The Rundown - Nvidia Tops Earnings Despite Data Center Miss, Snowflake Shares Surge on AI Strength

Episode Date: August 28, 2025

Stock market update for August 28, 2025. This video is for informational purposes only and reflects the views of the host and guest, not Public Holdings or its subsidiaries. Mentions of assets are not recommendations. Investing involves risk, including loss. Past performance does not guarantee future results. For full disclosures, visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Public.com/disclosures⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠.

Public.com presents the rundown. Your daily market update in under 10 minutes. My name is Zadadmani, and today is Thursday, August 28th. In today's episode, we'll tell you why Nvidia stock is dropping despite the company beating earnings. We also recap earnings from Best Buy, Dick Sporting Goods, Urban Outfitters, and Snowflake. Then stick around to the end of the show to find out why chicken nuggets cost $100 at the U.S. Open. We got a great show for you today. Let's go.

The stock market was back to set in record highs yesterday. The S&P 500 and NASDAQ both added about 0.2%, which was just enough to push the S&P to its 19th record close of the year. Tech and energy stocks were the two best performing sectors yesterday. Now, speaking of tech, the big headline yesterday was, of course, Nvidia's earnings, which came out after the closing bell. and the numbers were decent, but there were some red flags. We're going to dig into that in a bit. But outside of Nvidia, the other thing that investors are watching closely is trade policy. President Trump followed through on its threats against India, doubling tariffs on Indian imports from 25% to 50% as a penalty for India buying Russian oil. Those tariffs officially go into effect starting today.

Meanwhile, negotiations are still happening on other trade fronts. The EU is planning to remove tariffs on U.S. industrial goods in exchange for Trump lowering tariffs. on some of their stuff like cars and car parts from 27% down to 15%. Also, there still continues to be ongoing negotiations with China to work out a long-term trade deal. Senior Chinese negotiators are in Washington this week to keep trade talks going with the U.S. So yeah, there's plenty of moving parts right now, especially when it comes to tariffs. A lot to watch out for as we head into the fall. So we'll be keeping an eye on all that stuff.

You know, now that we're past Nvidia's earnings, we'll see what the markets turn their attention to next. So if you guys want to stay on top of all this stuff, Make sure you guys are subscribed to the rundown to stay in the loop. Let's run through some headlines, starting with Nvidia. The biggest company in the world reported earnings last night, and the stock took a hit right after the numbers drop. Now, on the surface, things looked pretty solid. Nvidia beat expectations on both revenue and profit.

Sales jumped 56% year over year to $46.7 billion, and their profits climbed 59% to more than $25 billion. But there was a number that caught investors' attention, and that was the data center revenue. That's the division selling all the AI chips. And for the first time since the launch of ChatGPT, it missed Wall Street estimates. Data Center sales came in at $41.1 billion, which was just shy of the $41.3 billion the street wanted to see. So it was a small miss, but it was enough to make investors ask if this is the first crack and the AI boom. You know, it also doesn't help that Nvidia's guidance for this quarter was kind of

underwhelming. Invita says they expect to make $54 billion in revenue this quarter, which is in line with Wall Street estimates, but typically, Nvidia's guidance blows estimates out of the water. So while they did technically meet estimates, it kind of felt like a miss. So that's why Nvidia's stock dropped more than 3% in after hours trading after their earnings were released. The problem here is expectations. Nvidia's market cap is $4.4 trillion. In fact, they're the only company in the $4 trillion club.

So expectations from investors are really high to justify that valuation. Now, Nvidia's executives continue to hype up the future of the company on the earnings call, pointing to some tailwinds. For one, Nvidia didn't make any money from China in Q2. That's because the Trump administration surprisingly banned the export of H20 chips. Now, that ban did get reversed by Trump in exchange for 15% of the revenue, but now the Chinese government is pushing back on the sale of those chips. NVIDIA says that if those geopolitical tensions get cleared up, they could sell $2 to $5 billion worth of chips to China.

