Yahoo Finance Trending tickers: Nvidia | Baidu | Zoom | AO World
The latest investor updates on stocks that are trending on Tuesday
Nvidia (NVDA)
Shares of Nvidia are up 237% year-to-date ahead of its third-quarter earnings release later today.
The chip giant saw stocks closing at a record high of $504.09 (£401.52) on Monday as investors await the latest from the company that has become the face of AI.
Nvidia is expected to report a nearly 173% jump in revenue for the third quarter, according to analysts polled by LSEG, and Wall Street estimates it will forecast a more than 195% rise in revenue for the current quarter, Reuters reports.
Read more: Bank of England not keen to cut interest rates anytime soon, Andrew Bailey suggests
“Nvidia, which designs its chips but then outsources the manufacturing in a so-called fabless model, is the single-best performing stock in the S&P 500 this year (ahead of Meta, Royal Caribbean Cruises, Advanced Micro Devices and Palo Alto Networks),” Russ Mould and Danni Hewson, investment director and head of financial analysis at AJ Bell respectively, said.
“What long-time chief executive Jensen Huang has to say about current and future trading therefore matters,” they added.
Baidu (BIDU)
China’s top search engine saw stocks jump after it reported better-than-expected quarterly results.
Revenue grew by 6% year-on-year to 34.45bn yuan (£3.76bn/$4.72bn) in the quarter that ended Sept. 30. Wall Street had slightly lower expectations of 34.33bn yuan.
The strong performance was helped by a jump in advertising income as the Chinese economy shows signs of recovery.
“Baidu reported solid third-quarter financial results, demonstrating resilience in a challenging economic climate,” Robin Li, Baidu CEO and co-founder of Baidu, said in a release.
Baidu has in recent years focused increasingly on AI, having last month released the newest version of its generative AI model, Ernie 4.0.
Ernie bot is Baidu’s version of the artificial intelligence-powered chatbot ChatGPT. Baidu only started charging for Ernie bot in November.
“Our ongoing investments in AI have underpinned technological and product innovations. Moving forward, while we will continue prioritizing investments in AI, especially in generative AI and foundation models, we will do so with an unrelenting focus on efficiency and strategic resource allocation,” Rong Luo, Baidu CFO, said.
Zoom (ZM)
Shares of Zoom Video Communications surged in extended trading after the videoconferencing platform raised its full-year sales and profit outlook.
Zoom posted revenue of $1.137bnn in the quarter ended Oct. 31, up 3.2% from a year ago and ahead of the consensus at $1.119bn. On an adjusted basis, Zoom earned $1.29 a share, ahead of consensus at $1.08.
Read more: LIVE: FTSE and European stocks mixed as UK borrowing rises and productivity dips
"In Q3, revenue came in ahead of guidance as we bolstered Zoom's all-in-one intelligent collaboration platform with advanced new capabilities like Zoom AI Companion and continued to evolve our customer and employee engagement solutions," chief executive Eric Yuan said
For the current quarter, Zoom predicted adjusted earnings of $1.14 a share on sales of $1.13bn.
AO World (AO.L)
Online electricals retailer AO World has hiked its full-year earnings outlook in spite of falling sales as cost-cutting actions bear fruit.
AO World made a £13m pre-tax profit, compared to a £12m loss last year as it upgraded its profit guidance from £28m to between £28 to £33m for the year.
Actions to cut costs and strip out unprofitable sales impacted revenues, which fell 12% to £482m in the half-year.
Founder and CEO John Roberts said: “I am very pleased with the clear progress that we are making as a result of our strategic pivot to focusing on profit and cash.
“We have generated more profit in the first half of this year than we did in the whole of last year, and are also upgrading our profit expectations for the remainder of FY24”.
Watch: Retail earnings in focus, stocks look to continue winning streak: Yahoo Finance Live
Download the Yahoo Finance app, available for Apple and Android.
