Diamonds and Dogs

2/9/18

Nvidia (NVDA) keeps shining. The chipmaker is up 3% following much better than expected earnings. The company beat estimates by 40 cents as revenue rose 34% year to $2.91 billion well ahead of estimates. Nvidia also dramatically raised guidance for the first quarter. Nvidia intends to return $1.25 billion to shareholders through ongoing quarterly cash dividends and share repurchases. Plenty of upgrades with price targets of $230, $265, $290, $300, $305 and $100. Wells Fargo thinks Nvidia is only worth $100 a share.

Expedia (EXPE) shareholders are fleeing their vacation website. Expedia is down 16% to a two year low following disappointing earnings and cautious guidance. Expedia missed by 31 cents as revenue came in light as well. Going forward, Expedia is forecasting 2018 selling and marketing costs to outpace revenue growth as it battles rivals for market share. Expedia is more aggressively investing in tech and marketing to scale its global footprint and catch up to industry leader Priceline which currently has approximately 2x the inventory and room nights sold as Expedia.