Happy Monday!

It’s midterm week, and I’m sure you all spent your reading break studying for a few hours every day to ensure you wouldn’t be stressed this week. This week, we’ve got some good news in real estate (finally), some super entertaining market updates, and study techniques for you go-getters looking to pass Accounting on Wednesday.

In this week’s rundown:

• NVDA… that’s it. That’s all I want to talk about.

…

Okay and some other stuff

Career Compass

Market Changes

Good Morning and welcome to midterm week. I’m currently getting clapped by the combination of accounting and finance while fuming over the fact that I have a 7pm Saturday exam. However, I’m still not busy enough to skip this week’s finance updates, so here’s the latest. 

Discover gets discovered: Capital One has recently announced the purchase of Discover Financial for $35.3 Billion, making it the biggest acquisition of the year at the moment. If you hold Discover shares, you'll be getting a little over 1:1 shares of Capital One as a nice little premium for investors. This merger would make Capital One the biggest credit card issuing company in the states and the third largest bank by purchase volume, so they’re blasting past JP Morgan to take the top dog spot. However, this merger is going to have many battles against regulators from the Biden Administration before it can take place, as their stance is heavily against M&A on monopolistic grounds. To me, it seems like Capital One is betting on a Trump Victory in November. Let’s see if the Finance Bros will be able to pull this off. 

Reddit is Cooking: For all of you who don’t use Reddit, you might want to consider it. One of the broadest sources of human-generated content, Reddit just struck a $60 Million deal with Google for access to its AI models in order to optimize search and operative features on its site. Google also benefits heavily from access to hoards of data that will help improve the quality and accuracy of its AI projects. Reddit, sneakily having one of the best years in its lifetime, is making its way to an IPO, definitely making it a company to watch in the next year or two. If you’re still not convinced, Sam Altman, the founder of Open AI(Chat GPT), is a flagrant Reddit enthusiast and has invested at least 60 Million dollars into the company as a member of the board. 

NVDA has opps: If you have looked at any Finance news in the past two weeks at all, which you probably haven't because you’ve been reading D&D, NVidia has perhaps been at the top of the site. They are on a tear, dominating the markets and leading the AI revolution that's happening right now. But instead of hopping on the bandwagon, I think it’s interesting to see what companies are gunning for that market share. AMD, another Chip and Graphics card maker has been biding its time developing its products to compete with Nvidia. Even though they only started making GPUs in 2017, they have cut out a 17% market share behind Nvidia’s 80%. However, as the demand for these cards increases exponentially as AI processing becomes more widespread, it’s certain that AMD is gonna set its sights on bridging the gap by ramping up production and quality of its product. Personally, I think it’s a hot stock to watch in the next few months, especially given Nvidia’s massive recent success. 

I hate everything, please give me a job: Recently, I took a trip to Calgary and surprisingly enjoyed my time there. Supposed to have a booming job market in terms of both desk and labour jobs, I was really considering prospects in Calgary. Unsurprisingly, though, Calgary was also affected by the layoff plague. Even though it’s the oil/gas center of Canada, job opportunities continue to dwindle as many residents are forced to leave the city due to a lack of employment. In addition, minorities, workers with disabilities, and part-time workers have also reported many issues with the Calgary job market. Accessibility and diversity are suffering, and recent graduates are struggling to find work. Truly, we can't have shit. 

Other Headlines:

• Boeing Replaces its 737 product lead in the midst of the many cases issues that have been popping up with the planes

• Berkshire Hathaway is set to release their annual report along with Warren Buffet’s annual letter

• Nigeria is currently facing an economic crisis with inflation hitting 30% and it’s currency being at an all time low

MF’n DND

NVDA NVDA NVDA NVDA NVDA

NVDA released their Q4 earnings last week, and I nearly had a cleanup on aisle my pants. In honour of my 3070 that allows me to play rust at a satisfactory level, let’s do a deep dive into what really went on last week. In fact, I may not talk about anything else this week. NVDA is awesome possum.

Last Week's Reflection: Diving Deep into NVDA's Exceptional Q4 Earnings Impact

Last week, our investment spotlight shone brightly on NVDA, and for a good reason (could it be that I am a genius?). The tech giant, known for their dominant GPUs, delivered a performance that absolutely blew everybody out of the market.

NVDA's Q4 Earnings: Surpassing Expectations

Last Wednesday, NVDA released their Q4 earnings and released figures that would have even Lucki shaking in his boots. The company's revenue for the quarter was $22.1 billion, against estimates of $20.4 billion — an 8% beat and an unreal 265% year-over-year growth. This performance was significantly bolstered by NVDA's Data Center segment, which outdid expectations, bringing in $18.4 billion in revenue and a year-over-year increase of roughly 410%.

