Wall Street is digesting a slew of economic data Thursday following updates on pending home sales, jobless claims and fourth quarter GDP estimates. Here's a look at the data and how the <a href="https://www.benzinga.com/news/econ-s/25/02/44007082/q4-gdp-holds-at-2-3-after-minor-revision-in-second-estimate">markets are reacting. </a>



GDP: The second estimate released Thursday by the U.S. Bureau of Economic Analysis revised fourth quarter 2024 real GDP up by less than 0.1 percentage point, due mainly to higher-than-expected increases in government spending and exports. 



There were signs of rising inflation in the GDP data, including upward revisions to price indexes closely monitored by the Federal Reserve.&nbsp;



The personal consumption expenditures price index for the quarter indicated a 2.4% gain, revised up 0.1 percentage point, and a 2.7% gain, revised up 0.2 percentage points, when excluding food and energy.



Read Next:<a href="https://www.benzinga.com/news/econ-s/25/02/43977811/mortgage-rates-drop-to-lowest-levels-since-december-but-housing-market-remains-largely-stuck"> Mortgage Rates Drop To Lowest Levels Since December, But Housing Market Remains &#8216;Largely Stuck&#8217;&nbsp;</a>



The revisions come as President Donald Trump promises <a href="https://www.benzinga.com/news/global/25/02/44010093/trumps-plan-for-canada-mexico-china-tariffs-to-start-march-4-could-shake-stock-market">heavier tariffs</a> on a variety of trade partners, fueling fears that the policies could lead to lower growth and higher inflation.&nbsp;



&#8220;The immediate policy changes from the new administration (immigration enforcement and tariffs) are likely to weigh on growth while providing little relief on inflation,&#8221; Morgan Stanley analyst Mike Wilson wrote in a note to clients on Monday, as <a href="https://finance.yahoo.com/news/gdp-us-economy-grows-at-23-annualized-pace-in-fourth-quarter-matching-estimates-133216310.html">reported by</a> Yahoo Finance.&nbsp;



Jobless Claims: Thursday's data also showed initial jobless claims rose by 22,000 from the previous week to 242,000, the most in over two months and above market expectations of 221,000, indicating further softening of the job market.&nbsp;



However, recurring jobless claims dipped by 5,000 to 1,862,000 in the second week of February, below market expectations of 1,870,000, as tracked by Trading Economics.&nbsp;



"This report showed a healthy gain, but not the first ripples of what likely will be a major wave of unemployment claims, both from layoffs in the federal workforce and at companies such as Starbucks and Southwest," wrote Robert Frick, corporate economist at Navy Federal Credit Union, <a href="https://www.cnbc.com/2025/02/27/weekly-jobless-claims-jump-to-242000-more-than-expected-in-latest-sign-of-economic-softening.html">per</a> CNBC.&nbsp;



Pending Home Sales: Pending home sales fell 4.6% in January 2025 to the lowest level on record as mortgage rates held above 7% for the entire month.&nbsp;



&#8220;It is unclear if the coldest January in 25 years contributed to fewer buyers in the market, and if so, expect greater sales activity in upcoming months. However, it&#8217;s evident that elevated home prices and higher mortgage rates strained affordability," NAR Chief Economist Lawrence Yun said.&nbsp;



Markets React: The three major U.S. indices are mixed on Thursday with the Dow Jones trading higher and the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), tracking the S&amp;P 500, down 0.15% at $593.53. The Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), tracking the Nasdaq 100 index, was down 0.79% at $510.52 at the time of publication Thursday. 



Read Next:



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<li><a href="https://www.benzinga.com/government/regulations/25/02/43903335/financial-crime-weekly-1-4-billion-ethereum-stolen-in-largest-crypto-hack-ever-sec-creates-cyber-and-emerging-technologies-unit">Financial Crime Weekly: $1.4 Billion Ethereum Stolen In Largest Crypto Hack Ever, SEC Creates Cyber And Emerging Technologies Unit</a></li>
</ul>



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Pending Home Sales Crash To Record Low, Jobless Claims Soar: Wall Street Reacts

NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) analysts see strong Blackwell demand and improved guidance, brushing off several concerns for the semiconductor company after its <a href="https://www.benzinga.com/news/earnings/25/02/43991607/nvidia-q4-earnings-highlights-revenue-beat-eps-beat-demand-for-blackwell-is-amazing">fourth-quarter financial results.</a>



The Nvidia Analysts: 



<ul>
<li>JPMorgan analyst Harlan Sur reiterated an Overweight rating on Nvidia with a $170 price target.</li>



<li>Rosenblatt analyst Kevin Cassidy reiterated a Buy rating with a $220 price target.</li>



<li>Needham analyst Quinn Bolton maintained a Buy rating with a $160 price target.</li>



<li>KeyBanc analyst John Vinh maintained an Overweight rating with a $190 price target.</li>
</ul>



JPMorgan on NVDA: Fourth quarter financials reflected solid results with guidance showing continued demand that outstrips supply, Sur said in a new investor note.



The analyst said Blackwell shipments are expected to ramp higher through the year based on management commentary.



"Demand for Blackwell is very strong and will continue to outstrip supply for several quarters. We believe the team did a good job on addressing AI model innovations like DeepSeek," Sur said.



Sur said Nvidia did a good job executing across all segments. The analyst said the first half of the year is typically seasonally weaker than the second half, but strong demand for PC gaming, data center and automotive could offset seasonal weakness.



"We anticipate significant upside in the shares, driving our Overweight rating."



Read Also: <a href="https://www.benzinga.com/24/11/41888032/nvidia-ceo-jensen-huang-said-nvidia-has-no-long-term-strategy-how-this-philosophy-is-similar-to-his-reason-to-not-wear-a-watch">Nvidia CEO Jensen Huang Doesn&#8217;t Wear A Watch After A Gardner Taught Him The Secret Of Time</a>



Rosenblatt on NVDA: The semiconductor company reported a strong beat and raise in the fourth quarter, Cassidy said in a new investor note.



The analyst said the improved guidance comes with better-than-expected Blackwell shipments of $11 billion versus prior guidance of "several billion."



"While investors may nitpick the magnitude of the beat, gross margin pressure, and temporary Networking weakness, we view these as near-term fluctuations," Cassidy said.



The analyst said GTC in mid-March now serves as the next catalyst for Nvidia stock.



"We anticipate updates on NVIDIA's technology roadmap and new AI inference use cases to drive further excitement."



Cassidy said non-GAAP gross margins of 73.5% were in line with estimates, and the decline comes as the company transitions to higher-cost systems within the Data Center business segment.



The analyst raised estimates for revenue and earnings per share for the first quarter, fiscal 2026 and fiscal 2027 after the financial results.



Needham on NVDA: Blackwell is ramping at a record pace and could push aside supply chain noise, Bolton said in a new investor note.



"Initial Blackwell revenue is well above expectations," Bolton said.



The analyst said the strong Blackwell demand comes a quarter after overheating rumors and on the heels of DeepSeek concerns for the sector.



"We aren't surprised to see supply chain impacts, which are coming across better than feared in our view."



Bolton said Nvidia stock is a buy, thanks to its attractive valuation and favorable risk/reward profile.



KeyBanc on NVDA: Fourth quarter results and guidance were solid for Nvidia, Vinh said in a new investor note.



The analyst said Nvidia brushed off concerns from DeepSeek during the quarter. Management said DeepSeek could be a net positive for the demand side with learning demand for compute higher than pre-training.



"Given recently released earnings and guidance, we're encouraged by these results and are fine-tuning ests." Vinh said.



Vinh noted that Nvidia has sought to diversify with growth in high-performance computing, automotive and data center, segments that "should drive meaningful growth over the next few years.



"We see limited competitive risks and expect NVDA to continue to dominate one of the fastest growing workloads in cloud and enterprise."



NVDA Price Action: Nvidia stock is down 4% to $126.00 on Thursday versus a 52-week trading range of $75.61 to $153.13. Nvidia stock is down 8.7% year-to-date in 2025 with shares up 60.5% over the last year.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/news/management/24/10/41294313/does-jensen-huang-check-nvidia-stock-price-daily">Does Jensen Huang Check Nvidia Stock Price Daily?</a></li>
</ul>



Photo: Evolf/Shutterstock.com

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Nvidia Analyst Sees 'Significant Upside' For Stock With Favorable Risk/Reward

President Donald Trump's plan to place tariffs on Mexico and Canada and a higher tariff on China will take place on March 4, a move that could impact multiple sectors and cause worry <a href="https://www.benzinga.com/news/global/25/02/43442219/why-beer-tequila-avocados-cars-iphone-prices-could-rise-trumps-tariffs-on-canada-mexico-china-to-hurt-several-sectors">for American consumers.</a>



 What Happened: Trump's <a href="https://www.benzinga.com/markets/25/02/43965690/trumps-proposed-tariffs-could-deal-12-billion-blow-to-us-restaurants-industry-warns">proposed tariffs </a>on Canada and Mexico were paused on Feb. 3 for one month after agreements were reached with both nations over border security controls and efforts to improve trade relations.



Those pauses are now set to be lifted with Trump saying the 25% tariffs on Mexico and Canada will go into effect on March 4, with China to get an additional 10% tariff on March 4 as well.



