This Week in Earnings: Nvidia in Overbought Territory, Headwinds Mount for Rivian

 | Feb 23, 2024 08:57AM ET

  • Nvidia: Shares jumped after Q4 earnings beat expectations, driven by strong AI chip demand, with projections exceeding estimates despite challenges in China.
  • Walmart: Posted better-than-expected Q4 earnings and hiked dividends.
  • Rivian: Shares fell 25% due to a Q4 earnings miss, reduced production forecasts, and job cuts, reflecting challenges in the electric vehicle market.

    • In this week's earnings recap, we delve into the latest quarterly reports from four industry giants Nvidia (NASDAQ:NVDA), Walmart (NYSE:WMT), Rivian Automotive (NASDAQ:RIVN), and Booking Holdings (NASDAQ:BKNG).

    Nvidia: Stock Wanders Into Overbought Territory/h2

    Nvidia stock soared over 16% on Thursday following the announcement of its Q4 results and outlook, which surpassed expectations, fueled by the ongoing demand for AI-driven chips.

    CEO Jensen Huang highlighted the growing excitement around artificial intelligence, which has significantly increased Nvidia's market value over the last year. He said:

    "Demand is surging worldwide across companies, industries, and nations,"

    Year-to-date, Nvidia's stock has seen an impressive rise of over 58%, with a 239% increase throughout 2023, with the company consistently beating Wall Street predictions for five consecutive quarters.

    Source: Investing.com

    Rivian: Challenges Mount for the Automaker
    /h2

    Rivian Automotive (NASDAQ:RIVN) shares plunged over 25% on Thursday following its Q4 EPS miss, job cuts announcement, and lowered production forecasts, highlighting the diminishing demand for electric vehicles.

    The electric vehicle manufacturer reported Q4 EPS of ($1.36), below the analyst prediction of ($1.35), with revenues reaching $1.32 billion, surpassing the expected $1.28 billion.

    Throughout Q4, Rivian produced 17,541 and delivered 13,972 vehicles in Q4/23.

    Faced with economic and geopolitical challenges, including the effects of record-high interest rates, Rivian adjusted its 2024 production outlook.

    The company now anticipates producing 57,000 vehicles in the coming year, falling short of the anticipated 66,000 by analysts.

    Furthermore, Rivian announced a plan to reduce its salaried workforce by approximately 10% as part of its response to these challenging market conditions.

    Booking Holdings: Stock Down Pre-Market on Earnings Miss/h2

    Booking Holdings (NASDAQ:BKNG) experienced an over 8% decrease in its share price during pre-market trading on Friday, following the announcement of its EBITDA and bookings outlook that failed to meet market expectations, despite delivering stronger-than-anticipated results for Q4.

    For Q4, the company reported an EPS of $32, exceeding the analysts' forecast of $29.66.

    Additionally, its revenue reached $4.8 billion, surpassing the expected $4.71 billion. The company's gross travel bookings for the quarter amounted to $31.7 billion, representing a 16% increase from the same quarter the previous year.

    Looking forward to Q1/24, Booking anticipates revenue growth to fall between 11% and 13%, with gross bookings expected to increase by 5% to 7%.

    The company's adjusted EBITDA is projected to be in the range of $680 million to $720 million, indicating a 19% growth year-over-year and a 1 percentage point increase in EBITDA margin.

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