Options Market Statistics: Walmart Stock Rallies, Options Pop on Q2 Earnings Beat, Raised View

Eric Schmidt, former CEO of Google, advised Stanford students that major tech companies are preparing to invest up to $300 billion in Nvidia-based AI data centers, suggesting a significant market opportunity. Though not an investment recommendation, Schmidt highlighted Nvidia's dominance in AI chips and its substantial revenue growth. He noted that large companies with significant investments in Nvidia would gain an edge over smaller competitors. Schmidt also mentioned that while Nvidia would not be the sole beneficiary in AI, other options are limited. This insight underscores Nvidia's central role in the AI boom, driven by increasing demand from major cloud and AI developers.

Walmart reported strong second-quarter fiscal 2025 results, surpassing both top and bottom-line expectations and prompting the company to raise its fiscal 2025 guidance. Shares surged over 7% in pre-market trading on August 15. All business segments experienced growth, including store and club sales, e-commerce, pickup options, and delivery services. New ventures like the marketplace, advertising, and membership also contributed to diversified profits. Adjusted earnings rose 9.8% to 67 cents per share, beating the estimate of 65 cents. Total revenues increased 4.8% year over year to $169.3 billion, exceeding the consensus of $168.5 billion. Global e-commerce sales jumped 21%, and global advertising revenue grew 26%. The gross profit margin expanded by 43 basis points to 24.4%, while adjusted operating income rose 7.2% to $7.9 billion.

Alibaba missed revenue and net income expectations for the June 2024 quarter, facing challenges in its core e-commerce business due to competition and cautious Chinese consumers. The company reported revenues of 243.24 billion Chinese yuan ($34.01 billion) and a net income of 24.27 billion yuan, both below estimates. Despite this, shares rose 2%. Year-on-year, revenue increased by 4%, but net income dropped 29% due to decreased operational income and investment impairments.

After significant restructuring in 2023 and new CEO Eddie Wu's leadership, Alibaba is focusing on third-party merchants on Taobao and Tmall and plans new monetization features by late 2025. Sales from Taobao and Tmall fell 1% year on year to 113.37 billion yuan, though gross merchandise value grew in double digits.

Internationally, e-commerce platforms like Lazada and Aliexpress saw a 32% sales increase. The cloud computing division, viewed as a future growth driver, posted a 6% revenue increase to 26.5 billion yuan, the fastest since June 2022, with AI-related product revenue growing significantly. Adjusted EBITA for the cloud division rose 155% year on year, focusing on higher-margin contracts and operational efficiency.