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Good, But Not Enough: If it’s possible to feel sorry for a company with a market value of more than $90 billion, then you could feel sorry for Nvidia.
On Friday, Nvidia shares fell 5.3 percent to close at $155.96. Taking a beating like that would be enough for Nvidia to gather some sympathy, but when you look at what Nvidia did to deserve that whipping, you might wonder what the chipmaker would have to do to get in the good graces of investors.
Late Thursday, Nvidia reported second-quarter earnings, excluding one-time items, of $1.01 a share, on revenue of $2.23 billion. Earnings were up by 91 percent, and sales rose 56 percent from the same period a year ago. And those results were also better than Wall Street analysts’ forecasts for a profit of 81 cents a share, on $1.96 billion in sales.
Nvidia also said it expects third-quarter sales to be $2.35 billion “plus or minus 2 percent.” And that was better than prior analysts’ estimates of $2.14 billion in revenue.
But, what hit Nvidia was a part of its business that has been a big source of sales and opportunity of late: data-center revenue.
Sales from data-center sources, which include Nvidia’s Tesla processors, reached $416 million, which was 175 percent higher than the same period a year ago. However, Nvidia might be a victim of its own success, as those sales rose just 2 percent from the first quarter of the year, and Wall Street had forecast the company to report $423 million in data-center sales for the period that ended June 30. Part of Nvidia’s data-center sales issues were the result of delays in the delivery of its new Tesla-branded chips, and customers simply holding off on planned purchases until they knew the products were on the way.
Well, maybe you shouldn’t feel too bad about Nvidia today. Even with the day’s losses, Nvidia shares are up more than 46 percent since the end of 2016. You can’t blame investors for wanting to cash out and get something for their patience.
SoundCloud Is Saved: It was Zero Hour. The clock was striking midnight. The fat lady was warming up her voice and getting ready to sing. The end was nigh for SoundCloud. But, at seemingly the last minute, the music and audio platform nailed down the new financing it needed to survive. And as part of that deal, SoundCloud Chief Executive Alex Ljung is stepping down and being replaced by former Vimeo CEO Kerry Trainor.
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Was There a Reserve Price?: You can bet that being used by a terrorist group to transfer money into the United States was never part of eBay’s business plan, or something the e-commerce giant hoped to be involved in. But, the FBI says a recent investigation found that ISIS managed to use eBay as a method for transferring money into the U.S. in order to possibly provide the funding necessary for domestic terrorist actions.
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