Nvidia's shares dropped despite a strong revenue forecast, fueled by concerns over sustainable AI spending and US export restrictions. In contrast, Intuit's shares surged after a stellar quarter, driven by robust growth in TurboTax and QuickBooks. Gap experienced a surprising sales boost, thanks to celebrity collaborations and strategic marketing. Meanwhile, Warner Bros. Discovery stirred interest in the market with multiple bids from major players like Netflix and Paramount. A dynamic mix of successes and challenges keeps the market on its toes!
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Nvidia Pullback Reflects Sustainability Fears
Nvidia's stock fell despite a stronger-than-expected revenue forecast because investors fear AI chip spending may be unsustainable.
China export restrictions and profit-taking amplified the pullback in Nvidia and crypto-linked stocks.
insights INSIGHT
AI Monetization Boosts Intuit Results
Intuit's AI tools helped drive 18% revenue growth and lifted TurboTax Live sales 51%.
Management credits early AI integration, including ChatGPT in TurboTax, with higher usage among mid-sized businesses.
insights INSIGHT
Gap Sales Rebound With Celebrity Push
Gap's comparable sales rose 5% as celebrity collaborations and refreshed inventory drew consumers.
Strong Old Navy and Gap performance, plus raised sales guidance, signaled resilience across market segments.
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On this episode of Stock Movers: - Shares of Nvidia (NVDA) declined in premarket trading after investors shrugged off a stronger-than-expected revenue forecast and assurances that the AI economy isn’t in a bubble. Nvidia, the world’s most valuable company, announced Wednesday that sales will be about $65 billion in the January quarter — roughly $3 billion more than analysts predicted. The chipmaker also said that a half-trillion-dollar revenue bonanza due in coming quarters may be even bigger than anticipated. But it’s faced growing fears in recent weeks that spending on its AI chips isn’t sustainable. The company’s China business also has stalled due to US export restrictions. - Shares of Intuit (INTU) moved higher in the early session after the financial software provider posted first-quarter profit and revenue topped estimates. Intuit beat fiscal 1Q estimates, with 18% revenue growth on the back of an 18% gain in Global Business Solutions (GBS), Credit Karma's 27% and the Consumer group's 21%. TurboTax Live sales jumped 51% (long-term range of 15-20%). Email marketing business Mailchimp was an outlier, posting a top-line decline. GBS (59% of fiscal 2025 sales) was driven by QuickBooks Online accounting sales, which rose 25% on higher effective prices, customer growth and a shift in mix. - Shares of Gap (GAP) rallied ahead of the US market open after the apparel maker reported stronger-than-expected sales, a sign that celebrity-fueled marketing, flashy collaborations and a revamped inventory are luring in consumers. Comparable sales rose 5% in the third quarter, surpassing the average of analyst estimates. Results at the company’s two biggest brands — Old Navy and Gap — were particularly strong. Earnings per share also outpaced expectations. Chief Executive Officer Richard Dickson is reigniting excitement around Gap with collaborations, including with luggage brand Béis, and the GapStudio line that’s being promoted by Gwyneth Paltrow and her daughter.
Stock Movers