Trump had <a href="https://www.benzinga.com/news/global/25/02/43926015/trump-confirms-tariffs-on-canada-mexico-will-take-effect-as-planned">said earlier this week</a> that the tariffs were still planned to go into effect, an item he confirmed in a Truth Social <a href="https://truthsocial.com/@realDonaldTrump/posts/114076153524132682">post </a>Thursday morning.



"Drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels. A large percentage of these Drugs, much of them in the form of Fentanyl, are made in, and supplied by, China," Trump said in his post.



The president alleges that more than 100,000 people died last year due to these drugs, with millions dying in the last two decades.



"We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled. China will likewise be charged and additional 10% Tariff on that date," he wrote.



Trump also said the April Second Reciprocal Tariff date will remain in "full force and effect," which follows a study being done on trade balances with countries worldwide.



Read Also: <a href="https://www.benzinga.com/news/global/25/02/43795579/warren-buffett-unfazed-by-trumps-tariff-threats-oracle-of-omaha-bets-on-mexico-beer">Warren Buffett Unfazed By Trump&#8217;s Tariff Threats: Oracle Of Omaha Bets On Mexico, Beer</a>



Why It's Important: Tariffs on Mexico, Canada and China are expected to impact numerous sectors in the U.S., including automotive, food and beverage, beer and spirits, oil and consumer goods.



Benzinga <a href="https://www.benzinga.com/trading-ideas/25/02/43827291/exclusive-will-trumps-tariffs-hurt-or-help-stock-market-59-say-this">recently asked</a> if the tariffs could impact stock market indexes like the S&amp;P 500, which is tracked by the&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).



&#8220;How will Trump&#8217;s tariffs affect the stock market?&#8221; Benzinga asked.



The results were:



<ul>
<li>Weigh down: 59%</li>



<li>Push higher: 23%</li>



<li>No real impact: 19%</li>
</ul>



The majority of respondents said Trump&#8217;s tariffs will send the stock market lower. The remaining voters were split nearly even between the stock market going higher as the result of tariffs or the tariffs not having a real impact on stock market returns.



Price Action: After initially trading down in premarket, stock indexes have turned positive Thursday. A strong<a href="https://www.benzinga.com/news/earnings/25/02/43991607/nvidia-q4-earnings-highlights-revenue-beat-eps-beat-demand-for-blackwell-is-amazing"> earnings report from</a> NVIDIA Corporation Wednesday and the stock trading higher Thursday could be offsetting tariff concerns.



The SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) is up 0.2% to $435.03 on Thursday versus a 52-week trading range of $376.15 to $451.54.



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is up 0.4% to $591.11 on Thursday versus a 52-week trading range of $493.86 to $613.23.



Country themed ETFs of the three nations to be hit with tariffs were down on Thursday.



iShares MSCI Mexico ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWW#NYSE">EWW</a>) is down 0.3% to $51.33 Thursday versus a 52-week trading range of $46.43 to $71.11.



iShares MSCI Canada ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWC#NYSE">EWC</a>) is down 0.5% to $41.22 Thursday versus a 52-week trading range of $35.74 to $43.33.



iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) is down 0.3% to $55.22 Thursday versus a 52-week trading range of $38.40 to $59.78.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/01/43041374/exclusive-how-high-will-sp-500-go-under-donald-trump-in-2025-readers-are-optimistic-26-say-this">EXCLUSIVE: How High Will S&amp;P 500 Go Under Donald Trump In 2025? Readers Are Optimistic, 26% Say This…</a></li>
</ul>



Photo: Shutterstock

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Trump's Plan For Canada, Mexico, China Tariffs To Start March 4 Could Shake Stock Market

NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shares are moving lower Thursday. The stock is reversing amid a possible trader selloff after<a href="https://www.benzinga.com/markets/equities/25/02/43999126/nvidias-q4-revenue-surges-to-393b-nearly-8x-higher-than-five-years-ago-analysts-debate-stocks-next-move"> reporting fourth-quarter financial results</a>.



What To Know: Nvidia posted record revenue of $39.3 billion for the fourth quarter, surpassing the consensus estimate of $38.05 billion, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>. The company&#8217;s top-line results were up 78% year-over-year and 12% sequentially.



Earnings per share came in at 89 cents, versus analyst estimates of 84 cents per share. Nvidia reported 82% earnings growth on a year-over-year basis.



Nvidia's data center segment led the strong growth, generating $35.6 billion in revenue, up 93% year-over-year. Automotive revenue more than doubled to $570 million, while the gaming and AI PC segment saw a decline, reporting $2.5 billion in revenue, down 11% from the prior year.



The company's full fiscal-year revenue reached $130.5 billion, marking a 114% increase year-over-year and setting a new company record.



&#8220;We&#8217;ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter. AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries,&#8221; said Jensen Huang, founder and CEO of Nvidia.



See Also: <a href="https://www.benzinga.com/news/global/25/02/44010093/trumps-plan-for-canada-mexico-china-tariffs-to-start-march-4-could-shake-stock-market">Trump&#8217;s Plan For Canada, Mexico, China Tariffs To Start March 4 Could Shake Stock Market</a>



Looking ahead, Nvidia provided first-quarter revenue guidance of $43 billion, plus or minus 2%, versus estimates of $41.75 billion. The company also expects non-GAAP gross margins to reach 71%.



Following Nvidia's quarterly results, several analysts raised price targets. 



Truist Securities increased its target from $204 to $205 while maintaining a <a href="https://www.benzinga.com/analyst-stock-ratings">Buy rating</a>. Morgan Stanley raised its target from $152 to $162 with an Overweight rating. BofA Securities lifted its target from $190 to $200 while maintaining a Buy stance. Needham reiterated its Buy rating with a $160 price target and Rosenblatt maintained a Buy and price target of $220.



NVDA Price Action: Despite the positive financial performance and upward price target revisions, Nvidia shares are under pressure on Thursday. Although the stock traded above $135 in early trading, it was down 3.18% at $127.09 at the time of publication, according to <a href="https://pro.benzinga.com/dashboard?new_user=False&amp;backend=google-oauth2">Benzinga Pro.</a>



<figure class="wp-block-image size-large is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent022725&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="521" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27100656/Screenshot-2025-02-27-at-10.06.27-1024x521.png" alt="" class="wp-image-801775" style="width:535px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27100656/Screenshot-2025-02-27-at-10.06.27-1024x521.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27100656/Screenshot-2025-02-27-at-10.06.27-300x153.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27100656/Screenshot-2025-02-27-at-10.06.27-768x391.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27100656/Screenshot-2025-02-27-at-10.06.27-1536x782.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27100656/Screenshot-2025-02-27-at-10.06.27.png 1550w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/news/econ-s/25/02/44007082/q4-gdp-holds-at-2-3-after-minor-revision-in-second-estimate">Q4 GDP Holds At 2.3% After Minor Revision In Second Estimate</a></li>
</ul>



Image via Shutterstock.

Nvidia Shares Dip Despite Strong Q4 Earnings Beat, Record Revenue: What's Going On?

The second estimate released Thursday by the U.S. Bureau of Economic Analysis revised the real GDP up by less than 0.1 percentage point from the previous month&#8217;s advance estimate. The U.S. economy experienced a slowdown in growth during the fourth quarter of 2024, with real GDP increasing at an annual rate of 2.3%, down from 3.1%<a href="https://www.benzinga.com/news/25/01/42934513/job-growth-fed-jitters-and-rising-mortgage-rates-this-week-in-economics"> in the third quarter.&nbsp;</a>



The slight upward revision was <a href="https://www.bea.gov/index.php/news/2025/gross-domestic-product-4th-quarter-and-year-2024-second-estimate">due mainly</a> to higher-than-expected increases in government spending and exports, which were partially balanced by lower-than-expected adjustments in consumer spending and investment.



Read Next:<a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/43949800/tesla-competes-against-chinese-rivals-with-one-hand-tied-behind-its-back-analyst"> </a><a href="https://www.benzinga.com/news/econ-s/25/02/43977811/mortgage-rates-drop-to-lowest-levels-since-december-but-housing-market-remains-largely-stuck">Mortgage Rates Drop To Lowest Levels Since December, But Housing Market Remains &#8216;Largely Stuck&#8217;&nbsp;</a>



<h2 class="wp-block-heading">Q4 2024 GDP Key Points:</h2>



<ul>
<li>The price index for gross domestic purchases increased 2.3% in the fourth quarter, revised up 0.1 percentage point from the previous estimate. </li>



<li>The personal consumption expenditures (PCE) price index increased 2.4%, revised up 0.1 percentage point. </li>



<li>Excluding food and energy prices, the PCE price index increased 2.7%, revised up 0.2 percentage point.</li>
</ul>



<h2 class="wp-block-heading">2024 GDP Key Points:&nbsp;</h2>



<ul>
<li>Real GDP increased 2.8% in 2024 (from the 2023 annual level to the 2024 annual level), as previously estimated.&nbsp;</li>



<li>The increase in real GDP in 2024 reflected increases in consumer spending, investment, government spending and exports.</li>



<li>The price index for gross domestic purchases increased 2.4% in 2024, revised up 0.1 percentage point. </li>



<li>The PCE price index increased 2.5%, as previously estimated.&nbsp;</li>



<li>Excluding food and energy prices, the PCE price index rose 2.8%, also as previously estimated.&nbsp;</li>
</ul>



<h3 class="wp-block-heading">Market Reactions</h3>



Futures on U.S. equity indices are moving higher in Thursday's premarket session. Contracts on the blue-chip index were 0.16% higher at 8:50 a.m. in New York.&nbsp;



S&amp;P 500 futures were 0.57% higher, after the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) closed 0.05% higher on Wednesday.



