— Nvidia’s Revenue Triples; US Unemployment Claims Drop Unexpectedly Again; Castle Commodity Trading Profits $4 Billion; AT&T Communication Disruptions; Rivian’s Losses Widen, Stock Drops 26%; Citi Leases Vacant Property for Four Years; US Commercial Real Estate Foreclosure Rates Soar
1. Nvidia’s Revenue Triples
When everyone doubted Nvidia’s (Nvidia) rapid business growth could continue, this Wednesday evening Nvidia once again announced impressive financial results, giving stunning revenue forecasts.
In the last quarter, Nvidia generated $22.1 billion in revenue, more than tripling year-over-year, far exceeding analysts’ expectations. The company expects this quarter’s revenue to reach $24 billion, above the analysts’ average expectation of $21.9 billion.
CEO Jensen Huang stated that accelerated computing and generative AI have reached a “tipping point,” with nearly every global enterprise, industry, and country increasing demand for AI technology.
After the release of the impressive financial results, Nvidia’s stock surged up to 15% after hours, and the company’s market value has increased by $400 billion since the beginning of the year, as investors believe Nvidia remains the biggest beneficiary of the AI computing boom.
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2. US Unemployment Claims Drop Unexpectedly Again
The U.S. Department of Labor released data today showing that for the week ending February 17, initial jobless claims decreased by 12,000 to 201,000.
The new data set a one-month low and suggests that the job market remains strong despite large companies announcing layoffs.
Economists believe the resilient job market will help boost consumer spending expectations this year.
This month, Morgan Stanley and electric vehicle company Rivian have both announced layoffs, and the number of jobless claims may increase in the coming months.
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3. Castle Commodity Trading Profits $4 Billion
Sources revealed that Citadel’s commodity trading division made more than $4 billion in profits in 2023.
Citadel’s flagship fund rose 15.3% last year, and the company returned $7 billion to investors, leading the pack among multi-strategy hedge funds.
Over the past two years, volatility in the oil and gas markets has created great opportunities for traders.
According to LCH Investments, Citadel has earned $74 billion in returns since its inception.
Source：Bloomberg – Citadel Made More Than $4 Billion From Commodities in 2023
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4. AT&T Communication Disruptions
Today, AT&T’s communication network experienced widespread disruptions, with thousands of users unable to receive signals or make calls.
AT&T spokesperson Jim Greer stated that some users faced signal interruptions early today, and the company is working on emergency repairs. Users can temporarily use Wi-Fi for calls.
As a result of the signal disruption, AT&T’s stock dropped up to 3.4%. The company has 87 million wireless subscribers, ranking third in the U.S., behind Verizon and T-Mobile.
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5. Rivian’s Losses Widen, Stock Drops 26%
Electric vehicle company Rivian Automotive released its latest financial results on Wednesday.
In the fourth quarter, Rivian posted a net loss of $1.36 per share, worse than analysts’ expectations, with $1.32 billion in revenue slightly exceeding expectations. The average loss per delivered electric vehicle reached $40,000, which was $10,000 higher than in the third quarter.
Rivian stated that its capital expenditure this year will increase to $17.5 billion, up from $10.3 billion last year. The company plans to produce only 57,000 electric vehicles this year, well below the analysts’ forecast of 80,000. Rivian also announced that it would lay off 10%, marking the third round of layoffs in the past year and a half.
Today, Rivian’s stock plummeted 26%.
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6. Citi Leases Vacant Property for Four Years
Due to the impact of COVID-19, a retail property on the southwest corner of Lexington Avenue and 59th Street in Manhattan has been vacant for more than four years. This street has also been called the coldest street in Manhattan’s coldest area.
The good news is that recently, Citigroup announced it would lease the property and establish a new banking location. Citi will lease one of the three retail spaces, with the other two previously leased by clothing brands Gap and Banana Republic.
However, many properties on the same street and across the road have remained vacant since 2020, and the retail industry in the area has not recovered as quickly as SoHo and Madison Avenue.
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7. US Commercial Real Estate Foreclosure Rates Soar
ccording to the latest report from Attom, in January, 635 commercial real estate properties in the U.S. were foreclosed, 17% higher than the previous month and nearly double the figure from last year.
In May 2020, the number of foreclosed properties reached a historic low, as creditors actively helped borrowers during the pandemic. Now, borrowers face high interest rates and refinancing challenges, while demand for commercial real estate has significantly decreased.
In January, foreclosure rates in California soared by 72% compared to the previous month, nearly tripling from the same month last year.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.