— Nvidia Revenue Doubles and Stock Hits Record High; US Jobless Claims Hit New Low; Michael Jordan Sells Team Stake; Meta Launches AI Coding Assistant; US National Park Spending Hits Record; T-Mobile to Lay Off 5,000 Corporate Workers; Foot Locker Shares Plunge 30%
1. Nvidia Revenue Doubles and Stock Hits Record High
This Thursday, Nvidia Corp. released its much-anticipated earnings report. Following the release, Nvidia’s stock jumped more than 5%, breaking past $500 per share.
For the fiscal second quarter ending July 30, revenue doubled to $13.5 billion, and earnings per share (EPS) reached $2.70 — far exceeding analyst expectations of $2.07.
The company projected revenue of $16 billion for the quarter ending in October, well above the analyst estimate of $12.5 billion.
Fueled by the rapid rise of artificial intelligence, demand for AI chatbots and other tools has surged. Data centers have been purchasing Nvidia’s processors in bulk to meet computing needs, allowing the company to rebound swiftly from the broader semiconductor slump.
Nvidia also announced plans to repurchase $25 billion worth of stock.
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2. US Jobless Claims Hit New Low
The U.S. Department of Labor reported today that for the week ending August 19, initial jobless claims fell by 10,000 to 230,000 — the lowest in the past three weeks.
On an unadjusted basis, the number of claims dropped to 198,000, the lowest since October 2022. However, claims in Hawaii rose due to wildfires in the region.
The new data once again highlights the strength of the labor market and solid economic momentum. Employers are continuing to hire at a healthy pace, and the wave of mass layoffs seen earlier in the year has eased.
Meanwhile, July orders for production equipment at U.S. factories showed modest growth, indicating a more cautious approach to capital investment.
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3. Michael Jordan Sells Team Stake
According to the Bloomberg Billionaires Index, NBA legend Michael Jordan’s net worth will reach approximately $3.5 billion after selling his stake in the Charlotte Hornets this month.
Bloomberg estimates that Jordan sold 65% of the team while retaining a minority stake of less than 5%.
In recent years, NBA team valuations have surged, and many billionaires have started buying stakes in franchises.
Last year, UWM Holdings CEO Mat Ishbia purchased over 50% of the Phoenix Suns, valuing the team at more than $4 billion.
The 60-year-old Jordan said he will continue to support the team and the Charlotte community in other ways.
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4. Meta Launches AI Coding Assistant
Today, Meta Platforms launched Code Llama, an AI coding assistant aimed at competing with tools from Microsoft, OpenAI, and Google.
Code Llama uses generative AI to offer coding suggestions and enhance developer productivity. The model is currently free for most users and businesses, though Meta stated that large enterprises may be charged a fee.
Last month, Meta also released a commercial version of its large language model. Companies can use Meta’s tools to build chatbots for free, avoiding fees from competitors like OpenAI.
Meta encourages internal use of its in-house chatbot Metamate and plans to release a public version in the coming weeks.
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5. US National Park Spending Hits Record
In February, the National Park Service (NPS) reported 312 million total visitors in 2022, just 5% below pre-pandemic levels.
This week, NPS economists released a new report showing that in 2022, visitors spent a total of $24 billion in parks and within 60 miles of them — breaking previous records set in 2021 and 2019 of $21 billion.
NPS Director Chuck Sams stated that national park tourism can significantly benefit local communities through income and employment, and that every country should prioritize development of national parks.
In 2022, Zion National Park and its surrounding area generated a record $961 million in spending.
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6. T-Mobile to Lay Off 5,000 Corporate Workers
U.S. telecom operator T-Mobile disclosed in a regulatory filing that it will lay off about 7% of its workforce to cut costs amid intensifying market competition.
The 5,000 affected employees are mostly corporate and back-office staff. Retail and customer service representatives will not be impacted.
CEO Mike Sievert wrote in a letter to employees that customer acquisition and retention costs have increased significantly compared to recent quarters.
T-Mobile is likely trying to reduce expenses ahead of year-end promotions and the launch of the new iPhone.
Since 2021, AT&T has also laid off approximately 74,000 employees.
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7. Foot Locker Shares Plunge 30%
Sneaker and apparel retailer Foot Locker warned that worsening theft and declining consumer spending could affect the company’s revenue for the remainder of the year.
On Wednesday, Foot Locker’s stock fell more than 30%, and the company announced it would suspend dividend payouts.
CEO Mary Dillon stated that 2023 revenue has been weaker than expected and noted that lower-income consumers have yet to feel the full effects of macroeconomic challenges.
Due to inflation and high interest rates, the company’s back-to-school season has underperformed, as consumers prioritize essentials and services over discretionary spending.
Following the downgrade of full-year guidance, peer company Nike’s stock also dropped 3%.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.