Nvidia Tops $2T and Reddit Files for IPO | Bloomberg Technology

24 Feb 2024 (10 months ago)

NVIDIA

NVIDIA's market value surpassed $2 trillion, making it the latest company to join the exclusive trillion-dollar club.
NVIDIA's challenges in China due to geopolitical tensions have led to a decline in revenue from the region, but the company is adapting by developing products that comply with export laws.
Despite the $2 trillion valuation and concerns about China, Erika takes a long-term view and sees significant growth potential in the AI infrastructure market.

Intuitive Machines successfully landed on the moon, marking the first lunar landing in 50 years.
Intuitive Machines' American-made lander, named Odysseus, successfully touched down on the moon, making it the first private spacecraft to reach the lunar surface intact since the Apollo era.
NASA is working with private companies to reduce the cost of space exploration and is looking to develop commercial landers for future missions.
Intuitive Machines received funding from NASA but also raised capital to support its mission.
The lander carried NASA scientific instruments and commercial customer payloads, with the goal of exploring the moon's south pole and potentially mining water ice.
Other companies involved in lunar missions include Astrobotic, which experienced engine failure during its launch, and Firefly Aerospace, which is partnering with NASA.

Despite strong overall earnings, Warner Bros. reported disappointing results.
Warner Bros. Discovery's fourth-quarter revenue and profits fell short of estimates, with weakness in linear TV.
Warner Bros. streaming business was not profitable for the full year, but losses were lower in the fourth quarter.
Subscriber numbers were better but still significantly behind Netflix and Disney.
Traditional media revenue for Warner Bros. was down double digits due to factors such as strikes and a decline in movie releases.
Warner Bros. released three big movies in December, resulting in increased revenue but decreased profits.
The movie "Aquaman" disappointed at the box office, contributing to superhero fatigue.

Reddit has filed for an IPO despite not being profitable yet.
Reddit is planning to go public, with a valuation of $5 million.
Early shareholders, including the founder, are no longer major investors.
The company has been popular in the secondary market, with demand for liquidity from early shareholders.
Reddit is betting on retail interest in the IPO, with plans to issue shares to 75,000 power users and allowing them to buy into the IPO.
There is a risk factor in Reddit's cozying up with large language model makers, as it could lead to backlash from users and hinder their business.
Analysts are looking at competitors such as Alphabet, Meta, and other social platforms when evaluating Reddit's competition.
Reddit is trying to sell investors on the fact that they can allow advertisers to reach a more niche target audience.
Reddit filed for an IPO, with Sam Altman listed as one of the major shareholders.
Altman led the Series B funding round for Reddit in 2014 and has a close relationship with the company.

Klarna, a richly valued company headed for IPO, is experiencing internal disputes between co-founders and Sequoia partners, leading to a public drama.
Sequoia appointed a new board member to calm the issues, and the CEO had to intervene to smooth things over.

Carvana reported profits past estimates, avoiding headwinds from high-interest rates and inflation, due to a strategic shift towards profitability.
The company's success is attributed to the team's execution of a well-thought-out plan amidst market pressures.
The steep increase in profits and return to unit growth may be partly due to squeezing out some of the shorts, as the company was heavily shorted.
Ernie, the CEO of Carvana, emphasizes the importance of delivering great customer experiences as the key to paying down debt.
Despite a challenging 2022, Carvana's team has made significant progress and is well-positioned for success.
Carvana operates in a mature used car industry, with 40 million used cars transacted annually in the U.S.
The company's strategy involves identifying moments when customers want to switch vehicles and making the process simple and cost-efficient.
Carvana has built a new supply chain and technology-supported capabilities to provide customers with the best price, selection, and experience.
The company grew from a seed in 2013 to its current position by consistently delivering great experiences in a flat market.
Recent tailwinds, such as lower car prices, have benefited Carvana's business.
Carvana's long-term goal is to continue delivering great experiences and capturing market share, while acknowledging that the market will have its own impact.