Nvidia (NVDA)
Nvidia has lost more than $500bn (£433bn) in market value since briefly becoming the world’s most valuable company last week after shares fell nearly 7% on Monday and were in the red during pre-market hours.
Many investors are believed to be taking profits after the semiconductor maker’s valuation soared.
David Morrison, chief market analyst at Trade Nation, said: “Some profit-taking seems entirely reasonable given NVIDIA’s meteoric rise. The stock is up more than 180% this year alone. But if it continues to lose ground, then there is a risk of contagion and the sell-off will spread to other big tech names. If that were the case, then the market could be in for a deeper and longer pullback.
“Yet there is little indication that investors are even thinking in that direction.”
Another factor weighing on Nvidia is that CEO Jensen Huang has been selling shares through a trading plan this month. This focused attention on whether the stock was somewhat overvalued.
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Richard Hunter, head of markets at Interactive Investor, said: “The stellar run in technology and AI stocks in particular will inevitably lead to a stage where investors pause for breath and recalculate valuation levels.”
The AI ​​darling recently became the third company ever to reach a market valuation of more than $3 trillion, surpassing Apple ( AAPL ) and Microsoft ( MSFT ) to become the most valuable company in the world.
Its market capitalization has now fallen to $2.91 trillion (£2.29 trillion).
Outflows from US Bitcoin exchange-traded funds (ETFs) have reached $1.3 billion over the past two weeks as the price of the cryptocurrency continues to slide.
Bitcoin is steady above $61,000 after falling to $59,200 in the early hours of the Asian trading day. The digital asset is now down 11% in June, but remains up 42% year-to-date, with gains largely centered around ETF approvals.
However, according to data from Farside Investors cited by Cointelegraph, total outflows from Bitcoin ETFs over the past two trading weeks reached $1.298 billion, with Grayscale leading outflows of $517.3 million over the same period.
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BlackRock’s Bitcoin ETF was the only fund to post positive results, receiving $43.1 million worth of inflows over the past two weeks.
Bitcoin is not only under pressure from cooling demand for its ETFs, but also growing uncertainty over the US Federal Reserve’s ability to quickly cut interest rates from a two-decade high.
Cryptoanalysts give a 14% chance that Bitcoin will return 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 shares are up 21%, currently trading at $33.70 per share. Shares closed just above $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 counts of falsifying business records.
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Trump owns 114,750,000, or about 64.9%, of the company’s shares. It cannot sell any of its shares until the end of September, when the post-merger closing period expires.
Airbus shares fell more than 10% in early morning trading after the planemaker cut its full-year profit forecast due to ongoing supply chain disruptions and challenges in its space business.
The manufacturer expects to deliver 770 aircraft this year – up from an earlier forecast of 800 – while its production target of 75 A320neos per month has been pushed back from 2026 to 2027.
Airbus said it faces “ongoing” and “specific” supply chain issues, mainly related to engines, airframes and cabin equipment.
It is also taking a €900m charge in 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 tax of €5.5bn this year, down from a previous forecast of up to €7bn.
“It may not have much of an impact on airlines, which have already indicated that Airbus has scaled back planned deliveries. But aircraft production is proving to be tricky – just ask Boeing,” said Neil Wilson, chief market analyst at Finalto.
“Demand isn’t the problem, quite the opposite. But if supply can’t keep up and competition is so limited, it should mean that airline capacity won’t increase much, which could keep prices higher for longer.”
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