The Jon Sanchez Show
08/28- Nvidia’s earnings and why they are important to the market and your portfolio.
What's next? At Moss Adams, that question inspires us to help people and their businesses strategically define and claim their future. As one of America's leading accounting, consulting and wealth management firms, our collaborative approach creates solutions for your unique business needs. We leverage industry-focused insights with the collective technical resources of our firm to elevate your performance. Uncover opportunity and move upward at MossAdams.com. I'll be with my co-host, Mr. Jason Gunner, Sanch's wealth management. Woo, Jay, I almost want to say it feels like a Friday after the volatility we experienced today. Amen? Yeah, it definitely does feel like we're waiting for some semiconductor earnings and we finally got them. Boy, did we ever. You know, it's so funny, Jason. I don't know if he felt this way or not, but, you know, I was chatting with the boys last night on this show. I said, obviously, talking about what our topic tonight is going to be, which is Nevada and some of the other major names on how they can move the market. But I was joking with them, and that is this earnings report from Nevada that came out after the close today. To me, it felt like it had the same importance as a major, you know, interest rate decision by the Fed or some major, major economic report. Do you agree with that? Crazy. I've never seen something like that before. It's like, "Oh, no, the market's doing this because of Nevada, or it's doing that because of Nevada." I'm like, "My gosh, so that's our topic tonight. We're going to explore why Nevada is so important to this market and some of the other tech names that are out there, et cetera, because boy, oh boy, it's just crazy." I felt like I had to go kick a winning field goal or something and study a day. Why am I so anxious? Right, right, exactly. Like anything, I mean, obviously, probably a case of we've had a very strong market this year. Investors, by and large, who have been invested. And even if you weren't a direct shareholder of this stock, you've benefited from the AI boom and technology growth in general that has the S&P up 17, 18% this year. And I think it's just one of those cases that you don't want the party to end, right? It feels good. I think everyone's happy to see at least the new growth potential in lots of these different technologies. Cloud security, cloud, AI, all of these things are things that we weren't talking about in any way, shape or form, probably three years ago. And now they're everywhere. And it is a reason why being an investor in the market is so beneficial. So you're able to take advantage of things like this when they happen. And so when we get myopically focused, and we talked earlier this week about how they ran out a bunch of folks who I've made so many millions of dollars on my video. Please don't ever do that because it creates a stock down 7% in the after hours. But it's part of why I think investors invest and why people pick stocks. And you get some of the excitement in some of the probably remorse if you were a recent buyer of the stock at least near term. And it's part of why we do what we do if you didn't really care. You probably wouldn't have this sort of excitement anyway to be gardening or something. I have no idea. Right, right, exactly. So we're going to kind of go through a number of different things with you. Again, our theme tonight is, you know, Nvidia's earnings, they came out after the close. We're going to go through the details, what they did, what they said, so on, so forth on the analyst conference call. But really our topic tonight is going to be focused into why is Nvidia so important to the market and to your portfolio? Whether you own the stock or not, as Jason said, it doesn't really matter because if you are in another semiconductor area, maybe you own a semiconductor ETF or semiconductor mutual fund or just a tech mutual fund or so on and so forth, you're going to be affected by this. And as you're going to learn here momentarily, the stock is falling in the after hours, even though I'm still scratching my head as to what really was bad about this report, but obviously there's something in there. We're going to go through it line by line. But here's a prime example of how important this stock is. And so the timing of our topic tonight is perfect. The future is just opened up. They open up at three o'clock. And the NASDAQ future is right now. You know, take it with a grain of salt, but they're down 206 points now, down now 207. So, you know, Nvidia is impacting along with a few other names that reported, CrowdStrike, etc. But it is an extremely important report. And I'm glad it's behind us because now, as one headline this afternoon said, "Now that Nvidia is behind us, now we can focus on the Fed." It's like, "Oh, great. Here we go." You know, September 18th, so it's going to feel like an eternity before September 18th gets here. It's going to be a fascinating topic as to, you know, again, the influence of this company and how one stock can really just influence so much. And a lot of it's psychology, right? I mean, you look at a company and