Equities, rates, credit, and commodities.
17 notes
Search within this sectionNvidia reported $96.2 billion of revenue against a $91.0 billion guide, then guided current-quarter gross margin down a point. The explanation sits in the CFO commentary, where supply commitments more than doubled to $279 billion, primarily to buy memory.
Nvidia has warned its largest customers that servers built around its newest AI chips will cost more than 15 percent more. The company also told investors its pricing generally does not move with short-term costs. Wednesday's margin guidance will show which is true.
The strongest quarter of earnings growth since 2021, on the highest share of companies beating expectations since 2021. Two companies inside the index produced most of the surprise by writing up investments they did not sell.
Moderna added roughly $44.5bn of market value in one session, and Merck, which splits the drug's costs and profits equally, added about $42bn. The press release behind the move gives no measure at all of how large the benefit was, since the only hard numbers it carries come from a different and far smaller study.
Target earned $4.11 a share against $2.05 a year earlier, at a time when analysts had expected $2.33, and almost the whole of the difference came from a $994 million refund of tariffs. Strip the refund out and the figure is $2.46 a share by our own arithmetic, and the beat is $0.13.
Alphabet booked a $99.0 billion net gain on equity securities in the second quarter of 2026. Of that, $278 million came from securities it actually sold. An NYU accounting professor explains what the rest of the number is, and what it is not.
On Holding missed second quarter expectations by roughly CHF 28 million and fell 20 percent. Currency translation had already removed about CHF 61 million from the same line, and the company now operates in a currency it does not report in.
Super Micro forecast up to $72 billion of fiscal 2027 revenue against consensus near $54 billion. Its CEO and CFO have concluded its disclosure controls are not effective, and one of the four unremediated weaknesses covers the identification of related party transactions.
At its investor day Sandisk put a $93.9 billion floor under four years of sales and told investors to expect roughly 80 percent gross margins through fiscal 2030. Fifteen months ago its gross margin was 26.2 percent.
Cisco beat consensus on fourth quarter revenue and earnings, then guided fiscal 2027 revenue roughly 5 percent above what analysts expected. The stock rose about 6 percent after hours and then fell. Inside the release, gross margin dropped more than two points, operating cash flow for the year was flat despite profit rising 30 percent, and Cisco lent its own customers $1.8 billion in a single quarter.
Alphabet, Amazon, Microsoft, Nvidia and Meta all reported historic numbers this quarter. Trace the money and it runs in a circle. Meta commits $349 billion to cloud capacity. That is revenue for Microsoft, Amazon and Google. They fund the AI labs. The labs buy Nvidia chips. Nvidia buys cloud capacity back. At the end of the circuit, the gains are booked as profit on holdings nobody sold.
Amazon's second quarter profit tripled to $62.6 billion. Operating income grew 43 percent, and that is not what did it: a $50.5 billion markup on its nonvoting preferred stock in Anthropic ran through the income statement, a further $42.0 billion ran through other comprehensive income, and the cash flow statement removes all of it. Over twelve months, free cash flow was negative.
1–12 of 17 notes