🏃‍♂️ Nvidia beats again

and more earning reports

Good morning investors! Nvidia reported yesterday as investors appear scared.

Today we cover:

  • A look at the future

  • Nvidia reports again.

  • More earning reports (Snowflake, Target, etc.)

📊 Economy and News 

Optimistic Forecasts for 2025 Fuel Market Anticipation

Goldman Sachs CEO David Solomon and other business leaders project a strong rebound in capital markets for 2025. This optimism is fueled by expectations of easing inflation, pro-growth policies, and potential regulatory rollbacks under the incoming administration of President-elect Donald Trump. Markets are responding positively, with forecasts of increased corporate dealmaking and a favorable climate for mergers.

Investor sentiment may further improve if the Federal Reserve continues to cut interest rates, a move that could support both equity and bond markets. However, Federal Reserve Governor Michelle Bowman has urged caution, citing persistent inflation concerns despite a robust labor market.

PIMCO, a leading bond-focused asset manager, also anticipates benefits from central bank rate cuts, expecting both stocks and bonds to perform well in a diversified portfolio. While the firm foresees a "soft landing" for the U.S. economy—where inflation declines without a recession—it remains wary of inflation risks from potential fiscal and trade policies, such as tariffs and deglobalization trends.

Strategies to mitigate these risks include equity options and other protective measures. Despite optimism, high deficits, geopolitical uncertainties, and possible supply chain disruptions remain key challenges for the U.S. economic outlook.

Global hits:

Something about India: India's FY25 capital spending seen 5% below target, top ministry official says as India's Q3 growth to pick up after festive boost.

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Mode saw 32,481% revenue growth from 2019 to 2022, ranking them the #1 overall software company on Deloitte’s most recent fastest-growing companies list. Mode’s flagship product EarnPhone, a budget smartphone, has already helped consumers earn & save $325M+.

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📈 Stocks

S&P 500 5,917.11 (+0.0022%)
DJIA 43,408.47 (+0.32%)
NASDAQ 18,966.08 (-0.11%)
BRENT CRUDE 172.44 (-0.33%)
* Prices as of Nov 21st, 12:20 AM UTC

Nvidia Posts Strong Earnings and Optimistic Forecasts

Nvidia surpassed expectations for third-quarter earnings and revenue, driven by sustained demand for its AI chips. The company also provided a stronger-than-expected outlook for the current quarter, forecasting $37.5 billion in revenue, slightly above analysts' estimates. Despite the upbeat results, shares dipped 2% in extended trading.

Revenue for the quarter surged 94% year-over-year to $35.08 billion, with adjusted earnings per share at 81 cents. However, this marked a slowdown compared to the triple-digit growth of prior quarters. Nvidia’s net income nearly doubled to $19.3 billion, supported by strong data center sales, including $3.1 billion from networking components. Gross margins rose to 73.5%, reflecting increased sales of high-margin AI chips.

Nvidia's gaming division also outperformed expectations, generating $3.28 billion in revenue due to higher demand for GPUs in PCs, laptops, and consoles like the Nintendo Switch. Meanwhile, its smaller automotive segment grew 72% to $449 million, driven by self-driving car chip sales, and professional visualization revenue rose 17% to $486 million.

Next-generation AI chips, including the Blackwell series, are now in full production, with shipments expected to ramp up next year, while current-generation H200 chip sales have grown significantly.

Target misses: Target fell short of Wall Street’s quarterly earnings and revenue estimates, despite implementing price cuts and launching an early holiday sale. The retailer reported only a slight increase in customer traffic.

In a significant shift, Target lowered its full-year profit guidance just three months after raising it. The company now projects adjusted earnings per share between $8.30 and $8.90, down from the previous forecast of $9 to $9.70 and below analysts’ expectations of $9.55. Fourth-quarter comparable sales are expected to remain flat, encompassing online and in-store sales for locations open at least 13 months.

This earnings miss, the largest in two years, caused Target’s shares to plummet over -20% hitting a new 52-week low.

Delta roars: Delta Air Lines anticipates sales growth in 2025, supported by strong travel demand, credit card spending, and premium offerings. The airline projects mid-single-digit revenue growth next year, aligning with analysts' expectations of around 6%.

Delta plans to increase flight capacity by 3% to 4% in 2024 and reiterated its fourth-quarter outlook. Over the longer term, the company aims to achieve 10% annual growth in adjusted earnings over the next three to five years.

Exciting: Bernstein sees Apple stock rising to $290 in bull-case scenario. Elsewhere, Comcast to spin off cable networks as subscribers flee the bundle

Snowflake reports: Snowflake reported better-than-expected results on the top and bottom lines helping the stock jump +20% after the bell.

💵 Personal Finance

Do this to improve your credit score

We’ve been talking about credit scores for a few days now. Finally, it’s time to have a look at some proven ways to improve your credit score.

  • Get some accounts under your name: You cannot have a credit score without accounts to your name, so start by opening new accounts. This trick can work even if you have a poor score since opening new accounts can potentially improve your credit score, but it depends on various factors. When you open a new account, it can increase your overall credit limit, which may lower your credit utilization ratio if you don't increase your spending. A lower credit utilization ratio can have a positive impact on your credit score.

    Additionally, opening a new account diversifies your credit mix, which can also be beneficial for your score. However, opening multiple new accounts within a short period can indicate higher risk to lenders and may temporarily lower your score.

  • Make timely payments: The best way to boost your credit score is to make timely payments. Both VantageScore and FICO pay attention to this factor. We must mention that this includes all kinds of bills and not just your credit card bill. You need to be careful about everything from student loans to utilities.

    We suggest that you set up automatic payments and reminders to ensure you never miss out.

  • Identify mistakes in your credit reports: This might come as a surprise to some but credit reports are known to contain errors. A good look at one could often be enough to boost your credit scores.

    All three major bureaus (Equifax, Experian, and TransUnion) offer reports that can typically be downloaded for free.

    Some common errors include closed accounts reported as open, incorrect current balances, double entries, etc. These errors can be corrected by disputing them with the agency that will investigate the matter and respond within 30 days.

    There are some more ways to improve credit scores, so look out for tomorrow’s eyes and enjoy this video:

💰 Be a Better Investor

“I feel that luck is preparation meeting opportunity.”

Oprah Winfrey

Resources:

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

Advertiser’s Disclosure:

1 Mode Mobile currently has no formal plans for an IPO. 

2 A minimum investment of $1,950 is required to receive bonus shares. 100% bonus shares are offered on investments of $9,950+.

3 Please read the offering circular and related risks at invest.modemobile.com. This is a paid advertisement for Mode Mobile’s Regulation A+ Offering.

Past performance is no guarantee of future results. Start-up investments are speculative and involve a high degree of risk. Those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Further, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns.

DealMaker Securities LLC, a registered broker-dealer, and member of FINRA | SIPC, located at 105 Maxess Road, Suite 124, Melville, NY 11747, is the Intermediary for this offering and is not an affiliate of or connected with the Issuer. Please check our background on FINRA's BrokerCheck.