you're going to learn folks what Nvidia is all about here momentarily. And, you know, they are into a lot of areas of the life, but it's not like they're, oh, I don't know. I don't pick your -- let's say they're not a pharmaceutical company, right? That's saving lives. I mean, they are making chips. But they are. That's basically what they're doing. Well, yeah, I guess you're right. They're all truths. Yeah, that's true. Genomics, they're going to be part of how the cure for cancer is probably down, right? I think they would. If they close tomorrow, that's still going to continue with other people. I'm being hyperbolic. But, no, I mean, again, the context relies, too, so the NASDAQ features down 100 and whatever 200 points. It's a percent. Yeah. The world's not over. Exactly. You know, S&P down -- or Nvidia down 7%, options where I'm playing a 10% move, S&P features down half a percent. Like, oh, no. Like, okay, we didn't die. Let's go on the next thing, right? Remember the height machine? And I'm going to get a little odd here and go out of the bounds. Think of this in the same terms of politics, right? Everyone's getting into a fervor, and this excitement is going to build, and everyone's going to stress into the election, and then guess what the next day will all still be alive, right? And that's part of -- I think Nvidia is a great corollary to what we're dealing with around the election. And, yes, there's lots of other things that come from it, but the hype machine is there for a reason to keep you glued and excited, not dissimilar to your favorite political person who's also going to be doing the same thing. And then once it happens, we're going to be like, all right, what are we going to worry about next? Yep, what's next? Always the case. All right, before we delve into Nvidia, let's do a market recap, because again, this was a very interesting day today. Once again, tremendous strength, tremendous weakness, tremendous strength, tremendous weakness, complete yo-yo going on. Got a little bit of buying interest going into the close, but still overall a triple digit decline day for the Dow as well as the NASDAQ. I'll just get the numbers right now, and then Jason will take over. 159 decline on the Dow as how we finish, 0.39%. It'll level of $41,091. Now's that glossed 199, 1.12%. S&P gave up 33 points, a 0.60%. Pull back, take it from there. Yeah, I think a couple of cross-currents today. I would say the two have probably jumped to mind. Super Micro, SMCI. This was a small cap company. They make racks. They do a lot of data center server sales. They have been viewed as one of those arms dealers for Nvidia. There was a note out yesterday from Hindenburg Research, who does short reports, et cetera. Fairly negative on them, attacked their management, attacked some of the issues they had. This is what Hindenburg does for every company they follow. They do a good job, I've said before. It's hard to be a short seller. You better know your story. Anyone can make up a case why you should buy a stock, but they tend to do a fair amount of deep dive and when they go out and say, "I'm short," because we've said, "If you're short and wrong, you lose more money as it goes higher." They put out their note. The stock yesterday reacted earlier in the morning and rallied back to almost the flat line. The company came out today and essentially says that they're delaying their filing for their earnings report, et cetera, which probably wasn't the best timing a day after Hindenburg creates all this stir around potential accounting irregularities and so on and so forth. That set the table, I think, from a de-risking standpoint into Nvidia numbers tonight. That super microcomputer was not dissimilar to Nvidia, one of those parabolic moves this year. In fact, they moved from the Russell 2000 small caps up into the S&P 500 this year, just because of the move that they had had earlier in the year. Down 20% in a day probably caused a little bit of pain. The other one was talking about Berkshire Hathaway. They got to a trillion dollars of value, continue to jettison part of their Bank of America position. As I mentioned, they had cut their stake in Apple. They've built up a massive cash balance. If you're a technician and you're looking at this chart right now, you look at valuation, the market's overbought. You're looking at a double top on the S&P, not to say that we're going to crash, but it is easier to be a bear right now than it was a month ago. The market right now into an event like an Nvidia where I would argue the stars needed to align. Their numbers were good. Again, we'll go over them. But they needed to just truly joking around earlier of, oh, and by the way, we found the cure for cancer in some of our testing, or we found oil under one of our buildings. Outside of that, they probably were going to see a negative reaction like we're seeing now. The market's just set up for... What do you say that though? I just think the price for perfection. Yeah, I mean, everyone said they needed to beat by $2 billion this quarter. They needed to guide $2 billion next quarter. They needed to talk about no Blackwell slowdown, which is their new chip. The issue with this quarter, again, we'll