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WARNING: LAST WAVE BULL RALLYThis is part of my algorithm, I consider many more factors when studying SMART MONEY MOVEMENTS, view my arrows for guidance. We're in an uptrend based on volume. My MA will start moving downwards based on uptrend volume. TA reads BEARISH but that's not what I read. Where will the uptrend end? That's up to the whales. There are plenty of BAITs for retail traders. Many will know when to get out. Do you? As the MA downtrends for an uptrend, the MA move-up means there will be a CRASH FALL.
COINBASE:BTCUSDLong
by The_ForexX_Mindset
2
$AKTUSD massive bull flagThematic Investment Narrative: COINBASE:HNTUSD , easily the most successful DePIN Network to date, has been leading the altcoin market as a performant outlier-- with subscription count steadily increasing for their SEED_DONKEYDAN_MARKET_CAP:MOBILE network, this is a project that is generating legitimate business flows from real-world customers, and that makes it a standout alt to hold-- few protocols can make a (substantiated) claim like that. With that context, it's not as surprising that HNT has been leading the way over the past few weeks as markets have been experiencing sideways volatility at large. Investors love altcoins because it is basically decentralized VC-- and while mom and pops can get exposure to these VC-esc exponential returns-- they are also sometimes not prepared for that same potential downside involved in such illiquid markets. The DePIN companies/projects/protocols with more 'meat on the bone' (i.e. paying customers), will be the ones that are safer to hold through this potentially brutal market VOL. So AKT: With equally solid growth and adoption/user statistics, AKT may be primed to become the second-in-class DePIN 'Blue chip'. Leases & USD spend are up, Compute, Memory, and Storage are also trending up and to the right. I feel that investors seeking outsized returns from #DePIN 's next macro leg up might look down the risk curve from HNT and see AKT as another gem in the rough Technical Analysis: - Massive Bull Flag Pattern identified - Daily Candle 1D RSI Breakout test is imminent (bottom chart purple arrow)-- perfectly aligning with the September 18th FED Rate cut decision** If we do get a surprise 50 bps cut, it might present an excellent 'last stop before moon' buy-opportunity for higher risk assets, ultimately the economic stimulus will come back steeper than it did in 2021.... hang on **25 BPS Likely, 50 BPS will probably be bearish honestly NFA DYOR
KRAKEN:AKTUSDLong
by httpz
DigitalOcean ($DOCN) | Cloud Computing Powerhouse - AWS for SMBsNYSE:DOCN DigitalOcean remains the only pure cloud computing company for small-to-medium-sized businesses (SMBs), offering a robust solution similar to AWS, but with a specific focus on cost-effectiveness and ease of use for smaller enterprises. The introduction of GPU droplets further strengthens its position in the market, catering to the growing need for AI and machine learning workloads. Despite struggles with corporate governance, the company’s technology is top-tier, making NYSE:DOCN an attractive acquisition target for larger tech players. The stock has doubled in volume recently, indicating bullish momentum is building, and we believe this sets up for a breakout. This is a long-term hold for those looking for high growth in the cloud sector. GPU droplets could accelerate this growth, positioning DigitalOcean as a critical player in a market poised for massive expansion. It is not too late to enter as we are just beginning to breakout. Should macro-driven events pull down the market, especially SMBs, we will be adding at key levels. Our entries: $24.50, $31.50, $35, Breakout over $39 Targets: $50, $70, $80 DigitalOcean is not just a small player in the cloud space; it has a specific niche that positions it for explosive growth. As SMBs increasingly adopt cloud technologies, and with GPU droplets creating a new revenue stream, DigitalOcean is set to rise. While near-term volatility exists, the long-term growth story remains intact. Investors should look at this as a multi-year play, with opportunities to accumulate during any market weakness.
NYSE:DOCN
by PennyBois
$JMIA | First on the Scene, Aiming for 5x-10x BaggerNYSE:JMIA Jumia, often referred to as the "Amazon of Africa," presents a unique opportunity for long-term investors to tap into the rapidly expanding e-commerce landscape in Africa. Our analyst, Shay Boloor, was one of the first analysts to recognize its potential, and while the company has faced challenges, the long-term thesis remains intact. We have been scaling into position between $3.50 and $4.50 as well as adding Jan 2026 $5 Calls. Trading under $5, this is a steal for investors willing to endure the volatility that comes with small caps in an emerging market. For those with patience, the reward could be substantial, with the potential for a 5-10x return over the next five years. Key Strengths and the Opportunity: Capital Strength: Jumia has raised $200 million in capital, significantly reducing solvency risk, which now stands at near zero. This financial cushion provides the company with the flexibility needed to continue its strategic growth. Long-Term Play: The stock might take time to reflect its true value as the narrative shift, much like we saw with companies like Snowflake and Unity Software, unfolds. Jumia's expansion will need time, but the thesis remains unchanged. Small Position Allocation: Due to the inherent volatility of small caps, Jumia is a small position. However, it offers massive upside potential for those who can ride out the short-term fluctuations. Market Context and Timing: We are currently in a phase of seasonal market weakness, where investors shift focus toward large-cap, defensive stocks. This shift makes small caps like Jumia more volatile and higher-risk in the near term. However, for the long-term investor, this is the moment to accumulate a position while others stay on the sidelines. Range to Watch: $5.40 to $14: This initial range represents the next key resistance levels as Jumia works its way up. $14 to $21: Liquidity zone where price can move quickly. Above $21: Should the stock break above this level, expect significant movement with liquidity zones extending to $27, $33, and potentially $40+. This stock has remained a high-conviction play. Although Jumia remains a volatile stock, it is well-positioned to capture long-term growth in the African market, making it an excellent buy-and-hold for patient investors looking to capitalize on the next big e-commerce wave. This is a prime opportunity to snag the bottom for the next run-up.
