Business

Nvidia Going Long On Nvidia

50 Billion Dollar Buy Back for the 3 Trillion Dollar Company

Nvidia’s second-quarter earnings report is out, and it appears the company is still doing just fine. Revenue for that period was $30 billion, which was up 122% year over year. Earning per share also soared 168% and free cash flow for the quarter was about $13.5 billion.

Furthermore, Nvidia repurchased more than $15 billion worth of its shares over the last two quarters. This would leave $7.5 billion of authorized cash for further repurchases, however, Nvidia did just announce that its board of directors authorized an additional $50 billion for repurchases. 

But everything is relative. So while $50 billion seems like a huge amount, it is still pretty small in comparison to Nvidia’s $3 trillion market cap. In fact, even when combined with the already $7.5 billion, this still amounts to less than 2% of the company's market cap.

For comparison sake, and context, Apple announced a $60 billion authorization in 2013, when they began to get serious about share repurchases, which amounted to 16% of their shares outstanding at the time. Following that authorization, Apple then spent $11 billion buying back its stock in the next quarter. Their market cap was around $400 billion. Meanwhile, Nvidia just spent $7.2 billion with a market capitalization of nearly $3 trillion. 

So the context is important, as it worries some that maybe Nvidia’s valuation is actually a little inflated. In fact, the Motley Fool Stock Advisor analyst team just identified their top 10 best stocks for investors to buy now and Nvidia was not one of them.

Around the Water Cooler:

🚘 Volkswagen considering closing German plant.

🏨 10 Thousand union hotel workers go on strike.

Tech

Say Goodbye to Credit Card #s

Online anyway, Mastercard want’s to do away with them.

Mastercard is looking to get rid of credit card numbers for online shopping, instead relying on fingerprints or face scans, in an attempt to stop payment fraud. Much like when the iPhone switched to the face ID a number of years ago, to avoid people being able to get into other people's phones.

Mastercard introduced a technology a decade ago that replaced numbers with tokens, for security purposes. The tokens could only be unlocked by the network, rendering them useless if hacker’s did happen to get their hands on them. But now, while making one billion transactions a week, the company feels they need to continue to advance their security measures. Plus, those token-based transactions take much longer for the credit card companies to actually process.

Furthermore, online payment fraud is expected to exceed $91 billion by 2028, as hackers are now targeting websites where you need to insert your card number, or the sites that rely on one-time passwords being sent to the consumer.

Pretty soon, it’ll be like something out of the movie “Minority Report” the next time you want to purchase something from Amazon.

Google Upping Their A.I. Safeguards

With the election coming, they’re not taking chances.

With the presidential election right around the corner, Google has had to increase the safeguards surrounding their AI. Google had already announced previously that they were restricting any election related queries from Gemini. Now, they’re ramping it up with further restrictions to Search AI Overviews, YouTube AI-generated summaries for live chats, Gems and image creations in Gemini and more. 

With AI being a newer technology, Google has acknowledged that it could be vulnerable and prone to making some mistakes. Therefore, this is an attempt to curb any potential misinformation around the election. 

Misinformation seemed to be an issue during the 2020 election, despite being before the rise of AI, like we’re now experiencing four years later. 

Furthermore, users will start to see new features on YouTube that will help them find credible information about election candidates and their political parties. YouTube will also display reminders on where and how to vote, while Google Search will be adding a feature that will help people find information about registering to vote. 

Now we’ll just need AI to fact check the debate on the screen in real time, as well… 

What’s the Latest:

📝 HP not dropping their suit against the late Mike Lynch.

🍕 Elon eyes Italy for his next move.

Economy

That Inheritance Might Not Be Coming

Boomers are not passing down their wealth equally.

If you’re like George Costanza, wondering how much money you could be inheriting when your parents pass away, well, you might be disappointed with that actual outcome. Especially if you’re a Gen-Z.

A new study from Northwestern Mutual found that 38% of Gen-Zers and 32% of millennials expect to inherit money, or assets, from their parents. However, the study also found that only 22% of boomers expect to even leave an inheritance behind. 

Which is bad news for the kids, as this study also found that 54% of Gen-Z and 59% of millennials said an inheritance is critical to achieving financial security and retiring in comfort. 

