Around 35 minutes before the market closed yesterday, volume surged ahead of Nvidia’s (NVDA) Q4 results. Last-minute traders guessed Nvidia’s wildly strong results and outlook. NVDA stock climbed by over 7% in after-hours trade.
Nvidia posted revenue that nearly tripled, up by 265.3% Y/Y to $22.1 billion. Non-GAAP EPS of $5.16 beat estimates by 52 cents. For fiscal 2025, Nvidia expects revenue of $24 billion. Its gross margins of 76.3% to 77.0% demonstrate the profitable year ahead for the AI chip supplier.
Markets will put aside their valuation worries for now.
Palo Alto Networks (PANW), a cybersecurity infrastructure supplier, lost 28.44% of its value or $104.12 per share on Wed. Margins will top the low to mid 30% range. However, its expectations to achieve a transformation to a business with over 90% recurring revenue are hurting sales. Customers are unwilling to deploy Palo Alto’s platform over multiple years.
In the e-commerce space, Etsy (ETSY) lost 5% after posting revenue growing by only 4.3% Y/Y to $842.32 million. Consolidated GMS declined by 0.7% Y/Y to $4 billion. Investors are selling slow-growing companies and betting on AI-related suppliers instead.
In the media sector, Warner Bros Discovery (WBD) and Paramount (PARA) fell yesterday. The selling pressure continues as investors avoid heavily indebted firms facing slowing subscription growth. Markets doubt that the bid from Byron Allen to buy Paramount for $14.3 billion, or $28.58 a share, will close. PARA stock closed at $11.80.
