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Public.com presents the rundown. Your daily market update in 10 minutes. My name is Zaydadmani and today is Thursday, May 21st. In today's episode, we'll break down Nvidia's massive earnings and why the market has gotten numb to it. We'll also tell you what Walmart earnings are saying about the health of the consumer. Then stick around to the end of the show to find out all the interesting stuff from SpaceX's S1 filings. We got a great show for you today. Let's go. The stock market finally broke its three day losing streak yesterday with the S&P 500 jumping 1% while the NASDAQ jumped 1 1/2%. One of the drivers of the rally yesterday was oil. President Trump said the US Is in the final stages of negotiating with Iran and that sent crude prices tumbling yesterday. WTI dropped nearly 6% to $98 a barrel. Now I don't want to get too excited here because we've heard the final stages thing before and things have fallen apart last minute. But look, the market is clearly choosing to be optimistic right now. Even the bond market is relaxing a bit. The 10 year treasury yield eased down yesterday to 4.57%. Now the 10 year treasury yield is still near its highest levels in over a year and the 30 year treasury is sitting near its highest levels in 19 years. So that's going to increase borrowing costs for everyone across the economy. But the big picture takeaway is that the bond market and the stock market are telling two different stories right now and, and they both can't be right forever. So I'm going to continue to keep my eye on bond yields because if they keep climbing, it might be really hard for the stock market rally to continue. So we're going to stay on top of all this stuff. Make sure you guys are subscribed to the podcast and tuning in every day to stay in the loop. Let's run through some headlines, starting with the most important earnings report of the quarter. Nvidia reported earnings last night and once again they totally crushed it. Revenues, profits, guidance, all beating expectations across the board. Revenues in Q Q1 came in at $81.6 billion, which is up 85% from a year ago. So the fact that Nvidia is still nearly doubling revenue at this scale is just wild. And by the way, profits continue to surge. Net income was $58.3 billion, which is more than triple what they made in the same quarter last year. So Nvidia is now making more profit in One quarter than most Fortune 500 companies make in a decade. And look, Nvidia is now returning a lot of that cash back back to shareholders. The company announced an $80 billion share buyback program and they also hiked their dividends from one penny a share up to 25 cents a share. Nvidia says they plan to return 50% of their free cash flow to shareholders this year. Now, looking ahead, Nvidia expects revenues in the current quarter to come in at 91 billion, which beat the average Wall street estimate of $87 billion. So the numbers that Nvidia continues to put up are just insane. And I feel like we've kind of gotten numb to the whole thing. In fact, Nvidia stock has barely moved after the out. In fact, the company stock has barely moved today despite the company totally crushing earnings. Now, I think the one key question about Nvidia is what will happen in China. CEO Jensen Huang told CNBC that Nvidia has largely conceded the Chinese AI chip market to Huawei. Not too long ago, China accounted for a fifth of Nvidia's data center revenue. But now the company is booking $0 in data center revenue from China because the Chinese government has essentially blocked their chips from being imported. And Jensen on the earnings call said to expect nothing on the China front moving forward. So I guess that Jensen's visit to China last week with President Trump didn't make any progress to remove the chip import ban from Beijing. There was a lot of good vibes coming out of that, but no progress seems to have been made. But look, even without China, Nvidia has a lot of demand elsewhere. I mean, just here in the US the hyperscalers here like Amazon, Microsoft, Meta and Google are on Track to spend $725 billion on AI infrastructure this year alone. And a lot of that money will likely go towards buying Nvidia's chips. And you know, despite the rising competition from AMD and Google's TPUs and Amazon's Trainium chips, Nvidia's earnings showed that they are still the king of AI. Let's shift gears and talk about another trillion dollar company that reported earnings. Walmart earnings were a mixed bag. Revenues did beat estimates coming in at $177.8 billion, which is up 7% year over year. U.S. same store sales grew 4.1%, E commerce surged 26% and advertising revenue jumped 37%. Walmart said they continue to gain share across all income levels, including higher income shoppers who are trading down for value. I think it also Helps that Walmart plus is a pretty awesome delivery service, which is what I use all the time. But while the top line numbers were good, Walmart stock is down this morning because their earnings forecast for this quarter came in a bit soft. A big reason for that is gas prices. In fact, Walmart CFO said the company ate a $175 million hit from higher fuel costs in Q1 and he expects that number to be even bigger next quarter if oil prices stay where they are now. Walmart said they're choosing to absorb those costs now instead of passing them along to shoppers, which is great for consumers, but it is squeezing Walmart's margins. And I wonder how much longer Walmart's going to be okay with taking a hit to their margins. You know, investors look to Walmart to get a gauge of the overall health of the consumer. And from these earnings, Walmart is kind of