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Here’s everything you need to know today: There are currently 14,157 publicly traded companies in the United States and over 1000+ articles released about S&P500 companies alone every single day. Today we will be showing you the top 3 events that you need to know today:

Market Performance (1 year)

1. Dow - 16.29%

2. S&P 500 - 27.01%

3. Nasdaq - 30.01%

4. Bitcoin - 121.29%

Today (Here’s 3 things you need to know)  

1. Berkshire Hathaway Boosts Holdings in Occidental, VeriSign, and SiriusXM

Amid a turbulent stock market week, Warren Buffett's Berkshire Hathaway actively increased its stakes in Occidental Petroleum, VeriSign, and SiriusXM, according to SEC filings.

From Tuesday to Thursday, the company invested over $400 million in Occidental, raising its ownership to more than 28%. Berkshire last added Occidental shares in June.

The company also expanded its stakes to over 13% in VeriSign and more than 34% in SiriusXM.

Despite a positive reaction with all three stocks rising in morning trading, they remain in negative territory for 2024, underperforming the S&P 500’s 25% rally. These strategic purchases signal Berkshire’s confidence in these companies despite broader market volatility.

2. Can Nvidia Weather the Storm? Analysts Warn of a Potential 50% Drop

1 Year Performance (NVDA): +179%

Nvidia (NVDA) faces significant valuation risks, with analysts warning its stock could decline by as much as 50% to $65 per share.

While the company has benefited from booming demand for GPUs in AI applications, growth may slow as major tech firms complete initial training phases for large models and optimize their use of high-quality data.

This could lead to reduced spending on Nvidia's high-end GPUs like the H100, giving competitors such as AMD and Intel an opportunity to capture a larger share of the AI inference market. Additionally, proprietary chipsets developed by major customers like Amazon and Google pose a growing competitive threat, potentially limiting Nvidia's market dominance.

Further challenges include signs of plateauing demand, as seen with Microsoft's easing GPU supply constraints, which could lead to pricing pressure. Analysts project Nvidia’s revenue growth could slow significantly over the next two years, reducing profit margins from 50% to around 35%.

If growth slows and U.S. monetary policy shifts, Nvidia's elevated price-to-earnings (P/E) ratio of 44x may face a sharp reassessment, potentially falling to 25x.

These factors could temper Nvidia’s recent explosive growth and present a substantial risk to its valuation.

3. Federal Reserve's Preferred Inflation Metric Eases Concerns

The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) index, delivered a more optimistic outlook than expected, countering the Fed’s hawkish midweek stance.

The annualized PCE showed a smaller-than-expected increase, with both monthly and core metrics falling below market expectations. Specifically, monthly PCE rose 0.1%, below the 0.2% forecast and previous months.

The core PCE, excluding food and energy, also increased by just 0.1%, the smallest rise in six months, contrasting with 0.3% in October and September.

These results suggest easing inflationary pressures, offering a potential shift in the Fed’s monetary policy path despite earlier projections of persistent inflation and delayed rate cuts.

Market Memes Of The Day

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