Nvidia
Shortly before the holiday season, Pelosi disclosed through a filing that her husband, venture capitalist Paul Pelosi, bought 50 call options on Nvidia (NVDA) with an expiry date of Dec. 20, 2024 and a strike price of $120. The reported transaction value was between $1 million and $5 million.
A call option is a contract that gives the buyer the right, but not the obligation, to buy a stock at a specified price within a certain time period. Typically, the value of a call option tends to rise when the price of the underlying asset increases.
It appears that Pelosi’s bet was well-placed. Since the reported transaction date of Nov. 22, 2023, Nvidia shares have soared by 76%.
Artificial intelligence has emerged as a prominent trend in the tech sector. As a leading chipmaker, the tech giant is reaping significant rewards from investors’ insatiable appetite for AI. The stock has surged nearly 265% over the last 12 months and a staggering 2,180% in the last five years.
Business is firing on all cylinders. Nvidia recently reported that its Q4 revenue grew by 265% year-over-year, while its earnings per share skyrocketed by 765%.
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Palo Alto Networks
Headquartered in Santa Clara, California, Palo Alto Networks (PANW) is one of the largest cybersecurity companies in the world.
It also represents Pelosi’s latest investment interest.
A new filing revealed that on Feb. 12, 2024, Paul Pelosi purchased 50 call options on Palo Alto Networks with a strike price of $200 and an expiration date of Jan. 17, 2025 for a total value of between $500,001 and $1 million.
But that was not all. On Feb. 21, Paul Pelosi bought another 20 call options on Palo Alto Networks with the same strike price and expiration date for a total value of between $100,001 and $250,000.
Shares of Palo Alto Networks fell after the company lowered its full-year guidance in its latest earnings report. Management now expects full-year revenue to be between $7.95 billion to $8 billion, a decrease from the previous guidance of between $8.15 billion and $8.2 billion. Additionally, total billings are now guided at $10.1 billion to $10.2 billion for the year, compared with the previous projected range of $10.7 billion to $10.8 billion.
Despite this recent downturn, PANW stock is still up 55% over the past year.
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