The benchmark 10-year yield rose to 4.286%. Gold, as tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), fell 1% to $266.32.&nbsp;



Read Next:<a href="https://www.benzinga.com/government/regulations/25/02/43903335/financial-crime-weekly-1-4-billion-ethereum-stolen-in-largest-crypto-hack-ever-sec-creates-cyber-and-emerging-technologies-unit">&nbsp;</a>



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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/43949800/tesla-competes-against-chinese-rivals-with-one-hand-tied-behind-its-back-analyst">&nbsp;Tesla Competes Against Chinese Rivals &#8216;With One Hand Tied Behind Its Back&#8217;: Analyst</a></li>
</ul>



Image: Shutterstock

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Futures

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Q4 GDP Holds At 2.3% After Minor Revision In Second Estimate

On Thursday, Warner Bros. Discovery, Inc&nbsp;(NASDAQ:&nbsp;WBD) reported a <a target="_blank" href="https://www.benzinga.com/topic/movie-stocks" rel="noreferrer noopener">fiscal fourth-quarter revenue</a> decline of 1% ex-FX year-on-year to $10.03 billion, marginally missing the&nbsp;analyst consensus estimate of&nbsp;$10.19 billion.&nbsp;



The EPS loss of 20 cents missed the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus estimate of a 5 cent gain. The net</a> loss was $494 million, widened from a loss of 400 million year over year.



Also Read: <a target="_blank" href="https://www.benzinga.com/25/02/43982868/warner-bros-faces-gaming-woes-as-wonder-woman-title-halted-franchise-strategy-reworked" rel="noreferrer noopener">Warner Bros. Shuts Down Game Studios, Struggles To Revive DC and Harry Potter Franchise Success</a>



The company reported an adjusted EBITDA of $2.72 billion, an 11% ex-FX growth.



Studios&nbsp;revenues&nbsp;were $3.66 billion, up 16% ex-FX Y/Y on a pro forma combined basis. Content revenue increased by 16%, driven by an increase in TV revenue, offset by a decline in Theatrical and Games revenue.&nbsp;



Theatrical revenue decreased 9% ex-FX due to fewer releases in the current year.



Games revenue declined 29% ex-FX due to the better performance of Hogwarts Legacy and Mortal Kombat 1 in the prior-year quarter.



Networks&nbsp;revenues&nbsp;were $4.77 billion, down by 4% ex-FX, on a pro forma combined basis.&nbsp;Distribution revenue decreased 4% ex-FX, primarily driven by declines in U.S. pay-TV subscribers and the impact of the AT&amp;T SportsNet exit.&nbsp;



Advertising revenue fell 16% ex-FX, primarily driven by audience declines in domestic networks and soft advertising markets, mainly in the U.S.



Content revenue increased 74% ex-FX, primarily due to the timing of content licensing deals.



DTC revenues were $2.65 billion, up 6% ex-FX Y/Y on a pro forma combined basis. Distribution revenue increased by 8% ex-FX, primarily driven by a 20% increase in subscribers and higher pricing following the launch of Max in Latin America and Europe during the first half of 2024.



Advertising revenue increased 27% ex-FX, primarily driven by increased domestic ad-lite subscribers.



Total DTC subscribers increased to 116.9 million from 110.5 million a year ago. Global DTC ARPU was $7.44, a 5% ex-FX decrease from the prior year driven by lower ARPU international markets, ad-tier subscriber growth, and domestic wholesale subscribers, partially offset by higher pricing.



Warner Bros. added 6.4 million Max subscribers during the quarter, gaining momentum after launching service in Latin America and Europe last year, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-02-27/warner-bros-streaming-gains-helps-offset-decline-in-tv-networks?sref=TBDibEcD" rel="noreferrer noopener">reports</a>.



In the fourth quarter, WBD generated $2.72 billion in operating cash flow and $2.43 billion in free cash flow and held $5.4 billion in cash and equivalents.&nbsp;



The company set a goal for 150 million streaming subscribers in 2026.



Price Action: WBD stock is up 6.00% at $11.10 premarket at&nbsp;the last check Thursday.



Also Read:



<ul>
<li><a href="https://www.benzinga.com/25/02/43973550/photronics-q1-earnings-beats-estimates-strong-ic-demand-growth-in-high-end-products-ceo-cautious-on-2025-outlook" target="_blank" rel="noreferrer noopener">Photronics Q1 Earnings: Beats Estimates, Strong IC And FPD Demand, Growth in High-End Products, CEO Cautious on 2025 Outlook</a></li>
</ul>



Photo by rafapress on Shutterstock

Earnings

Guidance

Warner Bros Q4 Earnings: Studios Revenues Grow 16%, Max Subscribers Surge, Eyes 150 Million Subscribers By 2026

NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) reported fourth-quarter revenue of $39.3 billion, representing an extraordinary growth trajectory that has seen quarterly revenue multiply nearly eight times in just five years, according to data shared Wednesday by The Kobeissi Letter.



What Happened: The chipmaker&#8217;s daily revenue reached $427 million throughout the fourth quarter, with data center sales—primarily from AI-focused GPUs—surging 93% year-over-year to $35.6 billion, now accounting for over 90% of total revenue.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Nvidia&#39;s, <a href="https://twitter.com/search?q=%24NVDA&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$NVDA</a>, Q4 Revenue by Year: 1. 2015: $1.4B 2. 2016: $2.2B 3. 2017: $2.9B 4. 2018: $2.2B 5. 2019: $3.1B 6. 2020: $5B 7. 2021: $7.6B 8. 2022: $6.1B 9. 2023: $22.1B 10. 2024: $39.3B Nvidia&#39;s Q4 2024 revenue of $39.3 billion is now nearly 8 TIMES higher than it was 5 years…&mdash; The Kobeissi Letter (@KobeissiLetter) <a href="https://twitter.com/KobeissiLetter/status/1894862360029929924?ref_src=twsrc%5Etfw">February 26, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Despite beating analyst expectations with earnings per share of $0.89 versus $0.84 expected and revenue exceeding forecasts by $1 billion, NVDA shares traded slightly lower after the announcement, continuing a pattern of muted post-earnings reactions.



Analyst John Kicklighter noted that the stock exhibited &#8220;lots of volatility, but no clear direction,&#8221; with a range of approximately 8% from the spot relative to Nvidia.



RiskReversal Co-Founder Guy Adami expressed concern about potential margin deceleration, <a href="https://www.cnbc.com/video/2025/02/26/fast-money-traders-talk-nvidia-q4-results.html">telling</a> CNBC, &#8220;If margins start to decelerate, that&#8217;s when these stories typically get long in the tooth.&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Nvidia earnings beats versus expectations. &#8211; EPS of $0.89 vs $0.84 expected &#8211; Revenue of $39.3 Bln vs $38.3 Bln expected Lot&#39;s of volatility, but no clear direction. Range of ~8% of spot from <a href="https://twitter.com/search?q=%24NVDA&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$NVDA</a>: <a href="https://t.co/r4n2r0ZqU1">pic.twitter.com/r4n2r0ZqU1</a>&mdash; John Kicklighter (@JohnKicklighter) <a href="https://twitter.com/JohnKicklighter/status/1894863290414535071?ref_src=twsrc%5Etfw">February 26, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Why It Matters: CEO Jensen Huang highlighted increasing computational demands in AI, saying that next-generation models require &#8220;100 times more compute&#8221; than earlier versions. He specifically cited DeepSeek&#8217;s R1, OpenAI&#8217;s GPT-4, and xAI&#8217;s Grok 3 as examples of models using <a href="https://www.benzinga.com/markets/equities/25/02/43995515/jensen-huang-says-deepseek-was-fantastic-next-gen-models-demand-100x-more-compute-as-nvidia-smashes-earnings-records">intensive reasoning processes</a>.



&#8220;DeepSeek was fantastic,&#8221; Huang said, praising its open-source reasoning model despite the company&#8217;s stock dropping 17% in January over concerns that DeepSeek had found ways to achieve better AI performance with lower infrastructure costs.



Nvidia forecasts <a href="https://www.benzinga.com/news/earnings/25/02/43991607/nvidia-q4-earnings-highlights-revenue-beat-eps-beat-demand-for-blackwell-is-amazing">first-quarter revenue</a> of $43 billion, topping estimates of $41.75 billion. Huang says Blackwell AI supercomputers saw &#8220;billions in sales&#8221; in their first quarter as the company ramped up &#8220;massive-scale production.&#8221;



NVDA currently has a consensus price target of $172.28 based on 40 analysts, with recent targets from Rosenblatt, Morgan Stanley, and Tigress Financial implying a potential 52.59% upside.



