Party at Jensen Huang’s

[The Daily Peel... ]() Feb 24, 2023 | Peel #406 Silver banana goes to... [Doroni. ]() Market Snapshot Happy Friday, apes. After yesterday’s market performance, it really is a Happy Friday this week. US equity markets snapped a would’ve-been 4-day losing streak as investors seemingly decided that they’re no longer all that scared of JPow and the mighty rate hikes. All three majors finished higher after a midday push carried us out of the morning’s lows. Bond yields were mostly flat, while the dollar bored traders out of their minds as well. Let’s get into it. [image] FOLLOW YOUR STOCKS TO THE MOON [image]() It’s time for you AND your portfolio to take off, and apes, we’ve found the solution. [Doroni]( is about to whip out the coolest product ever. These Einsteins of aviation have figured out a way to put you in your own, personal aircraft so easily that even the crayon-eaters among us couldn’t mess it up. The thing even fits in your garage, what more could you want?! And the best part is: it’s not just the aircraft soaring to the skies. As we speak, Doroni is currently taking on new investors through a round of crowdfunding. That means you apes have the chance to get in on the ground floor and head to the skies both in and invested in a Doroni aircraft. You’re welcome. [Don’t sleep on this one, apes.]() This is one flight you can’t afford to miss as the chance to get in ends well before April 1 and I know you don’t want to be looking like a Fool already! Banana Bits - 2022 handed the US housing market its [fattest drop in value](=) since…you know when… - Jamie Dimon, noted non-DJ executive of one of the US’s largest banks, threw some shade at his boy JPow and the [Fed’s ability to wrangle inflation]() - Despite the hootin’ and hollerin’, global debt saw its [first decline since 2015]( - Uh-Oh! The US DoD revealed plans to [radically increase](=) the number of US troops in Taiwan in the coming weeks and months…not a great sign for already high tensions Macro Monkey Says One Year Later One year ago today, the Armed Forces of the Russian Federation began a hostile, unprovoked invasion of the neighboring country of Ukraine. Today, the war continues to rage, with expectations for a springtime escalation looming large. Now, considering the obvious tragedy for the individuals living in that region as well as their friends and families abroad, it’s clear this now year-long war has carried enormous macroeconomic and geopolitical changes along with it. Of course, exactly 0 people actually affected directly by the invasion give a single sh*t about those macro dynamics and other changes, but it’s worthwhile to take a look at what’s going on. From February 24th of last year, the immediate concern for most of Europe jumped right to energy. Not necessarily the price of that energy, but if they were going to be able to keep buying from Russia as the continent had relied on for the previous decade(s). Not long after the invasion, sanctions and the blowing up of the Nord Stream pipelines answered that question pretty clearly. With a lack of supply and expected record demand, prices absolutely mooned in the short-term, but let’s see how these commodities have performed in the year since: - WTI Crude Oil (US): -16.9% - Brent Crude (International): -11.6% - Natural Gas: -49.9% - Gasoline: -17.4% - Heating Oil: -2.5% Aaaaaand they were way off. An explosion in prices was easy to predict, and hindsight is 20/20, but it seems that traders and experts alike failed to consider how people would actually react to these mooning prices. Yes, a lot of that is due to the US basically draining the [SPR](), but these experts must’ve skipped out on their meteorology class, too, as winter across the globe this year has been far less harsh than in recent years, decreasing demand for these energy commodities. But it wasn’t just energy, of course, that came into question. As the “breadbasket of Europe,” drastic concerns arose over wheat crop harvesting and shipment since Ukraine apparently carries the whole world on it’s back when it comes to these products. But, other countries stepped production up, and deals were made to ensure much of the third-world didn’t literally starve without Ukrainian wheat, allowing crop-carrying ships to pass through ports and the Mediterranean without any interference from the Russian military (allegedly). The other big question around “supply” was the supply of military equipment Ukraine had in its back pocket at the onset of the invasion. Spoiler: it wasn’t much, but boy, has that changed since then. Plenty of countries are helping