The day preceding the earnings report saw NVDA's stock dip by 5%, a movement overshadowed by the near 15% surge following the announcement. In this words of bossman Rick Ross, “Scared money don’t make no money”

Wall Street's Reaction: A Vote of Confidence

The aftermath of NVDA's earnings announcement put into action a flurry of analysts retracting their bullish stance on the stock.

Colette Kress, NVDA's CFO, attributed the unique gross margin benefits to lower component costs in Q4 and the current quarter, forecasting a return to mid-70s gross margin for the remainder of the year. Furthermore, NVDA's EPS at $5.16, above the low estimates of $4.60 (I’m seeing a pattern here), paints a promising picture of its valuation as NVDA continues to blow estimates out of the water. Looking ahead, NVDA expects a $24 billion revenue forecast for Q1, with a gross margin between 76.3% and 77%.

The Investment Perspective: NVDA as a Strong Buy

NVDA's Q4 earnings and subsequent market reaction solidify its place as the number 1 tech giant, particularly in the AI domain. Analysts overwhelmingly rate NVDA as a "Strong Buy," with most forecasts suggesting EVEN further upside. While the average 12-month price target sits at $810.15, indicating a modest 4% upside, individual analysts, including those from Bank of America, JPMorgan, Mizuho, and Needham, project targets reaching up to $925 — why are you still here? BUYYYYYYYYY.

NVDA's Path Forward

NVDA's exceptional Q4 results and optimistic Q1 guidance reflect its strong market leadership, promising prospects, and sustained profitability. With AI demand soaring, NVDA's strategic positioning and innovative capabilities are likely to fuel its continued growth. The consensus among analysts points towards a positive trajectory despite a conservative average price target.

NVDA's story from last week is a compelling chapter in our investment journey, illustrating the importance of aligning with companies that not only lead in innovation but also demonstrate strong financial health and growth potential. As we move forward, NVDA remains a critical component of our portfolio, embodying the convergence of technological prowess and market leadership.

AGAIN - THIS IS **NOT** FINANCIAL ADVICE

Academic Alley

The Pomodoro Technique

A few weeks ago, I did an article on my glorious king, Andrew Huberman and how you can achieve 10x memorization through his technique. However, not only do I not believe that any of you lazy bums tried it, but I bet you wouldn’t notice if I copied and pasted the article here today.

However, I’m feeling nice today and will throw you a lob. I’m sure many of you know this one already! However, for those of us who have a tough time bartering with ourselves to get work done, I’ve found this method to be fairly effective.

The Essence of the Pomodoro Technique

The Pomodoro Technique is a time management method that breaks work or study sessions into intervals, traditionally 25 minutes in length, separated by short breaks. These intervals are known as "Pomodoros," named after the tomato-shaped kitchen timer Cirillo (you don’t care who this is) used during his university days. The technique is built on the premise that frequent breaks can improve mental agility and sustain focus and motivation.

Breaking Down the Pomodoro Technique

1. Choose a Task: Select a task or study topic you need to address. It could be anything from reading a textbook chapter to solving complex problems in finance or engineering.

2. Set the Pomodoro Timer: Traditionally, this is set for 25 minutes, but some find extending it to 50 minutes works better for complex subjects requiring deep focus. The key is uninterrupted study for the duration of the timer.

3. Work on the Task: Dedicate your full attention. If a distracting thought comes to mind, jot it down on paper and continue working. The goal is to maintain a single-minded focus until the timer rings.

4. End Work When the Timer Rings: Once the Pomodoro timer signals the end of the interval, put a checkmark on a piece of paper and take a short break (5 minutes is standard). This is crucial for your brain to assimilate the information and avoid burnout.

5. Take Longer Breaks: After completing four Pomodoros, take a longer break, typically 15-30 minutes. This helps to reset your brain's energy levels and prepares you for the next study session with renewed focus.

The Technical Efficacy of the Pomodoro Technique

The Pomodoro Technique is particularly effective for technical subjects that require extended periods of concentration and mental effort. By breaking up pharmacy visits into manageable intervals, learners can tackle complex problems in a structured manner, preventing overwhelming stress and allowing better understanding.

This technique encourages a disciplined approach to time management, where tasks are addressed systematically rather than chaotically. This can be especially beneficial in fields like finance, investment banking (hmmmm), and engineering, where the material can be dense and the workload heavy.

Interview Question - NVDA NVDA

For all of my lovely second-year commerce friends, we have the pleasure of writing our Finance exam this Saturday at 7 pm. Because, well, what else would I be doing on a weekend? I’m sure you’ve barely even considered Finance because you’ve been SO busy with accounting, so I figured I’d help you out.

I LOVE NVDIA!!

What would we value NVDA as if we take their EPS of $5.16 and use a P/E ratio of 65x??

