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  • Black Swan Street Weekly Stock Market Summary (May. 20-May. 24 2024)

Black Swan Street Weekly Stock Market Summary (May. 20-May. 24 2024)

The true size of Nvidia is jaw-dropping, private equity looking to enter college sports, target misses earnings, JPMorgan Chase adopts AI, DOJ sues Live Nation, and ...

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Black Swan Street stock market newsletter stock market summary

Welcome to Black Swan Street!

Asset class performance this week

Welcome back to another action-packed edition of Black Swan Street!

Let’s skip the formalities and jump right in:

  • The True Size of Nvidia is Jaw-Dropping😲

  • The Swan’s Selections🦢

  • In Other News🗞️

  • Next Week In The Stock Market🔮

Read time: 5 minutes

The True Size of Nvidia is Jaw-Dropping😲

Nvidia logo

Unless you’ve been living under a rock you know about Nvidia’s historic bull run over the past few years. Well, guess what, it continues.

Nvidia’s Earnings

Nvidia reported earnings this week and here’s the rundown:

  • Revenue rose 262% from the same period a year ago and totaled $26B, beating the estimates of $24.6B

  • Reported Data Center revenue of $22.6B, up 23% from Q4 and up 427% from a year ago

  • Forecasted second quarter revenue of $28B compared to a $26B estimate

  • GAAP earnings per diluted share was $5.98, up 21% from the previous quarter and up 629% from a year ago

  • Non-GAAP earnings per diluted share was $6.12, up 19% from the previous quarter and up 461% from a year ago

  • Boosted dividend 150% to $0.10 from $0.04 per share

  • Announced a 10-for-1 stock split effective June 7, 2024

Wall Street seemed to love these results as Nvidia shares finished the week gaining +12.44%

How big has Nvidia gotten?

Nvidia is now larger than:

  • GDP of every country in the world except 7

  • GDP of Spain and Saudi Arabia combined

  • 4x the market cap of Tesla

  • 7x the market cap of Costco

  • The market cap of Walmart and Amazon combined

  • Russia's entire GDP plus $300 billion in cash

  • 9x the market cap of AMD

  • GDP of every US state except California and Texas

  • 17x the market cap of Goldman Sachs

  • The entire German stock market

… Yeah

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The Swan’s Selections🦢

🏈First The NFL And Now College Football: Two weeks ago, we discussed about private equity looking to enter the NFL. Well, private equity is now pushing for a piece of the pie in college football as well. Drew Weatherford and RedBird Capital Partners are seeking five to ten programs to invest between $50M and $200M.

🛒Target Misses The Mark: Target reported earnings this week and Wall Street wasn’t a fan. And shares of Target took a massive hit this week because of it. See our breakdown here.

🤖JPMorgan Chase Training All New Hires On AI: The largest U.S. bank by assets is at the forefront of AI adoption in the banking sector and looks to continue to be. The bank now has more than 2,000 AI and machine learning experts and data scientists (more than double the 900 reported last year).

DOJ Sues Live Nation: The Department of Justice is suing the parent company of Ticketmaster, Live Nation. The DOJ is seeking to break up the alleged monopoly they believe Live Nation controls. It says Live Nation directly manages 400 musical artists, controls 60% of concert promotions at major venues, and controls 80% or more of major concert venues’ ticketing.

In Other News🗞

  • London remains top Europe pick for investors followed by Paris - BBG

  • Asking prices for UK homes hit record high - RT

  • Snowflake is in talks to acquire AI/LLM startup Reka AI for over $1B - YF

  • Jamie Dimon hints at early retirement - WSJ

  • Target will lower prices on 5k items - RT

  • Regional lender SouthState will acquire smaller rival Independent Bank Group in a ~$2B all-stock deal - ST

  • Carlyle launched a bid to buy KFC’s Japan operations for $910M - FT

  • Blackstone to grant equity to most employees in future U.S. LBOs - WSJ

  • Samsung fires co-CEO / head of semiconductor - WSJ

  • ExxonMobil and Shell are among energy giants evaluating bids for a up to 40% stake in Galp Energia's major oil field offshore Namibia, which could be worth $20B - BN

  • UPS sold $2.6B of investment-grade bonds at an up to 105 bps premium - YF

  • Chinese e-commerce giant JD.com raised $1.8B through a sale of convertible bonds due in five years, upsized from a $1.5 billion target announced earlier - IBD

  • TikTok planning significant layoffs - TI

  • Miner Anglo American agreed to enter talks with larger rival BHP Group after rejecting a third proposal worth ~$49B - MA

  • German railway Deutsche Bahn received a handful of confirmatory bids for its DB Schenker logistics unit, which could fetch $16B in one of Europe’s largest deals this year - BBG

Next Week in the Stock Market🔮

Earnings Calendar Next Week:

Earnings Calendar for week starting May 27 2024

Economic Calendar Next Week:

Earnings calendar for the week of 05/27/2024
Earnings calendar for the week of 05/27/2024 continued

The Wrap-Up🔄

🎊🎉 That’s it for this week 🎉🎊

Reminder: Due to Memorial Day, the United States stock exchanges will be closed on Monday, May 27th, 2024.

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