get into, was some of the tables setting around Blackwell, but like anything, you get a lot of retail into a stock and they're going to sell the news first if it's not worth holding on to for a week. Whereas investors may take the opportunity to add to it because, given the growth rates, if they keep it, the stock is still cheap, not bargain-basement cheap, but it's still not, by any stretch, an expensive name in technology given their growth rate. Not at all. But it's just a matter of... Some people are trading zero-day till expiration options. They're certainly not looking out three to five years from now as far as their purchases. Right. Right, exactly. All right, excellent recap of the day. Now, when we come back from this break, we're going to delve into the Niviti earnings numbers and talk about why the stock is so influential to the stock market, to the portfolio, so on and so forth. But first, let us turn it over to the wonderful Kristin Snow, who always does a great job keeping us up to date on the highways and byways of Northern Nevada. How you doing, my dear? Welcome back to the John Sanchez Show on News Talk 780KOHH, with Jason Gone with Sanchez Wealth Management. As I mentioned earlier, we finished down 159 on the Dow, and as they gave up 199 and a 33-point decline on the S&P 500. Well, prices day back down a bit today. A 1.4% loss to 74.59 a barrel, $15.10 decline in gold, $2,537.80 an ounce, and a one-basis-point increase on the 10-year treasury at 3.84%. All right, we're going to be discussing for the rest of the show tonight. Niviti is earnings and why they are important to the market and to your portfolio. Even if you don't own the stock, it is influential, as we mentioned earlier. We're seeing the NASDAQ futures moving down because of Nivitiya moving down and just both physically as well as psychologically the impact that this company has. Just to bring you up to date, in regular session, Nivitiya finished down $2.69, a 2.1% loss to 125.61. Right now, in the after hours, it's down an additional $7.89, 6.28% to $117.70 a share. All right, let's get to the earnings side, Jason. And then we're going to back up. And for those of you that hear of Nivitiya and obviously we're talking about it almost daily, we're going to describe what this company really is and how they do influence the market and the economy. You want me to handle the earnings side and then we'll... I want you to do it all. I just want to listen. Damn. All right. I'm not that smart. I need you. I need you. You need up on the desk over here and you'll just hear me farther away from the microphone. There you go. There you go. Come on back, man. Come on back. All right. I'll go through the numbers and then we, as always, you and I will pause and discuss. How about that? All right. So bottom line is this. When the earnings came out long after the stock market closed, they beat Wall Street's expectations. They provided stronger than expected guidance for the current quarter, but yet again, the stock is down 6.7%. Now, we'll try to figure out as we go through these numbers in great detail. What's going on with this? All right. So let's hit the headline numbers as we call them. Okay. Revenue 30.04 billion for the quarter expected 28.7 billion. Okay. There's a beat. Earnings per share, 68 cents a share, estimates 64 cents. Okay. Do you find any problems in those two numbers, my friend? Other than the whisper number, which was, you know, a billion dollars higher on top line and earnings, another four to five cents higher. What the analyst say is one thing. Whisper numbers are, you know, sort of what the, what the real street is looking for. Not necessarily what the average analyst estimate is. So hedge funds, managers talk to each other and ultimately there's a whisper as to, hey, if it's better than this, it's probably good enough. And if it's not, it tends to react like it is now. Right. Okay. Excellent. All right. That's 32.5 billion dollars and current quarter revenue. Think about that for just a second, folks. 32 and a half billion dollars, just in one quarter. Estimates 31.7 billion expected by Wall Street analysts. That would be an increase of 80% from a year earlier. Revenue continuing to surge for the company, rising 122% on an annual basis during the quarter, following three straight periods of year over year growth and excess of 200%. Any problems there? No, the growth rate is very, very, very strong, for sure. Exactly. And I think, let's go back to a great point that you made and you always say this when annivities earnings come out, which is, the expectation is so high, right? I mean, who else do we expect out there to grow their revenues 200% in a quarter? I mean, you know, it's just, but we expect it for this company and that's why, again, the price to perfection are not for the quarter, but for the whole year. So they are priced to perfection. All right. Let's continue down the earnings side. Net income, more than doubling to $16.6 billion. That equates to 67 cents a share in the quarter. That is an increase from $6.18 billion. Let me repeat that, folks. They bumped up their, their net income from $6.18 billion to $16.6 billion. That was for the quarter, correct? For the