Breakfast News: Crypto Crumbles
February 26, 2025
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Tuesday's Markets |
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| S&P 500 5,955 (-0.47%) |
| Nasdaq 19,026 (-1.35%) |
| Dow 43,621 (+0.37%) |
| Bitcoin $88,149 (-6.6%) |
Source: Image created by JesterAI.
1. Bitcoin Drawdown Continues
Bitcoin (BTC 3.90%) closed a little over $88,000 yesterday, having fallen close to $86,000 at one point. That's its first close below $90,000 since November, and marks a 19% fall from January's high of over $119,000. The world's second-biggest cryptocurrency, Ether, lost 6%.
- Cryptocurrency stocks suffer: Crypto exchange provider Coinbase (COIN 2.52%) fell 6.4% on the day, and is now down 35% since its IPO. MicroStrategy (MSTR 1.29%), a major corporate holder of Bitcoin, fell 11% as crypto miners were also hit.
- "This hurts... Stay Foolish": Fool analyst Bernd Schmid reiterated the importance of having a long-term perspective: "The market cap of all cryptos ... outside the top 10, covering most Digital Explorers recommendations, are down 52% [since December highs]. But remember, during the last bull market [this group] faced drawdowns of 73%, 69%, and several more over 20%. This volatility is the price of admission for the potential upside, as Morgan Housel would say."
2. What You Might've Missed on Tuesday
Sezzle (SEZL 2.51%) soared 15% in after-hours trading yesterday, after the payments services company smashed through fourth-quarter earnings estimates. Revenue doubled year over year. Adjusted earnings per share (EPS) of $4.39 beat a $3.12 consensus, with 2025 guidance at $13.25.
- Up 395% since 2012 IPO: Stock Advisor recommendation Workday (WDAY -0.24%) jumped 12% after Tuesday's closing bell, after posting Q4 non-GAAP EPS of $1.92, beating the expected $1.78. Management sees long-term growth through continued investment in AI innovation and international expansion.
- Fending off Chinese rivals: Rule Breakers rec Coupang (CPNG 1.03%) gained nearly 6% after hours. The Korea-based online retailer beat Q4 earnings estimates, with net revenue up 21% in the quarter. In the near term, watch for competition from AliExpress and Temu.
3. All Eyes on Nvidia
Investors are holding their breath in anticipation of Nvidia's (NVDA 0.80%) Q4 results after today's close. The data center business is expected to dominate the quarter's revenue, estimated at around $34 billion. We'll see how well Blackwell chips, now in full production, are selling as Nvidia faces a few potential headwinds.
- Better vs cheaper chips: It's the first quarterly update since DeepSeek helped knock $600 billion off Nvidia's market cap. Some investors fear AI models using cheaper chips could dent Nvidia sales; CEO Jensen Huang thinks the opposite, that to stay in the game DeepSeek and other competitors would benefit from using the best.
- Tariff threat: President Trump's proposed 25% tariff on imported semiconductors muddies the water. Escalating export controls on chips to China could further restrict Nvidia's overseas sales.
4. Next Up: Retail Reports
Fourth-quarter retail updates are in the news, with Lowe’s (LOW -0.96%) posting before today’s opening. Shares are up in pre-market trading after beating earnings and revenue estimates, with management expecting modest growth for the new financial year.
- On par with the S&P 500 over past 5 years: Analysts predict a 3.6% rise in quarterly EPS from TJX Companies (TJX -2.37%), reporting this morning, though they expect year-over-year revenue to dip 1.3% to around $16 billion. Margins improved in the third quarter, and the company expects a further rise.
- Up 62% in the past year, and current yield of 1.5%: Dividend Investor recommendation eBay (EBAY -0.80%) will report after close, following a 4% revenue rise in Q3. Guidance puts Q4 revenue between $2.53-$2.59 billion, down around 1.5% year over year. Look for news of AI and partnership developments.
5. Foolish Fun
Attention fellow value hunters! What's the best bargain you're most proud of picking up from a TJ Maxx or eBay? Discuss with friends and family, or become a member to hear what your fellow Fools are saying.
