🫧 Is Nvidia In A Bubble?

It’s Tuesday.

The stock market was closed yesterday in observance of President’s day. Nonetheless, there’s a ton that happened in the last week so let’s recap!

Some key data bites you should know: 

• Uber $UBER announced its first-ever $7B share buyback.

• Walmart $WMT is in talks to buy Vizio $VZIO for $2B.

• Retail sales fell 0.8% in January.

• Robinhood $HOOD earned $236M in net interest income in Q4 2023.

• Jeff Bezos will save over $600M in taxes by moving to Miami.

In today’s newsletter:

• 🥊 Nvidia vs Energy Sector

• 🔐 Coinbase Is Profitable Again

• 💰 Warren Buffett’s Top Dividend Stocks

Let’s dive right in!

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🥊 Nvidia vs Energy Sector

Nvidia has truly been a standout investment over the past five years, boasting an impressive return of over 1,700%.

And it doesn't stop there—this year alone, Nvidia's value has skyrocketed by more than 50%!

As of today, Nvidia's market cap has hit a whopping $1.79T.

To put that into perspective, it's $200B more than the total value of all the companies in the S&P 500 energy sector combined.

However, when we look at net income, Nvidia's $19B trailing twelve-month (TTM) earnings seem modest compared to the energy sector's massive $145B TTM net income.

Investors are clearly optimistic about Nvidia's future, betting on its continued rapid growth.

Just last quarter, Nvidia's revenue surged by an astonishing 206% year-over-year!

With such incredible momentum, all eyes will be on the company as it prepares to announce its earnings after the market closes this Wednesday.

🔐 Coinbase Is Profitable Again

Last week, shares of Coinbase were on fire, jumping over 27% following the announcement of its fourth-quarter earnings.

The company reported a net income of $273M for Q4 2023, marking its first return to profitability since Q4 2021.

Revenue saw a significant jump to $905M, up nearly 50% from the previous year.

This surge was mainly fueled by transaction revenue, which climbed to $529.3M, a whopping 64% increase year-over-year.

In related news, Bitcoin has made a striking comeback, hitting the $50K mark last week and managing to hold steady at that level since.

The cryptocurrency’s market cap has surpassed the $1T milestone after 26 months.

💰 Warren Buffett’s Top Dividend Stocks

Last Thursday marked a significant moment for Coca-Cola, as the company announced its 62nd consecutive annual dividend increase.

This time, they've upped the quarterly dividend from $0.46 to $0.485, making the annual dividend $1.94 per share.

Warren Buffett, a major investor in Coca-Cola, holds a staggering 400M shares of the company.

This investment pays off handsomely, with Buffett now raking in $776M in Coca-Cola dividends each year.

But Coca-Cola isn't the only source of hefty dividend checks for Buffett.

Bank of America also contributes nearly $1B to Buffett's annual dividend income.

And let's not overlook Apple, which adds another $869M to Buffett's dividend earnings each year.

These investments highlight not just the power of dividends in wealth accumulation but also Buffett's strategic investment choices.

Notable Companies Reporting Earnings This Week:

• Tuesday (2/20):

  • Walmart $WMT, Home Depot $HD, Palo Alto Networks $PANW

• Wednesday (2/21):

  • Nvidia $NVDA, Analog Devices $ADI, Rivian $RIVN

• Thursday (2/22):

  • Intuit $INTU, Block $SQ

• Friday (2/23):

  • Warner Bros. Discovery $WBD

All of the companies that are reporting earnings this week can be viewed here.

Buys:

• Victoria Spartz (R)

  • Company: Simon Property Group ($SPG)

    • Amount Purchased: $52K - $130K

• Jonathon Jackson (D)

  • Company: Cardinal Health ($CAH)

    • Amount Purchased: $50K - $100K

Sells:

• Tommy Tuberville (R)

  • Company: Apple ($AAPL)

    • Amount Sold: $265K - $550K

🤝 Review of the Week