"The stock market is filled with individuals who know the price of everything, but the value of nothing."
- Philip Fisher
This insightful quote by Philip Fisher highlights the importance of looking beyond stock prices and focusing on the true intrinsic value of investments.
Fisher, a pioneer in growth investing, emphasized deep research, long-term thinking, and understanding a company’s fundamentals rather than just reacting to market fluctuation
Market Wrap
Markets fell on Thursday, with the S&P 500 down 1.6%, marking its fifth decline in six days. The Nasdaq Composite dropped 2.8%, heavily influenced by losses in technology stocks, including Nvidia, which tumbled despite reporting strong earnings.
Trade Policy Uncertainty:
Investor sentiment was negatively impacted by President Trump's announcement of a forthcoming 25% tariff on imports from Mexico and Canada, set to take effect on March 4.
An additional 10% duty on Chinese imports was also announced. These proposed tariffs introduced fresh concerns about global trade relations, contributing to market volatility and affecting sectors reliant on international trade.
Economic Growth Concerns:
The Commerce Department confirmed that the U.S. economy grew at a 2.3% annual rate in the fourth quarter of 2024, a deceleration from the previous quarter's 3.1% growth.
This slowdown, coupled with rising inflation pressures, has raised concerns about future economic momentum.
Labor Market Fluctuations:
The Labor Department reported an increase in unemployment claims, reflecting potential impacts of federal worker layoffs.
Initial jobless claims rose by 22,000 to 242,000, the largest gain in five months, suggesting a weakening job market.
Nvidia Corporation shares fell 8.5% to $120.15, despite reporting strong earnings. The decline is attributed to concerns over high valuations and potential overspending in the tech sector, especially amidst geopolitical uncertainties.
Tesla Inc. shares continued their downward trend, falling 3% and extending a six-session losing streak. The decline is linked to weak sales data and concerns over CEO Elon Musk's external engagements.
Broadcom Inc. shares declined 7.1% to $197.80 during a challenging trading session. The decline was more significant than some competitors, with concerns over the broader tech sector impacting performance.
Salesforce Inc. shares dropped 4% after providing a revenue forecast that fell short of analysts' expectations, overshadowing its strong quarterly earnings.
Snowflake Inc. shares rose 4.5% following quarterly results that exceeded profit and revenue expectations, driven by robust demand for AI-related data services.
Warner Bros. Discovery Inc. shares gained as the company reported an upbeat streaming outlook, aiming to expand its Max streaming service to more countries and acquire at least 150 million global subscribers by the end of 2026.
Super Micro Computer Inc. shares plummeted 16% after reports that two officers filed to sell shares, despite the firm meeting a deadline to file its delayed annual report earlier in the week.
