Nvidia impresses, Apple and Eli Lilly plan expansions, but tech stocks remain uncertain
From Nasdaq: 2025-03-04 13:36:00
Nvidia impresses with strong results, but market remains skeptical of chipmaker and big tech stocks. Apple and Eli Lilly plan U.S. expansion. Home Depot and Cava share earnings updates. Axon’s growth opportunities discussed. Marqeta and EPR Properties are stocks to watch. For more investing insights, check out The Motley Fool’s podcasts and beginner’s guide. Consider Stock Advisor’s top 10 list for investment ideas.
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Nvidia’s strong quarter reflects growing chip demand. Datacenter revenue hits record high. Gaming revenue drops, but automotive segment shows promise. CEO remains optimistic about AI workload growth. Cloud-based models to boost chip demand. Gross margin slightly down due to Blackwell ramp. Market expectations high for chipmaker. CEO confident in sustained demand for chips. The tech industry faces a dilemma of overbuilding due to high demand for computational power, especially in AI. Market took a dip with NVIDIA stock down 22% and other tech giants also facing losses. Apple announces $500 billion investments in US manufacturing, focusing on AI and chip capabilities. Eli Lilly also commits $25 billion to boost drug supplies and development. Companies are investing to diversify and secure supply chains amid global challenges. Home Depot reports disappointing 1.3% growth in US comps, lower operating margin, and a 2.2% dividend increase, the smallest in 13 years. Outlook for 2025 anticipates flat to slightly higher comps and lower earnings due to customer reluctance to spend on big ticket items.
Despite challenges like tariffs, Home Depot sees positive growth with single digit top line growth and same store sales. Tariffs are manageable as the company has been diversifying its supply chain for years. The company remains confident in navigating challenges with their experienced team.
Body cam and Taser Maker Axon experiences a 10% drop in shares following quarterly update, 25% off recent highs. Despite market volatility, Axon reports impressive 34% revenue growth from the previous year, marking their 12th consecutive quarter of over 25% revenue growth.
Mediterranean Fast Casual Chain Kava serves up spicy lamb with strong fourth quarter results. Shares of Axon down 11% on the year but up over 90% in the last 12 months, showcasing financial volatility. The company continues to innovate and grow revenue in all business areas, with a focus on enterprise and international segments for expansion opportunities. CAVA’s stock sold off after disappointing guidance, despite strong Q4 results with 21% same restaurant sales growth and a 15.6% traffic increase. The guidance for 6-8% comps was lower than expected, leading to a market sell-off. Even after the drop, the stock remains richly priced but offers long-term growth potential.
Axon reported positive earnings with revenue growth of 30% for three straight years and bookings over $5 billion. The enterprise segment closed the biggest deal in company history, showing strong growth potential. Net revenue retention at 123% highlights the ability to retain and expand customer relationships consistently.
Jason Moser interviewed Axon’s president, Josh Isner, discussing the strong quarterly results, record bookings, and growth in the enterprise segment. Isner highlighted the revenue growth rate of 30% for three years, bookings over $5 billion, and the largest deal in enterprise segment history. Net revenue retention at 123% also showed strong customer retention and expansion. Axon, a technology company, has seen a significant increase in their total addressable market opportunity, now at $129 billion. Their revenue has crossed $2 billion, with the enterprise segment and more products driving this growth. They focus on customer experience, with a high NPS score and a dedication to customer satisfaction.
The company recently signed their largest deal with a global logistics provider, involving body cameras, licensing, and their Fusus product. They hope to cross-sell more products in the future, such as drones and robotics for drone defense and mitigation in logistics. The deal shows faith in Axon’s offerings and potential for future growth.
Axon is also seeing impressive international growth, with a 50% increase from the previous quarter on top of a 40% increase before that. They see international markets as a significant opportunity, with aspirations for it to make up 80% of their business. Good product market fit, cloud storage acceptance, and new team upgrades are driving growth in these markets. Axon’s international business aims to surpass US public safety division, as there are more customers and users globally. The acquisition of Fusus strengthens the company’s offerings, fusing camera feeds for real-time crime prevention. Despite red tape in Arizona real estate plans, Axon aims to create a campus for talent retention and industry events. Federal cost-cutting measures may benefit Axon, as their products deliver value and outcomes for government users. Jason Moser anticipates increased spending on military, defense tech, and federal law enforcement as funds are freed up. Despite potential cuts, there are opportunities to assist in various areas. Tariff concerns remain due to ongoing uncertainty, but proactive supply chain measures have positioned the company well. Company leadership discusses business strategies and stocks on the radar for the upcoming week, emphasizing the importance of following Motley Fool editorial standards and recommendations. Marqeta, a fintech company, is highlighted for its strong earnings report and customer base, with a focus on total processing volume and revenue growth. EPR Properties, an experiential REIT, is recommended for its focus on experience-based products and notable dividend yield. Dan shares his thoughts on movie theaters and EPR’s success in the industry. In the latest episode of Motley Fool Money Radio Show, the hosts discuss their plans to go see the movie “Superman” this summer, urging each other to get out of the house. They also talk about adding Marqeta to their watchlist due to its involvement in the fintech industry. Jason Moser has positions in Apple, Axon Enterprise, Home Depot, and Marqeta, while Matthew Argersinger has positions in Axon Enterprise, Cava Group, EPR Properties, and Home Depot. The Motley Fool recommends Cava Group, EPR Properties, and Marqeta.
Dan Boyd expresses his excitement for Marqeta, citing its involvement in the fintech sector as a reason for adding it to his watchlist. The hosts thank each other for their insights and contributions to the show, with Dylan Lewis signing off until next time. Jason Moser, Matthew Argersinger, and Dan Boyd discuss their positions in various stocks mentioned during the show, as well as their recommendations and options. The Motley Fool has positions in and recommends Apple, Axon Enterprise, Home Depot, and Nvidia.
The hosts share their thoughts on the movie “Superman” and their plans to see it together. They also discuss their stock picks and recommendations for the week, with a focus on Marqeta for its involvement in the fintech industry. The Motley Fool Radio Show concludes with thanks to the listeners and a reminder to tune in next time for more insights and recommendations.
Read more at Nasdaq: Nvidia, Apple, and Eli Lilly: Manufacturing the Future