The Rundown - Bitcoin Flirts with $100K, Nvidia Nearly Doubles Revenue

Episode Date: November 21, 2024

Stock market update for November 21, 2024.

Public.com presents the rundown. Your daily market update in five minutes. My name is Zaid Admani, and today is Thursday, November 21st. In today's episode, we recap the monster earnings from Nvidia and how we've become numb to the whole thing. We also talk more Bitcoin and try to figure out what's pushing the price higher. Then stick around to the end of the show to hear me rant about a $6 million banana. All right, let's go. The stock market spent most of the day on Wednesday in the red, but then had a late afternoon

rally to finish the day flat. They'll take it. The Dow Jones was the best performing of the three indices up 0.3%. But, you know, nobody cares about the Dow. So, you know, I think investors were waiting for Nvidia's earnings to drop before making any big moves. And we got earnings last night. We'll talk more about Nvidia's earnings in a bit because the numbers and the market's reaction were very interesting.

But before we get to that, I think we have to talk about Bitcoin. I know some of you guys are probably getting tired of me talking about Bitcoin all the time, except for those of you guys that have a ton of Bitcoin because you guys are loving it right now. Bitcoin keeps climbing. It hit $98,000 this morning. This thing is just unstoppable right now. I think one of the things that might be driving this Bitcoin rally this week is options trading. I mentioned this earlier in the week, but options trading for Bitcoin ETFs started trading this week. And they look to be pretty popular.

According to Bloomberg Intelligence, about $1.9 billion. of options for the i-share's Bitcoin ETF were traded on Tuesday, and most of them were for call options, which is a bet that the price of Bitcoin will rise. So there still seems to be a very strong bullish sentiment for Bitcoin, and investors buying up these call options could be contributing to the rally this week. By the way, if you guys want to learn more about Bitcoin ETF options or if you want to dip your toes into Bitcoin ETF options trading, you can do that on the public app. So yeah, Bitcoin, man, just having a moment right now. Let's run. run through some headlines.

And let's talk about Nvidia. We've been looking forward to their earnings all week, and we finally got them last night, and they continue to put up monster numbers. Nvidia's revenues were up 94% from a year ago to $35 billion. Their profits more than doubled to $19.3 billion, both of those numbers beating Wall Street estimates. Now, initially, when Nvidia's earnings came out,

their stock dropped like 4%. And it might be because of NVIDIA's fourth quarter guidance. They expect revenues to be around $37.5 billion in Q4, which was in line with consensus, but below some of the loftier projections. Like some people were expecting them to project like over $40 billion in revenue. So because of that, the stock initially took a dip after earnings, but that dip was quickly bought up and shares are now up like 2% in pre-market trading. You know, I think we've all kind of become numb to NVIDIA's earnings reports now.

I mean, because they're consistently beatings. expectations, they're raising their guidance. In fact, they've only missed revenue estimates once in the past five years. And sure, they're not growing at the same pace as before. This quarter was the first time their sales growth fell below 100% after topping that mark for five straight quarters. But Nvidia is like watching LeBron or Nikola Yokic right now. Sure, they're not putting up the crazy stats like they did in their prime, but they're still really, really impressive. You guys know what I'm saying? Like, the hoop heads that are listening to this podcast, let me know what you guys think. Is the Nikola Yokic comparison to Nvidia a good one? Leave a comment on Spotify and let us know what you

think. Now, I did want to follow up on something that we talked about earlier this week. We mentioned that there was a report in the information that Nvidia was dealing with a design flaw for their latest Blackwell AI chips that was causing an overheating problem and raising concerns that there could be delays. Well, somebody asked NVIDIA CEO Jensen Huang about that in the earnings call and he kind of shut the door on any sort of issues. He said that Blackwell production is in full steam, and in fact that they're going to deliver more Blackwell chips this quarter than they had previously estimated. So in video with another solid quarter, they do it again, and they deserve their flowers. Now let's shift gears and talk about

India's second richest man, Gotham Adani. He's being charged with bribery and fraud by the U.S. According to the charges that were filed in New York, Adani is being indicted for providing hundreds of millions of dollars in bribes in order to win solar contracts in India, for his energy company, Adani Green. Adani's energy company raised about $175 million from U.S. investors, and U.S. investors didn't know that Adani's business model included bribery to win over customers. According to these charges, those bribes were allegedly worth $2 billion in profit.

