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Stocks to Watch Today: Nvidia, Starbucks, and Expedia

Published 08/13/2024, 01:23 AM
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In a volatile market, three major companies are drawing investor attention due to recent developments and stock movements. Nvidia (NASDAQ:NVDA) is shrugging off concerns about chip delays, Starbucks (NASDAQ:SBUX) has attracted a new activist investor, and Expedia (NASDAQ:EXPE) is grappling with weak travel demand despite strong Q2 results. Here’s a closer look at these stocks and their recent performance.

Nvidia (NVDA) Shrugs Off Chip Delay Concerns

Nvidia’s stock rose 3.63% to $108.55 in morning trading, despite reports of a three-month delay in volume shipments of its next-generation Blackwell B200 chip.

The delay, attributed to a design flaw, hasn’t dampened analyst optimism. Jefferies maintains a Buy rating with a $150 target price, expecting strong sales of current-generation Hopper chips through 2024.

With a market cap of $2.67 trillion and a P/E ratio of 61.29, Nvidia continues to outperform the broader market. The stock has seen a staggering 119.18% year-to-date return and a 165.73% one-year return.

Investors eagerly await Nvidia’s quarterly earnings report on August 28, which could provide more insight into the chip delay’s impact and the company’s AI-driven growth prospects.

Starbucks (SBUX) Gains as Another Activist Investor Reveals Stake

Starbucks shares jumped 3.56% to $77.76 following news that activist investor Starboard Value has taken a stake in the coffee giant.

While the size of Starboard’s stake remains unknown, the firm is expected to push for measures to improve Starbucks’ stock price, which has declined 23% over the past 52 weeks.

This development comes as Starbucks faces challenges, including weak U.S. demand and a 14% drop in China same-store sales. With a market cap of $88.118 billion and a P/E ratio of 21.03, Starbucks offers a forward dividend yield of 2.81%.

The company’s next earnings report, scheduled between October 31 and November 4, will be closely watched for signs of improvement in global sales.

Expedia (EXPE) Dips After CEO Warns of Weak Travel Demand

Expedia’s stock dipped 2.61% to $126.62 after CEO Ariane Gorin warned of weak summer travel demand. Despite this caution, the company’s Q2 earnings beat expectations, with adjusted earnings per share of $3.51 versus the $3.14 forecast.

Revenue rose 6% year-over-year to $3.6 billion, and gross bookings increased 6% to $28.8 million.

However, Expedia has lowered its full-year outlook, expecting Q3 gross bookings and revenue growth of 3% to 5%.

The travel giant, with a market cap of $16.489 billion and a P/E ratio of 23.43, has seen a 13.56% one-year return despite a 16.55% year-to-date decline.

Analysts maintain a positive outlook, with a high price target of $200.00, suggesting potential upside despite near-term headwinds in the travel sector.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.

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