Weekly Stock News Updates

(MENAFN- Baystreet) Nvidia (NVDA) stole the show last week when the artificial intelligence server chip supplier posted quarterly results. It is the primary catalyst lifting the Nasdaq (QQQ) by 1.37% in the week. The broader market ended exactly nowhere, with the S&P 500 (SPY) returning 0.0% in that time.

The widening gap between firms with over a trillion dollars in market capitalization and the rest of the market is a negative development. It increases the investor's reliance on only a few firms. Despite weakening market breadth, the strong demand for anything AI is not purely hype. Subscription software sales for Microsoft (MSFT) Office will increase as corporations upgrade to get the CoPilot AI companion.

ChatGPT's update to 4.o features normal voice conversations with an AI along with video creation using text-inputted prompts. As more people pivot away from search tools from Google (GOOG), cloud-related companies will report higher profits. Continue to watch Amazon (AMZN) and Meta Platforms (META).

Meme-Inspired Euphoria Continued

On May 24, 2024, after the market closed, GameStop (GME) said that it raised $933 million from selling shares. The stock sale decreases the used game seller's bankruptcy risks but hurts shareholders through dilution. Bears who failed to learn from the short squeeze in 2020-21 will lose the most. The short float topped 24.0%.

Expect uninvestable stocks like AMC Entertainment (AMC), Soundhound (SOUN), and Faraday Future (FFIE) to rise in response to Gamestop's over 10% rally.

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