<figure class="wp-block-image aligncenter size-full is-resized"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27023437/Screenshot-2025-02-27-at-1.03.40%E2%80%AFPM.png" alt="" class="wp-image-800908" style="width:703px;height:auto"/></figure>



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/25/02/43995014/elon-musks-influence-over-the-government-set-to-increase-trump-orders-all-federal-agencies-to-appoint-a-doge-commissar">Elon Musk&#8217;s Influence Over The Government Set To Increase, Trump Orders All Federal Agencies To Appoint A DOGE Commissar</a></li>
</ul>



Image Via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Equities

Nvidia's Q4 Revenue Surges Over 78%, Nearly 8x Higher Than 5 Years Ago: Analysts Debate Stock's Next Move As Jensen Huang Says Blackwell Production Has Been Ramped Up

U.S. President Donald Trump has terminated an oil agreement with Venezuela, revoking a license previously granted to&nbsp;Chevron Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) by former President Joe Biden.



What Happened: Trump took to his Truth Social to announce the cancellation of Chevron&#8217;s Venezuela operations on Wednesday. This was based on the lack of progress on electoral reforms and migrant returns by Venezuelan President Nicolas Maduro. Though Trump did not mention Chevron in his post, the date mentioned, i.e, November 26, 2022, was when the oil giant was given the license to operate in Venezuela&#8217;s oil sector. However, Trump did not mention the details of &#8220;electoral conditions.&#8221;



Chevron did not immediately respond to <a href="http://pro.benzinga.com">Benzinga&#8217;s</a> request for comment. 



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="612" height="412" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27034654/Screenshot-2025-02-27-141557.png" alt="" class="wp-image-801056" style="width:658px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27034654/Screenshot-2025-02-27-141557.png 612w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27034654/Screenshot-2025-02-27-141557-300x202.png 300w" sizes="(max-width: 612px) 100vw, 612px" /></figure>



The decision was met with disapproval from Delcy Rodriguez, Venezuelan Vice President, who deemed it a &#8220;damaging and inexplicable decision,&#8221; reported Reuters. Nevertheless, Marco Rubio, the U.S. Secretary of State defended the move, arguing it was designed to end all oil and gas licenses from the Biden-era that have &#8220;shamefully bankrolled the illegitimate Maduro regime.&#8221;



Chevron, which exports approximately 240,000 barrels of crude daily from its Venezuela operations, stated it has knowledge of Trump&#8217;s stance and was evaluating the implications of his decision. The termination of the license means that Chevron will no longer be permitted to export Venezuelan crude.



Since his January return to office, Trump has consistently stated that the U.S. does not require Venezuelan oil and hinted at the potential revocation of Chevron&#8217;s operating license. Trump announced that the oil concession agreement will be terminated effective March 1, instead of being renewed.



SEE ALSO: <a href="https://www.benzinga.com/news/25/02/43999592/mark-cuban-offers-support-to-elon-musk-but-only-if-tesla-ceo-backs-ro-khannas-anti-lobbying-bill">Mark Cuban Offers Support To Elon Musk—But Only If Tesla CEO Backs Ro Khanna&#8217;s Anti-Lobbying Bill</a>



Why It Matters: Chevron played a pivotal role in driving the growth of oil production and the economy in Venezuela. A Bloomberg report in January highlighted that Chevron submitted tax returns totaling approximately $300 million to the Venezuelan government last year, sparking concerns about the extent to which President Nicolás Maduro is profiting from the U.S. oil giant&#8217;s production despite sanctions.



Meanwhile, David Goldwyn, head of the energy advisory group at the Atlantic Council, previously told Bloomberg, "Chevron's activity in Venezuela is in both country's interests, as it's having an efficient player helping the Venezuela economy from falling back and preventing migrants from coming back." This is particularly notable as Trump has expressed discontent over the slow progress of the return of Venezuelan migrants back to their country. 



Oil prices inched higher on Thursday following declines in the past two sessions, as supply concerns re-emerged after Trump revoked Chevron&#8217;s license to operate in Venezuela. At 07:31 GMT, Brent crude futures had risen by 2 cents to $72.55 per barrel, while U.S. West Texas Intermediate (WTI) crude futures increased by 6 cents to $68.68 per barrel.



This decision comes on the heels of <a href="https://www.benzinga.com/markets/25/02/43685595/chevron-announces-about-20-workforce-reduction-in-cost-saving-initiative-responsible-leadership-requires-taking-these-steps">Chevron&#8217;s recent announcement</a> of a significant workforce reduction. Chevron planned to cut its workforce by up to 20% as part of a broader cost-saving initiative. The company aimed to reduce costs by $2 billion to $3 billion by the end of 2026. The termination of the Venezuelan license could potentially impact these cost-saving measures.



<ul>
<li>READ MORE: <a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43990066/bitcoin-ethereum-xrp-dogecoin-extend-decline-btc-at-80000-by-mid-april-trader-wonders">Bitcoin, Ethereum, XRP, Dogecoin Extend Decline: &#8216;BTC At $80,000 By Mid-April?,&#8217; Trader Wonders</a></li>
</ul>



Image via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Trump Shuts Down Chevron's Venezuela Oil Permit, Tightening Pressure On Maduro Regime: Crude Oil Prices Rise On Supply Concerns

U.S. stock futures rose on Thursday following yet another mixed close on Wednesday. Futures all four benchmark indices advanced in premarket trading.



Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) beat earnings expectations and Jensen Huang said that the chipmaker was successfully ramping up the massive-scale production of Blackwell AI supercomputers. Data center revenue hit a record level again in the fourth quarter.



Meanwhile, President Donald Trump stated that tariffs, including a 25% levy on automobiles, would be imposed on goods from the EU. Additionally, tariffs on goods from Mexico and Canada will commence on April 2nd.



The 10-year Treasury yield stood at 4.31%, while the two-year yield was at 4.11%. According to the CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>, there is a 97.5% chance that the Federal Reserve will keep interest rates unchanged for the March meeting. 



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>0.64%</td></tr><tr><td>S&amp;P 500</td><td>0.56%</td></tr><tr><td>Dow Jones</td><td>0.27%</td></tr><tr><td>Russell 2000</td><td>0.74%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose in premarket on Thursday. SPY was up 0.55% to $597.80, and QQQ advanced 0.60% to $517.63, according to<a href="https://pro.benzinga.com/dashboard"> Benzinga Pro</a> data.



Cues From The Last Session



Information technology, utilities, communication services, and industrials were the only sectors that closed higher in trade on Wednesday, whereas consumer staples, health care, and real estate fell the most.



The stocks settled on a mixed note despite the S&amp;P 500 breaking its three-day losing streak as Dow Jones fell on Wednesday.



On the economic front, new home sales plummeted 10.5% in January to 657,000, according to the U.S. Census Bureau, signaling continued weakness in the 2025 housing market. This represents a 1.1% year-over-year decline.



Salesforce Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) reported a mixed quarter, whereas Snowflake Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNOW#NYSE">SNOW</a>) exceeded analyst expectations.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>0.26%</td><td>19,075.26</td></tr><tr><td>S&amp;P 500</td><td>0.014%</td><td>5,956.06</td></tr><tr><td>Dow Jones</td><td>-0.43%</td><td>43,433.12</td></tr><tr><td>Russell 2000</td><td>0.19%</td><td>2,174.17</td></tr></tbody></table></figure>



Insights From Analysts



&#8220;This is still a bull market and this seasonal weakness doesn't have us overly concerned yet,&#8221; said Ryan Detrick, the chief market strategist at Carson Group in his note titled &#8216;That Escalated Quickly&#8217;.



He also highlighted a list of reasons substantiating the reasons for stocks to be back at new highs.



<ul>
<li>Strong earnings, revenue, and profit margins.</li>



<li>Market resilience amidst widespread concerns.</li>



<li>A relatively young bull market with potential for further growth. A robust labor market with healthy wages.</li>



<li>Anticipated inflation improvement and potential Fed rate cuts.</li>



<li>Strong U.S. productivity driving economic growth.</li>



<li>Broadening market participation beyond just tech stocks.</li>
</ul>



Similarly, the analysts at BlackRock said, &#8220;We still think U.S. equities can outperform in 2025, led by tech, even as Europe's start the year strong.&#8221;



However, they said that they would broaden the risk-on view, upgrading Europe stocks.



BlackRock&#8217;s note highlighted that the U.S. could still reclaim leadership this year and that is why they were overweight U.S. stocks. The corporate earnings strength and the artificial intelligence theme aided their belief. But the note stated, &#8220;We turn more underweight long-term U.S. Treasuries&#8221;



As Nvidia was trading 0.82% higher in premarket on Thursday after good earnings on Wednesday, CNBC&#8217;s Jim Cramer said that this was &#8220;a sign that no one knows how to value amazing earnings&#8221;.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The tight trading in Nvidia is more of a sign that no one knows how to value amazing earnings than it is that there is something wrong.&mdash; Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1895049690330136868?ref_src=twsrc%5Etfw">February 27, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures </a>



Upcoming Economic Data



Here&#8217;s what investors will keep on Thursday:



<ul>
<li>Initial jobless claims data till the week ended Feb. 22, January's durable-goods orders data, and GDP's second reading will be announced at 8:30 a.m., ET.</li>
</ul>



<ul>
<li>Kansas City Fed President Jeff Schmid speaks will speak at 9:15 a.m., ET.</li>
</ul>



<ul>
<li>Pending home sales data for January will be out by 10:00 a.m., ET.</li>
</ul>



<ul>
<li>Fed Governor Michelle Bowman will speak at 11:45 a.m., ET.</li>
</ul>



<ul>
<li>Philadelphia Fed President Patrick Harker will speak at 3:15 p.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>JM Smucker Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SJM#NYSE">SJM</a>) rose 2.09% in the premarket on Thursday ahead of its earnings, which will be released before the opening bell. Analysts expect it to report earnings of $2.37 per share, with a revenue of $2.23 billion.</li>
</ul>



