Welcome to Black Swan Street!

Welcome back!! It’s @JohnWetter here with another edition of Black Swan Street…

Let’s get into it:

• Wtf Is Going On With Nvidia🤔

• The Swan’s Selections🦢

• In Other News🗞

• Next Week In The Stock Market🔮

Read time: 6 minutes

Wtf Is Going On With Nvidia🤔

Do you think Nvidia is overvalued? Well, you’re not alone. We all do. And the bubble is only growing. Nvidia announced Q4 and Fiscal Year 2024 earnings this week, and shares rocketed. So, let’s cover it.

Nvidia Q4 Earnings Highlights:

• Revenue: Record $22.1 billion beats 20.4 billion estimate

• Diluted EPS: $4.93 beats $4.24 estimate

• Net Income: $12.29 billion beats $10.5 billion estimate

• Free Cash Flow: $11.25 billion beats $10.8 billion estimate

Nvidia Fiscal Year 2024 Earnings Highlights:

• Revenue: Record $60.9 billion beats $59.3 billion estimate

• Diluted EPS: $11.93 beats $11.36 estimate

• Net Income: $29.76 billion beats $28.18 billion estimate

• Free Cash Flow: $27.02 billion beats $26.46 billion estimate

As you can see, Nvidia crushed earnings. Beats across the board. Shares of Nvidia have gained +6.41% this week, or ~$300 billion in market value.

Nvidia Relative Valuation vs Competitors:

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The Swan’s Selections🦢

📈Magnificent 7 Strength Continues: It’s no secret the ‘Magnificent 7' are carrying the U.S. stock market. In fact, ‘The “Magnificent 7’ combined market cap alone would make it the second-largest country stock exchange in the world. The ‘Magnificent 7’ consists of Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla. Analysts are voicing concerns over the risk related to this level of concentration in markets.

👟Trump Launches Sneaker Line: Oh, you thought Donald Trump would be preparing for the upcoming presidential race? Or what about fighting the endless lawsuits he faces? Wrong. He’s busy launching his own sneaker line. Yes, that’s right. Trump is launching a sneaker line that’s first sneaker is a golden color with the American flag on it.

🔀Capital One and Discover Financial Planning Merger: Two of the largest credit-card companies in the U.S. are planning a $35 billion, all-stock merger. Under the terms of the all-stock deal, Discover shareholders are set to receive 1.0192 Capital One shares for each Discover share. However, beware of regulators. They’ve been on a rampage of blocking mergers. Most recently blocking JetBlue’s proposed takeover of Spirit Airlines.

In Other News🗞

• Apple set to face near $630 million fine in Spotify row - BBG

• Zyn Nicotine Pouches take off - and land in the culture wars - WSJ

• Canada’s inflation dipped below 3% for first time since June 2023 - RT

• Japan bets $67 billion to become a global chip powerhouse once again - BBG

• Amazon will replace Walgreens in the Dow Jones Industrial Average - KP

• The FTC and a group of states plan to sue to block Kroger’s $24.6 billion acquisition of Albertsons - BBG

• Fed Minutes show unease over premature cuts - WSJ

• Global debt hit a record $313 trillion high - RT

• JPMorgan CEO Jamie Dimon sold ~$150M of his shares - RT

Next Week in the Stock Market🔮

Earnings To Watch Next Week:

Monday: Domino’s, Zoom, Workday, Fisker

Tuesday: Target, AutoZone, Norwegian Cruise Line, Bank of Nova Scotia, Bank of Montreal, Dillard’s, Henry Schein, Ebay, Ross Stores, Cava

Wednesday: Lowe’s, TJX Companies, Baidu, Advance Auto Parts, Nio, Kohl’s, NRG Energy, Snowflake, Salesforce, Paramount Global, AMC, HP Inc

Thursday: Best Buy, Anheuser-Busch Inbev, Macy’s, Kroger, Burlington, NetEase, Dell, Hewlett Packard Enterprise, AutoDesk, NetApp

Friday: FuboTV, Icahn Enterprises

Economic Calendar Next Week:

The Wrap-Up🔄

🎊🎉 That’s it for this week 🎉🎊

Follow my Twitter @theJohnWetter, if you want real-time market and economic analysis.

Shorter newsletter this week, as it was a 4-day week in the stock market. Let us know what you thought⬇

Black Swan Street Review of the Week❤️