NYSE:JMIA
by PennyBois
Investment in DOMS Industries Limited with Technical AnalysisIntroduction DOMS Industries Limited, a leading player in the branded stationery and art material products market in India, has been making significant strides in its industry. With over five decades of experience, the company has established itself as a trusted brand, known for its excellence and innovation. This blog post will delve into the company's background, industry growth, financial performance, and what drives investor interest in DOMS, along with a technical analysis of the historical price data. Company Overview **History and Milestones:** - **Inception:** DOMS was originally incorporated as Writefine Products Private Limited in 2005. Over the years, it has undergone strategic partnerships, acquisitions, and expansions to become the entity it is today . - **Key Milestones:** The company has marked significant milestones, including the acquisition of R.R. Industries and S. Tech Industries, entry into the back-to-school segment with Skido Industries, and backward integration through Micro Wood Private Limited . **Product Portfolio:** - **Diverse Offerings:** DOMS boasts a wide range of products, including scholastic stationery, art materials, paper stationery, kits and combos, office supplies, hobby and craft items, and fine art products. The company has over 4,000 SKUs and a strong presence in 28 states and 8 union territories in India, as well as in more than 50 countries worldwide . Industry Growth Across the Globe **Stationery and Art Materials Market:** - **Global Demand:** The global stationery and art materials market is driven by increasing demand from educational institutions, offices, and hobby enthusiasts. India, with its young population and emphasis on education, presents a particularly attractive market . - **Market Share:** DOMS has a significant market share in India, with approximately 12% market share overall and dominant positions in specific categories such as pencils (~29%) and mathematical instrument boxes (~30%) . Feature Growth **Research and Development:** - **Innovation:** DOMS places a strong emphasis on research and development, with a state-of-the-art R&D facility equipped with modern equipment. This focus on innovation has enabled the company to introduce high-quality, concept-driven products that meet evolving consumer preferences . **Manufacturing Excellence:** - **Backward Integration:** The company has backward-integrated manufacturing facilities, producing essential components in-house to enhance efficiency, quality control, and profitability. This approach minimizes dependence on third parties and ensures superior product quality . **Distribution Network:** - **Multi-Channel Distribution:** DOMS has a robust distribution network that includes general trade, modern trade, and e-commerce channels. This network, supported by advanced inventory and sales management systems, ensures effective market penetration and growth . Financial Performance **Revenue and Profitability:** - **Revenue Growth:** During the financial year 2023-24, DOMS achieved an operational revenue of ₹153,714 lakhs, representing a substantial growth of 26.8% compared to the previous year. The company's EBITDA margin increased to 17.7%, with EBITDA of ₹27,273 lakhs. Net profit after tax stood at ₹15,966 lakhs, with a healthy margin of 10.4% . - **Consolidated Financials:** Consolidated revenue from operations increased by 26.84% to ₹153,714.18 lakhs, with domestic sales increasing by 33.32% and export sales by 3.93% . **Financial Ratios:** - **EBITDA Margin:** The EBITDA margin for the financial year 2023-24 was 17.7%, indicating strong operational efficiency . - **PAT Margin:** The profit after tax margin was 10.4%, reflecting healthy profitability . - **Return on Equity (ROE):** The ROE for the financial year 2023-24 was 27.75%, indicating strong returns for shareholders . Technical Analysis of Historical Price Data **Trend Analysis:** 1. **Overall Trend:** - The historical price data from January 2024 to September 2024 shows a general upward trend with some volatility. The stock price has moved from around ₹1,277 in January 2024 to approximately ₹2,732 in September 2024, indicating a significant increase over the period . 2. **Support and Resistance Levels:** - **Support Levels:** Key support levels can be identified at around ₹1,800 (seen in April and May 2024) and ₹2,200 (seen in June and July 2024). These levels have acted as strong support during the price movements. - **Resistance Levels:** Resistance levels are observed at around ₹2,600 (seen in August and September 2024). This level has been tested multiple times and has shown some resistance to further price increases. 3. **Price Action Movement:** - **Bullish Movements:** There have been several bullish movements, notably from ₹1,500 in March 2024 to ₹1,800 in April 2024, and from ₹2,200 in July 2024 to ₹2,600 in August 2024. These movements indicate strong buying interest and positive sentiment towards the stock. - **Volatility:** The stock has experienced volatility, especially during periods of economic uncertainty or significant market events. For example, the price dropped from ₹2,300 in June 2024 to ₹1,900 in July 2024, only to recover and reach new highs. 