<ul>
<li>Hormel Foods Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HRL#NYSE">HRL</a>) was up 1.29% as Wall Street expects it to report quarterly earnings of 38 cents per share on revenue of $2.94 billion before the opening bell.</li>
</ul>



<ul>
<li>Bath &amp; Body Works Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBWI#NYSE">BBWI</a>) jumped 2.48% as it was expected to release its fourth-quarter financial results before the opening bell. Analysts projected earnings at $2.04 per share on the revenue of $2.78 billion.</li>
</ul>



<ul>
<li>Dell Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>) advanced 1.95% ahead of its earnings, which will be released after the closing bell. Analysts expect it to report earnings of $2.52 per share on revenue of $24.57 billion</li>
</ul>



<ul>
<li>HP Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPQ#NYSE">HPQ</a>) was 1.24% higher as Wall Street expects it to report quarterly earnings of 74 cents per share on revenue of $13.36 billion after the closing bell.</li>
</ul>



<ul>
<li>Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) gained 0.82% after it reported better-than-expected fourth-quarter and full-year results.</li>
</ul>



<ul>
<li>Salesforce Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) declined 4.67% after a mixed quarter and weak outlook for fiscal year 2026.</li>
</ul>



<ul>
<li>Snowflake Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNOW#NYSE">SNOW</a>) climbed 10.85% after a strong quarter beating analyst expectations.</li>
</ul>



Commodities, Gold And Global Equity Markets:



Crude oil futures were trading higher in the early New York session by 1.01% to hover around $69.31 per barrel.



The gold spot index was down by 0.95% to $2,888.58 per ounce. Its last record high was at $2,956.37. The Dollar Index was up 0.20% at 106.631 level.



Asian markets were mixed on Thursday as Japan's Nikkei 225, China's CSI 300, and Australia's ASX 200 index advanced. Whereas, South Korea's Kospi and Hong Kong's Hang Seng index declined. European markets were mostly lower in trade.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/02/43998226/jensen-huangs-nvidia-fuels-ai-factory-boom-revenue-growth-in-data-center-business-dominates-peers-with-a-staggering-3460-growth-over-5-years">Jensen Huang&#8217;s Nvidia Fuels &#8216;AI Factory&#8217; Boom: Revenue Growth In Data Center Business Dominates Peers With A Staggering 3460% Growth Over 5 Years</a></li>
</ul>



Photo courtesy: Shutterstock

Pre-Market Outlook

BBWI

DELL

SNOW

US Stocks Likely To Open Higher After Nvidia's Blowout Earnings: 'This Is Still A Bull Market,' Says Expert

Leading cryptocurrencies plunged on Wednesday on fears of a full-blown trade war between the U.S. and Europe.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:45 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>-4.01%</td><td>$84,586.64</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-5.64%</td><td>$2,334.17</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-3.32%</td><td>$0.2024</td></tr></tbody></table></figure>



What Happened: Bitcoin sank below $83,000 for the first time in 15 weeks before pairing losses late in the evening. The leading cryptocurrency was down over 21% since its January all-time high.



In the last 24 hours, BlackRock transferred over $160 million in BTC to Coinbase, which were outflows from iShares Bitcoin Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBIT#NASDAQ">IBIT</a>), according to Arkham Intelligence.



Similarly, Ethereum plunged to an intraday low of $2,255.05, its lowest since Donald Trump's presidential victory.



The continuing price decline was precipitated by reports of <a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43987636/bitcoin-tumbles-below-85000-amid-president-trumps-eu-tariff-threats">Trump's threats to impose 25%</a> tariffs on the European Union.



Over $760 million was liquidated from the cryptocurrency market in the last 24 hours, with $606 million in long positions erased.



That said, a recovery to $90,500 would liquidate over $1 billion worth of short positions



Bitcoin's Open Interest fell by 5.45% in the last 24 hours and has collapsed by more than 18% since the beginning of February.



The "Extreme Fear" sentiment strengthened, according to the Crypto Fear and Greed Index, fueling concerns of further downsides.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:30 p.m. ET)</td></tr><tr><td>Kaito (KAITO)</td><td>+43.73%</td><td>$2.48</td></tr><tr><td>Story (IP)</td><td>+19.36%</td><td>$6.83</td></tr><tr><td>Berachain (BERA)</td><td>+9.03%</td><td>$7.34</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $2.77 trillion, shrinking by 4.91% in the last 24 hours.



Major stock averages snapped a losing streak Wednesday. The S&amp;P 500 gained 0.01% to close at 5,956.06 after four consecutive days of ending in the red. The tech-focused Nasdaq Composite rose 0.26% to end at 19,075.26. The Dow Jones Industrial Average was the outlier, closing 0.43% lower at 43,433.12.



Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shares rose 3.67% ahead of its fourth-quarter earnings report, boosting the overall sentiment. The AI behemoth reported a <a href="https://in.benzinga.com/news/earnings/25/02/43991607/nvidia-q4-earnings-highlights-revenue-beat-eps-beat-demand-for-blackwell-is-amazing">higher-than-expected</a> revenue and earnings per share.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Widely followed cryptocurrency analyst and investor Rekt Capital noted the formation of Bitcoin's new "CME Gap" between ~$92,700 and ~$94,000



"This offers some confluence to the idea of price revisiting $93,500 at some point in the future as part of a post-breakdown relief rally," the analyst predicted.



CME gaps are the differences in price between the closing price on a given trading day and the opening price on the following trading day on a Bitcoin futures chart.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> Bitcoin is getting closer to filling the CME Gap that created between $78000 and ~$80700 in November 2024 On this retrace however, Bitcoin has developed a brand new CME Gap between ~$92700 and ~$94000 That new CME Gap is confluent with the Re-Accumulation Range Low… <a href="https://t.co/lDWd6C8nHf">https://t.co/lDWd6C8nHf</a> <a href="https://t.co/8Q58b67uI3">pic.twitter.com/8Q58b67uI3</a>&mdash; Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1894858387579646277?ref_src=twsrc%5Etfw">February 26, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



In a note to Benzinga, Chris Kline, COO and Co-Founder of BitcoinIRA, called Bitcoin's ongoing consolidation phase a "healthy reset."



"Bitcoin has established a more defined trading range following its impressive run to near all-time highs, demonstrating resilience despite short-term fluctuations," Kline added.



The analyst suggested that such periods of measured trading activity typically precede upward momentum.



Photo by Avi Rozen on Shutterstock



Read Next:&nbsp;&nbsp;&nbsp;&nbsp;



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43982444/peter-schiff-bitcoins-rally-to-100000-is-repayment-by-trump-to-crypto-supporters-but-50000-may-be-on-the-cards">Peter Schiff: Bitcoin&#8217;s Rally To $100,000 Is &#8216;Repayment&#8217; By Trump To Crypto Supporters, But $50,000 May Be On The Cards</a></li>
</ul>

Cryptocurrency

$BTC

$DOGE

$ETH

IBIT

Bitcoin, Ethereum, Dogecoin Plunge Deeper On Trump's Tariff Threats: Analyst Hopeful BTC Will Touch $93,500 In Relief Rally

Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) CEO Jensen Huang said Wednesday that next-generation artificial intelligence models need &#8220;100 times more compute&#8221; than earlier versions, citing new reasoning approaches that process information step by step.



What Happened: &#8220;The amount of computation necessary to do that reasoning process is 100 times more than what we used to do,&#8221; Huang <a href="https://www.cnbc.com/2025/02/26/nvidia-ceo-huang-says-next-generation-ai-will-need-more-compute.html">told</a> CNBC following the company&#8217;s record-breaking <a href="https://www.benzinga.com/news/earnings/25/02/43991607/nvidia-q4-earnings-highlights-revenue-beat-eps-beat-demand-for-blackwell-is-amazing">fourth-quarter earnings report</a>.



The chipmaker reported $39.3 billion in revenue for the quarter, up 78% year-over-year and exceeding analyst expectations of $38.05 billion. Data center revenue, which includes Nvidia&#8217;s market-leading GPUs for AI workloads, surged 93% to $35.6 billion, now representing over 90% of total revenue.



Huang specifically mentioned DeepSeek&#8217;s R1, OpenAI&#8217;s GPT-4 and xAI&#8217;s Grok 3 as models utilizing reasoning processes that require substantially more computing power. This comes despite a 17% stock drop in January triggered by concerns that DeepSeek had found ways to achieve better AI performance with lower infrastructure costs.



&#8220;DeepSeek was fantastic,&#8221; Huang said. &#8220;It was fantastic because it open-sourced a reasoning model that&#8217;s absolutely world class.&#8221;



See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43987636/bitcoin-tumbles-below-85000-amid-president-trumps-eu-tariff-threats">Bitcoin Tumbles Below $85,000 Amid President Trump&#8217;s EU Tariff Threats</a>



Why It Matters: The company has faced challenges in China due to export restrictions, with Huang noting that Nvidia&#8217;s percentage of revenue from China has fallen by about half. He added that Nvidia&#8217;s GB200 chip, sold in the United States, can generate AI content 60 times faster than versions sold to China under export controls.