forecasting that consumers might be in for a rough stretch, especially if gas prices stay elevated. So it's definitely something to keep an eye on. Walmart stock is down around 2% this morning at the time of this recording. But the stock has gone up 15 this year and over 35% over the last 12 months. Let's talk about some stocks making moves today. Shares of Elf Beauty are popping this morning after the cosmetics company beat on earnings and made a pretty interesting move when it comes to pricing. As for the earnings, ELF reported revenues of $449 million, up 35 year over year and well above Wall street estimates. Adjusted earnings also came in ahead of expectations. And they also said something that you don't see most companies do. Elf said they are planning to roll back some of the tariff Dr. They put in place last year. CEO Taran Amin said that consumers are suffering right now, especially with higher gas prices. So ELF is hoping that a price cut will bring back more shoppers. In fact, they tested this by doing a four dollar price cut on the Halo Glow skin tint. And they saw nearly a 40% jump in sales. So now their plan is to test more price reductions across their product line. Now, typically investors don't like price cuts because it hurts profit margins. But ELF's gross margins are at 73, which is higher than expected. Plus the company is expecting to get a 55 million DOL tariff refund. So investors like the direction that ELF is going. Shares are up around 10 this morning at the time of this recording. Now to be fair, the stock is down around 35 since the start of the year and down more than 70 from its peak back in 2024. Let's keep it moving and talk about Intuit. Their stock is getting hammered this morning after reporting earnings and also announcing a 17 reduction of their workforce, which is about 3, 000 jobs. You know, Intuit makes tax software like TurboTax and QuickBooks and they actually did better. Beat on earnings expectations and raised their full year guidance. Revenues were up 10 to $8.6 billion and adjusted earnings per share came in at 12.80. But the stock is still down this morning because a 10 revenue growth is actually the slowest that Intuit has posted since 2024. So when you combine decelerating growth with layoffs, that's enough to spook investors. And Intuit stock is down around 10% in pre market trading. And if you zoom out, the stock is down more than 50 40% for the year as part of the overall software selloff. Now what's interesting is that CEO Sazan Gadarzi straight up said that this is not an AI related layoff that they're doing and that Intuit just had too much bloat. In fact, he called out the rest of the tech industry saying that they completely overuse AI as an excuse to downsize their companies. But even if Intuit CEO is saying that the layoffs are not about AI, the market is clearly pricing in the risk that AI could disrupt into its business model. And I'm not going to lie, I actually know some people that just straight up use Claude to do their taxes this year instead of using TurboTax. So the threat is real. In general, I think that AI is going to be a good thing for these software companies. But some companies like Intuit, they actually might get cooked. Let's wrap the show with a fun fact. SpaceX officially dropped their S1 filing yesterday as part of their IPO process. And we finally got a peek of the finance of this company and there's a lot to unpack here. What immediately stood out to me was that SpaceX lost 4.9 billion billion last year on $18.7 billion in revenue. Now in 2024, they did make a profit, but it was only $791 million. And keep in mind, this company is planning to IPO at a 1.5 trillion dollar valuation. And look, the losses are only piling up. In just the first quarter of this year. They've already lost $4.3 billion. Now a big reason for the cash burn this year has been the XAI merger. Oh, and speaking of xai, it seems like they've turned into a full on NEO cloud company. The S1 showed that Anthropic is paying Xai $1.25 billion a month to rent data center capacity from their Colossus data center in Memphis, and the S1 identified data centers in space as a potential opportunity as well. Now, speaking of the space business, that seems to be doing pretty good. SpaceX is doing by far the most rocket launches of any private space company, and Starlink seems to be the most promising business segment within SpaceX. Starlink brought in $11.4 billion in revenue last year, and consumer subscriptions grew 44% in Q1. So that's pretty solid growth. But again, what concerns me is that overall revenue growth for SpaceX was only 15% in Q1. So I'm not going to lie, I don't really understand the $1.5 trillion valuation here. I mean, this company would be trading at nearly 100x sales, which is kind of crazy. Anyways, I'll do a full deep dive into the S1 over the next few days. The whole S1 is like over 250 pages, so we'll probably do a Deep Dive episode not this weekend, but the following weekend. In fact, since this weekend is a long weekend, with the market close on Monday for Memorial Day, we're actually going to take a much needed break from the deep dive. But we'll be back the following weekend, so definitely keep an eye out for that. Well all right guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did and you have like five extra seconds, consider giving us a five star rating on Apple, Spotify, YouTube, wherever you listen to your podcasts. You know, all that engagement really does help us out and it helps other people find the show. Thank you guys so much for listening, watching and commenting. Shout out to Mike for all the work behind the scenes and we'll see you guys back here tomorrow.