US pre-market update: Why is Nvidia share price falling? Upstart & Novavax in focus

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Nvidia share price

How will market open today?

  • Stock futures indicate a negative opening for US stock market.
  • Upstart stock fell after it missed both profit and revenue expectations for the June quarter.
  • Workhorse, Ralph Lauren, Coinbase, Spirit Airlines, Roblox to report earnings on Tuesday.
  • Novavax fell 30% in premarket after slashing revenue guidance due to poor demand for Covid vaccines.
  • On the economic front investors await for July inflation data, releasing on Wednesday.

Nvidia warns of lower revenue

  • Nvidia stock tanked after its June quarter revenue came in at $6.7 billion, down 19% on-quarter & below $8.1 billion expected.
  • This was primarily due to weaker gaming revenue, down 33% on-year as consumers weigh on discretionary purchases.
  • Chipmakers have been struggling with supply chain problems amid Ukraine war and recent covid curbs in China.
  • Last month, Xbox maker Microsoft also reported decline in gaming revenue and PlayStation maker Sony has cut its forecast.
  • As per JP Morgan, Nvidia’s gaming slowdown likely includes chips they sell to crypto market, making the slowdown more significant.
  • Which companies will report earnings today?

  • Why is Upstart stock falling?

  • Why is Nvidia share price falling?