Looking ahead, Nvidia projects first-quarter revenue of $43 billion, exceeding analyst expectations of $41.75 billion. Huang emphasized strong demand for the company&#8217;s new Blackwell AI supercomputers, which achieved &#8220;billions of dollars in sales in its first quarter.&#8221;



&#8220;Demand for Blackwell is amazing as reasoning AI adds another scaling law – increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter,&#8221; Huang said.



Read Next: 



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<li><a href="https://www.benzinga.com/news/earnings/25/02/43991325/salesforce-shares-sink-after-q4-revenues-miss-estimates-weak-fy26-guidance-details">Salesforce Shares Sink After Q4 Revenues Miss Estimates, Weak FY26 Guidance: Details</a></li>
</ul>



Image Via Shutterstock 



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Jensen Huang Says 'DeepSeek Was Fantastic:' Next-Gen Models Demand 100x More Compute As Nvidia Smashes Earnings Records

President Donald Trump issued an executive order on Wednesday requiring all federal agencies to have a representative from Elon Musk&#8217;s Department of Government Efficiency, marking a significant expansion of the billionaire&#8217;s influence over government operations.



What Happened:&nbsp;The executive order mandates that each federal agency appoint a DOGE representative to oversee spending and ensure transparency,&nbsp;<a href="https://www.politico.com/news/2025/02/26/trump-order-federal-agencies-doge-representative-00206359">Politico reports</a>. These representatives will work alongside agency leadership to monitor all expenditures, requiring managers to provide written justifications for payments and implement new systems for tracking expenses.



The order also freezes most government credit cards for 30 days and requires monthly spending reports to be submitted to DOGE administrator&nbsp;Amy Gleason. This information will be made public, except for certain law enforcement and intelligence activities.



&#8220;To ensure Government spending is transparent and Government employees are accountable to the American public,&#8221; the order states, outlining the responsibilities of DOGE representatives.



This move is part of a broader efficiency project led by Trump and Musk, which has already resulted in the termination of numerous federal contracts and the dismissal of thousands of public-sector workers.



See Also: <a href="https://www.benzinga.com/news/25/02/43994686/will-investors-push-back-against-trumps-massive-borrowing-plans">Will Investors Push Back Against Trump&#8217;s Massive Borrowing Plans?</a>



Why It Matters:&nbsp;The expansion of DOGE&#8217;s influence comes at a time when the effectiveness of Trump and Musk&#8217;s cost-cutting measures is being questioned. Despite claims of billions in savings,&nbsp;<a href="https://www.benzinga.com/markets/25/02/43972234/trump-and-elon-musks-cost-cutting-measures-fail-to-curb-rising-us-government-spending-report">government spending continues to rise</a>, primarily due to increasing expenditures on health and retirement programs, as well as growing interest payments.



The initiative has faced significant challenges, including the&nbsp;<a href="https://in.benzinga.com/25/02/43962278/elon-musks-doge-staffers-resign-refuse-to-dismantle-critical-public-services-white-house-hits-back-saying-trump-wont-be-stopped-by-protests-and-lawsuits">resignation of over 20 civil service employees</a>&nbsp;from DOGE, who cited concerns about dismantling critical public services. This setback, coupled with ongoing court challenges, has raised questions about the long-term viability of the administration&#8217;s approach to government reform.



Public opinion also appears to be mixed on Musk&#8217;s role in government. A recent Emerson College poll found that only 41% of voters approve of Musk&#8217;s performance at DOGE, with 45% disapproving. The poll also revealed limited support for some of DOGE&#8217;s more controversial proposals, such as eliminating the US Agency for International Development and the Department of Education.



White House Press Secretary Karoline Leavitt defended the administration&#8217;s approach, stating, &#8220;Anyone who thinks protests, lawsuits, and lawfare will deter President Trump must have been sleeping under a rock for the past several years.&#8221;



Photo Courtesy: Shutterstock.com



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This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

Politics

Elon Musk's Influence Over The Government Set To Increase, Trump Orders All Federal Agencies To Appoint A DOGE Commissar

NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) reported fourth-quarter financial results after <a href="https://www.benzinga.com/earnings">market close Wednesday.</a>



Here are the key highlights.



Nvidia's Key Q4 Numbers: Nvidia reported fourth-quarter revenue of $39.3 billion, up 12% quarter-over-quarter and up 78% year-over-year. The revenue total beat a Street consensus estimate of $38.05 billion according to data <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent022625&amp;t=be2bearmibe3na1">from Benzinga Pro.</a>



The quarterly revenue total was a company record.



Nvidia reported fourth-quarter earnings of 89 cents per share, marking an 82% year-over-year increase and exceeding the Street consensus estimate of 84 cents per share.



"Demand for Blackwell is amazing as reasoning AI adds another scaling law – increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter," Nvidia CEO Jensen Huang said.



Full fiscal year revenue was $130.5 billion, a company record, up 114% year-over-year.



Read Also: <a href="https://www.benzinga.com/25/02/43948627/nvidia-stock-quite-cheap-ahead-of-q4-earnings-analyst-says-growth-story-is-intact">Nvidia Stock &#8216;Quite Cheap&#8217; Ahead Of Q4 Earnings: Analyst Says &#8216;Growth Story Is Intact&#8217;</a>



Nvidia's Q4 Performance By Segment: Data center revenue was once again a company record in the fourth quarter.



Here is a look at the revenue performance by operating business segment.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Segment</td><td>Revenue</td><td>Year-over-Year change</td><td>Quarter-over-Quarter change</td></tr><tr><td>Data Center</td><td>$35.6 billion</td><td>+93% </td><td>+16%</td></tr><tr><td>Gaming &amp; AI PC</td><td>$2.5 billion</td><td>-11%</td><td>-22%</td></tr><tr><td>Professional Visualization</td><td>$511 million</td><td>+10%</td><td>+5%</td></tr><tr><td>Automotive </td><td>$570 million</td><td>+103%</td><td>+27%</td></tr></tbody></table></figure>



What's Next: The company&#8217;s guidance for first-quarter revenue is $43.0 billion, +/—2%. According to data from Benzinga Pro, this is ahead of a street consensus estimate of $41.75 billion.



The company guides for non-GAAP gross margins to be 71% in the first quarter.



&#8220;We&#8217;ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its&nbsp;first quarter. AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries," Huang said.



NVDA Price Action: Nvidia stock is down 0.8% to $130.43 in after-hours trading versus a 52-week trading range of $75.61 to $153.13.



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<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534; WATCH LIVE: Nvidia Q4 2024 Earnings Call &#x7C; $NVDA" width="500" height="281" src="https://www.youtube.com/embed/hV6WxM3S80g?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



Photo: jamesonwu1972/Shutterstock.com

Nvidia Q4 Earnings Highlights: Revenue Beat, EPS Beat, 'Demand For Blackwell Is Amazing'

Salesforce Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) reported its fourth-quarter results after Wednesday's closing bell. Here's a look at the key <a href="https://www.benzinga.com/pressreleases/25/02/b43989185/salesforce-announces-fourth-quarter-and-fiscal-year-2025-results">figures from the quarter.</a>



The Details: Salesforce reported quarterly earnings of $2.78 per share, which beat the analyst consensus estimate of $2.61. Quarterly revenue came in at $9.99 billion, which missed the analyst consensus estimate of $10.03 billion and is an increase over revenue of $9.287 billion from the same quarter last year.



For the fourth quarter, Salesforce reported: 



<ul>
<li>$900 million Data Cloud &amp; AI annual recurring revenue, up 120% year-over-year </li>



<li>Since October, closed 5,000 Agentforce deals, including more than 3,000 paid</li>



<li>Data Cloud surpassed 50 trillion records, which doubled year-over-year</li>



<li>Nearly half of the Fortune 100 are both AI &amp; Data Cloud customers</li>



<li>On&nbsp;help.salesforce.com, Agentforce has handled 380,000 conversations, achieving an 84% resolution rate, with only 2% of the requests requiring human escalation</li>
</ul>



Read Next:<a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/43949800/tesla-competes-against-chinese-rivals-with-one-hand-tied-behind-its-back-analyst"> Tesla Competes Against Chinese Rivals &#8216;With One Hand Tied Behind Its Back&#8217;: Analyst</a>



&#8220;We had an incredible quarter and year, with strong performance across all our key metrics, including the highest cash flow in our company&#8217;s history and more than $60 billion in RPO,&#8221; said Marc Benioff, chair and CEO of Salesforce.



&#8220;No company is better positioned than Salesforce to lead customers through the digital labor revolution. With our deeply unified platform, seamlessly integrating our Customer 360 apps, Data Cloud and Agentforce, we&#8217;re already delivering unprecedented levels of productivity, efficiency and cost savings for thousands of companies,&#8221; Benioff added. 



Outlook:&nbsp;Salesforce sees first-quarter adjusted earnings of between $2.53 and $2.55 per share, versus the $2.61 estimate, and revenue in a range of $9.71 billion to $9.76 billion, versus the $9.9 billion estimate. 



The company expects fiscal 2026 adjusted earnings of between $11.09 and $11.17 per share, versus the $11.19 estimate, and revenue in a range of $40.5 billion and $40.9 billion, versus the $41.34 billion estimate. 



CRM Price Action: According to data from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Salesforce shares are down 4.99% after-hours at $292 on Wednesday.  