STUDENT LIFE

Real Estate Run-Down

Glorious news at last, my devoted real estate readers! B.C. is finally making some moves to address our housing crisis through a house flipping tax. In this week's edition, we'll keep it brief as we prepare for our upcoming exams, so buckle in and learn about one of B.C.'s most lucrative housing strategies.

What is House Flipping?

In short, house flipping is taking an existing property, making some improvements, and selling it for profit. Let's say you find a rundown house on a decent chunk of land. Your inspection comes back with some minor wear and tear but no significant structural damage. Ok, great, you have a lot of construction experience, and you think you can heavily renovate it by yourself. You purchase this property for 1.2 million, set aside 200k for renovations/paperwork, and target a future selling price of 1.5 million. What's the issue? Within a few months and some upgrades, if this house is sold, its "value" will have increased far beyond normal housing price inflation. Furthermore, the sudden valuation change will ripple out to other properties in the community. Your neighbour Jim will go, "They only put a few minor changes into their house, yet it's worth 1.5 million! My house should be close to that!". As the house flipper, you just made 300k in half a year. Not so bad, eh? To tackle this issue, the B.C. government is implementing up to a 20% tax on profits if you sell a home within a year of buying it. There are exemptions for certain circumstances, but it's mainly to deter the potential house flippers from attempting a quick cash grab and falsely inflating the housing market.

Joey’s Pick of The Week

• 2 Bed

• 1 Bath

• $2850/month

• 900 sqft

An astonishing 5 MINUTES AWAY from UBC, this two-bed 1, one-bath basement suite has taken the spot for best find. It includes all utilities, including a BRAND NEW LG washer and dryer. 900 sqft of floor space, and you don't even have to stay inside because you're a short walk away from literally everything! Spanish Banks, Jericho Park, University Golf Club, and its prime location. As always, the link is above, and happy house hunting!

Social Ledger: Get Sipping

Reading break might have come to a close, but if you need a place to celebrate finishing your oddly scheduled Saturday Finance midterm this week, look no further than Elysium on Thurlow St. Just a walk around the block from Celebrities, this place is a fairly newly developed, intimate venue hosting local talent on the decks and sporting a solid multi-room layout which keeps the night interesting as the place fills up. The best part about all of this? It’s right on top of a Denny’s so you can get your fixing of an end-of-the-night meal in absolute shambles. A little bonus was thrown in for the event being non-stop 2000s hits. Wow. What more could you ask for?

TLDR:

• Who? → You, your friends, a ton of photographers, a fire DJ, cool bouncers

• What? → Hit Mix Volume 3 (Non-Stop 2000’s Hits) @ ELYSIUM

• When? → Saturday, March 2

• Where? → Elysium Nightclub

• Why? → Why not? It’s on top of a Denny’s.

• How? (much) → Free! If you’re fast…

Social Ledger: Good Eats

Pasta Pasta

I recently tried my hand at making pasta from scratch. Doesn’t take anything but some flour, eggs, and elbow grease, right? Wrong. I quickly learned that this is a skill that must be honed over many years of pasta-making experience. It actually turned out phenomenal, but regardless, it was well upward of an hour's worth of work between three people. The 12.5% of my Italian bloodline was having a field day, and I found a great new deal of admiration for the culture and tradition that goes into making this stuff; I mean, seriously, it’s an easy process that’s unfortunately even easier to mess up. One of the best pasta dishes I’ve had in recent memory came from a Greek place on West 10th by the name of Four Olives. This place was a phenomenal rendition of classic Greek dishes such as various souvlakis, but the real twist that made this place stand out came from their variety of alternative offerings, such as pasta, steaks, and a lineup of stellar appetizers including calamari that melted in your mouth and would leave even the most seafood-hesitant begging for seconds. The star of my evening at Four Olives, however, as pictured below, was the Chicken Parmesan Fettuccini. The crispy outer crust of cheese perfectly complimented the juicy and well-seasoned chicken breast in both texture and flavour, and the richness of the garlic butter spread pushed the line of being “over-the-top” without quite making you feel as though your stomach was already hating you halfway through the dish. The fettuccini served with an alfredo sauce was the perfect creamy pairing for the chicken, and again, danced the dangerous line of “too much” in a manner that left you still coming back for more despite the sometimes overwhelming aspects of the rich flavour of the dish. Overall, the ambience of the restaurant was fantastic, the staff was warm and super funny, and the quality and size of the meals were exceptional for the price you paid.

WRAPPING UP

Andddddd - we are done!

This isn’t going to be a fun week. However, I have an interview on Monday, which makes life much more fun to look forward to. In fact, It’s at 8AM, so there’s a good chance I’m begging for my life as you’re reading this. If you’ve got a minute, pray I remember the STAR format when it gets going.

As always, please send your hate mail below.

[email protected]