NEWS
Investors Swap Graphics Cards For Cardboard Boxes

Big tech’s breakouts continued, with money finding its way to laggards like Amazon and Tesla. Your regularly scheduled Daily Rip author, Mr. Tom Bruni, is traveling today. So you’re in the good hands of Stocktwits’ lead crypto analyst and Litepaper author, Jon Morgan. 👀

Today's issue covers a possible rotation out of leaders into laggards like Amazon, Nvidia’s shareholder meeting, and an earnings recap about Micron, Levi Strauss, and BlackBerry. 📰

Here's today's heat map:

2 of 11 sectors closed green. Consumer discretionary (+1.45%) led, & energy (-0.98%) lagged. 💚

U.S. crude oil inventories shot up by 3.591 million barrels vs. expectations for a drop of 2.85 million. Gasoline stocks also surged by 2.654 million barrels, and refinery utilization took a nosedive by 1.30%. 📉

Speaking of oil, over half of oil executives surveyed by the Dallas Fed think U.S. crude output will be headed south if the shale sector’s merger frenzy keeps up. With $250 billion in takeovers, don't expect the U.S. to surprise the oil market like it did with last year’s production spike. 🛢️

May new home sales fell 11.30% MoM and 16.50% YoY, as higher rates and record-high prices put a lid on housing market activity. That’s a six-month low, with the level of new home inventory on the market rising to its highest since October 2022. 🏠

Whirpool shares surged 17% on news that Bosch may be preparing a takeover bid for the company. Vista Outdoors jumped another 9% after MNC Capital Partners raised its bid to $3.20 billion. 💰

Southwest Airlines slumped after cutting its second-quarter revenue guidance, citing “changing consumer behavior.” 🛬

LGBTQ+ dating app Grindr rose to a 1.5-year high after the company’s investor days outlined a roadmap that leverages AI and should help it grow revenues 20-25% annually through 2027. 💗

FedEx shares jumped 15% to $294.50, marking the largest percentage increase since 1986, following the announcement of a review of its freight business. Analysts speculate this review could lead to a potential spinoff, which some market participants have been regularly pushing for. 🚚 

General Mills forecasts a mixed fiscal 2025 with adjusted EPS expected to fluctuate between a 1% decrease and a 1% increase, and organic net sales potentially rising up to 1%. The company anticipates improved volume trends, driven by new products and strong brand campaigns, though category growth is projected to lag behind long-term goals. 🥞 

Chipotle executed its massive 50-for-1 stock split, making its shares more accessible to employees and retail investors. Pre-split shares worth $3,283.04 are now trading as 50 shares at around $65 each, marking a historic move for the company. Analysts see potential benefits in attracting new investors, though some warn of increased volatility. 🌯

The crypto crowd is throwing a party after anti-crypto Rep. Jamaal Bowman got the boot, and pro-crypto Rep. John Curtis scored a win. These primary results could shake up U.S. digital asset policy, backed by a hefty dose of crypto community cash. 🏆

Other active symbols: $DJT (+7.72%), $ALT (-16.22%), $VLCN (+18.70%), $AVAV (+0.05%), $SOXX (-0.39%), and $QCOM (-2.39%). 🔥

Here are the closing prices: 

COMPANY NEWS
Nvidia CEO Jensen Huang’s Big Plans: AI Domination and No Looking Back 🦾

$NVDA CEO Jensen Huang took the stage at the company's first shareholder meeting since their stock went nuclear. 🤖 

Since last year's meeting, Nvidia's stock has skyrocketed 193%, the company hit a $3 trillion valuation, and even briefly snagged the title of the most valuable company in the U.S.

Betting Big on AI

Huang noted Nvidia’s edge in the AI chip game, crediting a decade-old bet on AI that’s paid off massively. Billions of dollars in investments and thousands of engineers later, Nvidia’s got an 80% market share in AI chips. Not bad for a company that used to be all about gaming.

During the Q&A, Huang tackled questions about rising competition without naming names. He laid out Nvidia’s strategy: they’ve morphed into a data center powerhouse and are now eyeing new markets like industrial robotics. Their game plan? Partner up with every computer maker and cloud provider out there. 🫂 

Huang made it clear that Nvidia’s AI chips are the “lowest total cost of ownership.” Sure, other chips might be cheaper, but when you factor in performance and running costs, Nvidia’s chips are the smarter buy. It’s all about creating a “virtuous circle” where more users lead to better improvements, which in turn attract even more users.

“The NVIDIA platform is broadly available through every major cloud provider and computer maker, creating a large and attractive install base for developers and customers, which makes our platform more valuable to our customers,” Huang said.

Shareholders Are Happy

Shareholders gave a big thumbs up, approving a nonbinding vote on executive compensation. Huang’s pay package for 2024? A cool $34 million, up 60% from last year. When your company becomes the most valuable in the world, a hefty raise seems just right. 🚀