quarter. Yep. Yeah. And now that previous number, the $6.18 billion, that equates to $0.25 cents a share. Again, they just reported $16.6 billion to Jason's point, 67 cents. So that's margins, right? So that's what I want to hire. No, this is net income. No, no, no. That highlights margins. Oh, yes. Oh, yeah. Wait until we get to the margin side. $30 billion in their magic coming out the other end, especially in a company like this. But 18 billion times four, it's a $3.2 trillion company. That's right. That's the part that is just the part. Exactly. Okay. Now, share so far this year, exclusive of what's going on today. Up about 150%, up almost 240% last year. Not a bad return. Market cap recently eclipsing to Jason's point, $3 trillion. Now, video just briefly, not there now, but briefly was the most valuable publicly traded company in the world. But now they are second to our good friends over at Apple. Let's talk about revenue. This is interesting where all the revenue is coming from. Revenue in the data center business, which includes its AI processors climbing 154% from a year earlier to a total of $26.3 billion, accounting for 88% of total sales. So data center business, very strong. Also top streets expectation of $25.24 billion. Now, not all of those sales are AI chips, by the way. They said on their call that $3.7 billion in revenue came from the company's networking products. Much of its business, of course, targeted to a handful of cloud service providers and consumer internet companies like Microsoft and Alphabet, Meta, Tesla, etc. Their chips, such as the H100 and the H200, are using the vast majority of generative AI applications, such as OpenAI's chat GPT. Many customers, well, guess what? Jason has mentioned many times over the last few weeks this thing called Blackwell. This is their new chip. Many customers are waiting for this new generation of chip. Nvidia said it has shipped samples of Blackwell chips during the current quarter, and they made a change to the product to make it more efficient to manufacture. Now, you may think, oh, no, they shipped it and they want to make it better. So this was kind of R&D. No, no, no, no, no, no, no, not the case. There's CFO Collette Krause on the call today. She said in the fourth quarter, we expect to ship several billion dollars in Blackwell chip revenue or create that. She said the change is in the mask, according to Jensen Wang, Wong, excuse me. The CEO, of course, on the call, he said the change to the mask is complete. There are no functional changes necessary. When I said start production in Q4, I mean shipping out. I don't mean starting to ship. So they're ahead of the game a little bit there. Nvidia said that it expected the current generation chip called Hopper to increase total shipments for the next two quarters, as opposed to Taperov. Jensen said that Hopper demand remains strong and the anticipation for Blackwell is incredible. Nvidia noted that the supply for Hopper is becoming more available while Blackwell is still in short supply. Have you noticed that, Jason, I know you have, because you watch this company so close. And obviously, so smart. Apple does the same thing. You build up all this hype for a new product like Blackwell and you go, "Oh, you know, I know where he wants it, but we just haven't ramped up production yet." And it's not quite available. You build up that demand and build up that demand and then, you know, just imagine having a product like that. It just be unreal. Yeah. I mean, it's tougher though, right, with these guys, because they need to keep the hyperbolic growth going or the bloom comes off the rose, right? Right, absolutely. And that's the toughest part with these names is, you know, what's a firm like, you know, say, a financial firm, you know, trades at what, three times sales, right? These guys are trading at 30, 40 times sales, right? So it's, you need to have massive growth rates continue and continue or, you know, the drug addict of the market gets bored, right? And that's the part that I think, ultimately, things like this, very much at your point, I don't think these numbers are bad. I don't think anyone's going to come out and say they're bad. They're going to come out with all sorts of needs and upgrades and price target changes and this, and the other thing, but the market near term is going to say, oh, well, you know, what next? And that'll be probably why you're seeing some weakness after hours. But there's a lot to come from this company and certainly the halo around it in healthcare, technology, AI, generative and so there's a lot to come. It's just a matter of, you know, are you in mittings or are you late innings? Time will tell. Absolutely. All right, we'll come back. We'll continue down the earnings report for the company and we'll talk, start things off a little bit, talking about gross margins. Now, this was a little bit of a slip. Maybe one of the reasons again, we're seeing the stock down a bit in the after hours right now down $8.46 to $1.1715. Let's turn it over to Greg Neff. He's got news traffic on Twitter, hey, Greg. Welcome back to the John Sanchez Show on News Talk 780, KOH with Jason, got a Sanchez wealth management. Once again, a 159 