A Rainy Day on Wall Street

There were few surprises when NVIDIA reported earnings today — the company beat top and bottom line estimates thanks to gaming and data center sales. 🤖 🎮

NVIDIA reported $2.46 billion in net income (or $1.17/share) on revenue of $7.1 billion. Both figures were a touch above analysts’ expectations. Revenue gained a jaw-dropping 50% YoY and diluted EPS soared 83% YoY. 

NVIDIA highlighted record revenue in its data center and gaming units. Gaming pulled in $3.22 billion, +42% YoY — NVIDIA can probably thank crypto miners for a portion of that. 😅 Data center (which broadly speaks to AI and Big Data computing) pulled in $2.94 billion, +55% YoY. That figure came even as NVIDIA navigated a global semiconductor shortage. 💪

NVIDIA indicated that it expects less revenue growth next quarter. The company had little to say about its acquisition of ARM, which is under regulatory scrutiny in the UK. However, those concerns aren’t anything NVIDIA can’t handle. It’s fair to say NVIDIA’s earnings were a ray of sunshine for the Stocktwits community, on what appears to have been a cloudy earnings day. 🌩️

$NVDA stock rose 4.5% after hours today. 

Chobani — the company famous for making Greek yogurt a thing — filed to go public under $CHO following a decision to IPO back in July. 😋

Chobani’s revenue increased 5.2% to $1.4 billion from 2019 to 2020, but its net loss also tripled during that time as Chobani invested capital back into its own business. In July 2021, Chobani’s valuation reportedly exceeded $10 billion. The company initially started manufacturing just Greek yogurt, but has since branched into coffee, coffee creamer, and oat milk.

Chobani shared that funds from its IPO would address debt and alter its corporate structure. Several food and beverage companies have also gone to market this year, but with mixed outcomes. For example, oat milk giant Oatly ($OTLY) plunged well below its IPO price this week. 

Chobani’s CEO, Hamdi Ulukaya, founded the company in 2005. Ulukaya has expressed his interest in leveraging Chobani’s corporate power to address the global wealth inequality gap.

You can read Chobani’s complete S-1 filing here.

Cassava Sciences has become a hot pick among ambitious investors. In fact, it’s one of the best-performing stocks this year. 👩‍🔬

The company recently launched into late-stage clinical trials for its Alzheimer’s drug, Simufilam. However, the integrity of Simufilam’s clinical data has become a topic of great controversy in recent months. The company has been accused of “manipulating data and images from data used to support the efficacy“ of its drug. In the Aug. 29 edition of The Daily Rip, we covered a citizen’s petition which aimed to expose data manipulation in Cassava’s clinical trials… even though Cassava claims its drug stopped and reversed progression of the disease.

There have been few new therapies for Alzheimer’s, especially ones capable of stopping or reversing symptoms. People also aren’t confident in Biogen’s recently-approved Aduhelm, the first Alzheimer’s drug in decades, which comes at a $56,000/year price tag with a sketchy clinical profile. For this reason, Cassava’s suggestion that Simufilam could be so powerful is radical — and now it’s attracting attention from skeptical regulators.

The SEC and other “unnamed government agencies” are investigating claims about Simufilam’s data integrity. The company is supposedly cooperating with the investigation, but it’s not a good look. 😬

The company started its first of two planned phase 3 trials for Simufilam in October, which is expected to proceed despite the investigation. However, Cassava will have to deal with regulators and the uncertain outcome of a multi-year clinical trial process, both of which pose major threats to the biotech company. 

Nonetheless, the 44,588 Stocktwits investors watching Cassava will probably continue to embrace ups-and-downs, hoping for good news. 🙏 In the meantime, $SAVA could become a target for speculation and short squeezes.

In light of the SEC’s investigation, $SAVA has fallen 35.5% in the last five trading days. OOF. We’ll be keeping an eye on this story.