Weekly Buzz: The Bellwether Was Met With Luke Warm Trades
Happy Friday, mooers! Welcome back to Weekly Buzz, where we review the news, performance, and community sentiment of the top ten buzzing stocks on moomoo based on search and message volumes! Comment below to answer the Weekly Topic question for a chance to win an award!
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Weekly Buzz
The market responded to Nvidia's earnings with a sell-off to close a severe earnings season that saw stocks beat expectations and still fall the next morning. By Friday, the market maintained its near-all-time high position, but August ended with all eyes on the FOMC and the next rate cut.
After the close, the $S&P 500 Index (.SPX.US)$ traded up 1.88% for the month, the $Dow Jones Industrial Average (.DJI.US)$ rose 1.55%, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 0.22%.
Friday, Core Personal Consumption Expenditure inflation numbers came out lower than forecast, at 2.6% year over year. Regular PCE, including energy, came in at 2.5%, also lower than expected and right in line with the previous month's numbers. Month over month, the PCE grew at 0.2% again. The figure maintained last month's record for the lowest PCE in three years.
Michigan consumer expectations and confidence numbers also dropped Friday, revised slightly upwards to a reading of 67.9 for August from 67.8 in the preliminary estimate. It came in above the final reading of 66.4 in July.
Thursday, US gross domestic product, was revised up to a 3% increase for Q2 from a 2.8% gain in the previous estimate, above expectations. GDP rose by 1.4% in Q1.
Initial jobless claims fell by 2,000 to 231,000 in the week ended August 24, the Labor Department said Thursday, right at estimates and just below the revised 233,000 from last week.
Last week, Fed President Jerome Powell did not specify the timeline for these rate cuts. Still, he said he was confident the economy was on the way to 2% inflation. "The time has come to adjust, and the direction is clear," Powell said. Investors are watching for macroeconomic data that might inform when and how strong rate cuts will come.
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Anyway, let's dive into the buzzing stocks this week:
On August 28th Eastern Time, the world's leading GPU manufacturer NVIDIA, which is highly anticipated, released its financial report for the second quarter of the fiscal year 2025, showing a dazzling performance. However, the stock price fluctuated sharply after the performance, falling by more than 8%. The firm's forward-looking revenue expectations were not as high as investors wanted, despite reaching over 200% year over year.
Noah Johnson: NVIDIA Earnings Report Review: How Should Investors Respond to the Inevitable Slowdown in Growth Rate?
$Super Micro Computer (SMCI.US)$ fell 30% Wednesday and a further 4% Friday, the lowest on the S&P 500. The firm was hit with a short report this week, and then announced it would delay its yearly report numbers.
@103117507: shucks. I just bought puts and it goes up!
Temu parent $PDD Holdings (PDD.US)$ is seeing increasing demand for put options that could protect the shareholders from further declines as its American depositary receipts (ADRs) slumped 30%.
"Revenue growth will inevitably face pressure due to intensified competition and external challenges,” VP of Finance Jun Liu, said in the company's earnings release Monday. “Profitability will also likely be impacted as we continue to invest resolutely.”
@Joejj : Is China stock going to break thru in next : Is China stock going to break thru in next 2
Shares rose this week after William Blair analyst Jed Dorsheimer launched coverage of Tesla stock with a Buy rating, calling Tesla's energy-storage business an underappreciated asset. According to Al Root from Bloomberg, Tesla makes battery packs for homes and utilities, and it produces solar roofs. The growth in renewable power generation and electricity demand from artificial intelligence data centers are tailwinds for that business. Tesla's energy storage and generation segment accounted for about 12% of second-quarter sales, growing 100% year over year.
@Cow Moo-ney :It has been a volatile month since the sell off we saw in early Aug.
According to After lingering around the $59,000 mark, bitcoin’s value has faced downward pressure, dipping to an intraday low of $57,775 on Friday. Over the past 24 hours, bitcoin (BTC) has slipped by 4.6%, while ether (ETH) saw a 5.4% decline.
@frogoracletrading: Needs to hold that 57.5K level and get back over the POC ranges at 60K.
Maxeon Solar Technologies, Ltd. has announced the exchange of its Tranche A Exchange Notes into Ordinary Shares, set to occur on September 9, 2024, according to TipRanks. The news comes after the firm said CFO Kai Strohbecke would step down.
@70205719: told ya it is pump and dump game to rob retail newbies money.
Richtech Robotics filed a registration statement Tuesday to sell up to 14.5 million shares of Class B common stock from time to time for net proceeds of up to $18 million. The offering includes pre-funded warrants and warrants to purchase equal amounts of class B common stock, along with placement agent warrants for around 1 million shares of class B common stock, the company said. Up to 29,999,999 shares of Class B common stock are issuable on exercise of the pre-funded warrants, warrants and placement agent warrants, the company said. The stock fell Friday.
