Good morning everyone! Last night and this morning, many big events happened again.
The three major stock indexes in the United States closed lower, with the S&P 500 and Nasdaq both recording their third consecutive day of decline.
The second quarter performance guidance fell short of expectations, with Adobe's market value evaporating over 250 billion yuan overnight.
The yield on US Treasury bonds mostly rose.
Famous American investor Cathie Wood has warned that Nvidia's downside potential could reach up to 50%.
Popular Chinese concept stocks fluctuated, with Liantuo Biotechnology rising 83.05%
The S&P 500 and Nasdaq have fallen for three consecutive days
On March 15th Eastern Time, the three major stock indexes in the United States closed down across the board. As of the close, the Dow Jones Industrial Average fell 0.49% to close at 38714.77 points; The S&P 500 index fell 0.65% to 5117.09 points; The Nasdaq fell 0.96% to 15973.17 points. The S&P 500 index and Nasdaq both recorded their third consecutive day of decline. This week, the Dow Jones Industrial Average fell 0.02%, recording three consecutive weekly declines. The S&P 500 index fell 0.13%, and the Nasdaq fell 0.7%.
Q2 performance guidance fell short of expectations
Adobe's market value evaporated overnight, exceeding 250 billion yuan
On March 15th Eastern Time, software giant Adobe plummeted by 14.98%. As of the close, Adobe fell 13.67% to $492.46, with a market value of $222.86 billion and an overnight evaporation of $35.3 billion (approximately RMB 254 billion). The company's first quarter revenue and profit exceeded expectations, but the second quarter performance guidance fell short of expectations.
On March 14th Eastern Time, Adobe, a US software giant and developer of PhotoShop, released its first financial report for the fiscal year 2024 (for the three months ending March 1st, 2024).
According to the financial report, Adobe's first quarter revenue reached a historic record of 5.18 billion US dollars, an increase of 11% year-on-year; But profits decreased from $1.247 billion in the same period last year to $620 million, GAAP earnings per share halved year-on-year to $1.36, and non GAAP earnings per share increased by 18% to $4.48.
However, in Adobe's outlook for the second quarter, the company expects revenue to be between $5.25 billion and $5.3 billion, while non GAAP earnings per share are between $4.35 billion and $4.40. Compared to this, analysts had previously predicted $5.31 billion and $4.38 respectively.
Analysis suggests that the slightly weak revenue outlook reflects Adobe's concerns about other artificial intelligence startups entering its core business areas. This is also reflected in the company's outlook. Adobe expects an increase of $440 million in digital media business ARR (annual recurring revenue), including creative tool FamilyBucket, which is lower than the expected $459 million.
Bank of America analyst Brad Sills wrote in an investor report, "Although profit growth is slower than expected, Firefly is one of the most widely used generative artificial intelligence products, and it is possible to achieve profitability through multiple channels later this year and beyond (Firefly and other companies)."
Most US bond yields have risen
On March 15th Eastern Time, the yield of US Treasury bonds mostly rose, with the yield of 2-year US Treasury bonds rising 3 basis points to 4.738%; The yield of the three-year US Treasury bond rose 3.8 basis points to 4.514%; The 5-year US Treasury yield rose 3.9 basis points to 4.335%; The 10-year US Treasury yield rose 1.8 basis points to 4.315%; The 30-year US Treasury yield fell 0.4 basis points to 4.433%.
Casewood: Nvidia has a 50% downside potential
Famous American investor Cathie Wood has warned that Nvidia today is particularly similar to Cisco back in the day, and there may be room for a sharp decline, with a drop of up to 50%.
On March 15th Eastern Time, Nvidia's stock price fluctuated significantly, dropping 1.92% at one point before rebounding with an amplitude of 3.74%, ultimately closing at $878.36, down 0.12%.
However, Goldman Sachs believes that although the optimism for AI in the US stock market is "high", it has not yet reached the peak after the foam of science and technology or the COVID-19. Goldman Sachs expects Nvidia's sales to grow by 300% in just two years. Despite the high optimism of artificial intelligence, the forward P/E ratio of the stock has remained almost unchanged since the beginning of 2023.
Popular Chinese concept stocks fluctuate in price
Liantuo Biotechnology rose 83.05%
Popular Chinese concept stocks have fluctuated in price. Liantuo Biotechnology rose 83.05%, Chijie Automobile rose 52.17%, and Haichuan Securities rose 38.36%, leading the rise in Chinese concept stocks. Dajian Cloud Warehouse rose 23.32%, while Yihang Intelligence rose 12.93%.
In terms of decline, AKSO HEALTH fell 21.26%, Zhongjin Medical fell 17.67%, and MERCURITY FINTECH fell 15.49%, leading the decline in Chinese concept stocks. Douyu fell 8.94%, Century Internet fell 6.74%, and Zaiding Pharmaceutical fell 5.52%. Zhonggai New Energy Vehicle stocks collectively rose, with NIO Automobile up 0.18%, Xiaopeng Automobile up 2.61%, and Ideal Automobile up 2.66%.