Nvidia and Lucid Motors Stocks Face Challenges as Bullish Bets Reach Crowded Levels
Wall Street is abuzz with comparisons between Nvidia and dot-com-era Cisco. Lucid Motors stock drops as losses mount for the EV startup. Bullish bets on Nvidia and other ‘Magnificent Seven’ members are nearing their most crowded levels, raising concerns among options-market experts about potential problems for the broader market. Market-data firm Spotgamma indicates that risky bullish options tied to the ‘Magnificent Seven’ and other market-leading technology stocks are approaching their most crowded levels in the past year. Derivatives-market experts warn of a potential pullback in the broader equities market, particularly for Big Tech stocks. Nvidia has been the best-performing stock in the S&P 500 so far in 2024, with a 46.7% increase this year following a 238% advance in 2023.
Nvidia experiences worst day in four months with $78 billion market cap loss
Nvidia’s stock saw a significant 4.4% decline, resulting in a $78 billion loss in market capitalization, marking the largest single-day loss in the company’s history. Despite the drop, the stock has surged by over 35% since the beginning of the year. Analysts anticipate a substantial increase in overall market expectations, potentially limiting further earnings upside in 2024. The company is expected to report adjusted earnings of $4.59 per share on a revenue of $20.4 billion for the fiscal fourth quarter, with projections for the current quarter indicating staggering numbers. However, analysts express concerns about the high bar set for the company, while investors eagerly await the company’s financial outlook and performance.
Beamr Imaging Ltd. Stock Soars Following Collaboration with Nvidia
Beamr Imaging Ltd. saw its stock price surge by 1,556% following its collaboration announcement with Nvidia Corp. The Israel-based company will present joint research at the ACM Mile-High-Video 2024 conference, focusing on automated video modernization and the transition to the AV1 format. The collaboration has generated significant investor excitement, despite being mentioned in the company’s IPO filing last year.