decline on the Dow and NASDAQ down 200, S&P gave up 33. So much anticipation from Nvidia's earnings numbers after the close. We thought we'd devote the entire show to, what the heck does this company do? What did they say in the earnings report, et cetera? So we're going to continue down the earnings report. And once again, if you just joined us, just kind of bring you on the probably the most important numbers, earnings per share came in at 68 cents a share. Estimates were 64 cents, revenue, $30.04 billion estimates were at $28.7 billion. Now the stock's down $8.03 in the after hours and $8.12 has just moved at $1.749. All right, we left off with the gross margins. And I thought this one was really interesting, Jason, to see again on the gross margin side of things, how much money they make on this. And it was a pretty mind-blowing type of number. So gross margins for the quarter, 75.1%. That is a decrease from 78.4% the prior period, though it is still up from 70.1%. A year ago, for the full year, the company said they expect gross margins to be in the mid 70% range. Analysts were expecting full year margins of 76.4. So there's probably, if you agree with me, my friend, one of the reasons that we're seeing the stock down a little bit of a miss on the gross margin side of things. Yeah, they said that in ramping for Blackwell, there's a lot of product that isn't being used yet until it kicks off, and that was a reason why margins were down a touch. So it was at least what they cited. Okay, perfect. All right, let's move over to other areas of the business, the gaming business, which is kind of how this company was founded years back in the '80s or so. Gaming business, again, used to be the primary focus until the data center side of the business took off. Gaming revenue, I mean, this is just kind of chump change for them, increasing 16% from a year ago to $2.9 billion, estimates were $2.7 billion. Companies said that was partially due to increased PC gaming cards shipments as well as game consoles. NVIDIA provides chips for Nintendo consoles, by the way. They also make chips for high-end graphic designers as well as cars and robots. The graphic business rose 20% and reported, just can't probably have this in their pretty cash account, reported revenue in that division of $454 million. NVIDIA has reported $346 million in automotive and robotic revenue versus the expected $344.7, so it was light beat there. They also said they approved a $50 billion share buyback program. So other than the gross margin missed there, I don't see a lot of problems. How about you? No. I think the same, right? It's just the Christmas analogy, right, where everyone gets all excited and then once you open your presence, regardless of what happens, there's the, "Ah, okay, it wasn't knock my socks off," which it's been for some of the other quarters, and we now wait for the next quarter to see how they do. But they'll be square in the teeth of, "You hear anything from a meta or a Google or any of these guys about a slowdown of some kind or a decrease in capex because of slowing add or blah, blah, blah, and this thing's going to take its square in the teeth," right? So as long as the hyperscalers continue to keep spending, which they said they were going to on all of their earnings releases, and then this thing could certainly continue to work. Absolutely. All right. Here's something interesting. Where I want to move now in the conversation is in regards to how important is this company for the overall stock market, which then has the impact on all of your portfolios in most cases. So you may have more up-to-date data than I do because I can only go back until I think it was the end of June. But what I did some research on, Jason, is I wanted to find out, you know, we've heard about the Magnificent Seven, right? The Seven Stocks that account for a large majority of the S&P 500 is returned. So that saying has kind of gone by the wayside. We now call it the Magnificent Five or MAG Five and it goes by a lot of different names. So this data, again, is as of the end of June, so it may change a little bit. But what I found very interesting in looking at this is the importance of this stock, and you've emphasized this many times in the overall market side of things. Once again, as you mentioned, market cap, as of June 28, $3.039 trillion, a significant increase. But this company, you know, it represents, you know, my dad has cut off here. Don't go on it. And I lost the repair with me here. Well, the percent of the S&P 500, 6.2% and that's-- 6.2. Okay. Okay. I was going to say 6.7. Microsoft 6.7. Apple's 6.9. So, if you add up these five stocks, Navidia, Microsoft, Alphabet, Amazon, and Meta, right? These are the top five performers, again, through June. I don't think the numbers have changed much. They represent 63% of the S&P 500 returns this year. I believe it. Think about that. Yeah. Yeah. That's absolutely been the case. And that's why that, you know, S&P sometimes saying that that's your benchmark, you know, is tough, right? Or people cherry pick, again, it's, you know, been the case. But if you go back the last couple of years, you're cherry picking by saying, you know, my benchmarker, how have