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Image: Shutterstock

After-Hours Center

Salesforce Shares Sink After Q4 Revenues Miss Estimates, Weak FY26 Guidance: Details

Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is continuing its price slide on Wednesday as President Donald Trump threatened 25 percent tariffs on <a href="https://www.benzinga.com/general/social-media/25/02/43917713/us-lawmakers-demand-eu-clarify-big-tech-regulations-that-may-target-american-companies">the European Union</a>.



The apex crypto slid as low as $83,724 in the aftermath. The Financial Times on Wednesday <a href="https://www.ft.com/content/2f0288f6-3f6a-4334-b666-3f0122981842">reported</a> on the president&#8217;s remarks at the first cabinet meeting.



Trump said a decision has been made and will be announced &#8220;very soon,&#8221; with tariffs to be imposed &#8220;on cars and all other things.&#8221; 



He further stated that the European Union was &#8220;formed to screw the United States&#8221; and, according to Trump, has &#8220;done a good job&#8221; of it, FT reported.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Price&nbsp;&nbsp;&nbsp;</td><td>24-Hour Gains +/-</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>$84,250</td><td>-3%</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>)</td><td>$2,287</td><td>-5.4%</td></tr><tr><td>XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>)</td><td>&nbsp;$2.17</td><td>-1.5%</td></tr></tbody></table></figure>



The crypto market plunged following Trump&#8217;s remarks, wiping out over $470 million in long liquidations and dropping 3.7% in total market capitalization.



The news follows the biggest day of spot Bitcoin ETF outflows on Tuesday, with <a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43971058/bitcoin-languishes-below-88000-as-spot-etfs-see-1-billion-outflows-on-tuesday">over $1 billion</a> in combined net outflows.



Prominent Bitcoin critic Peter Schiff sees Trump as the catalyst for Bitcoin&#8217;s surge above $100,000 but predicts a reversal of the bull market. According to Schiff, <a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43982444/peter-schiff-bitcoins-rally-to-100000-is-repayment-by-trump-to-crypto-supporters-but-50000-may-be-on-the-cards">$50,000 per bitcoin</a> may be in the cards.



Market participants eagerly await the <a href="https://www.benzinga.com/general/market-summary/25/02/43981913/nvidia-earnings-on-deck-smci-regains-compliance-whats-driving-markets-wednesday">Nvidia earnings call</a> after market closure for a possible short-term reversal.



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Image created using artificial intelligence via Midjourney.

$XRP

Bitcoin Tumbles Below $85,000 Amid President Trump's EU Tariff Threats

Lucid Group Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>) analysts highlight the strengths and weaknesses of the EV company after announcing a CEO transition and <a href="https://www.benzinga.com/news/earnings/25/02/43957497/lucid-q4-earnings-revenue-beat-eps-beat-20k-production-guidance-for-2025-ceo-transition-and-more">fourth-quarter financial results.</a>



The Lucid Analysts: Cantor Fitzgerald analyst Andrew Sheppard maintained a Neutral rating on Lucid with a $3 price target.



Needham analyst Chris Pierce reiterated a Hold rating with no price target.



Cantor Fitzgerald on LCID: Vehicle production guidance of 20,000 for fiscal 2025 was in line with estimates, Sheppard said in a new investor note.



The analyst said Lucid's gross margins beat, but still have a long way to go.



Management commentary said the company has sufficient liquidity into the second half of 2026, the analyst added.



The analyst highlighted Lucid's newest vehicles, including the Gravity SUV seven-seater SUV. The vehicle started deliveries previously and could expand Lucid's total addressable market size. A midsize vehicle with a starting price under $50,000 remains a key future catalyst for the analyst.



"We believe this vehicle may allow Lucid to scale-up production at higher volumes, and with its affordable price point, the company should experience a surge in customer demand," Sheppard said.



While Sheppard was bullish on the new vehicle launches and the company's technology, risks remain with high negative gross margins, additional capital needs, a new management team and worsening macro conditions.



Read Also: <a href="https://www.benzinga.com/news/25/02/43516605/lucid-deliveries-up-51-in-january-heres-how-many-gravity-suvs-sold-in-first-full-month">Lucid Deliveries Up 51% In January, Here&#8217;s How Many Gravity SUVs Sold In First Full Month</a>



Needham on LCID: The EV company showed delivery momentum in the quarter, but leadership changes could add a new wrinkle, Pierce said in a new investor note.



"LCID continues to show improving delivery momentum, and we see a low bar for continued momentum as they lean into advertising to support the Gravity SUV launch as they ramp production," Pierce said.



The analyst said this was Lucid's fourth consecutive quarter of record deliveries and demand could pick up with the Gravity SUV launch.



"Gravity SUV orders are exceeding management expectations from a volume and an ASP perspective, and we continue to view the Gravity launch as a second chance at a first introduction for the brand."



The analyst said fighting against the positive near-term unit trends is the company's uncertainty with Peter Rawlinson stepping down from the CEO and CTO roles.



"Looking longer term, the timing of positive gross margins and units needed to achieve positive gross margins is still an unknown and likely not a near-term event given LCID's current scale."



LCID Price Action: Lucid stock is down 11.13% to $2.32 on Wednesday versus a 52-week trading range of $1.93 to $4.43. Lucid stock is down 27% over the last year.



Read Next: 



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<li><a href="https://www.benzinga.com/tech/25/02/43970188/lucid-prepares-to-launch-affordable-evs-first-midsize-model-could-be-unveiled-as-early-as-this-year-to-take-on-elon-musks-tesla">Lucid Prepares To Launch Affordable EVs: First Midsize Model Could Be Unveiled As Early As This Year To Take On Elon Musk&#8217;s Tesla</a></li>
</ul>



Photo: Courtesy Lucid

Management

LCID

Lucid Stock Falls On Q4 Results, CEO Exit: Analysts See 'Surge In Demand' For Gravity SUV

Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) is poised to release its fourth-quarter earnings today after market close. Analysts project earnings per share of 84 cents and revenues of $38.1 billion. Given Nvidia&#8217;s significant presence in <a href="https://www.benzinga.com/etfs">various ETFs</a>, this earnings report could substantially influence their performance.



ETFs with Nvidia Exposure To Keep An Eye On



Nvidia holds considerable weight in several prominent ETFs, notably:



VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>): Approximately 19% of this ETF&#8217;s holdings are in Nvidia, making it highly sensitive to Nvidia&#8217;s stock movements.



SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>): Nvidia comprises about 6.14% of this fund, reflecting its status as one of the largest companies in the S&amp;P 500 Index.



Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>): With an 8.1% allocation to Nvidia, this ETF is influenced by the company&#8217;s performance, given its focus on major non-financial companies listed on the Nasdaq.



Also Read: <a href="https://www.benzinga.com/trading-ideas/technicals/25/02/43972061/nvidia-stock-stumbles-into-q4-earnings-can-it-defy-nvda-bears">Nvidia Stock Stumbles Into Q4 Earnings: Can It Defy NVDA Bears?</a>



History and Relevance Of Nvidia As An Important Stock



For a quick memory refresh, in January, Nvidia experienced a significant stock decline of over 20% within days, primarily due to <a href="https://in.benzinga.com/tech/25/01/43302711/nvidia-hardest-hit-among-mag-7-stocks-by-deepseek-and-this-stock-ranked-second">concerns about China&#8217;s DeepSeek AI model</a> potentially reducing demand for Nvidia&#8217;s AI chips. Despite this sharp drop, the SPDR S&amp;P 500 ETF Trust, where Nvidia holds a 6.5% weighting, saw a minimal decrease of less than 2% from its all-time highs, indicating the broader market&#8217;s resilience.



Although Nvidia is no longer the largest company by market capitalization, Apple having reclaimed the top spot, it remains a substantial component of major ETFs like SPY. Nvidia&#8217;s performance influences not only its stock but also the semiconductor industry and tech giants that rely on its products, creating ripple effects throughout the market.



As Nvidia prepares to report its fourth-quarter earnings after the market closes today, analysts anticipate strong results, though uncertainties persist regarding the extent of outperformance. Previous earnings reports have led to mixed stock reactions, with notable fluctuations following each announcement. For instance, the stock rose more than 9% in response to its Q1 2024 results.



Investors are keenly observing whether Nvidia can surpass expectations amid concerns about slowing growth, margin pressures, and the impact of AI developments like DeepSeek. Nonetheless, while Nvidia&#8217;s influence on the broader market has slightly diminished, its earnings report remains a critical event for investors, with potential implications for related sectors and the overall market sentiment.



Also Read: <a href="https://www.benzinga.com/25/02/43948627/nvidia-stock-quite-cheap-ahead-of-q4-earnings-analyst-says-growth-story-is-intact">Nvidia Stock &#8216;Quite Cheap&#8217; Ahead Of Q4 Earnings: Analyst Says &#8216;Growth Story Is Intact&#8217;</a>



Experts Weigh In Ahead Of The Earnings



Nvidia stock maintains a <a href="https://www.benzinga.com/quote/nvda/analyst-ratings">consensus analyst rating</a> of Buy, with an average price target of $172.28.



Recent evaluations from Rosenblatt, Morgan Stanley, and Tigress Financial suggest a potential upside of over 50%, with an average price target of $197.33.



