etorous @etorous: "📣 The Daily Breakdown from..."

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📣 The Daily Breakdown from Bret Kenwell @Bretman, eToro's investment and Options Analyst 🗓️ Wednesday's TLDR — August 28, 2024 👀 All eyes on Nvidia's earnings report after the close. 💳 Visa stock is in focus amid a breakout attempt. 📊 Bitcoin slips lower but bounces from today’s low. ✳️ What's happening? Weighing in with a $3.2 trillion market cap, $NVDA (NVIDIA Corporation) is the second largest company just behind $AAPL (Apple) and just ahead of $MSFT (Microsoft) . And now, it’s set to report earnings tonight. It has a 7.6% weighting in the $NSDQ100, a 6.7% weighting in the $SPX500, and makes up almost 20% of the VanEck Semiconductor ETF $SMH The stock’s post-earnings performance could have a notable impact on the market based on those weightings alone. However, it will have a much more pronounced impact on semiconductor stocks, as Nvidia “sets the tone” for AI names. However, I want you to remember two things. First, Nvidia stock doesn’t always make a big move on earnings. The options market is pricing in a ~9% move by the end of the week — but that doesn’t mean it will happen or tell us which direction the move will be in. Consider this. Here is the one-day performance the day after earnings for the last four quarters: 9.3%, 16.4%, -2.5%, 0.1%. It’s not always a rally for Nvidia, even though the stock is up 174% over the last year. Second, it’s the guidance that will matter more than the results. The expectation is that Nvidia will deliver a strong quarter. The question is, will management deliver guidance that tops analysts’ expectations? If it does, that could be a bullish catalyst. If not, it could trigger some profit-taking. It’s worth noting that a few other big companies report earnings after today’s close. A few of them include $CRM (Salesforce Inc), $CRWD (Crowdstrike Holdings), $OKTA (Okta Inc), $HPQ (Hewlett Packard), and $AFRM (Affirm) ✳️ The setup — $V (Visa) In late July, Visa stock pulled back to key support on earnings, but quickly found its footing and bounced higher. With the recent rally, shares are clearing downtrend resistance, while also regaining all of its key daily moving averages. If Visa can remain above these key measures, bulls will likely look for more upside. (Chart below as of the close on August 28, 2024. Source: eToro ProCharts, courtesy of TradingView.) If Visa stock can stay above the $264 level — thus staying above all of the measures previously mentioned — then bullish traders can make a case for staying long and looking for more upside. However, if the stock breaks below that level — thus falling below many of the measures it worked so hard to regain — then more downside selling could ensue. ✳️ Options For some investors, options could be one alternative to speculate on V. Remember, the risk for options buyers is tied to the premium paid for the option — and losing the premium is the full risk. Bulls can utilize calls or call spreads to speculate on further upside, while bears can use puts or put spreads to speculate on the gains fizzling out and Visa rolling over. 👀 What Wall Street is watching 👀 $BTC Bitcoin dipped below $60,000 in early Wednesday trading amid a broad crypto market pullback, including ETH’s sharp decline. Despite recent inflows into Bitcoin ETFs, concerns — like potential US government sales of seized tokens — weigh heavily, as Bitcoin slipped over 6% at one point. $SMCI (Super Micro Computer, Inc) Super Micro Computer stock dropped nearly 3% yesterday — and fell as much as 8.7% at one point — after short-seller Hindenburg Research accused it of improper accounting, dubious relationships, and export violations. Allegations include revenue manipulation, undisclosed related-party transactions, and increased exports to Russia, violating sanctions. $AMBA (Ambarella Inc) Shares of Ambarella soared 19% in after-hours trading following a top- and bottom-line beat for its Q2 results. Further, strong Q3 revenue guidance between $77 million and $81 million surpassed analysts’ forecast of $69 million. 🔎 📚 Are your investments in line with today's news? Check your portfolio on eToro to make sure you aren't missing any opportunities. 🤑 If you want to upgrade your investing knowledge this summer, make sure to join our eToro Academy Learn & Earn Challenge, where you can take courses, pass quizzes, and earn up to $18 in rewards (T&Cs apply): www.etoro.com/en-us/academy/learn-and-earn/ Disclaimer: Please note that due to market volatility, some of the prices may have already been reached and scenarios played out. Content, research, tools, and stock symbols displayed are for educational purposes only and do not imply a recommendation or solicitation to engage in any specific investment strategy. All investments involve risk, losses may exceed the amount of principal invested, and past performance does not guarantee future results. Options involve risk and are not suitable for all investors. Please review the Characteristics and Risks of Standardized Options (etoro.tw/45gblCj) prior to engaging in options trading.