🖥 Nvidia smashes earnings

and Biden forgives student loans

Good morning investors! Today will be about Nvidia and how its going to impact the market.

Today we cover:

  • Biden forgives student loans.

  • Nvidia crushes earnings.

  • Dealing with rent as a tenant.

Follow us on Twitter for more.

🔈 Audio version: Apple Podcasts | Spotify | YouTube

📊 Economy and News 

$1.2 billion in student debt FORGIVEN

The Biden administration is forgiving $1.2 billion in student debt for 150,000 borrowers enrolled its new repayment plan, known the Saving on a Valuable Education, or SAVE, plan.

Who’s affected: The relief only impacts individuals who meet these conditions:

  • They originally took out $12,000 or less

  • It has been at least 10 years since they have been in repayment

What’s next? You will receive an email in a week if you are among the eligible borrowers.

Despite challenges, including the Supreme Court’s decision to block Biden’s sweeping student loan forgiveness plan last June, the Biden administration has now canceled debt for almost 3.9 million borrowers, totaling $138 billion in relief.

Global hits:

Good to know: Jeff Bezos unloads around $2.4 billion in Amazon stock, bringing recent sales to 50 million shares.

Mortgage demand: Fewer people are showing interest in mortgages now that rates are once again higher (7.06% from 6.87%). Applications to refinance a home loan dropped 11% last week compared with the previous week and were just 0.1% higher than the same week one year ago. Similarly, applications for a mortgage to purchase a home fell 10% for the week and were 13% lower than the same week a year ago.

Reminder: Japan’s Nikkei climbs over 2% to close above 39,000 — surpasses all-time high hit in 1989

📈 Stocks

S&P 500 4,972 (+0.09%)
DJIA 38,512 (+0.09%)
NASDAQ 17,432 (-0.40%)
BRENT CRUDE 83.19 (-0.01%)
* Prices as of Feb 22nd, 12:20 AM UTC

Nvidia earnings are here

Nvidia reported earnings after the bell that beat Wall Street expectations for earnings and sales, and said revenue during the current quarter would be better than expected.

Here are the figures:

  • Earnings per share: $5.16 adjusted vs. $4.64 expected

  • Revenue: $22.10 billion vs. $20.62 billion expected

The company saw revenue increase by 265% from a year ago, mainly due to the strong demand for AI chips for servers.

A bright future: The company is expecting another great year.

"Fundamentally, the conditions are excellent for continued growth in 2025 and beyond,” said Nvidia CEO Jensen Huang.

But some sectors took a blow: Nvidia said its data center revenue was hurt by recent U.S. restrictions on exporting advanced AI semiconductors to China.

However, it said that it’s now ready to again rule the Chinese market with upgraded chips that meet the latest requirements.

Similarly, its gaming business didn’t grow as expected jumping just 56% YOY to $2.87 billion. This used to be of Nvidia’s best sectors before AI chips took over.

Furthermore, Nvidia’s smaller businesses didn’t shine much. The automotive business saw a decline of 4% to $281 million in sales, and its OEM and other smaller businesses only registered a growth of 7% to $90 million.

The impact on others: AI and other semiconductor stocks such as TSMC, Super Micro Computer, and ASML surged after Nvidia's earnings beat.

Also check: Rolls-Royce shares jump 8% after 2023 profits more than double

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💵 Personal Finance

Dealing with rent as a tenant

A large number of people in the US are tenants and nearly half of them cannot afford to pay rent.

Nationally, rents declined annually in December for the eighth straight month. The median asking rent was $1,713, which was down $4 from November and down $63 from the July 2022 peak. However, median rent is still $309 higher than the same time in 2019, before the pandemic. That’s a 22% increase.

On a good note, rents will now grow at a slower pace but it’s still a major concern since 22.4 million households in the US pay more than a third of their income in rent.

Anything above 30% is an excessive burden. So, how to reduce rent? Check these tips:

  • Negotiate when you renew and consider signing an extended lease to freeze the price.

  • Share your place with someone and consider giving up your parking space.

  • Move to a cheaper place. Some states or cities are more affordable than others.

  • Know the right time to go apartment hunting. It is believed that rents are lower in winter.

Check this video for tips to negotiate your rent:

💰 Be a Better Investor

“When you work on something that only has the capacity to make you 5 dollars, it does not matter how much harder you work – the most you will make is 5 dollars.”

Idowu Koyenikan

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👩🏽‍⚖️ Legal Stuff
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