Subscribe to The Free Market Chronicle and join the 2,679 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-GAAPย 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 sequentialย 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 sequentialย growth by business segment.
[widget id=”wordads_sidebar_widget-18″]
The chart above shows Nvidia’s Q1’17 gaming saw a sequentialย decline of 15 percent, while in Q1’18 gaming saw a sequentialย decrease of 23.8 percent. While 2Q’17 and ’18 both saw similarย 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 sequentialย basis did slow.
Meanwhile, Datacenter has been consistentlyย slowing since 3Q’17.
The y/y chart shows something similar.
[widget id=”wordads_sidebar_widget-18″]
The stock was rising in post-market trading, but it is hard to say how the market responds to the results becauseย 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 inย “Reading The Markets”ย
Premium Content: Benefits include the ability to reach outย to Mike with questions through a chat room, direct message, or comments.ย
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.ย
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
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 anย 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 platformย 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.
[widget id=”wordads_sidebar_widget-18″]
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.
With earnings season now basically complete, we shall be going back to our regular format starting tomorrow.
Have a good night.
[widget id=”wordads_sidebar_widget-18″]
Free Articles Written By Mike:ย
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
[widget id=”wordads_sidebar_widget-18″]
We offer a lot of great commentaries all week talking about the major andย 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-
[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, LLCย 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.ย 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