you done this? There's five S&P. It's like, I might as well, you know, just rip tech. Like that's the tougher part and that's, you know, that we struggle with as allocators, right? Like, I want to build you something that is more all-weather than just buying the spies. And someone will say, sorry, this show is going to get taken now. But buying the S&P 500, if you buy that, you're, you know, very top-heavy, you know, you mentioned those three names, Amazon's 3.7%, Google's another three, almost 4%, meta, two and change. So the top 10 holdings are 34% of the S&P 500, right? That is notable. And the bulk of the growth has come from those handful of names. And that's a good thing. It's a momentum index, but it's also something to be concerned with when you get concentration risk, what you have now, very much like the point of the show, is how big is this thing for the market? Not only is Nvidia in the S&P 500, it's also in a myriad of, you know, tech ETFs and mutual funds, and everyone's got exposure to it. The number of clients I've seen walk in with when they have single stock positions inside of an account, undoubtedly, Nvidia is one of them. And in large size, I've had some, you know, conversations with folks, I'm like, great job, you did it. Now it's too big, right? Like it's too big. And it's hard to say from our standpoint, and it's hard to say, you know, if it goes up more, you're wrong. Right. Exactly. But I will say that today, I'll say it tomorrow, I'll say it the next day, I don't care. So if it's, you know, more than a 20% allocation inside of your portfolio and your portfolio, you know, and you're under, you know, over 30 years old, I would argue you need to diversify, right? If you're 15 or 20, you know, you're just starting out and, you know, someone bought you shares of a stock grade, but older, you know, especially, I see a lot of concentration risk and portfolios that got brought into us and, you know, yes, you're up a lot, but you need to be aware that these things, when they move to the point of, you know, NVIDIA down 7% after hours, that's a big move, especially when it's 50% of your portfolio. You know, it works well when it grows, but not when it shrinks, but I think the discussion should also go down the line that once again, if we have 63% of the S&P 500 returns through June, concentrated in five names, most likely, most likely, if you own a video, you're probably going to own Microsoft, Alphabet, Amazon, and Manate, right? They kind of all just go together. And so not only are you feeling pressure on NVIDIA, but let's just do a little challenge here for you. I want to do something real quick here. All right. So right now we have the NASDAQ features down 201 points, okay? So as I mentioned, let's bring up a first quote in the after hours with NVIDIA. So NVIDIA right now is trading down, call it 7%. Now, Jason, you're one of the smartest men I know. Do you think Microsoft's trading down in after hours right now? Safe to say. Yes. I'm going to say yes. Okay. So let's go down. What do you know? Down $3.65, almost 1%. What is that? How about Google? What do you think on that one, Jay? Probably yes. Yeah. Okay. So, yep. What do you know? Down three quarters over percent, buck 24. Two more to go. Let's go to Amazon. How's that doing in the after hours? Up or down, Jay? I'm going to go down. Oh, very good. $1.59 loss. 0.93%. And let's wrap up our little experiment with meta. Right now, Meta, do you think it's up or down, Jay? I'll go down. Let's do that today. Ding, ding, ding, ding, ding. You are the winner. Just because of it's worked so well. That's right. And that's the correlation effect. Right? That's the point I'm bringing across. Yep. That's perfect. You may only own Nvidia, but most likely you and all these others. But if you're, you know, again, depending upon your allocation, yeah, we're not criticizing you by eating. No. You probably made a ton of money in those names over the years. But you have to watch this. This is the purpose of this exercise. You have to watch this because as you see how important the video is, it did anything happen to meta today? That was bad? Amazon bad? Google bad? Microsoft bad? No, it's in the tech space. So Wall Street, you know, philosophy is, hey, if one name is down, I in the video market leader, they're going to drag everybody else down. And same thing, you know, when things go well in the video, usually drags everybody up. That's why we emphasize over and over on this show. You have to watch your concentration to Jason's point because, yeah, it's great when things are rising, but it's terrible when you're, you know, when you're down. Jason, real quick before we go to, well, you know, let's hit it when we come back. Let's talk about, you know, again, the S&P returns, you know, for these and again, how 63% of the S&P 500 returns, you know, year to date, you know, how that is makes, let's just put it this way, makes this portfolio managers a little bit nervous. I mean, we're up 17.2% year to date through today on the S&P when 64 or 63% of that are five names. So let's chat on that one. Just real quick when we come back. Let's wrap it up with Krista Snow in the right now, traffic's in our Kristin. Sanchez