📈 Nvidia Passes $2T

1) Nvidia Nears Tech Giants 2) The Rise Of Celsius, 3) Duolingo’s Record Profits, and more!

Author

Carbon Finance
March 05, 2024

It’s Tuesday.

At the start of 2023, Super Micro Computer $SMCI had a market capitalization of about $4.4B.

Today, that number is roughly $60B. This represents a +1,200% increase in just over a year.

After market close on Friday, it was announced the company would be joining the S&P 500, sending shares flying up nearly 20% yesterday.

The stock is now up roughly +280% this year alone, leaving many investors wondering just how much higher it can go.

Some key data bites you should know: 

In today’s newsletter:

  • 🦾 Nvidia Nears Tech Giants

  • ⚡️ The Rise Of Celsius

  • 🦜 Duolingo’s Record Profits

Let’s dive right in!

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🦾 Nvidia Nears Tech Giants

Nvidia has climbed to become the third most valuable company by market cap in the world, surpassing giants like Saudi Aramco, Amazon, Google, Meta, and Berkshire Hathaway.

The company closed above the $2T mark for the first time ever last Friday.

This impressive milestone follows a strong Q4 earnings report, propelling the stock to an almost 80% increase in 2024.

Nvidia's key role in the AI revolution, combined with its recent performance, has made it a favorite among investors.

Wall Street analysts are also overwhelmingly optimistic about Nvidia's prospects.

Of the 59 analysts who follow the stock, 54 recommend it as a buy or outperform, according to data from FactSet.

⚡️ The Rise Of Celsius

If somebody asked you to name a stock that has seen its annual revenue grow by a whopping 65% on average over the last nine years, you’d probably guess an AI stock, right?

The correct answer would be Celsius, the energy drink brand.

Back in 2014, Celsius was making just $14.6M in annual revenue.

Fast forward to 2023, and that number has skyrocketed to $1.32B.

The momentum doesn’t stop there. The release of their fourth-quarter earnings shows that Celsius is far from hitting the brakes.

Here are some key figures from Q4:

  • Revenue: $347M (+95% YoY)

  • Gross Margin: 47.8% (+340 basis point increase YoY)

  • Adjusted EBITDA: $65.2M (+387% YoY)

My favorite data point from their report?

Celsius claims the top spot in the energy drink category on Amazon, claiming a 19.7% share, ahead of Monster and Redbull.

🦜 Duolingo’s Record Profits

The threats seem to be working.

Duolingo’s stock surged 20% after the company reported its fourth quarter earnings for 2023.

The company saw record bookings, revenue, and profitability across the board.

Bookings hit $191M, while revenues reached $151M, and net income totaled $12.1M.

Monthly active users increased to 88.4M, marking a 46% increase from the previous year.

The secret to success? The company’s social-first marketing strategy.

According to Duolingo’s shareholder letter, the company saw nearly 3B social media impressions in 2023, a +170% increase year over year.

I’m sure the aggressive push notifications definitely helped as well.

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🫧 Bubble Gauge. Ray Dalio believes the stock market is not in a bubble - LKDN

💼 Elon Musk vs OpenAI. Elon Musk is suing OpenAI and Sam Altman for breaking from its founding mission - E

🤖 Human AI. Nvidia $NVDA CEO Jensen Huang believes computers that can think like humans will arrive in 5 years - R

Notable Companies Reporting Earnings This Week:

  • Monday (3/4):

    • Sea Limited $SE, GitLab $GTLB

  • Tuesday (3/5):

    • CrowdStrike $CRWD, Target $TGT, Ross Stores $ROST, NIO $NIO

  • Wednesday (3/6):

    • JD $JD, Campbell Soup $CPB

  • Thursday (3/7):

    • Broadcom $AVGO, Costco $COST, Marvell Technology $MRVL, Kroger $KR, MongoDB $MDB

  • Friday (3/8):

    • Algonquin Power & Utilities $AQN

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

Major Trades Published Since 2/27. Trades may be those of family member. [Source: 2iQ]

Buys:

  • Earl Blumenauer (D)

    • Company: Amazon ($AMZN)

      • Amount Purchased: $15K - $50K

  • Pete Sessions (R)

    • Company: Microsoft ($MSFT)

      • Amount Purchased: $1K - $15K

    • Company: Costco ($COST)

      • Amount Purchased: $1K - $15K

Sells:

  • Mark Green (R)

    • Company: NGL Energy Partners ($NGL)

      • Amount Sold: $50K - $100K

  • Earl Blumenauer (D)

    • Company: Alphabet ($GOOGL)

      • Amount Sold: $1K - $15K

    • Company: Unilever ($UL)

      • Amount Sold: $1K - $15K

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