rewrite this title The Daily Breakdown: Nvidia Delivers a Record Quarter

The Daily Breakdown looks at the record quarter from Nvidia, then dives into the charts for PANW and looks at the rebound in crypto.

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What’s Happening?

A number of stocks are moving this morning on earnings, but Nvidia isn’t leading the pack. Despite a record quarter, shares are up only about 1% in pre-market trading.

Nvidia beat fourth-quarter earnings and revenue estimates, while gross margin rebounded to 75.2% — its highest level in six quarters. Management’s first-quarter revenue guide of about $78 billion topped consensus expectations of $72.8 billion, and the company sees full-year gross margins in the mid-70% range — combined, it’s a sign of strong demand and steady pricing power. Analysts’ full-year forecasts are already moving higher, with earnings currently expected to rise about 67% this year alongside roughly 59% revenue growth.

After months of rangebound price action, bulls are wondering if earnings will be enough for Nvidia shares to break out over resistance. For those needing a refresh on Nvidia’s business, our Deep Dive can be found here. 

Crypto Rebound

Bitcoin also ripped higher on Wednesday, up more than 9% at one point before finishing the day up 6.1%. That lift flowed into Bitcoin ETFs like IBIT, while Solana, XRP, Stellar, Dogecoin, and other major cryptocurrencies also surged. For Ethereum’s part, it gained more than 11% and reclaimed the $2,000 level. Now the question is whether bulls can build on the momentum — or if Wednesday was simply a short-term relief rally.

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The Setup — Palo Alto Networks

Cybersecurity stocks like Palo Alto Networks have been swept up in the AI-fueled selloff this year, with the stock down 21% year to date and down 35% from its peak in late October. 

Now though, some investors may be wondering if the stock may be finding support. That’s as it tests down into the $145 area, which has been a support level over the past 18 months. Further, bulls may be looking for an extra support layer from the 200-week moving average. If support fails though, bearish momentum could accelerate and usher in lower prices. 

Options

Traders may opt to just trade a few shares of the common stock — and that’s fine. However, one alternative is spreads. Call spreads and put spreads allow traders to take options trades with a much lower premium than buying the calls outright. In these cases, the maximum risk is the premium paid. 

Options aren’t for everyone — especially in these scenarios — but spreads make them more accessible. For those looking to learn more about options, consider visiting the eToro Academy.

What Wall Street’s Watching

CELH

Shares of Celsius are rallying this morning after the company reported fourth-quarter results. EPS of 26 cents beat estimates of 19 cents, while revenue of $721.6 million more than doubled year over year and topped expectations for $638.7 million. Check out the chart for CELH.

CRM

Salesforce shares are down slightly this morning, even though results came in ahead of expectations. The company reported EPS of $3.81 versus estimates of $3.05, while revenue of $11.2 billion edged past the $11.17 billion consensus. First-quarter earnings and revenue guidance also topped estimates, and management announced a $50 billion share buyback. Still, investors appear focused on full-year guidance, which was mostly in line with expectations. Dig into the fundamentals for CRM.

Disclaimer:

Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.