But for now, they're not including those numbers in their projections. And beyond China, CEO Jensen Huang expects big tech companies to continue spending a lot on AI infrastructure. He thinks they're going to spend up to $600 billion next year, and a lot of that money is going to be used to buy NVIDIA's AI chips. On top of that, NVIDIA says they book $20 billion in orders from sovereigns, in governments, likely from the Middle East. Plus, Nvidia is pushing into robotics and self-driving

cars. So the growth story for Nvidia is still alive, and I think the earnings overall were decent. But when you're a $4.4 trillion company, decent isn't enough. Investors want to see an A-plus report, and in this case, they got more of a-minus report. So it'll be interesting to see how the overall markets react to this. I mean, nothing in the earnings report made me think that we were cooked, at least not yet. Now, sticking with earnings, let's talk about the numbers of two big retailers that reported earnings this morning. First up, we have Dick's sporting goods. The sporting retailer had a strong quarter,

not only did they beat earnings, but raised both its annual sales and profit outlook. The company now expects comparable sales to grow as much as 3.5%. And earnings per share could hit $14.50 this year. And what's impressive is that these numbers already factor in the impact of tariffs. But despite the tariffs, Dick's still managed to grow their margins.

Now, on top of the earnings growth, Dix also saw comparable sales increase by 5% driven by a rise in average ticket. People are buying more and spending more per purchase. So Dick's sporting goods looks to be in good shape here. And remember, they're about to close on their $2.4 billion acquisition of Foot Locker in September. Now, let's talk about Best Buy. Their earnings weren't as strong. They did beat earnings but kept their full year outlook unchanged, which isn't super inspiring

since they already lowered guidance back in May. tariffs are clearly having an impact here. Best Buy said they raised prices earlier this year and basically said they're waiting to see how tariff policy shakes out before adjusting guidance again. Now, the bright spot for the company was online sales. U.S. e-commerce revenue grew by more than 5% in the quarter and now makes up over 30% of their total U.S. sales.

Best Buy said they also launched a new third-party marketplace this month, doubling the products available on their website. So while tariffs are stinging a bit, digital growth seems to be a bright spot for the company. You know, I'm just happy that Best Buy is still around because it's just great to have a place to physically go and look at technology before actually buying it. That might be their biggest problem is that people just go there, do some window shopping and then end up buying it cheaper on Amazon or somewhere else. Let's talk about some stocks making moves today. Snowflake shares are ripping higher this morning after the company posted an AI-fueled earnings beat.

The cloud infrastructure company said about 25% of their customer projects, last quarter used AI to analyze data in their cloud database. And that demand pushed product revenues up 32%. As a result, Snowflake is raising their full year outlook. They're now expecting $4.4 billion in product revenue, which is up from their previous estimate of $4.3 billion. Snowflake sells their services through big players like Google, AWS, and Microsoft Azure. And management says that Azure has been growing the fastest. Earlier this year, Snowflake even expanded its partnership with Microsoft Azure to give customers direct access to OpenAI's tools. You know, we talk a lot about how chipmakers like Nvidia are cashing in on the AI boom,

but don't forget that data infrastructure names like Snowflake have been big winners as well. Just yesterday's shares of Mango DB jump more than 30%. And data breaks also raised fresh funding, giving them a valuation of $100 billion. So it's clearly not just Nvidia eating in this AI economy. Soflake stock is up more than 10% this morning at the time of this recording. And the stock is up nearly 80% in the last 12 months. So snowflake investors are having a good time right now. Now, on the flip side, shares of urban outfitters are sliding this morning after the retailer

warned that Trump's new tariffs could hurt margins and force price hikes. The company imports most of their clothing from India, Turkey, and Vietnam. And as I mentioned earlier in the show, India's tariffs just doubled to 50%. Now, urban outfitters actually did beat on earnings for a Q2, but investors didn't love the tariff warning, which is sending shares. down 3% this morning. Let's wrap the show with the fun fact. The total prize money for this year's U.S. Open tennis tournament is $90 million,

which is the highest ever for any tennis event. And what blows my mind about this is that the prize money is 20% higher than last year's $75 million. That's the largest one-year increase in prize money for the U.S. Open since 2013. The men's and women's singles champion will each take home $5 million. which is up 39% from the $3.6 million awarded in 2024. In fact, this is the largest winning payout in tennis history. So all this talk about pickleball taking over tennis in the U.S.

I mean, pickleball players aren't making that kind of cash right now. And I guess this explosion in prize money explains why food and drinks are so expensive at the U.S. Open now. I saw a story about how chicken nuggets costs like $100 over there. By the way, if you are watching the tournament on TV, keep an eye out for the public logo because some of the players are rocking it on shirts. Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did and you have like seven extra seconds, consider giving us a five-star rating

on Apple, Spotify, wherever you listen to your podcast. And if you are listening on Spotify, don't forget the vote in today's Spotify poll. Leave us a comment on Spotify. All that engagement really does help us out and it helps other people find the show. Thank you guys so much for listening and watching. Shout out to Mike and Connor for all the work behind the scenes. scenes and we'll see you guys back here tomorrow.