00:00 Speaker A
Now time for some of today’s trending tickers. We’re watching Nvidia, Block, and Reddit. First up, shares of Nvidia are up over 2% as the information reports it plans to tweak its chips for export to China as US chip curbs are set to go into effect. Additionally, Nvidia getting a boost as Amazon’s capital expenditures for the first quarter just over $27 billion, uh putting it on pace to hit its $100 billion um company executives citing Amazon’s plans to grow capacity for AI infrastructure. So some of the tie-in and these partnerships as well for Nvidia, which have become headlines in themselves, any type of the purchase orders or ultimate data center moves that could help out Nvidia in moving its chips into some of those data centers as well. Also, of course, a few weeks back and now, once again, announced at a lecture in the White House, Nvidia planning to produce up to half a trillion dollars worth of AI infrastructure in the United States. Those partnerships going to be with the likes of TSMC, Foxconn, Westron, Amcore, and more.
02:12 Speaker B
Yeah, this is something that we were talking to Kevin Man about yesterday, the idea that as these hyperscalars announced continued AI CAPEX, who does it benefit? Of course, Nvidia, but also some other AI names. I do want to double click on this information piece, Nvidia working on China tailored chips after the US export ban. We know that CEO Jensen Huang was at the White House this week according to reports, imploring the president to reconsider chip export controls because those obviously put a strain on the business and there has been some other reporting about the idea that Nvidia may be even willing to spin off part of its China business to get around those export controls. Of course, off the back of this reporting of China tailored chips, uh the stock is moving to the upside. Next up, block shares sliding after the company cut its full-year profit outlook citing an uncertain environment and lower consumer spending. The payment processor also missing Wall Street’s expectations for the first quarter on the top and bottom lines. Block reporting softer cash app profit growth than expected with lower discretionary spend in the most recent quarter. The shares still down nearly 20% in the pre-market here, just a huge slide for the company.
04:03 Speaker A
Yeah, a few of the takeaways here, especially as the revenue had hit $5.77 billion, that was below the forecast. And then additionally gross profit, that was still up 9% year-over-year. A few of the things that the company was talking about on the earnings call and really did need to address some of the macroeconomic pressures and what that would mean for consumer spending. Of course, remember, block parent company of Square here, formally Square, they are formally known as essentially. And if you did see any change, severe change over an extended period of time in volumes, that also impacts the percentage that block essentially has in its own servicing and processing fees as well through those transactions. Uh but ultimately on the earnings call, they did talk about making sure that uh over this time in some of their estimates for GPV growth for the month of April, actual April results, they could differ from their estimates, not be reflective of performance for the full second quarter. So it’s even making some of the forecasts net net a little bit more murky right now.
05:46 Speaker B
Absolutely.
05:49 Speaker A
And then finally here, let’s talk a little Reddit, continuing gains after swinging to a profit in the most recent quarter. In addition to earning 13 cents a share in the first quarter, Reddit also reported a 31% gain in daily active users and a 61% increase in advertising revenue. Reddit issuing strong guidance for the second quarter, expecting continued gains and revenue between 410 and $430 million shares higher pre-market by three point uh 3.6% right now.
06:43 Speaker B
Yeah, it’s it’s a beat across the board. I’m taking a look at the note from Laura Needham, who we’re going to talk to in a minute here about some of these results, but calling it a strong first quarter of 2025, raising the estimate and the price target for the stock, talking about that 61% year-on-year revenue growth. As you mentioned, Brad, add revenue up 61% year over year. Also taking a look at logged in users up 23%, daily active users up 31%. Huge beats across the board. And this, of course, coming from a company that was very successful post IPO, did have a tiny little weakness. I believe last quarter here and now seeing that recovery to the upside uh in an environment where not everybody is winning when it comes to ad revenue on the internet right now. And you can scan the QR code to track the best and worst performing stocks with Yahoo finances trending ticker page.
