☕ Could today be the day Nvidia breaks $1,000?
Mar 08, 2024Good morning! 👋
Jobs came in at 275k, but unemployment rose to 3.9%. Treasury yields dropped and stocks have popped (again) because traders have interpreted that as a sign that JPow will cut rates.
I really feel sorry for the permabears at this point.
It's gotta stink to be so wrong for so long and so consistently. A few are trying their best to change (which is good) but the only playbook they’ve got is to copy what we’ve been doing all along (and that’s just bad).
No matter.
We know how and, more importantly, why we roll.
The majority of S&P 500 companies have now reported Q4 results and earnings which are on average +9.8% over last year and +6.2% above expectations.
Buy the best, ignore the rest has never looked better!
Imagine what happens when JPow actually does get outta the way??!!
Holy bull markets, Batman!
Here’s my playbook.
1 - Could today be the day Nvidia breaks $1,000?
It's trading at $963.56 as I type, up $37.93 and another 4.09% on the day.
Every $1,000 invested a decade ago is now worth $213,007.70, a 21,200.77% increase and enough to buy 52 pristine unopened Final Fantasy 3 games for Super Nintendo according to finmasters.
What’s next?
My guess is the stock is primed for a split, something I’ve been saying for over a year now and long before anyone else I’m aware of even remotely thought of that.
Keep in mind, I could easily have been wrong so I’m NOT tooting my own horn.
What I want you to understand is that it’s still not too late.
But... you don’t chase hot stocks like Nvidia.
Instead, you do change up your tactics so that you can continue to buy even as you minimize risk.
If you know how to do this, excellent – most investors do not. And if you’d like some help along with the education needed to become a more knowledgeable, effective, and consistent investor, you may enjoy an OBA membership.
There's always a way into the fight if you want one.
2 – Palantir: the greatest mic drop I’ve ever heard
Tip o’the hat, btw, to Arny Trezzi, Palantir analyst extraordinaire for bringing this to my attention!
And, on a related note, my friend, the venerable Dan Ives of Wedbush has just boosted his Palantir target to $35. Naturally, I couldn’t resist at little joshing and said, “see ya at $50.” 😊
3 – Can Amazon resist?
CNBC reports that Walmart, Target, and Kroger are all racing with each other to emphasize fast home grocery delivery as part of existing or new subscription services. (Read)
Contrary to what the analysts are thinking, though, the race isn’t to serve more customers. It's winning over customers with convenience which, in turn, results in more frequent, deeper, and more expensive orders.
This is right outta Costco’s playbook.
McDonald’s, too.
Let’s see if Amazon can resist jumping into the fray. 🤷♂️
4 – Analysts got Costco wrong again
Mike S. wrote yesterday offering to pen my take after Costco’s earnings and, honestly, he nailed it.
- Analysts got it wrong again; and,
- I hope I’m smart enough to buy more shares
Think about it.
Costco didn’t “miss” a beat.
- Ecommerce up 18% YoY
- Comparable sales +5.6%
- Food and sundries, UP
- Services including travel, UP
- Store traffic +5.3% worldwide
- The average ticket – spend per purchase – UP
Moreover, the company lowered the cost of glasses, lawn care equipment, batteries and more – all of which helps boost customer interest, buying and engagement.
I know what I’ll be doing.
Errr, did.
You?
5 – Novo Nordisk market cap > Tesla
Shares of Novo Nordisk, a Danish company, hit a record high and in doing so now have a larger market capitalization than Tesla thanks to excitement around new obesity pill trial data according to CNBC. (Read)
Hmmm.
Seems to me there a few pretty profound implications.
First, weight loss is serious business. I wonder how much longer the FDA will be able to squash alternative uses and, in turn, what other medical developments will come to the forefront as a result. Seems to me the insurance companies are going to need a comeuppance, too.
Second, I am amazed that our need for diabetic management and weight loss drugs is evidently more valuable than our need for distributed power generation and transportation. Decades of research show that being active can greatly reduce the risks of getting certain kinds of diabetes, the challenges of obesity and more. Ongoing management becomes more effective, too.
Third, society evidently prioritizes dessert first and dinner in a pill – meaning that we constantly seek the easy way out rather than doing the work needed to manage our health. However, and to be fair, there's a big difference between people who have medical challenges doing so and people who are just simply lazy, slovenly, or otherwise unmotivated.
I’ll be the first to admit that I’m not picture perfect by any stretch of the imagination.
There are days when I struggle to exercise. But I do anyway because, like the markets, I know that there’s a very real connection to “profits” including a longer, healthier life.
A strong mind + a strong body = strong results
Bottom Line
People have doubts about themselves, about the markets, about life.
That’s normal.
However, that’s also why I insist you MAKE it a great day.
Don't let anybody or anything stop you, not in life and certainly not in the markets.
Let’s finish the week strong - you got this!
Keith 😊
