Discover Financial Services: Capital One’s $35 Billion Gamble
Capital One Financial Corporation (COF) announced plans to acquire Discover Financial Services in a deal worth over $35 billion. The move aims to merge two major U.S. credit-card companies, capitalizing on the shift towards card payments over cash. Discover, alongside Visa and Mastercard, operates a payments network facilitating credit and debit card transactions. Capital One intends to retain the Discover brand and its network if the acquisition goes through.
Discover shares surged 13% following the announcement, while Capital One’s stock saw a modest 0.1% increase.
Nvidia: Riding the AI Wave
Nvidia (NVDA) continues its remarkable performance driven by the artificial intelligence (AI) boom. The chipmaker reported a staggering eightfold increase in fiscal fourth-quarter earnings, with sales more than tripling. High demand for chips powering AI systems has outstripped Nvidia’s manufacturing capacity, leading to persistent shortages. Nvidia’s shares soared 16% to a record high, buoying the S&P 500 to a fresh peak.
Rivian Automotive: Electric Dreams Dampened
Rivian Automotive faced setbacks as it reported weaker-than-expected quarterly results and announced layoffs affecting 10% of its salaried workforce. The electric-vehicle startup expects flat vehicle output this year, attributing challenges to tougher market conditions, including higher interest rates impacting consumer vehicle affordability. Rivian shares plummeted 26% amid concerns about the broader electric vehicle market.
AT&T: Nationwide Cellular Outage
A widespread cellular outage affected thousands of AT&T customers, disrupting service across the U.S. Users reported issues, including phones stuck in SOS mode and the inability to make or receive calls, including emergency calls to 911. While AT&T restored three-quarters of its network by late morning, the outage led to a 2.4% decline in its stock.
Intuitive Machines: Landing on the Moon
Intuitive Machines made history as its Odysseus spacecraft successfully landed on the moon, marking the first U.S. moon landing since 1972 and the first by a private company. NASA commissioned Intuitive Machines to develop uncrewed landers, representing a shift towards private sector involvement in space exploration. Intuitive Machines shares surged 16% on the news of the successful moon landing.
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