NVDA's stock price experienced significant declines following its earnings
Day 1: NVDA's stock price declined by 2% ahead of its earnings report, likely due to caution and uncertainty among investors.
Day 2: Despite reporting good earnings, NVDA's stock price dropped by 6.38%.
Day 3: The market rallied, with semi-conductor peers rising 5-10%, while NVDA's stock price increased by a modest 1.5%.
Day 4: NVDA's stock price plummeted by 9.5% due to fear and concerns surrounding the DOJ staff.
Day 5: NVDA's stock price experienced a "rug pull" from a 2% gain to a 2% decline.
Day 6: After the DOJ issue proved to be fake news, NVDA's stock price experienced another "rug pull" from a gain of over 3% to a flat performance.
NVDA is a money destroying machine lately
byu/No-Establishment8330 inwallstreetbets
Posted by No-Establishment8330
36 Comments
it only destroy money if you bet on the wrong side.
i am a victim of this
The weak will sell
The strong will hold
Remember all the fucking morons in this sub who were claiming NVDA would reach $10 trillion or higher market cap by the end of 2024, legitimately just 1-2 months ago? As if it ever had a chance to go that high in the foreseeable future at all period.
You people were born for this sub.
This sub is so regarded
Mega bulls and mega bears are both retagarded
30% drops in growth stocks aren’t the end of the world and doesn’t mean NVDA is done just as much as believing it’ll go to 10T is regarded
Man you’re seeing a correction after an insane valuation.
It’s clear that Nvidia is a huge company in a sector that is booming, but at such valuations the expectations are for massively beating expectations (markets are crazy whatever).
But it’s still a tech hardware company, so it has the problems of all tech hardware companies:
* can be disrupted by competition. You’re only as good as your latest product. Doesn’t matter if Nvidia today is by far the leader in GPU computing or if you think it’s a monopoly, so where Intel and Cisco
* most of the revenue coming from a handful of companies. With those companies actively building their own hardware for the same tasks. Right now the race is to get product and market share. At some point Microsoft won’t be shelling 20/30B per years in GPUs and use their own hardware and optimize the software for it. In fact if you google you can see that Microsoft is indeed building their own hardware. Those companies have both the money and the know how to do it. In fact both Apple and Google don’t use Nvidia’s GPUs but Google’s Tensor Cores for their tasks
* the amount of money spent by these large players cannot grow forever. At some point they can’t spend money they don’t have/make. In Meta Zuck has the final word about everything and can’t be kicked out. But other companies can change their CEO when they don’t like what they’re seeing. If AI keeps making little to no revenue, they will want answers when the hype cools down.
* the sector is cyclical. Now there’s an arms race in getting out the best models. At some point there will need to be a correlation with revenue or the investments will drop significantly
* the margins Nvidia have are out of this world, but won’t last for the aforementioned reasons. At some point it’s more economical to shell a billion to rewrite the entire stack to work on different hardware than keeping to give 30B/year to Nvidia with 20B of those being profit. This moment is not now obviously. Because having products is the focus. But it will come.
* Nvidia has to insanely beat expectations to match its market value earning after earning. In fact, for Nvidia to have 2.5T of market cap, you are betting that it will have 250B of free cash flow in 10 years (rough number pulled out of my ass where you sum the FCF of a decade, but don’t discount it nor expect it instantly because you assume they will keep growing even after a decade). They are at 40B something. Growing it 6x might be possible if several factors align (them dominating the software/hardware stack and AI products booming in revenue from chatbots to videos to robotis), but it’s still no easy task.
Lately?
Looks like a discount to me
I sold on the way down but still holding 500 NVDX at $9 😎
Net
Value
Destruction
Accelerator
just wait another 6 months when no new progress has been made in AI
lol 2% = rug pull
Yup, for sure. On the bright side, because I know I’m not exiting any time soon I can stock checking my brokerage and just live life 😀
Yeah it’s called fk your hopium, and focus on TA instead of FA all the damn time lol
Pretty much all of big tech has been trash lately
i touch it, it turns to shit. tested that theory a few times. its all yours now.
oh no
Seems like NVDA’s been on a wild ride lately. Tough to keep up with all the ups and downs.
After it falls, everyone already knew it would. Yeah, the best kind of regards. The ones that only knew after it happened.
Time for an NVDA megathread.
Calling the cash cow that is NVDA a money destroying machine is insane. You belong here.
Learn to read a balance sheet jfc
You do know you can make long gambles and still make money when NVDA goes up or down right?
This is bullish, thanks! Will buy cheap leaps.
Earn to write covered calls.
So, your advice is to sell low and buy high later. 
I yolo’d my account on 135 calls before earnings then forgot about them. Are you saying I should check them?
Well that’s a bit signal for me dog
My shares still seem to be there, so I’m good.
Congratulations on coming out of the closet
I think AMD owns the copyright on that!
I just decided to go long after trying the last earnings. Want to hold this 10 years tbh and add.
I bought this dip.
No you just don’t know what you are doing
You guys have no chill, Thetagang thanks you for your donations
I need it to drop to $90 again. 🐻
Its almost like the intended time frame of investing in NVDA is longer than 9 days for most people 🤔