out, but the U.S. has been far-and-away the largest supplier of aid to Ukrainian front lines and bank accounts. The data changes daily, but as of the start of this month, the US had given or pledged over $100bn in aid, a total amount of about 0.37% of our GDP. About half of that aid comes in the form of existing military arms and equipment the US just kinda had lying around, like older firearms, vehicles, and now tanks and air-defense systems. Financial aid has been overwhelming as well, allowing Ukrainian forces to procure further assistance from both humanitarian and militaristic sources. This doesn’t even scratch the surface of highlighting the dynamism caused by the invasion. The West has arguably become more united, like the BFFs they once were again, while both the financial and militaristic standing of the Russian Federation slowly bleeds out. Only time will tell what could go down in the future, but I just really hope I don’t have to write another version of this article this time next year. What's Ripe Rolls-Royce (OTCMKTS: RYCEY) ↑ 20.00% ↑ - Open up your notebooks; time to learn a little bit because Rolls Royce just taught companies far and wide how to absolutely crush an earnings report. - Shares soared well over 20% across the pond and at the aviation manufacturer’s US-listed ADR as profits flew 57% from the same period as last year, and sales danced all over expectations, too. - Rolls-Royce, who sold their car brand and business to Volkswagen and BMW in one of the most hair-brained transactions ever, thanks the recovery of global travel for its strong performance. And, therein lies the lesson for companies far and wide: if you want a solid earnings day, just make sure you’re in a downbad industry with rock bottom EPS expectations. It’s too easy! Nvidia ($NVDA) ↑ 14.02% ↑ - Party at Jensen Huang’s house tonight. I can’t confirm if there will be drinks or not, but we now know for sure that there will be chips. - That’s because Huang’s semiconductor company Nvidia absolutely hit it out of the park on their latest earnings call. $6.1bn in sales and $0.88/sh in earnings far surpassed estimates, while projections for a top line of $6.5bn in the coming quarter was yet another reason to start popping bottles. - Going in, expectations weren’t too low, but they sure weren’t all that high considering the tom foolery the global chip supply chain has suffered since C-19 showed up. Nvidia managed to make it work, adding fuel to that fire with their stellar data center biz. - Despite not having a .ai at the end of their name, much of the strength comes from Huang and analysts hyping up the company’s exposure to the burgeoning sector through their GPU segment. They won’t be the first to launch a chatbot, but they still could be the first to launch one that actually has a good name. What's Rotten Wayfair ($W) ↓ 23.05% ↓ - Wayfair often claims they’ve “got just what I need.” Well, I can assure you that yesterday’s 23% tumble was, in fact, not something I needed…not at all. - Handing the online furniture company that fat L was the firm’s hot trash earnings report that dropped yesterday. Sales were basically in line with expectations, while EPS came up just short. - The firm’s outlook wasn’t a tragedy by any means, but traders simply could not get over that wider-than-expected miss on the bottom line. The stock ended Thursday with a new “Worst Trading Day Ever” in the books…have a great weekend, team! Moderna ($MRNA) ↓ 6.70% ↓ - Literally saving the entire world from a rabid pandemic gave Moderna what some may call a slight boost in their overall business. Unfortunately, Mr. Market doesn’t have a great long-term memory, and that “saving the world” premium started to fade. - And after seeing the firm’s latest quarterly numbers yesterday, it was clear that the whole “save the world” phase is over. Exhibit A, the firm’s EPS came in well short of expectations, raking in just $3.61/sh vs. the $4.94/sh expected. Sales were roughly in line with expectations, implying that Moderna failed to manage costs as efficiently as the Street had priced in. - Shareholders (aka bag holders) can blame surplus production capacity for much of the elementary cost management performance. There’s a whole of C-19 shots sitting unused, and as vax mandates have largely exited the chat, it’s not looking great for this line of product. - Although the rest of the firm’s pipeline seems to be moving right on track (at least that’s what the smart people tell me), investors may just be waiting for the next pandemic to see gains like 2020/21 again. Data Peel [image] [Source]( Thought