AI Earnings Disappoint (Except at Nvidia). Also, Temu's Parent and an EV Startup.
AI Earnings Disappoint (Except at Nvidia). Also, Temu's Parent and an EV Startup.
By:James Melton
A weekly look inside Luckbox magazine
Besides Nvidia, AI earnings have been underwhelming
Investors’ enthusiasm for the AI sector has helped drive stock market gains in early 2024. However, several prominent companies that have invested heavily in AI experienced sharp corrections in their stock prices following their Q1 earnings announcements.
That wasn’t the case for Nvidia (NVDA), which reported strong quarterly earnings results on May 22. But, beyond Nvidia, AI players such as Dell Technologies (DELL), MongoDB (MDB), Salesforce (CRM), Super Micro Computer (SMCI) and UiPath (PATH) all suffered downturns after earnings, arguably because investor expectations didn’t align with actual performance.
The recent earnings season has shown that not all AI-focused companies are thriving, suggesting that cracks may be forming in the once “bulletproof” AI narrative that has driven much of the recent bull run in the stock market. For a deeper look at the AI sector, read the whole story.
Stock of Temu parent rallies
The Chinese yuan has declined to a six-month low against the U.S. dollar, reflecting ongoing concerns in the Chinese economy. And a weakening currency isn’t China’s biggest problem—at least not yet. The country has been grappling with a severe slowdown in its real estate sector, as well as sluggish economic growth.
However, PDD Holdings (PDD)—better known as Pinduoduo and the parent of Temu—reported impressive Q1 earnings, but the company’s valuation remains depressed because of continuing geopolitical risks. PDD reported strong Q1 earnings and bucked the broader trend, rallying by more than 30% since mid-April.
On May 22, PDD announced its revenue doubled during the first quarter, compared to the same period last year, rising from about $5 billion to $12 billion. The company also announced its quarterly profit had tripled, clocking it at around $5 billion, as compared to just over $1 billion during Q1 of last year. Read the whole story.
An EV maker seeks to revive classic design
What happened to automotive design?
A lot of new vehicles look embarrassingly like those in their competitors’ showrooms. And many are aesthetically uninspired. Electric car startup Olympian Motors sees that as an opportunity.
Its retro-themed driving machines—the upcoming Model 84 and the sleek Model O1, shown here—look like nothing else on the road. It recalls a James Bond-like design equipped with a voice- activated cockpit. Read the whole story.
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James Melton is managing editor of Luckbox magazine. @JDMeltonWriter
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