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Coffee With Greta: Earnings Boost Stocks


DJIA Futures: +40 (+0.1%)

SPX Futures: +15 (+0.4%)

NASDAQ Futures: +104 (+0.9%)

Good morning friends!

Futures are higher as the market looks to rebound from a 4-day losing streak and Nvidia's earnings beat boosts tech stocks.

Let’s get right to it!

Nvidia Rallies On Earnings Beat

Nvidia (NVDA) shares are jumping 11% ahead of the open after beating Q4 expectations on the top and bottom line. 

Here’s how the chipmaker’s results compared to analysts’ expectations: 

  • Adjusted EPS: $0.88 vs $0.81 expected
  • Revenue: $6.05 billion vs $6 billion expected

Nvidia forecast $6.5 billion in Q1 revenue, topping analysts’ estimates of $6.33 billion. 

The company appears poised to benefit from the growing popularity of AI. 

Nvidia’s data center business, which includes chips used for AI, continued to grow last quarter and the CEO said, “Generative AI’s versatility and capability has triggered a sense of urgency at enterprises around the world to develop and deploy AI strategies.”

Alibaba Shares Jump After Earnings 

Alibaba (BABA) shares are up 5.7% in premarket trade after sharply beating fiscal Q3 expectations.

Here’s how the Chinese e-commerce giant’s results compared to expectations: 

  • Earnings per American depositary share: 19.26 yuan vs 16.26 yuan expected
  • Revenue: 247.76 yuan vs 245.18 billion yuan expected

The company benefited from China’s economic reopening as consumer demand rebounded.

The CEO said, “Looking ahead, we expect continued recovery in consumer sentiment and economic activity.”

Lucid Misses Q4 Revenue Expectations

Lucid (LCID) shares are dropping 13.5% ahead of the open after missing Q4 sales expectations. 

Here’s how the electric automaker’s results compared to analysts’ expectations:

  • Loss per share: $0.28
  • Revenue: $257.7 million vs $303 million expected

The company built just 7,180 of its Air luxury sedans last year, sharply missing its original goal of 20,000. 

Lucid expects to manufacture between 10,000 and 14,000 this year. 

The company ended 2022 with roughly $4.4 billion in cash and $500 million available via credit. 

The CFO said that is enough to last until Q1 2024. 

Lucid said it has more than 28,000 reservations for its vehicles, down from 34,000 in November.

Moderna Drops After Earnings Miss

Moderna (MRNA) shares are falling 4.5% in premarket trade after missing Q4 profit expectations. 

Here’s how the pharmaceutical giant’s results compared to analysts’ estimates: 

  • Adjusted EPS: $3.61 vs $4.68 expected
  • Revenue: $5.1 billion vs $5 billion expected

Profits tumbled 68% year over year and revenue dropped 30% amid shrinking demand for the company’s Covid vaccine. 

Costs also rose 25% in Q4 due to expired vaccines, unused manufacturing capacity, and a royalty payment to the National Institute of Allergy and Infectious Diseases. 

Q4 GDP Revised Lower

The U.S. economy expanded less than initially estimated at the end of 2022. 

The Commerce Department’s first revision of Q4 GDP was lowered to 2.7% from 2.9% initially. 

The revision was due to slower consumer spending which grew just 1.4% vs 2.1% initially estimated. 

Weekly Jobless Claims Fall

Weekly jobless claims fell unexpectedly last week as the U.S. labor market remains tight. 

The Labor Department reported 192,000 Americans filed initial claims for unemployment benefits. 

That was down by 3,000 from the previous week’s revised level and better than 200,000 expected.

In Case You Missed It

  • The February 1 Fed minutes show the bank is committed to its fight against inflation and members believe “ongoing” rate hikes are still necessary. FOMC officials said inflation is still “well above” their target and the labor market remains “very tight”. Fed members did say that recent data has shown inflation beginning to cool but they need “substantially more evidence of progress” . The minutes showed a “few” members were in favor of a 50 basis-point hike at the latest meeting but ultimately voted for the quarter-point move.

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