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Nvidia to be considered by the Dow Jones index after stock split

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Last Week’s Highlights

GameStop up on “Roaring Kitty” returns to YouTube

GameStop’s shares surged more than 30% in premarket trading on Friday in anticipation of the return of “Roaring Kitty”, a stock influencer whose social media posts have previously sparked rallies in meme stocks. “Roaring Kitty”, also known as Keith Gill, returned to social media in mid-May after a three-year hiatus, which led to a rally in GameStop’s shares. The rally cooled before gaining momentum again when an upcoming livestream was announced on YouTube. Gill was a key driver of the 2021 rally in GameStop and other meme stocks. The shares of other meme stocks, including AMC Entertainment, and U.S.-listed shares of BlackBerry, Koss Corp, also rose between 6.1% and 13% on Friday. 

Lyft forecasts annual growth

Lyft shares rose nearly 10% to $17.03 on Thursday following a forecasted 15% annual increase in gross bookings through 2027 and the expected eight-fold growth in its advertising business during the same period. The company is looking to maintain its position in the North American ride-sharing market, and it is diversifying its revenue streams through advertising and user subscriptions. Additionally, Lyft reported a 250% growth in advertising-related revenue in the recent quarter ended March. In terms of financial projections, Lyft is targeting a gross bookings compound annual growth rate of about 15% between 2024 and 2027 for the full company, and an adjusted core profit margin of about 4% in 2027. 

Coming Up This Week

Nvidia may be included in the Dow index

Nvidia has implemented a 10-for-1 stock split to attract retail investors and potentially join the Dow index. The split aims to make shares more affordable without changing the company’s market valuation. Market analysts expect the split to attract individual investors, but historical data shows that recent stock splits have not significantly increased retail trading activity. Nvidia’s stock, which was last trading at $120 per share post-split, is now a potential contender for the Dow index, but S&P Dow Jones Indices declined to comment on this possibility. 

Apple focuses WWDC on AI

At the Apple Worldwide Developers Conference (WWDC 2024), Apple is expected to focus on integrating artificial intelligence (AI) across its software suite, including Siri and a possible tie-up with OpenAI. The company aims to demonstrate the practical benefits of AI to its vast user base and reassure investors that it has not lost the AI battle to competitors like Microsoft. Apple’s use of AI has been relatively understated compared to other tech giants, but it is now expected to showcase how AI technologies enhance its devices and services. The company is also anticipated to introduce new AI-focused features for its upcoming products, such as the iPhone and iPad, and potentially discuss its foray into cloud computing with AI capabilities. 

All information provided was collected up to the last business day of the previous week of the release of this NewsFlight. The purpose of NewsFlight is to summarize and make accessible information on a variety of topics within the world of investing and personal finance, and thus cannot be considered formal research or reports. All sources utilized to compile the NewsFlight newsletter are considered trustworthy by the FlexInvest team. FlexInvest is not affiliated with and does not receive remuneration from the news sources used to compile NewsFlight. As well, any images or logos incorporated into the NewsFlight newsletter are not necessarily property of FlexInvest and may solely be included to provide context for the news covered. NewsFlight should not be taken as advice to sell or buy securities or to make any investment. When investing in securities or other financial products, there is always the potential to lose money or asset value. FlexInvest recommends that its users consider their investment objectives and risks before investing. Additionally, any projections or analysis made by authors of NewsFlight cannot be considered as a promise of future trends or returns. Opinions expressed in NewsFlight are not representative of FlexInvest.

Market News

Wall Street wrapped up the week with a hint of uncertainty as stocks closed slightly lower on Friday. The stronger-than-expected U.S. jobs data painted a picture of a strong economy, but it also triggered concerns that the Federal Reserve might delay cutting interest rates, which left many investors uneasy.

The Dow Jones Industrial Average dipped 87.18 points, or 0.22%, to 38,798.99, the S&P 500 edged down 5.97 points, or 0.11%, to 5,346.99, and the Nasdaq Composite slipped 39.99 points, or 0.23%, to 17,133.13.

Despite the Friday dip, it was a positive week overall, with the S&P 500 gaining 1.32%, the Nasdaq rising 2.38%, and the Dow adding 0.29%..

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