Bloomberg - Evening Briefing - Short-seller nightmare

Bloomberg Evening Briefing

The surge in Nvidia shares on Thursday has left short sellers with about
$3 billion in paper losses, according to an analysis by S3 Partners LLC, which called it an “AI generated nightmare” for bearish traders. The mark-to-market losses are another blow for contrarians who argued that Nvidia’s sky-high valuations and speculative fever had all the makings of a market bubble. The chipmaker is the third-largest US short with $18.3 billion of shares that have been borrowed and sold. For a lesson in the perils of being a skeptic on Wall Street when everyone else is a buyer, consider Rob Arnott, who made the case five months ago that Nvidia had become a bubble. “A textbook story of a Big Market Delusion” is how the founder of Research Affiliates called it, citing extreme valuations after the shares quadrupled in just a year. Since his September warning, however, that “bubble” has gotten around $800 billion bigger—and the greatest risk right now is getting left behind in its wake

Here are today’s top stories

Nvidia is on track to become the first semiconductor firm with a
$2 trillion valuation, another milestone in its ascendancy as the biggest beneficiary of a rush into AI-related stocks over the past year. The chipmaker’s shares rose 0.4% Friday to close at a $1.97 trillion valuation after briefly topping the $2 trillion mark in intraday trading.

Ten years after Russia first invaded Ukraine, and two years after it launched a full-on but ultimately botched attempt to take the entire country, the US imposed its biggest one-day sanctions package on the Kremlin. The Biden administration targeted more than 500 people and entities in a fresh bid to squeeze Russia’s economy and send a message over the death of dissident Alexey Navalny, which President Joe Biden blamed on Vladimir Putin. The Kremlin’s calculation has been that it would outlast US resolve, a bet that appears to be paying off as Republicans block billions of dollars in aid, leaving Ukrainian troops short of shells they need to hold off Putin’s forces.“We can’t walk away now,” Biden said. “That’s what Putin is betting on.”

Putin wants the world to believe that Russia’s economy is doing fine, and that he has the wherewithal to prosecute the war in Ukraine indefinitely. But Bloomberg’s Editorial Board says he’s bluffing. His aggression is costing him dearly, the board writes, and the West should exploit this vulnerability to the fullest. 

Ukrainian soldiers carry artillery shells at their fighting position near Bakhmut, Ukraine, on Thursday. Photographer: Anadolu

US Secretary of State Antony Blinken said Israeli settlements are “inconsistent with international law,” putting new pressure on Prime Minister Benjamin Netanyahu and marking a return to a 1978 finding by the State Department’s legal adviser that also found the settlements violate the Geneva Conventions. The conclusion marks a fresh break from Netanyahu for the Biden administration, which has grown increasingly concerned about the high Palestinian civilian death toll in Israel’s military campaign in Gaza since Hamas launched its Oct. 7 attack on Israel. Biden has also sought to restrain settler violence in the West Bank.

Jeff Bezos, Nvidia and other big technology names are said to be investing in a business that’s developing human-like robots, part of a scramble to find new applications for AI. The startup Figure AI—also backed by OpenAI and Microsoft—is raising about $675 million in a funding round that carries a pre-money valuation of roughly $2 billion. Through his firm Explore Investments, Bezos has committed $100 million. Microsoft is investing $95 million, while Nvidia and an Amazon-affiliated fund are each providing $50 million.

A Texas man made almost $2 million by illegally trading on his wife’s conversations with her BP colleagues, according to the US Securities and Exchange Commission in its latest case about couples eavesdropping while working from home. For months, Tyler Loudon bought shares in TravelCenters of America, the SEC said, liquidating his brokerage and retirement accounts. In February 2023, when BP announced it was buying TravelCenters at a 74% premium, he made a $1.76 million profit. His wife, the SEC said, had been working on the deal in a home office 20 feet away. 

