Nvidia Delivers!

Join TradeAlgo's Free Live Trading Session ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Nvidia Delivers! The current rally received a potentially major boost after Nvidia reported a blockbuster quarter which showed that the AI frenzy has no signs of slowing down. Most importantly, the AI chipmaker issues another phenomenal guidance with $28 billion revenue in the second quarter — above the estimates. Nvidia also announced a 10-for-1 stock split and hiked its quarterly dividend by 150%. The stakes were high before the report. Wall Street wondered if the growth is poised to slow down, but Nvidia’s data center business beat sky-high expectations. - “Even in the face of huge expectations, the company once again stepped up and delivered,” said Ryan Detrick at Carson Group. “The always important data center revenue was strong, while future revenue was also impressive. Bottom line, the bar was high and cleared it once again.” Ryan Detrick at Carson Group (Photo: Bloomberg) We also received the newest Federal Reserve minutes yesterday. The biggest point was that Fed officials weren’t in rush to cut interest rates. They were unsure if the current rate level is restraining the economy but still believed that the current rates were “restrictive.” However, Ryan Grabinski at Strategas Securities believed Nvidia earnings are “more important” than the Fed. Could it spark a FOMO rally? Matt Maley at Miller Tabak + Co. thinks so. - “As we all know, the stock market has pushed to new all-time highs recently,” said said Matt Maley at Miller Tabak + Co. “If Nvidia’s earnings or anything else push these indices further above their recent highs, it’s going to create another round of ‘FOMO’.” Lastly, Goldman Sachs CEO David Solomon said yesterday that he doesn’t see any rate cuts happening this year. Why? Government spending has propped up the economy, and it will be difficult to slow inflation with this amount of spending. Own a Piece of One of the Most Intensely-Loved Brands in the World The best kind of brands is when they own a category. Canada Goose is one of them. There is no more powerful brand than Canada Goose when it comes to winter coats. A standard coat costs $1,275 – which is far, far above the standard winter coat. Unlike many other fashion brands, Canada Goose dominates the winter coat segment. It’s considered as the crown jewel – the item to own during the winter. Obviously, it holds a huge pricing power. To see how fantastic Canada Goose’s economies, let’s look at its revenue first. The business skyrocketed from 2016 until 2020, cooled down in 2021 due to the pandemic, then went back on the track through 2024. (Source: MacroTrends) Canada Goose is still in the early innings of its brand lifecycle. Previously, it sold through third-party retailers. But now, it shifts the focus to direct-to-consumer model. The margins are higher. Their flagship stores in New York City, Chicago, Toronto, Paris, London, and other world-class cities quickly became premier luxury retail destinations. They are known for having a long line outside the stores on a regular weekend. With the focus on taking full ownership on brand experience, they grew its DTC revenue from just 29% at end of FY2017 to 68% for FY2023. The company sets a target to hit ~80% by FY28. (Source: Canada Goose) Future expansion: Canada Goose is focused on expanding its footprints in the Asia region. And the brand has been immensely popular there. Besides the international expansion, Canada Goose is adding products, which will drive higher revenue. Recently, they began introducing rainwear, windwear, knitwear, fleece, and accessories: Plus, it wants to introduce products at higher price points to boost its margins even further. As a result, the company expects a whopping 20% revenue CAGR from FY23 to FY28: (Source: Canada Goose) Bottom line: Canada Goose has an enviable brand loyalty with dream margins. With its elite pricing power, the sky is the limit. There is so much to love about Canada Goose. This has a potential to be a compounding stock over the next few years. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](