Now, if the name Gotham Adani sounds familiar, well, it's because he was the target of an activist short-seller, Hindenberg Research, a couple years ago. Back in January of 2023, Hendenberg Research released a report claiming that Gotham Adani was basically the largest corporate con artist in history. It was a pretty striking report. That report caused a huge sell-off in Adani-affiliated stocks. But a lot of those stocks recovered.

But now Gotham Adani has to deal with these new charges of bribe and fraud. The Adani companies have already come down and said these accusations are baseless and they're planning a legal defense. So we'll see what happens. And if you're not familiar with the Adani group, I mean, this company is a massive conglomerate. It houses numerous businesses, including energy company, airport, the defense industry, they're just doing everything. Adani Enterprise shares are down more than 20% on this news.

Let's talk about some stocks making moves today. Shares of the data analytics company's snowflake are up big this morning after reporting Q3 earnings last night. The earnings were pretty solid. I mean, the company still reported a loss, and the loss was actually more than what they reported in Q3 of last year, but it was less than what Wall Street was expecting, and that's all that matters.

The revenues in Q3 were up 28% beating. street estimates as well. I think what's making investors excited is that the company increased their guidance and they expect strong growth moving forward. You know, Snowflake is one of those tech companies that has like a mini cult following online, but I'll be honest with you guys, I don't fully understand what they do, but they must be doing something right because their shares are up more than 20% this morning in reaction to these earnings. And you know, Snowflick investors really needed this W because as of market closed yesterday, the stock was down like 30% for this year. So they needed this. Now on the flip side, the pay.

The parent company of Timu, PDD. Their shares are down after missing revenue and profit expectations in their Q3 earnings. The company is still growing fast. Revenue was up 44% for the quarter compared to last year. But Wall Street wanted to see more. The company is dealing with more competition now, like Amazon launched a Timu competitor earlier this month. And there's always the whole potential for tariffs that could hurt their business.

So investors are a bit on edge, and shares of PDD are down around 10% this morning in reaction to these earnings. Let's wrap the show. with a fun fact. Somebody paid $6.2 million for a banana duct tape to a wall. At a Southern Beach auction in New York yesterday, an artist that goes by the name comedian, bought a banana from a fruit stand on the Upper East Side for like 35 cents. He brought that banana to the auction house, duct taped it to the wall, and somehow six people ended up bidding for this art, with the highest one being for $6.2 million.

Oh my God. And you guys might have already seen this banana before because this artist has done this in the past. Back in 2019, he did the same thing at an art house in Miami. And that banana sold for like $150,000. Look, if you're a rich guy and you're listening to this podcast and you get the itch to overpay for some fruit, just call me. All right, I'll fly to wherever you are. I'll duct tape whatever fruit you want to the wall. And I'll take a small seven figure sum.

It doesn't have to be $6 million. I'll take one. Man. Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. We had a lot to talk about. I'm still not sure what the most shocking part of this episode was. Invidia's earnings, Bitcoin getting close to $100,000, or the fact that someone paid $6 million for a banana. I'm still ranting about it. Anyways, if you guys enjoyed today's episode and you have like 15 seconds, consider giving us a five-star rating on Spotify and on Apple.

Leave us a review on Apple. Leave us a comment on Spotify, vote in today's Spotify poll. that engagement really does help us out and it helps other people find the show. Thank you guys so much for listening. Shout out to Mike and Connor for all the help behind the scenes. And we'll see you guys back here tomorrow. This is the rundown, your real-time resource for news events and trends in the markets. All views presented in the show reflect the opinions of the guests. You should not take any mention of a publicly traded security as recommendation to buy, sell or hold that security.

Run-down guests are not financial advisors and are not affiliated with public holdings or its subsidiaries. You should make your own financial and investment decisions or consult. Respective professionals. Learn more at public.com disclosures. In partnership with Zayidemani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.