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.

U.S. tech giants once again experienced a pattern of stock price declines after exceeding expectations with their earnings reports. On February 26th, local time, Nvidia dropped over 5%, losing nearly $260 billion in market value overnight. This marked the third consecutive time recently that the company’s stock fell after releasing better-than-expected earnings. Due to Nvidia’s stock decline, the U.S. stock market performed modestly. At the close, the Dow Jones Industrial Average 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.

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

Nvidia drops over 5%

Nvidia’s stock price again experienced “inertia decline” after exceeding expectations with its earnings report. On February 26th, local time, Nvidia opened lower and declined further, closing down over 5%, with the lowest intraday price at $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 a better-than-expected earnings report.

The previous day after market close, Nvidia announced its latest earnings, hitting new records for revenue and profit. The financial report showed that in the fourth quarter, Nvidia’s revenue reached $68.127 billion, a 73% increase from $39.331 billion a year earlier; net profit was $42.960 billion, up 94% year-over-year. Additionally, the company forecasted first-quarter revenue of $78 billion for fiscal 2027, surpassing 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 it has not clearly explained 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 dropping over 1%. At the close, the Dow rose 17.05 points, up 0.03%, to 49,499.20; the Nasdaq fell 273.69 points, down 1.18%, to 22,878.38; the S&P 500 declined 37.27 points, down 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, exceeding 13% at one point, and as of press time, 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 market close 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 termination fee.

Subsequently, Netflix responded that the acquisition of 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 with the U.S. held in Geneva, Switzerland, made “good progress.” After consultations with their respective governments, the next round of negotiations is expected to take place 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 lasted 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 March 6th and 17th.

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.”