. [Source: 2iQ] Buys Michael Collins (R) Company: Aerodrome Financial ($AERO; Crypto) Amount Purchased: $15K - $50K Sells Jerry Moran (R) Company: Berkshire Hathaway ($BRK.B) Amount Sold: $18K - $95K Michael Collins (R) Company: Aerodrome Financial ($AERO; Crypto) Amount Sold: $15K - $50K Major Trades Published 08/26 - 08/30 Buys Bill.com ($BILL) Insider: Rene Lacerte (CEO) # of Shares Purchased: 42,248 $ Amount: $2,095,349 SEC Forms: [1] Insider: John Rettig (CFO) # of Shares Purchased: 21,124 $ Amount: $1,043,481 SEC Forms: [1] HighPeak Energy ($HPK) Insider: Jack Hightower (CEO) # of Shares Purchased: 132,487 $ Amount: $2,047,578 SEC Forms: [1] Sells Intuit ($INTU) Insider: Scott Cook (Founder) # of Shares Sold: 75,000 $ Amount: $46,418,164 SEC Forms: [1] Trade Desk ($TTD) Insider: Jeff Green (President & CEO) # of Shares Sold: 283,429 $ Amount: $29,533,358 SEC Forms: [1] Cava ($CAVA) Insider: Brett Schulman (CEO & President) # of Shares Sold: 201,504 $ Amount: $25,294,557 SEC Forms: [1] How was today's newsletter? 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