35% of boomers said leaving something for their children is “very important”, but only 11% said it is their top financial goal. This poll was conducted with 4,588 adults from the boomer generation. 

“A lot of older people are basically saying, ‘I’ve done my due,’” said Melissa Cox, a certified financial planner in Dallas. “They had to work their tuchus off for what they have. I’ve heard people basically saying, ‘I don’t want your financial plan to be my death.’” 

But on the flip side, “there’s this group of younger people who are sort of aggravated with the boomers -- about how easy the boomers had it,” explained  Monica Dwyer, a certified financial planner in Ohio. 

According to the 2022 Survey of Consumer Finances, the typical senior (for households in the 65-74 age range) with a retirement account had about $200k saved. However, only half of the participants had a retirement account at all. The ones who did not, feared that there will be nothing left following their death. 

The Northwestern Mutual survey also found that only 60% of boomers even have a will, while half didn’t know how much money they would actually need for a comfortable retirement. 

Times are so tough, they’re even affecting the inheritance. But the good news? It could stop people like the Menendez brothers…

More to Know:

🇪🇨 GM closes factory in Ecuador for good.

🧆 10 Restaurant chains filed bankruptcy this year, see who.

Finance

Everyone is Sick of the Pink Tax

A few companies targeting women are starting to feel it.

Lululemon and Ulta Beauty have both lowered their full-year 2024 guidance in their latest earnings results. This was the first time this has happened for Lululemon in two years.

Lululemon reported $2.37 billion in revenue, which was less than the estimates of $2.41 billion. Their stock has decreased by 32% over the past 12 months. 

Meanwhile, Ulta’s earnings saw $2.55 billion in revenue, which was also less than their projection of $2.62 billion. Additionally, their adjusted earnings per share was $5.30, which was also below estimates of $5.50. 

Lululemon’s most popular territory was previously the U.S., however that has taken a hit recently, with brands like Alo Yoga, Fabletics and Kim Kardashian’s Skims closing in. Lululemon suffered a 5% decrease in the company’s total net revenue for the U.S., as China became its most successful country. Many have pointed to the fact that Lululemon seemingly refuses to use celebrity partnerships, unlike their competitors. They tend to focus on those truly in the fitness field, who may be lesser known or have a smaller reach.

Lululemon said it intends to focus on newness and innovation with a target of doubling its revenue from $6.25 billion in 2021 to $12.5 billion in 2026. Maybe this is just a setback.

More Money:

💸 Rupert Murdoch is making moves.

💲 Telegram a low key Crypto company.

Entertainment

Oasis Set to Tour

Campgrounds everywhere are about to be filled with the most amateur version of Wonderwall you’ve ever heard.

How does that old song go? “Today is going to be the day that… Oasis is finally getting back together?” Is that it? Something along those lines… Anyways, famed 90’s band Oasis IS getting back together. For the first time in 15 years.

“This is it, it’s happening,” read the post from the band on social media - providing its fans with all the confirmation they need. Oasis, a band formed in Manchester, England in 1991, provided many big hits throughout the 90’s, as ALL seven of their albums reached number one on the charts in the U.K.

But the band broke up in 2009, after many clashes between brothers Noel and Liam Gallagher (the singer and drummer, respectively). Oasis was supposed to perform at a festival in England in August of 2009, but had to cancel after Liam contracted laryngitis. Noel later stated that Liam wasn’t sick, but was actually just hungover. This led to Liam suing his brother over these remarks.

The band’s next show was also canceled, as Noel had officially quit the band, posting on social media that he “could not go on working with Liam a day longer.” Ugh, family drama, are we right?

But the two, evidently, have finally mended fences. “The guns have fallen silent. The stars have aligned. The great wait is over. Come see. It will not be televised,” stated their press release. Noel also paid some compliments to his brother in an interview last week, ahead of this news. 

The reunion tour will commence in 2025 (on July 4th), with the band playing 14 shows across the U.K. and Ireland, including four at Wembley Stadium. The band is estimated to make $528 million from this tour… which could be a reason why they’re coming back together.

For you Oasis fans, tickets went on sale this past weekend, with hints of possible U.S. shows following this tour. 

The Latest:

📺 DirectTV and Disney in licensing dispute.

🎤 Bill Maher calls out CNN for Harris/Walz interview.