Hot Stocks: Nvidia, Cineworld, UU, Fevertree
Nvidia might beat Apple's stock market record in the US. A photo by Mike Blake/Reuters showed this news.
Nvidia could have the largest increase in value in a single day for any US company. This is because the company revealed higher revenue estimates than what analysts predicted. This news is set to be announced on the stock market in Wall Street.
Nvidia made $7.19bn in the first quarter, ended on April 30th. That's 13% lower than last year. However, it still did better than people predicted on Wall Street.
The company that creates AI and graphics chips made a statement. They made a lot of money from data centres. They made $4.28 billion, which is 14% more than last year. This shows that data centre customers are doing better.
The firm from California saw an increase of 29% during US trading. They're likely to break their own record after predicting sales reaching $11bn from April to July.
The company's market cap may increase by $219bn in one day if markets continue to rise. This would beat Apple's previous record of $191bn gained in November 2022. The company's current market cap is $755bn.
Nvidia makes chips for AI training. These chips are advanced. Nvidia is the biggest maker of these chips. AI services need these chips. The chips help create a new generation of AI services.
The FTSE and European markets are down due to the risk of a US default. You can learn more by reading about it.
Russ Mould from AJ Bell stated that despite the hype surrounding AI, Nvidia's results show it's not all talk and that there's something substantial to it.
This business supports AI infrastructure and made lots of money. This success increased their stock value to a new high last night on Wall Street.
Nvidia is getting ahead with AI supercomputing systems, not just chips. They're important for the AI competition.
Cineworld got more support from lenders for its restructuring plan. The company filed for bankruptcy in the US last year.
The company wanted to reorganize its debts and assets, so it filed for a protection order. Now, it says it has made a deal with lenders who control almost all of its revolving credit facilities and 69% of its outstanding debts. This means the company can go ahead with a restructuring plan and start anew this summer.
But, shareholders will still lose their money. The group said that the announcement won't help them.
The plan for Cineworld's future doesn't give anything back to its current stockholders. This is because the company has a lot of debt that they need to deal with through the Group Chapter 11 Companies' plan of reorganisation.
The group wants to improve its $5bn worth debt and come out of Chapter 11 bankruptcy. This goal is set for the first six months of 2021.
Cineworld said they're still running their venues as usual with no breaks. They own the Picturehouse chain as well.
United Utilities, UK's biggest water company, gave their shareholders £310m but their pre-tax profits dropped by 27.7%.
United Utilities made an operating profit of £441m from 31st March. This is not as much as last year when they made £610m. They say that the reason for the drop is because electricity and chemical prices have gone up.
The company made £1.8bn this year, but that's 2.1% less than last year. They think they'll be able to get back £40m of that in two years.
A leak in profits was seen in United Utilities. The company provides water to North West England. The regulator allows them to earn a fair profit. An equity analyst at Hargreaves Lansdown commented on this.
Inflation is causing costs to become too high. Customers are being asked to save water, resulting in lower revenue. These factors are causing profits to decrease.
United Utilities raised its annual dividend to 45.51p, a 4.6% increase.
Want to know if crude oil might hit $100 a barrel? Check out OPEC's latest announcement. They might be considering more cuts. If they do cut production, prices could rise. But it's just a possibility, not a guarantee. Keep an eye on the news and see what happens.
The water company went to court in March. They had a problem. A shipping company from Manchester said the water company was putting sewage in their place. The shipping company said this was like breaking the law in the UK. The law is called trespass or nuisance. The UK Supreme Court heard the case.
Fevertree, the maker of premium mixers, has restated its revenue forecast for the year. The company expects to earn between £390m and £405m for the period.
The company thinks the cost of things going up is still high. But they hope to reduce those costs and make more profit. They plan to make over £36m to £42m by 2023. They feel confident they can do it.
Fever-Tree, the drinks maker, told investors its value share reached a record high of six per cent in the first leg of the year. This happened because they released new cocktail mixers to the market. Their annual general meeting is due this Thursday.
Fevertree shared that Coline McConville will step down from the board after the AGM. Kevin Havelock takes over McConville's role.
Check out these trending stocks: Nvidia, Snowflake, E.L.F. Beauty, and American Eagle. These companies are all seeing increased attention from investors. Keep an eye on their performances in the market. You never know, they could be a good investment opportunity.
