😄 Nvidia beats again

and mortgage rates drop but demand stays weak

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Good morning investors! The market was mixed yesterday as fear continues to rule.

Today we cover:

  • Mortgage rate drops

  • Nvidia beats

  • Investing in precious metals

📊 Economy and News 

Mortgage Rates Drop, but Demand Remains Weak

Mortgage rates fell to a two-month low last week, but demand for loans failed to pick up. Total mortgage applications declined 1.2%, according to the Mortgage Bankers Association.

The average 30-year fixed mortgage rate dropped to 6.88% from 6.93%, while refinance applications fell 4% for the week, though they remained 45% higher than a year ago. Purchase applications were flat but up 3% year-over-year, as more homes linger on the market despite historically low inventory.

Rates continued to decline this week, with top-tier mortgage rates falling 22 basis points over four days, though they remain in a tight range.

Global hits:

Controversial: Apple is fixing a bug that caused the dictation feature to type the word ‘Trump’ when users said ‘racist’. Elsewhere, BP cuts investment in clean energy and boosts oil and gas in major strategy shift.

Sponsored by Pacaso and AI Capital news

Smart Investors Are Betting On A.I. Stocks—Are You?

Experts say Trump’s $500B A.I. investment plan could transform the industry.

Meanwhile, a small but ambitious A.I. healthcare company just went public after eight years of innovation, securing $18M in funding and partnering with industry giants.

With a $120M market cap and shares still under $2, this stock may not stay cheap for long.

Top Investors Are Buying This “Unlisted” Stock

When the team that grew Zillow to a $16B valuation starts a new company, investors notice. No wonder top firms like SoftBank invested in Pacaso.

Taking the industry by storm all over again, Pacaso’s platform offers co-ownership of premier properties – completely revamping a $1.3T market.

And by handing keys to 1,500+ happy homeowners, Pacaso has made $100M+ in gross profits.

Now, with aggressive global expansion underway, their current share price won’t last long.

📈 Stocks

S&P 500 5,956.06 (+0.014%)
DJIA 43,433.12 (-0.43%)
NASDAQ 19,075.26 (+0.26%)
BRENT CRUDE 72.79 (-0.31%)
* Prices as of Mar 3rd, 12:20 AM UTC

Nvidia Beats Estimates, Expects Great Things ahead

Nvidia reported strong fourth-quarter earnings, surpassing Wall Street expectations with $39.33 billion in revenue and $0.89 per share in adjusted earnings. The company expects first-quarter revenue of around $43 billion, reflecting a 65% year-over-year increase but a slowdown from last year’s 262% growth.

Net income surged to $22.09 billion, while gross margins dipped to 73% due to costlier data center products. Data center revenue soared 93% to $35.6 billion, now making up 91% of total sales, driven by AI chip demand. Meanwhile, gaming revenue fell 11% to $2.5 billion, and automotive sales doubled to $570 million.

Investors are now focused on Nvidia’s next-generation AI processors, Blackwell, which brought in $11 billion in Q4.

Despite the beat, the stock fell -1.5% after the bell. Here’s what our subscribers expected to happen:.

About cars: General Motors is raising its quarterly dividend by 25% to 15 cents per share, matching Ford. The company also announced a $6 billion stock buyback, with $2 billion set for Q2. GM ended last year with under 1 billion shares outstanding, meeting its earlier target. On the other hand, Stellantis expects revenue growth this year despite a sharp decline in 2024 earnings. The automaker, which owns Jeep, Dodge, Fiat, Chrysler, and Peugeot, reported a 2024 net profit of €5.5 billion ($5.8 billion), a 70% drop from €18.6 billion in 2023.

Exciting: Amazon unveils revamped Alexa with AI features for $19.99 per month, free for Prime members. Similarly, Alibaba makes AI video generation model free to use globally. Lastly, Eli Lilly plans at least $27 billion in new U.S. manufacturing investments.

Lowe’s beats: Lowe’s beat Wall Street’s fourth-quarter earnings and revenue expectations and said its sales slump should end in the year ahead.

💵 Personal Finance

How to invest in precious metals - Part I

Precious metals such as gold and silver are very attractive and can be a great investment option.

But why?

Because precious metals are considered a reliable hedge against inflation. Their value tends to rise as currencies like the dollar lose purchasing power due to inflation.

Not just individuals, but even central banks invest in gold due to its ability to retain value during times of economic uncertainty.

In fact, the global situation with the ongoing Russia-Ukraine war and Israel conflict is pushing gold prices while impacting other currencies.

Introducing gold to your portfolio can help reduce the risk and diversify your investment.

But how?

The traditional way of investing in gold or other precious metals is to own physical gold or silver. This, however, doesn’t mean going to a jewelry store and buying your favorite gold set. You have to be careful when purchasing gold with the intention to invest.

Gold jewelry isn’t a bad option (always) but appraising it can be complicated, and there are no guarantees you’ll be able to sell a piece for more than you bought it for. This is why you should opt for gold bullion, including coins and bars. This will give you the satisfaction of looking at it and touching it.

You can buy physical gold through an online dealer like APMEX or JM Bullion, turn to a collector, or try a pawn shop. In most cases, you will have several qualities and sizes to choose from.

Tip: Pick bars over coins because you’ll likely pay a price for a coin’s collector value rather than just its gold content. However, some coins can appreciate very quickly such as these valuable gold coins here.

Risks: Investing in physical gold can be risky as it can get stolen. You will need a safe place to keep it.

Check this video for more on investing in gold:

💰 Be a Better Investor

"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong."

George Soros

Resources:

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.