Nvidia (STAR)
NVDA - Nasdaq
If artificial intelligence is so smart, why didn’t it give everyone a heads up that Nvidia’s stock would be soaring this week so we could all get rich? Thanks for nothing, AI. Having already tripled this year, shares of the chip maker touched a record high after second-quarter results smashed expectations, driven by surging demand for Nvidia’s graphics processing units that power data centres and AI applications such as ChatGPT. Signalling that the AI boom has plenty of momentum, Nvidia also hiked its third-quarter revenue forecast to about US$16-billion, implying year-over-year growth of 170 per cent. Would appreciate some advance notice next time, AI. Happy to split the profits.
Dick’s Sporting Goods (DOG)
DKS - NYSE
Here’s one way to beat inflation: Steal everything. Shares of Dick’s Sporting Goods suffered their biggest percentage drop on record after the retailer announced second-quarter earnings below expectations, citing “the impact of elevated inventory shrink, an increasingly serious issue impacting many retailers.” Shrink – the industry term for theft – has gotten out of hand for many retailers as organized criminal gangs burst into stores and help themselves to merchandise, leaving employees helpless to stop them. “Hey, where do you think you’re going with that canoe? … No, I don’t want to get shot. … Say, do you need some paddles with that?”
Splunk (STAR)
SPLK - Nasdaq
Until recently, shares of Splunk really stunk. You might even say they were junk. After peaking at about US$225 in 2020, the stock shed more than two-thirds of its value over the next two years as the pandemic-driven tech boom faded. Now, thanks to strong growth in its cloud-based services, Splunk is no longer in a funk. Shares of the company – whose software analyzes large amounts of data to identify security threats and other problems – rose after it posted revenue growth of 14 per cent for the second quarter and topped earnings estimates. With the company also unveiling new AI-powered tools, investors are eagerly plunking down their cash for a chunk of Splunk.
Toronto-Dominion Bank (DOG)
TD - TSX
Business quiz! Shares of Toronto-Dominion Bank dropped after Canada’s second-biggest bank: a) posted fiscal third-quarter diluted earnings that fell 10.3 per cent year-over-year and missed expectations, as loan-loss provisions and expenses rose; b) said it “anticipates monetary and/or non-monetary penalties” arising from investigations by regulators and law enforcement agencies, including the U.S. Department of Justice, related to its anti-money-laundering practices; c) said net income fell 12 per cent in its wealth management and insurance division, “reflecting the impact of severe weather-related events” in insurance and lower transaction revenue in wealth management; d) all of the above. Answer: d.
Foot Locker (DOG)
FL - NYSE
Life is full of difficult choices. Pay the mortgage, or buy Taylor Swift tickets? Have dinner at East Side Mario’s, or fly to Italy? Buy groceries, or splurge on a new pair of Nikes? If Foot Locker’s dreadful results are any indication, fewer consumers are choosing to upgrade their grubby sneakers. Citing the “still-tough consumer backdrop,” the athletic footwear retailer posted a 9.9-per-cent decline in sales and a net loss of 5 cents a share for its second quarter ended July 29, reflecting weaker demand, higher promotional activity and increased theft. With Foot Locker also suspending its dividend, investors are going barefoot to the Taylor Swift show.