We’ve got a special edition of The Daily Rip covering the one event we’ve all been waiting for from a social, technical, and fundamental perspective. Respectfully, the rest of the market can wait. 🤣

Today's issue covers why Nvidia is such a big deal, the technical setup heading into earnings, and the key fundamental questions people are asking ahead of the results. 📰

Here’s the S&P 500 heatmap. 7 of 11 sectors closed green, with technology (+0.61%) leading and energy (-0.93%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $VOXX, $SMTC, $TCOM, $S, $ENSC 📉 $PVH, $SMCI, $AMWD, $APLD, $HSY*

*If you’re a business and want to access this data via our API, email us.

Just how important is Nvidia to our Stocktwits community? We'll show you with some eye-popping Stocktwits stats:

On top of that, here are some market stats to show its importance:

Not to mention, the Google Trends page for “Nvidia stock” has quite the arc over the past five years as everyone from Wall Street to Main Street was captivated by its performance. 🚀

To sum it up, retail investors and traders care A LOT about Nvidia because of its importance to the market and their portfolios. As a result, it's only right we roll out the red carpet for the earnings event of the summer…. 📸

We’ve got a jam-packed agenda for Nvidia day that you don’t want to miss out on. Below is an overview, but you can find the full rundown here.

It will be an absolute blast of a day, so make sure you join us and the rest of the Stocktwits community then! 👍

Before we get into the fundamentals, let’s discuss some key technical factors the market is monitoring.

The first is Nvidia’s implied earnings move, calculated using option market pricing. While the company is known for big swings, the 9.76% move expected by analysts represents a roughly $305 billion move in market capitalization, given it’s valued at over $3 trillion today. 🫨

As for investor sentiment, not a single sell-side analyst currently rates Nvidia as a sell. The ratings are as follows: Strong Buy (12), Buy (44), Hold (4), and Sell/Strong Sell (0). 🤩

Additionally, those analysts' average price target is $143.10, representing roughly 11% upside from current levels. However, the range's high is 200, and the low is 90.

As for retail investors and traders, the Stocktwits community sentiment meter suggests they’re ‘bullish’ as well, looking for further upside. 💪

Needless to say, both Wall Street and Main Street are pretty darn optimistic. And they’ve had good reason to be, so who can blame them? 🐂

With that said, some analysts noted that this one-sided sentiment can contribute to the risk of a sharp selloff if the company’s fundamentals don’t meet expectations.

Speaking of fundamentals, let’s get into what those look like… 👇

What is an appropriate valuation for earnings expected to grow to the moon? That’s one key question everyone is trying to figure out.

While the stock price has more than quadrupled since its 2021 peak, its forward price-to-earnings multiple is actually significantly lower because earnings expectations have risen so much. 🤯

The key question now is whether the company can deliver on those lofty earnings expectations. @IvanaSpear’s thread below outlines a few of the key drivers analysts will scrutinize to determine whether Nvidia can deliver. 💡

And here’s a great post from Investing Visuals summarizing the street’s expectations and recent key metrics. 👌

As for the overall industry’s fundamentals, some concerns about the major promises of artificial intelligence (AI) remain front and center. ⚠️

That’s because short-seller Hindenburg Research took aim at AI server maker Super Micro Computer, outlining its short thesis and accusing the company of “accounting manipulation.”

“It (Super Micro) benefited as an early mover but still faces significant accounting, governance and compliance issues and offers an inferior product and service now being eroded away by more credible competition,” Hindenburg said in its report.

The stock was initially down as much as 12% on the report but regained its footing to close slightly in the red. 🔺

Overall, Nvidia and AI-related stocks have driven significant portions of the market’s recent gains, so investors and traders at large take any potential fundamental issues seriously.

Time will tell if Nvidia raises any red flags in its own report tomorrow. The bulls are certainly betting they will not. 🤷

Economic data: Fed Waller Speech (1:15 am ET), EIA Energy Inventories (10:30 am ET), and Fed Bostic Speech (6:00 pm ET).

Pre-Market Earnings: Chewy ($CHWY), Abercrombie & Fitch ($ANF), Kohl’s ($KSS), Foot Locker ($FL), Bath & Body Works ($BBWI), JM Smucker ($SJM), Prudential ($PUK), Royal Bank of Canada ($RY), and Li Auto ($LI). 🛏️

After-Hour Earnings: Salesforce ($CRM), CrowdStrike ($CRWD), Affirm Holdings ($AFRM), HP ($HPQ), $NetApp ($NTAP), Applied Digital ($APLD), Iris Energy ($IREN), Guess ($GES), Victoria’s Secret ($VSCO), and Five Below ($FIVE). 🎧

P.S. You can listen to all of these earnings calls and more straight from the Stocktwits app or website. You’ll find them on the calendar page and individual symbol pages once they’re set to begin! We’ll see you there. 👍

🤠 Frustrated Rancher Solves Investors #1 Problem Using A.I*

🏘️ Home prices hit record high in June on S&P Case-Shiller Index

🌭 Increased sausage demand could be worrying signal on the economy

👎 Paramount stock falls 5% as buyout saga appears to finally reach conclusion

🔋 EV charger network doubles under Biden-Harris, $521M in new grants fuel expansion

🏭 Philip Morris to invest $232 million to expand ZYN production at Kentucky plant

💊 Pfizer, joining Lilly, enters the direct-to-consumer market with a telehealth and prescription platform

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.

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