Nvidia (NVDA)
Nvidia has lost more than $500 billion (£433 billion) in market value since briefly becoming the world’s most valuable company last week, after its shares fell almost 7% on Monday and were in the red during trading hours.
Many investors are believed to be taking profits after the semiconductor maker’s valuation soared.
David Morrison, senior market analyst at Trade Nation, said: “Some profit-taking seems entirely reasonable given NVIDIA’s meteoric rise. This year alone, the stock rose by more than 180%. But if it continues to lose ground, there is a risk of contagion, with sales spreading to other big tech names. If that were the case, the market would be in for a deeper and longer pullback.
“Yet there is little evidence that investors are even thinking along these lines.”
Another factor weighing on Nvidia is that CEO Jensen Huang sold shares this month through a trading scheme. That has drawn attention to whether the stock was slightly overvalued.
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Richard Hunter, head of markets at Interactive Investor, said: “The meteoric rise of technology and AI-related stocks in particular is inevitably reaching the stage where investors are taking a breath and recalculating valuation levels.”
The AI darling recently became the third company ever to achieve a market valuation of more than $3 trillion, surpassing Apple (AAPL) and Microsoft (MSFT) to become the most valued company in the world.
The market capitalization has now fallen to $2.91 trillion (£2.29 trillion).
Outflows from US Bitcoin Exchange-Traded Funds (ETFs) reached $1.3 billion in the past two weeks as the cryptocurrency’s price continues to fall.
Bitcoin is steady above $61,000 after falling to $59,200 during the early hours of the Asian trading day. Digital assets are now down 11% in June but continue to rise 42% this year, with gains largely concentrated around the ETF’s endorsement.
However, according to data from Farside Investors cited by the Cointelegraph, total outflows for Bitcoin ETFs over the past two trading weeks amounted to $1.298 billion, with outflows in Grayscale over the same period reaching $517.3 million.
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BlackRock’s Bitcoin ETF was the only fund to post positive results, bringing in $43.1 million in inflows over the past two weeks.
Not only is Bitcoin under pressure from declining demand for its ETFs, but there is also growing uncertainty about the US Federal Reserve’s ability to quickly cut interest rates from 20-year highs.
Crypto analysts give a 14% chance that Bitcoin will recover to $65,000 by the end of the week.
Shares of Trump Media & Technology Group are higher in premarket trading ahead of Thursday’s debate between President Biden and former President Donald Trump.
Trump Media stock is up 21% and is currently trading at $33.70 per share. The stock closed at just over $27 on Friday.
The company behind Truth Social has seen its stock price drop nearly 50% in the roughly three weeks since a New York jury found Trump guilty of 34 felony counts of falsifying business records.
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Trump owns 114,750,000, or about 64.9%, of the company’s shares. He cannot sell any of his shares before the end of September, when a post-merger lock-up period expires.
Shares of Airbus fell more than 10% in early morning trading after the aircraft maker cut its annual profit forecast due to ongoing supply chain disruptions and challenges in its aerospace business.
The manufacturer expects to deliver 770 aircraft this year – down from the previous forecast of 800 – while the production target of 75 A320neos per month has been pushed back from 2026 to 2027.
Airbus said it is facing “ongoing” and “specific” supply chain issues, mainly affecting engines, aircraft structures and cabin equipment.
It is also taking a €900m charge on its Space Systems after discovering “further commercial and technical” challenges.
As a result, the aerospace and defense group now expects adjusted earnings before interest and taxes of €5.5 billion this year, down from its previous forecast of as much as €7 billion.
“It may not have much impact on airlines, which have already signaled that Airbus has reduced scheduled deliveries. But aircraft production is proving difficult – just ask Boeing,” said Neil Wilson, chief market analyst at Finalto.
“Demand is not the problem; on the contrary. But if supply can’t keep pace and competition is so limited, it should mean that airline capacity doesn’t increase too much, allowing fares to stay higher for longer.”
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