Banana Soaring Scumbaggery Like the sinking of the Titanic or the collapse of the Hindenburg blimp, this tragedy just keeps getting worse and worse. The one good thing you can say about Scum Bag-Fraud and the rest of the team at FTX is that they really don’t fail to disappoint…unless, of course, you’re a customer looking to get your funds back. Yesterday morning, we learned that the financial disaster at the Bahamas-based crypto exchange is far worse than expected. US prosecutors charged with sorting through the FTX debacle, which is basically the financial equivalent of asking someone to single-handedly clean up the [Great Pacific Garbage Patch](=), have added further charges to SBF’s already damning rap sheet. Honestly, I’m impressed. I’m impressed that 1) someone was actually able to comprehend FTX’s structure and 2) that Scum Bag-Fraud actually managed to make the “worst case scenario” situation even worse. Basically, 4 additional charges were made, adding to the list of things like securities fraud and bank fraud. The 8 charges already pressed on SBF back in December included high-ticket offenses like wire fraud, money laundering, and campaign finance violations. Add to that list bank fraud, securities fraud, and even more violations of campaign finance laws, bringing the total number of charges against the biggest scumbag in crypto to 12. One of the most braindead new charges includes a scheme in which FTX (allegedly) opened an account with an unnamed banking and brokerage partner in which FTX was to (allegedly) conduct trading and other brokerage activities out of. Turns out the account was (allegedly) used to pretty much just pass around customer funds with almost universal access to the use of the funds. Nice one, guys. Further, the US prosecutors claim that SBF’s actions following the collapse warrant more scrutiny and legal action. Specifically, they alleged that SBF posted “a series of false and misleading tweets” where this guy “doubled down on his fraudulent schemes by soliciting billions of dollars in additional capital investments from existing and potential investors in FTX, many of whom he had previously defrauded.” Big oof. Just goes to show that when sh*t hits the fan, the only correct reaction is to sit down and shut up. The best part about these new charges, however, is that it looks like much of the freshly found evidence for these charges comes from sources inside of FTX, including Alameda CEO Caroline Ellison and SBF’s (former) right-hand man Gary Wang. FTX, SBF, with all these acronyms going around, it’s hard to believe no one told him to STFU. For now, we’ll still have to wait about 7.5 months before Scum Bag-Fraud’s trial actually begins on October 2nd. Thanks to that $250mn bail bond posting, SBF will be big vibing in his parent’s Northern California home until then, so stay tuned. The big question: How will these new charges change SBF’s eventual trial and the legal ramifications to follow? Did Ellison and Wang make the (obviously) correct decision to sit down, shut up, and co-operate? Banana Brain Teaser Yesterday — A man forgot the secret code to open his locker. But he remembers the following clues: The fifth number plus the third number equals fourteen. The first number is one less than twice the second number. The fourth number is one more than the second number. The second number plus the third number equals ten. The sum of all five numbers is 30. Can you find out the secret code to help him out? 7,4,6,5,8 Today — It’s 150 bananas off the [Venture Capital Course]( for the first 3 correct respondents. LFG! You will always find me in the past. I can be created in the present, But the future can never taint me. What am I? Shoot us your guesses at [vyomesh@wallstreetoasis.com](mailto:vyomesh@wallstreetoasis.com?subject=Banana%20Brain%20Teaser) with the subject line “Banana Brain Teaser” or simply [click here to reply!](mailto:vyomesh@wallstreetoasis.com?subject=Banana%20Brain%20Teaser) Wise Investor Says “The goal of valuation is not to provide a precise number, but to provide a range of values that can guide decision-making.” — Aswath Damodaran How would you rate today’s Peel? [image]() [image]() [image](=) [All the bananas]() [Decent]() [Rotten AF]( Happy Investing, Patrick & The Daily Peel Team Was this email forwarded to you? Sign up for the WSO Daily Peel [here](). [ADVERTISE]( // [WSO ALPHA]() // [COURSES]( // [LEGAL]( Don't want The Daily Peel? [Unsubscribe here](. Click to [Unsubscribe]( from ALL WSO content IB Oasis Corp. (aka "Wall Street Oasis") 20705 Saint Charles St Saratoga, California 95070 United States