Advertisements
Nvidia

Nvidia’s Results: Stunning! What Is Disney Up Too? And Tech Wreck Coming?

Nvidia’s Results: Stunning!

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.

Advertisements

NVIDia

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.

Meanwhile, Datacenter has been consistently slowing since 3Q’17.

The y/y chart shows something similar.

Advertisements

nvidia

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

Techmagaden

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


 

Disney

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.

Advertisements
Technology

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.

 

Technology, Disney

With earnings season now basically complete, we shall be going back to our regular format starting tomorrow.

Have a good night.

Advertisements

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

Advertisements

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.

-OR-

Photo credit via Flickr

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

 

 

Advertisements