Restaurants have had a steep climb back from the pandemic. Growth of same-store sales slowed across the industry in 2023, with high costs and changed eating habits keeping many customers home. But fast food—the most prevalent dining option across the US—has seen profit margins improve compared with those at sit-down, non-chain eateries, despite its price increases outpacing those of table service. A Big Mac is pricey, but fast-food profit margins keep improving.

What you’ll need to know tomorrow

Miami Beach $125 Million Penthouse Rivals NYC

A sprawling penthouse at a new Miami Beach condo tower with Ritz-Carlton amenities is expected to be marketed at $125 million, putting it on par with some of New York City’s ritziest buildings. Broker Fredrik Eklund expects the 30 condos to sell for a combined $450 million, with prices ranging from $3.9 million to $125 million for a possible combination of the building’s two duplex penthouses. It’s the latest project from developers seeking to seize on rising demand from the world’s richest homebuyers. A sale at a $125 million price would put a transaction close to levels normally seen for the most luxurious apartments on Manhattan’s Billionaire’s Row.

Rendering of the 15-story luxury condo tower in South Beach. Source: Boundary

Older messages

‘Printing money’

Thursday, February 22, 2024

Bloomberg Evening Briefing View in browser Bloomberg Nvidia's surge to an all-time high is the biggest single-session increase of market value in history, besting Meta's historic gain just

Biden cancels more debt

Thursday, February 22, 2024

Bloomberg Evening Briefing View in browser Bloomberg US President Joe Biden announced that more than 150000 student loan borrowers will have their debt forgiven under a program aimed at providing

The biggest deal

Wednesday, February 21, 2024

Bloomberg Evening Briefing View in browser Bloomberg In the biggest deal of 2024 so far, Capital One agreed to buy Discover in a $35 billion all-stock deal to create the largest US credit-card company

The AI billionaire class

Monday, February 19, 2024

Bloomberg Evening Briefing View in browser Bloomberg Nvidia co-founder Jensen Huang's wealth has surged as a blistering rally in AI-related stocks pushed the chipmaker's market value above

‘The warning stage’

Monday, February 19, 2024

Bloomberg Evening Briefing View in browser Bloomberg Some two dozen banks in the US had portfolios of commercial real estate loans in late 2023 that federal regulators felt would merit greater scrutiny

You Might Also Like

Look what this top trader shared on Fox Business

Sunday, December 22, 2024

Get your copy today ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

Longreads + Open Thread

Saturday, December 21, 2024

Inflation, AI, Linkrot, Data, Research, Pod Shops, Life Advice, Nvidia Longreads + Open Thread By Byrne Hobart • 21 Dec 2024 View in browser View in browser This issue of The Diff is brought to you by

Post-Election Market Warning: Here's what's next...

Saturday, December 21, 2024

Urgent warning issued... ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

⭕️ A tech play with a nice ring to it

Friday, December 20, 2024

Finimize TOGETHER WITH Hi Reader, here's what you need to know for December 21st in 3:07 minutes. Novo Nordisk shares slimmed way down as investors felt disappointed by the firm's latest

Imagine finally becoming a homeowner

Friday, December 20, 2024

Find the mortgage lender that fits your needs and wants ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

Check, Please

Friday, December 20, 2024

The Business of Restaurant Payments ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

The Market Rally Indicator Just Turned Green

Friday, December 20, 2024

Free Stock Ticker Inside ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

⚔️ Google's AI competition

Thursday, December 19, 2024

Perplexity tripled in value, the greenback hit a two-year high, and your holiday party playlist | Finimize TOGETHER WITH Hi Reader, here's what you need to know for December 19th in 3:02 minutes.

John's Take 12-19-24 The Impending Crash

Thursday, December 19, 2024

​ The Impending Crash by John Del Vecchio The other day I received a question from a subscriber, and I wanted to answer it in this space because it's a great question. I figure if one person is

☕ A Decade of Women and Money

Thursday, December 19, 2024

Why it can be hard to notice change when you're living in it. ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