@Warren Buff: Just a temporary drop due to the offerings, nothing to worry
Meme stock mania was not as high for stocks like AMC as the first time around, according to new data. GameStop Corp.'s second meme stock surge this spring hasn't attracted the swarm of retail investors that made the company famous in 2021, according to trade data released Monday by the Securities and Exchange Commission.
Retail participation in was roughly half what it was during the original frenzy in January 2021, judging by odd lot volume as a percentage of all volume during the May rally, according to the SEC trade data released on Tuesday, Bloomberg reported.
@Joseph Busciglio: Last Chance to Buy Under 5$?
According to Benzinga, by August 21st, MicroCloud Hologram's short percent of float has fallen 25.77% since its last report. The company recently reported that it has 4.84 million shares sold short, which is 6.05% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.0 days to cover their short positions on average.
@MrSuperStonk: the paterns seems to match the ones of about a week ago.
SoFi Technologies, shares are trading higher Thursday. The United States Supreme Court declined to revive the Biden administration's student debt relief plan Wednesday. According to Benzinga, shares of student loan servicers including SoFi are trading higher following the court's decision.
@duanna88 : This is how greedy Wall Street harvests retail investors
Thanks for reading!
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Weekly Topic
Nvidia beat earnings estimates and still fell, what does this mean going forward for tech stocks and big earnigns expectations?
Comment below and share your ideas! We will select up to 15 TOP COMMENTS for a reward next week. Winners will get 200 points by next week, with which you can exchange gifts at Reward Club.
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Laine Ford : all good to have
HuatEver : Thanks for the rewards.
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As one of the Magnificent 7 Titans, $NVIDIA (NVDA.US)$ is held to high expectations by most investors, making their recent disappointment understandable. However, I remain optimistic about $NVIDIA (NVDA.US)$ long-term potential. Despite the current downturn, I believe that $NVIDIA (NVDA.US)$ will recover and continue delivering strong results. It’s performance and innovation in AI and new products like Spectrum-X Ethernet and upcoming Blackwell GPUs position it well for long-term growth despite short-term fluctuations.
102362254 : When Nvidia beats earnings estimates but still fell, it usually means investors expected even better results. This might make people more cautious about tech stocks, especially those that have risen a lot before earnings. Moving forward, the market could become more unpredictable as investors reconsider how much these companies are worth and how fast they can grow. It’s a reminder to pay attention not just to earnings numbers but also to broader market sentiment and forward guidance.
HuatLady : Nvidia's experience serves as a cautionary lesson for other tech companies. Simply meeting or slightly exceeding expectations may not be enough if the market's expectations are set too high. Companies must continually innovate and deliver outstanding results to keep investors satisfied. In short, while Nvidia's fundamentals remain strong, the market's reaction highlights the high stakes in the tech sector. Investors should brace for potential volatility and manage their expectations.
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There’s no cause for concern for long-term investors. I would take advantage of any further dips to build positions in strong companies like Nvidia.
JulW21 : NVIDIA price fall after earning report is just temporary. With such good earning report, the future prospect of the company is good. For long term, if the earning continues to be good, then the stock is worth investing in. Meta falls during Q1 earning result, even though the earnings are good. but look at the share price now, it is at the highest now.
mr_cashcow : As always thanks for the reward points!![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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Nvidia have strong fundamentals and they are still the go to for the best AI accelerated computing capabilities so I'm not too worried about the big swings! It can also be more opportunities to buy more during those dips
puddy1 : Recently tech companies seem to have such a trend of beat earnings estimates price falling on market close but if the companies’ fundamentals are strong these temporary market dips would be opportunities for long term investors.
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This is not the first time a big cap tech stocks beat earnings estimate but share price still fell. And it won't be the last.
Usually the "popular" media will come up with a few theories like:
1. Macroeconomics is downtrend e.g. Fed rate cutting is uncertain
2. Political and geopolitical tension e.g. uncertainty caused by US presidential election and war
3. Insider selling e.g. Nvidia's CEO selling
4. Stock fell as the AI hype diminished - AI bubble theory
Some retail investors will speculate that the stock is manipulated but didn't elaborate how it can be done. Is it another "buy the rumour sell the news"? The bull cult will definitely disagree with me.
Going forward
Bull reaction:
1. Shout buy the dip (but usually don't show their trade and losses records)
2. Look long term (but didn't say how long to hold)
Bear reaction:
1. Shout sell to cut loss
2. Said they short sell the stock
My Take:
I take a long position and don't time the market. My portfolio is diversified and prepared for such a situation. The most important is to have enough emergency funds (to hold) and manage emotion to avoid panic selling (fear). I will stay disciplined based on the "P/L target" and "Exit plan".
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