Nvidia (NVDA) stock rises after the US Commerce Department said it will not enforce global artificial intelligence (AI) chip curbs, though China chip restrictions remain in effect.

AppLovin (APP) stock surges on news that the company will sell its gaming unit to Tripledot Studios for $400 million and 20% of its stock.

Molson Coors Beverage Company (TAP) lowers its outlook for the full year, sending the stock lower in premarket trading.

To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.

Video Transcript

00:00 Speaker A

Now time for some of today's trending tickers. We're watching Nvidia, App Lovin, and Molson Coors. First up, the Commerce Department confirming the US will not enforce global AI chip diffusion rules set to go into effect May 15th. Chip stocks, including Nvidia, rising on the news, an Nvidia spokesperson saying the company welcomes the change. This is separate from curbs on China, which the Trump administration has maintained. According to Bloomberg, the administration plans to pursue individual trade deals with nations like Saudi Arabia and UAE. Shares of Nvidia, as well as some of the other semis here that would be most impacted, you're seeing them reacting, moving positive here, at least pre-market right now.

00:49 Speaker B

Yeah, what's really interesting about this is that it gives us some insight into the tools in the toolkit from the Trump administration. Are they going to go after any allies that they could be selling chips to, like the UAE for example, that could then turn around and sell those chips to China via that second party uh toolkit there? So that's going to be interesting to watch. City this morning saying this is not all good news in part because of what I just laid out, but also because it could be replaced with global licensing agreements that could end up being stricter than the current export controls. Having said that, given that Nvidia had previously criticized this rule from the Biden administration, we are seeing those shares up over 1 and a half percent this morning. Next up, shares of App Lovin popping after sales rose in the latest quarter and news that the company will sell its mobile gaming unit. App Lovin's first quarter sales jumped 40% year over year to nearly 1 and a half billion dollars. The company will sell its gaming deal developer, developer Tripledot in a $400 million deal and a 20% stake in Tripledot as well. Just a huge move to the upside here in the stock. It is up nearly 17%. Taking a look at the stock performance year to date, you're getting a very different picture. It's a stock that's been down about 11% year to date here, and we're seeing a little bit of a recovery. It hit its peak back on Valentine's Day and February early February here, um and it has gone down significantly since that date. Um, so it's going to be interesting to see if they can recover some of those losses.

02:49 Speaker A

Yeah, a few things in the outlook that I'm looking at here specifically, what they're looking for in advertising revenue here projecting between $1 billion and $1.25 billion. And then additionally, the company long-term is anticipating this growth rate of about 20 to 30% here, and really anticipating some of the machine learning and expansion in the advertising capabilities that they offer and over the web, uh that that will ultimately kind of bolster some of these guidances. The company CEO, in terms of some of the executive commentary that we do have here as well, coming out of the earnings, uh the CEO, Adam Frugi, saying that we think we've got the best performance advertising AI model the world has ever seen today. Um the CFO essentially kind of layering in, saying the adjusted EBITA per employee in their advertising business has risen to approximately $4 million annually. Uh so that is significant here. Um but I think a lot of the Q&A was really focused in on what is going to take place across some of the apps that they're also kind of intertwined with, and also the bid proposal for Tik Tok here, which is a major deal uh surrounding App Lovin's name right now. So we'll see how investors continue to monitor this one, but shares up by about 16, 17% here this morning. Finally, beverage company Molson Coors lowering its outlook for the full year. Shares slid after the parent of Miller's and Coors beers announced it now expects a year-over-year decrease in sales, saying consumers are pulling back and trade policy has put pressure on its business. Shares right now are down by about 5%. Uh the business of brew getting hit by a little bit of a trade uncertainty or fisticuffs right now.

05:26 Speaker B

Yeah, cutting their guidance to single digit growth for both sales and earnings. Talking about that weaker macro environment here that weighing on the shares here, you can see the on this on your screen. But also the CEO stepping down by the end of this year, another potential headwind for investors. Uh famously, Amy Wu Silverman telling us that right now investors are investing in management teams, not companies because of the uncertainty that Molson Coors pointed out here. Uh and it's interesting to also hear them say less beer is being drunk due to concerns about tariffs in the economy, seeing that potential consumer pullback narrative here as well.

06:19 Speaker A

Yeah, there's also a larger kind of generational shift that we've continued to talk with many of these CEOs around, whether that be Molson Coors, whether that be Constellation Brands, uh Bill Newlands takes the time to join us pretty much quarterly here. And one of the things that he always acknowledges is that, yeah, Millennials, Gen Z have less of a propensity compared to Baby Boomers compared to even uh Gen uh Gen X to drink as much or consume as much beer. And so that's changing their business models and how they're coming across new products that they have to make sure that they're bringing to market as well. So that is a continuation in trend that we're tracking, at least right now.

07:20 Speaker B

Yeah, absolutely. I'll lastly just quickly mention that when the CEO of AB InBev was speaking with us last, they talked about how immigrant communities in particular are not gathering as frequently in outdoor spaces, given some of the policies of the administration and that they're seeing that weighing on sales as well. So just a slew of factors impacting some of these names. You can scan that QR code on your screen to track the best and worst performing stocks of the session.  Related Videos

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