NVIDIA's market value evaporated nearly $260 billion overnight

Beijing Time, February 27th, early trading, the Korean stock market opened lower. The Korea Composite Index fell below 6,200 points during the session, after reaching over 6,300 points yesterday, hitting a record high.

The U.S. tech giants once again experienced a pattern of stock price declines after unexpectedly strong earnings reports. On February 26th, local time, Nvidia dropped over 5%, with a market value evaporating nearly $260 billion overnight. This marks the third consecutive time recently that the company’s stock fell after releasing overall better-than-expected earnings. Due to Nvidia’s stock decline, the U.S. stock market performed modestly. At the close, the Dow rose slightly by 0.03%; the Nasdaq fell 1.18%, and the S&P 500 declined 0.54%.

Additionally, Netflix briefly surged over 13% after hours, attracting market attention. On the news front, Netflix’s acquisition of Warner Bros. has faced obstacles. Warner Bros. Discovery believes Paramount’s latest bid is more attractive than Netflix’s, demanding Netflix revise its offer or withdraw from the competition, but Netflix has refused to follow up.

On the international front, according to Xinhua News Agency, Iranian Foreign Minister Amir Abdollahian stated on the 26th that the third round of indirect talks held in Geneva, Switzerland, with U.S. representatives made “good progress.” After consultations with their respective governments, the next round of negotiations is expected to be held next week.

Nvidia drops over 5%

Nvidia’s stock price continues its “inertia decline” after exceeding expectations in its earnings report. On February 26th, local time, Nvidia opened lower and declined further, closing down over 5%, with a session low of $184.315 per share. Its market value evaporated nearly $260 billion overnight. According to Bespoke, this is the third consecutive time Nvidia’s stock has fallen after releasing overall better-than-expected earnings.

After the previous trading day, Nvidia released its latest earnings report, setting new records for revenue and profit. The report showed that in the fourth quarter, Nvidia’s revenue reached $68.127 billion, up 73% from $39.331 billion a year earlier; net profit was $42.96 billion, up 94% year-over-year. Additionally, the company forecasted first-quarter revenue of $78 billion for fiscal 2027, exceeding analyst expectations.

Fundstrat’s chief economist Hardika Singh analyzed that Nvidia has rarely missed on revenue, net profit, and performance guidance. However, its “loss of points” lies in failing to ease investor concerns about its “moat” narrowing and not clearly explaining how it will respond to the ongoing evolution of computing power and the wave of AI transformation across industries.

In response, Nvidia CEO Jensen Huang stated after the earnings release that AI assistants will not replace existing software tools but will instead become users of these tools, helping software companies significantly improve development and operational efficiency. He believes that software tools like Cadence, ServiceNow, and SAP have fundamental and legitimate reasons for existence, and AI will represent humans using these tools, ultimately relying on tools to complete specific tasks and providing feedback in a human-understandable manner.

Dragged down by Nvidia’s sharp decline, the U.S. stock market performed flatly, with the Nasdaq falling over 1%. At the close, the Dow rose 17.05 points, or 0.03%, to 49,499.20; the Nasdaq dropped 273.69 points, or 1.18%, to 22,878.38; the S&P 500 declined 37.27 points, or 0.54%, to 6,908.86.

Netflix surges over 13% after hours

On February 26th, local time, Netflix rose over 2% during regular trading. After hours, the stock price surged rapidly, with an increase of over 13%, and at the time of writing, the after-hours gain remained above 10%.

On the news front, Netflix’s path to acquiring Warner Bros. has encountered “obstacles” again. Warner Bros. Discovery announced after hours on Thursday that its board considers Paramount’s latest bid more attractive than Netflix’s, giving Netflix four business days to revise its offer or withdraw from the competition, accepting Paramount’s $2.8 billion breakup fee.

Subsequently, Netflix responded that the acquisition deal for Warner Bros. is no longer financially attractive, and they refuse to follow up on Paramount’s bid. The company also announced plans to invest $20 billion this year in movies and series production.

Iranian Foreign Minister: U.S.-Iran Geneva Talks Make “Good Progress”

According to Xinhua News Agency, Iranian Foreign Minister Amir Abdollahian stated on the 26th that the third round of indirect talks held in Geneva, Switzerland, with U.S. representatives made “good progress.” After consultations with their respective governments, the next round of negotiations is expected to be held next week.

Iran’s Mehr News Agency reported that Abdollahian said after the talks that this round is one of the most serious and longest nuclear negotiations to date. Both sides reached a “deep understanding,” but disagreements remain in some areas. He emphasized that Iran and the U.S. are “closer to reaching consensus” on some key issues.

He said that the technical teams plan to start technical discussions and reviews in Vienna, Austria, on March 2nd, and the next round of negotiations is expected within a week.

Abdollahian also stated that Iran explicitly demanded the lifting of sanctions during the third round of indirect talks.

The third round of Iran-U.S. indirect negotiations was held at the diplomatic mission in Geneva, Oman, with Oman acting as mediator. Abdollahian led the Iranian delegation, while the U.S. representatives included Special Envoy Witterkoff and Jared Kushner. The negotiations took place in two phases, with a few hours’ recess in between.

Earlier, Iran and the U.S. held two rounds of indirect talks in Muscat, Oman, on the 6th and 17th of this month.

Israel and India Announce “Special Strategic Partnership”

According to Xinhua News Agency, Israeli Prime Minister Benjamin Netanyahu held talks with visiting Indian Prime Minister Narendra Modi in Jerusalem on the 26th and issued a joint statement announcing the elevation of bilateral relations to a “Special Strategic Partnership for Peace, Innovation, and Prosperity.”