Analysts from Wedbush and Oppenheimer have <a href="https://www.investopedia.com/what-analysts-think-of-nvidia-stock-ahead-of-earnings-preview-q4-fy2025-update-11683525">reaffirmed </a>their price targets at $175, citing increased demand for Nvidia&#8217;s advanced chips as major technology companies expand their investments in AI infrastructure. UBS analysts, maintaining a $185 price target, observe that rising investor expectations and improvements in the supply chain could boost sales of Nvidia&#8217;s Blackwell line.



Oppenheimer analysts also note that the rapid emergence of Chinese AI startup DeepSeek may positively impact Nvidia, as increased competition encourages American clients to intensify their AI development efforts.



Investors express concerns about potential spending reductions by Nvidia&#8217;s key customers, especially following significant capital expenditures in prior years and recent AI advancements emerging from China, according to a CNBC <a href="https://www.cnbc.com/2025/02/25/nvida-to-report-earnings-amid-infrastructure-spending-deepseek-concerns.html">report</a>.



A significant portion of Nvidia&#8217;s revenue is derived from a select group of companies constructing extensive server infrastructures, commonly referred to as &#8220;hyperscalers.&#8221; In fiscal 2024, Nvidia reported that a single customer accounted for 19% of its total revenue. Consequently, any indication of reduced spending by these major clients could significantly influence Nvidia&#8217;s stock performance.



Investors are concerned that growth may be slowing, and margins could be under pressure, according to etf.com. A strong earnings report from Nvidia could lead to an uptick in ETFs&#8217; values, while disappointing results might exert downward pressure on them.



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Photo: Shutterstock

Sector ETFs

How Nvidia's Q4 Earnings Could Impact Major ETFs

J.P. Morgan analyst Christopher Horvers reiterated an <a href="https://www.benzinga.com/quote/LOW/analyst-ratings">Overweight rating</a> on the shares of Lowe&#8217;s Companies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOW#NYSE">LOW</a>) after the company reported better-than-expected fourth-quarter earnings.



Lowe&#8217;s reported a <a href="https://www.benzinga.com/25/02/43973370/lowes-q4-win-higher-profits-big-buybacks-and-a-cautious-2025-outlook">5% earnings per share (EPS) beat</a>, delivering $1.93 compared to the $1.84 consensus from Consensus Metrix.



This was driven by better-than-expected comparable sales (+0.2%), surpassing the analyst&#8217;s forecast of a -0.4% decline and down 50-100 basis points from buyside expectations. 



The comp performance was supported by high single-digit growth in professional and online sales, strong holiday results, and hurricane recovery efforts, though these were partially offset by ongoing short-term DIY headwinds. 



On the margin side, gross margin met both Street and JPMorgan estimates at 32.9%. Operating margin was slightly below consensus at 9.4%. This compares to the company&#8217;s implied guidance of a -2% comp, 9.6% operating margin, and $1.80 EPS for fourth-quarter 2024.



EPS grew by 9% year-over-year, marking the first increase since first quarter 2023 and the first positive comp since third-quarter of 2022.



Also Read: <a href="https://www.benzinga.com/news/retail-sales/25/02/43977330/target-and-champion-launch-exclusive-activewear-line">Target And Champion Launch Exclusive Activewear Line</a>



Lowe&#8217;s projects comparable sales to be flat to +1%. Total sales range from $83.5 billion to $84.5 billion, operating margin between 12.3% and 12.4%, and earnings per share (EPS) between $12.15 and $12.40 for FY25.



In comparison, the Street expects a +1.1% comp, $84.5 billion in total sales, a 12.5% operating margin, and EPS of $12.47.



Overall, Lowe&#8217;s results exceeded expectations, with comparable sales outperforming both the analyst&#8217;s raised forecast and the Street's estimates.



The gap in the analyst&#8217;s Street-high EPS projection was mainly due to incentive compensation, while gross margin was solidly in line, showing a 50 basis point year-over-year increase. 



The guidance was slightly below the moderate scenario from its December Analyst Day, which the analyst interprets as a signal to keep expectations steady, following similar reductions by Home Depot Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) and Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>).



Considering the early stage of the year and the potential slow start to first-quarter due to weather, the analyst expects LOW to regain some of its recently lost momentum. 



With positive guidance in place, the analyst foresees the stock heading back to $260 (~21x the high end of the range), though the near-term rebound in comps will be the key factor in this recovery.



Price Action: LOW shares are trading higher by 3.74% at $251.46 at last check Wednesday.



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Image: Shutterstock

Lowe's Positive Q4 Performance May Trigger Potential Rebound: Analyst

Editor&#8217;s Note: This article has been updated to include a response from AppLovin CEO Adam Foroughi addressing the short reports.



Shares of AppLovin Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APP#NASDAQ">APP</a>) were hit Wednesday with two new short reports adding to the targets against <a href="https://www.benzinga.com/trading-ideas/short-ideas/25/02/43856737/applovin-stock-tumbles-as-short-seller-takes-a-closer-look-at-whats-driving-enormous-gains">the high-rising stock.</a>



Fuzzy Panda Research on APP: A new short report from Fuzzy Panda Research accuses AppLovin of stealing Meta Platforms' (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) data and more.



Fuzzy Panda Research <a href="https://fuzzypandaresearch.com/app-stock-meta-google-malware-mobile-games-advertising/">said </a>AppLovin's revenue, EBITDA and cash flow have soared, leading to an impressive return for the stock.



"Some investors and former employees have even praised AppLovin's CEO Adam Foroughi as the next Mark Zuckerberg. But no one seems to know what AppLovin does," the report says.



The report says AppLovin credits its success to Axon 2.0, a machine-learning algorithm that serves as a matchmaker for publishers and advertisers. The short report alleges that Axon 2.0 is a &#8220;House of Cards&#8221; and accuses it of &#8220;Ad Fraud.&#8221;



"We believe AppLovin has pulled every trick in the book. We've been told they are stealing data from Meta in their e-commerce push."



In response, Foroughi pushed back against the reports, <a href="https://www.applovin.com/blog/note-from-our-ceo/">arguing </a>that short-sellers were attempting to undermine AppLovin's success.



&#8220;It's disappointing that a few nefarious short-sellers are making false and misleading claims aimed at undermining our success and driving down our stock price for their own financial gain, rather than acknowledging the sophisticated AI models our team has built to enhance advertising for our partners,&#8221; Foroughi said.



He also denied allegations of financial improprieties, emphasizing that AppLovin is a public company audited by a Big Four accounting firm and that claims regarding revenue misrepresentation have no basis whatsoever.



Meanwhile, the short report accuses AppLovin of exploiting consumer data in ways that could violate the app store policies of Apple and Google. The report said AppLovin risks a permanent ban from the mobile app stores.



"We believe these so-called dark ad practices explain the truth behind how AppLovin seems to have achieved its great growth. We believe Apple, Google and Meta all have a vested interest in putting a stop to it."



Fuzzy Panda Research was short shares of AppLovin at the time of the short report.



Read Also: <a href="https://www.benzinga.com/25/02/43709891/applovins-stock-rallies-after-solid-q4-growth-underscores-its-ability-to-scale-profitably-analysts-say">AppLovin&#8217;s Stock Rallies After Solid Q4 Growth, Underscores Ability To Scale Profitably, Analysts Say</a>



Culper Research on APP: A new short report from Culper Research said AppLovin could go down as "the single largest stock promotion" in some time.



The <a href="https://img1.wsimg.com/blobby/go/cc91fda7-4669-4d1b-81ce-a0b8d77f25ab/downloads/344fe56e-8638-4252-b5c5-353914cbbd46/Culper_APP_2-26-2025.pdf?ver=1740580804061">report </a>alleges Axon 2.0 to be a "smokescreen" and not the claimed black box.



"In its mobile gaming business, we believe $APP has systematically deployed then exploited incredibly dangerous app permissions that enable in-app ads themselves to force-feed silent, backdoor app installations directly onto users' phones," the report <a href="https://x.com/CulperResearch/status/1894749368579658023">says</a>.



The report says AppLovin gets direct download permissions onto consumers&#8217; phones, which helps with clicks and downloads of apps that boost its financials.



Like Fuzzy Panda Research, Culper says AppLovin risks being removed from app store platforms for violating terms.



"$APP now looks to parlay its mobile gaming promotion into e-commerce but here too we believe the company's push is smoke and mirrors."



Culper said AppLovin is copying Meta's homework and taking credit for it.



Speaking on AppLovin&#8217;s CEO, Culper said Foroughi previously created Social Hour and served as CEO from August 2008 to July 2010. Social Hour was banned from Facebook in 2009 for "misleading/scam-like advertisements."



Culper said the two biggest reasons they are short AppLovin are that the company's success in mobile gaming is based on exploitation of app permissions and that its e-commerce initiative is a "smoke and mirrors game."



APP Price Action: AppLovin stock is down 12% to $331.35 on Wednesday versus a 52-week trading range of $57.40 to $525.04. AppLovin stock is up 445% over the last year.



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<li><a href="https://www.benzinga.com/news/earnings/25/02/43676556/applovin-stock-soars-on-q4-earnings-revenue-beat-eps-beat-strong-guidance-and-more">Applovin Stock Soars On Q4 Earnings: Revenue Beat, EPS Beat, Strong Guidance And More</a></li>
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Photo: Shutterstock

Short Ideas

AppLovin Stock Drops On Multiple Short Reports: Allegations Of Copying Meta, Creating 'Smoke And Mirrors Game' (UPDATED)

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