show on News Talk 780KOH with Jason Con of Sanchez Wealth Management. All right. Before we get back to Nividi and its influence on the market and of your portfolio, let's keep this in mind. My friends are we're a destiny tractor. That's right. They are also very important in our lives. They got a great line of Coyote tractors available for you from the small models to the big ones and everything in between. Just stop by and talk to Stan and the crew and they'll design a great tractor package for you when that will last for years. Don't forget 0% financing for up to 84 months on select models. Were they located? How about 4880 East Nylane in Carson City? They're online at s&wtractor.com and they're phone numbers 8821225. All right. Now, Jason, let's go back to what we really, I think, are hitting in on tonight as we wrap things up, which is how NVIDIA and four other stocks that we mentioned represent 63% or so of the S&P 500. The risk that goes along with that, because when you try to track your portfolio to the S&P 500, you may go, wait a minute here, S&P is up 17 and I'm only up 13 and, you know, what the heck's going on? Well, again, if you're trying to track your portfolio and you don't own the ETF that owns the S&P 500, very difficult to do because of this concentration. So explain that a little bit further. Yeah. I mean, it's also it's a market cap weighted index. So based on the size of the company as in shares outstanding time stock price, that's they're waiting inside the S&P. So it's a bit of a, I don't know when my semantics will be wrong, but a misnomer to say that 60% of the gains is because of five stock. It's true, but that doesn't mean that other names, I mean, NVIDIA is sort of an outlier, but other names weren't up more. It's just that their market cap, therefore, they're waiting inside of the S&P is much smaller than these companies. So they don't move the needle as much. But the issue is, again, with a momentum index, that's what this thing is, right? The 500 largest companies are merely because they've gone up the most, they've grown the most, therefore, the S&P is a momentum index, you know, the biggest get big. And if you look at the S&P 10 years ago, it'll be the different top 10 and you look 10 years before that, it'll be a different top 10. And so that's why it's very interesting, especially when you concentrate yourself in any one name, especially if it's in the top 10 of the S&P, just know the fact that odds are 60% to 70% of the names aren't even in there anymore in that top 10, you know, a decade later. So we're always chasing the hot thing, and that's why momentum-type strategies work, but they can also hurt you on the other side because some of these guys won't even be around 10 years from that, which is odd to fake, but... Exactly. All right, we have just a few seconds left here, so $8.47 at night, $1.54 loss, I've got to quit talking, Jason, every time I talk it, it goes down further, $8.54 loss on the video, and after hours down 6.8% to $1.1707, right now the NASDAQ futures are down 259. S&P's are down 45, and I'm showing unchanged on the Dow futures, which I don't think that's accurate. Yeah. No, I think you had good numbers out of CRM, so I don't hope not. I was just going to mention that, yep, bringing this up there. CrowdStrike was higher. So most of the other results were good. Some tech numbers were good, which is a good semi-read through, so I think this is just, you know, a lot of hype coming out of the game near term. I'm sure people will be buying the dip over the next couple weeks. Absolutely. If they were smart, they would be... You bet. Salesforce, by the way, down component. Don't forget, some will CRM up $8.77 and after hours, 3.39% gained a $2.67.67, so by no means all doom and gloom. It's going to be a fun day tomorrow. Thanks for joining us tonight. Good job, Jay, as always. We didn't get a chance to explain all the different areas that the video is in, but you can find that on the internet. They're wide-based on things. God bless. Have a great evening. See you then. Chaz Wealth Management. The material in this program was intended as general information only, and should not be taken as specific investment tax or legal advice. None of the information on this broadcast was intended to be a solicitation for the purchase or sale of any security. Another information is available by contacting john@sancheswealthmanagement.com or 775-800-1801. John Sanchez offers securities and advisory services through independent financial group LLC, a registered broker, dealer, and investment advisor. Remember FINRA SIPC. Securities offered only in states John Sanchez is registered in. Sanchez Wealth Management LLC and independent financial group LLC are unaffiliated entities. What's Next? At Moss Adams, that question inspires us to help people and their businesses strategically define and claim their future. As one of America's leading accounting, consulting, and wealth management firms, our collaborative approach creates solutions for your unique business needs. We leverage industry-focused insights with the collective technical resources of our firm to elevate your performance, uncover opportunity, and move upward at Moss Adams.com.