This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
Otherwise, enjoy the column!
Subscribe to the Monster Stock Market Commentary to get the Weekly Monster Market Commentary and join the 3,072 subscribers getting it for FREE!
Nvidia’s Results: Stunning!
[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”][/vc_column][/vc_row] Get This In Your E-Mail Subscribe
Speechless, absolutely speechless. When reading through Nvidia’s earnings report. The results were stunning from many metrics. Revenue came in at $2.64 billion, nearly $300 million more than expectations of $2.363 billion. Non-GAAP EPS came in at $1.33, almost $0.26 ahead of estimates of $1.07. Huge beats on both the top and bottom. Revenue grew by 32 percent versus the same period a year ago, while earnings increased by 60 percent.
What was most impressive was the growth in gaming and datacenter. Gaming saw a sequential increase of 32 percent and y/y increase of 25 percent to $1.561 billion. Datacenter grew by 20 percent q/q and 109 percent y/y, what! Yeah.
Then too really add insult to injury, Nvidia comes out and gives guidance for the fourth quarter, with revenue of $2.65 billion, over $200 million more than estimates of $2.44 billion Come on.
These are impressive numbers.
But if there is one negative take away it is in the charts below, that shows the sequential growth by business segment.
The chart above shows Nvidia’s Q1’17 gaming saw a sequential decline of 15 percent, while in Q1’18 gaming saw a sequential decrease of 23.8 percent. While 2Q’17 and ’18 both saw similar growth of about 13.5 and 15.5 percent, respectively. Then 3Q’17 saw an increase of nearly 60 percent, while 3Q’18 saw growth of only 32 percent. So while gaming put big numbers the growth rate on a sequential basis did slow.
Subscribe to the MCM Stock Market Commentary to get it weekly and join the 3,072 subscribers getting it for FREE!
Meanwhile, Datacenter has been consistently slowing since 3Q’17.
The y/y chart shows something similar.
The stock was rising in post-market trading, but it is hard to say how the market responds to the results because we don’t know the expectations that were being baked in, nor the amount of day-trading the shares will attract.
The results are awe-inspiring though; nobody can dispute that.
Two Week Free Trial Period
Also, remember to sign up for our SA Market Place Premium Content in “Reading The Markets”
Premium Content: Benefits include the ability to reach out to Mike with questions through a chat room, direct message, or comments.
We will respond to questions in short order and will respond to questions with full-post or video segment, just not one or two-word answers.
Just $40 per Month
Acadia’s Post Earnings Analysis + OIL Breaks Out
Analysis Of Acadia’s Phase II Data, Plus QCOM/AVGO
NXP Would Benefit From Broadcom Buying Qualcomm
The key takeaway from Disney at least, in my opinion, was on the conference call when the company noted that their direct to consumer streaming product would be priced much less than Netflix. Disney said it is because the platform will have less volume, and their goal is to add as many subscribers when starting out.
It is an interesting statement, and one that should make you wonder, are they going to just give this product away, for some bottom basement price? Are we already seeing the value of content going to Zero? Netflix only had a price increase a month ago, and now Disney is saying their pricing will be much less than Netflix. Is the strategy to get as many subs on the Disney platform and then upsell these subscribers to live events or particular movies? To the like of renting or buying a movie, show, or event on-demand on your cable provider, like pay-per-view. Interesting to say the least, and something that needs further exploring.
The technology sector had a steep sell-off and managed to recover some of those losses. But something was missing from that recovery, which the chart below illustrates. We can see the XLK ETF gapped, lower on the open and proceeded to trade lower, before recovering those losses. But notice that the ETF did not fill the gap created today and that the ETF stopped moving up at resistance (dotted yellow-line). Today’s trading forces us to draw the downtrend line and could suggest that there is more downside to go, and most likely refilling that gap circled in orange.
With earnings season now basically complete, we shall be going back to our regular format starting tomorrow.
Have a good night.
Free Articles Written By Mike:
Biotech Celgene Could Rebound By More Than 15%
Exxon, Chevron, and Oil Are Breaking Out
Costco Could Break to New Highs
Why Nvidia’s Stock Faces A Growth Crisis
Why Big Tech Stocks May Be Headed For A Steep Pullback
Disney’s Investors Suddenly Envision A Streaming Empire
Micron Could Rise At Least 15%, Options Trades Show
Broadcom’s Bid Could Spark A Wave of Chipmaker Takeovers
SNAP’s Stock Rebound Could Last If It Fires Up Growth
Apple Crushed 4Q Earnings, Chip Suppliers To Benefit
Elliot Management Steps Up Efforts to Raise NXP Bid Price
Chipotle Shares Could Fall 20 Percent Further
Broadcom’s Raised Forecast Is Great News For Chip Stocks
Starbucks 4Q Earnings Could Surprise Investors
Apple Shares Are Set Up For Post-Earnings Fall
Apple’s Chip Suppliers Are Breaking Out
Amazon, Alphabet And Microsoft Simply Crushed It
Why Mastercard’s Stock Could Rise 15%
Why Amazon’s Earnings Aren’t As Strong As They Look
Qualcomm Deal With NXP Will Eventually Get Done – M…
Celgene and Biogen May Be Signalling A Biotech Bottom
AMD Could Rise 10% Despite Results, Trades Indicate
Why Tesla’s Stock Is Breaking Down
Why Is McDonald’s Valued Like a Big Tech Stock?
Why Biogen May Sink Biotech Sector As Earnings Beat
Netflix Stock Likely to Rise as EPS Estimates Jump
Bank of America Could Rise Nearly 50%: Technical Analysis
AMD Could Break Out After Results
Qualcomm’s Bid For NXP Still Lacks Investor Support
Celgene’s Sharp Sell-Off Is Likely Overdone
Procter & Gamble Continues To Have Two Big Problems
GE: Getting Excited For The Future
Why IBM’s Big Stock Rally Won’t Last
Allergan Shares On The Verge Of Further Breakdown
We offer a lot of great commentaries all week talking about the major and relevant market events. Be sure to subscribe to get this all and of all free commentaries sent directly to your inbox or follow us on Twitter.
[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”][/vc_column][/vc_row]
Michael Kramer and the clients of Mott Capital own shares of DIS.
Michael Kramer Own XLK Puts
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.
#nvidia #nvda #disney #dis $dis $nvda