As Wall Street braces for Nvidia's (NVDA, Financial) highly anticipated earnings report, U.S. stock index futures indicated a softer opening. Nvidia, a significant player in the AI space, is expected to post earnings of $4.64 per share on a robust $20.55B revenue for FQ4 2024. The company's stock has seen a meteoric rise, more than tripling in value over the past year, thanks to its AI offerings. This performance has been a key driver of the broader market's bullish trend. Investors are not only keen on the earnings but also on the company's forward guidance and strategic commentary.
Apple (AAPL, Financial) dominated the smartphone market in 2023, with the iPhone 14 leading the pack. Counterpoint Research's Global Monthly Handset Model Sales Tracker showed that Apple's iPhone models secured the top seven positions in the list of best-selling smartphones. The iPhone 14 alone captured 3.9% of the global market. Despite this dominance, Apple's total sales remained flat year over year.
Stock index futures pointed to a lower open, with the Nasdaq 100 (NDX:IND) and S&P futures (SPX) both down. Palo Alto Networks (PANW, Financial) saw its shares plummet over 20% premarket, contributing to the tech sector's downturn. However, some buying support emerged after Tuesday's selloff, with all eyes on Nvidia's (NVDA, Financial) postmarket earnings. Deutsche Bank highlighted Nvidia's significant role in the market, noting its position as the 5th largest U.S. company and its potential impact on market movements post-earnings.
Medical Properties Trust (MPW, Financial) reported Q4 earnings that surpassed fears, despite a charge related to a struggling tenant that resulted in a net revenue loss. MPW's stock dipped 3.1% in premarket trading. The company, also known as MPT, refrained from providing 2024 guidance due to uncertainties surrounding its hospitals leased to Steward Health Care System. Negotiations for a new bridge loan are underway, with initial funding milestones already met by MPT.
Nvidia's (NVDA, Financial) upcoming earnings report is stirring the market, with the stock's remarkable performance reflecting the company's success in AI. Analysts expect a Q4 EPS of $4.63, a significant year-over-year increase, with revenue forecasts at an impressive $20.5B. Nvidia's stock has quadrupled over the past year, with a 40% rise year-to-date, underscoring its influence on the AI-driven market surge.
Palo Alto Networks' (PANW, Financial) stock took a hit after the company revised its full-year revenue and billings guidance downward. Wall Street reacted negatively to the cybersecurity firm's strategic shift, with several firms downgrading the stock. The new approach is expected to impact the business for the next 12 to 18 months, potentially eliminating $600M from billings estimates in the latter half of the year.
On the earnings front, notable gainers included Sound Group (SOGP, Financial), which surged after announcing new AI-powered applications. Other gainers were Origin Agritech (SEED, Financial), CN Energy Group (CNEY, Financial), and Energy Focus (EFOI, Financial). On the flip side, significant losers included Pop Culture Group Co Ltd (CPOP), Shineco (SISI), and Palo Alto Networks (PANW, Financial), which suffered after its earnings release.
Chesapeake Energy (CHK, Financial) reported a 20% cut in spending on baseline production, leading to a surge in U.S. natural gas futures. The company's Q4 gas production declined, and it outlined a capital spending plan to support volumes of around 2.7B cfe/day this year. Chesapeake's shares remained stable post-earnings, with analysts viewing any early share price weakness as a buying opportunity.
Crispr Therapeutics (CRSP, Financial) saw its shares rise premarket after reporting Q4 earnings that beat Wall Street's expectations. The company's revenue soared following the approval of its gene editing therapy Casgevy. Crispr swung to a net income of $98.1M, with collaboration revenue reaching $200M due to a milestone payment from Vertex Pharmaceuticals (VRTX).
The Biden Administration announced the automatic discharge of $1.2B in loans for nearly 153,000 borrowers eligible for the SAVE Plan. The plan has enrolled 7.5M borrowers, with 4.3M having a $0 monthly payment. The administration has approved debt cancellation for almost 3.9M borrowers to date.
Stock futures edged lower as investors anticipated Nvidia's (NVDA, Financial) earnings report. SolarEdge (SEDG) and Palo Alto Networks (PANW, Financial) were among the biggest premarket losers following their respective earnings releases and guidance updates.
The U.S. government has targeted a Chinese-sanctioned chipmaker, SMIC (OTCQX:SIUIF), by denying its most advanced facility from importing more U.S. products. This follows the production of a chip for Huawei Technologies' Mate 60 Pro phone. U.S. suppliers to SMIC, including Entegris (ENTG, Financial), have been affected by the restrictions.
Wingstop (WING, Financial) released its Q4 earnings, beating expectations with a Non-GAAP EPS of $0.64. The company reported a revenue increase of 21.2% to $127.1M and provided a positive outlook for fiscal 2024, expecting mid-single digit domestic same-store sales growth and approximately 270 global net new units.
Walgreens Boots Alliance (WBA, Financial) saw its shares trade lower premarket after being removed from the Dow Jones Industrial Average. Amazon (AMZN, Financial) will replace Walgreens in the index, following Walmart’s (WMT, Financial) stock split. Walgreens has faced challenges, including a significant dividend cut and a change in CEO.
CRISPR Therapeutics (CRSP, Financial) reported a Q4 GAAP EPS of $1.10, surpassing estimates. The company ended the year with $1,695.7 million in cash, cash equivalents, and marketable securities.
Samsung Electronics (SSNLF) sold its remaining stake in ASML (ASML, Financial), marking a strategic move to focus on advancing in new chipmaking areas. Samsung aims to compete in the high-bandwidth memory chip market, which supports Nvidia's (NVDA, Financial) products.
Sound Group (SOGP, Financial) announced the launch of new AI-powered applications, aiming to enrich its AI product suite and integrate AIGC technologies into its core business ecosystem.
Pagaya Technologies (PGY, Financial) reported in-line Q4 Non-GAAP EPS and slightly missed revenue expectations. The company provided its outlook for the first quarter and full year of 2024, with network volume and total revenue projections.
