#88 | The Fall of Sea Limited | Hurricane Hillary | Nvidia Earnings | PANW Earnings
Aug 19, 2023
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AviNMash, StockSavvyShay, and JoeySolitro discuss Sea Limited's fall, Nvidia earnings, and the West Coast hurricane. They also talk about experiences with hurricanes and earthquakes, Vin Fast's performance on Nasdaq, Tesla's expansion, and Sea Limited's struggles and valuation concerns. They share excitement for the football season and their partnership with Underdog Fantasy.
Sea Limited's disappointing earnings reveal the negative impact of focusing on profitability over growth in the gaming and e-commerce sectors.
D Local's stock surge following the appointment of a new CFO from MercadoLibre indicates potential legitimacy of their numbers and the possibility of an acquisition.
Deep dives
C Limited disappoints in earnings
C Limited, a Southeast Asian company known for gaming and e-commerce, reported disappointing earnings. Their gaming unit, Garina, saw declining revenues, bookings, and users. This affected the overall performance of the company, which only saw single-digit revenue growth. The management's focus on profitability instead of growth proved unsuccessful, and the stock experienced a significant drop. Despite having a large cash balance, uncertainty surrounds the valuation of the company, and comparisons to the success of MercadoLibre's e-commerce business highlight the missed potential of C Limited.
D Local surges after CFO transition
D Local, a fintech company based in Uruguay, saw its stock surge after announcing the appointment of a new CFO. The new CFO is a former executive from MercadoLibre, which led to speculation that the numbers presented by D Local are legitimate and that a potential acquisition by MercadoLibre could be in the works. The company's strong earnings report further supported this optimism. While caution is advised due to the recent short report on the company, many see the stock as undervalued and a potentially attractive investment in the fintech industry in Latin America.
Zoom and NVIDIA earnings in focus
Upcoming earnings from Zoom and NVIDIA are generating interest, with Snowflake, MongoDB, and Chinese stocks also capturing attention. Zoom's report is highly anticipated due to the lingering effects of the pandemic on its business. Snowflake is viewed as being on thin ice, as any missed metrics could adversely impact the highly valued stock. NVIDIA's report is seen as crucial for the technology sector, as it has been a major driver of growth this year. Overall, the upcoming earnings reports have the potential to influence market sentiment and impact related industries.
Palo Alto Networks prepares for significant announcement
Palo Alto Networks is scheduled to release a significant announcement after the market closes on Friday. Speculation suggests that the company may be selling its hardware business, leading to a structural shift towards a higher-growth software business. This move could potentially make the company more attractive to investors. The timing of the announcement, just before the weekend, is unusual and suggests that it could be a game-changing development. Analysts are preparing for potential volatility as the market digests the news over the weekend.
@AviNMash @StockSavvyShay and @JoeySolitro discuss The Fall Of Sea Limited and what has happened, Nvidia Earnings, And Hurricane is hitting the West Coast!
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