4. **Important Indicators:** - **Moving Averages:** The 50-day and 200-day moving averages can be used to gauge the trend. As of the latest data, the stock price is above both the 50-day and 200-day moving averages, indicating a strong uptrend. - **Relative Strength Index (RSI):** The RSI has fluctuated between 30 and 70, indicating periods of overbuying and overselling. Currently, the RSI is around 60, suggesting that the stock is not overbought and has room for further upside. 5. **Volume Analysis:** - **Trading Volume:** The trading volume has been significant during key price movements, indicating strong participation from investors. For instance, the volume was high during the price increase from ₹1,500 to ₹1,800 in April 2024 and during the recent rally to ₹2,700 in September 2024. What Drives Investor Interest **Growth Prospects:** - **Capacity Expansion:** DOMS is expanding its manufacturing capacity, including the construction of a new facility on a 44+ acre land parcel in Umbergaon, Gujarat. This expansion is expected to significantly increase production capacity and drive future growth . - **Strategic Acquisitions:** The company has made strategic acquisitions, such as the acquisition of Micro Wood Private Limited and a stake in ClapJoy Innovations Private Limited, to enhance its product portfolio and manufacturing prowess . **Strong Brand Positioning:** - **Brand Recognition:** DOMS has been recognized for its achievements, including being honored as ‘India’s Most Trusted Brand’ and ‘Asia’s Most Trusted Brand’ . - **Market Penetration:** The company's strong brand positioning and extensive distribution network enable it to influence consumer decisions and improve pricing strategies . **Corporate Governance and Sustainability:** - **Robust Governance:** DOMS has a strong corporate governance structure, with a board comprising experienced directors and a robust committee system. The company has also implemented various policies, including a dividend distribution policy and a nomination and remuneration policy . - **Sustainability Initiatives:** The company is committed to sustainability, with initiatives focused on reducing emissions, managing waste, and utilizing eco-friendly materials. DOMS also engages in social responsibility activities, such as contributing to the construction of a hospital and providing educational scholarships . Conclusion DOMS Industries Limited presents a compelling investment opportunity due to its strong brand presence, diversified product portfolio, robust manufacturing and distribution capabilities, and commitment to innovation and sustainability. The company's impressive financial performance, coupled with its growth prospects and strategic initiatives, make it an attractive choice for investors looking to capitalize on the growing stationery and art materials market. The technical analysis of the historical price data indicates a strong uptrend with significant support levels and potential for further growth, making DOMS a promising investment for those looking to benefit from its upward trajectory.
NSE:DOMSLong
by stocktechbot
NEIRO reads short position soonBITCOIN bullish = NEIRO bullish. It’s good to never depend on ALTCOINS if BITCOIN is in a downtrend. Stochastic RSI reads NEIRO overbought at 100. How low can this go? Reads about 12 cents below green gap with volume blocks with huge forecast to dip. MA’s are my price predictions. The Skull is the True value line which smart money created. This belongs to a contraction which keeps the trend within until whales say it’s ready to move to the next contraction; below or above the trend.
Short
by The_ForexX_Mindset
13
Bitcoin Bull Run Continues?My expectations from the previous post have materialized, and the price of Bitcoin has dropped again into the price imbalance zone below 53,500. My expectations for Bitcoin's price next week are as follows: due to negative economic news, the stock market will likely continue to decline for several more days starting on Monday. Since Bitcoin's price correlates with key indices like the S&P and Dow Jones, there is a high probability that Bitcoin will continue to decline, potentially reaching as low as 48,900. If we look at the Long-Term Holder Realized Profit/Loss Ratio 7D indicator, which unfortunately is not yet available publicly on the TradingView platform, based on this data, Bitcoin is currently in an accumulation phase before a major growth season. Similar patterns occurred during the 2011 and 2021 market seasons.
Long
by GarateTradeCrypto
MIC Electronics: A Comprehensive Analysis for Investors**Company Overview** MIC Electronics Limited, a pioneering company in the design, development, and manufacturing of LED video displays and high-end electronic equipment, has been a significant player in the industry since 1988. With a strong focus on innovation and quality, the company has established itself as a leader in true color display technology and has even received RDSO approval for its railway coach lighting products. **Financial Growth and Performance** Revenue and Profitability MIC Electronics has shown remarkable financial growth in recent years. For the fiscal year 2023-24, the company reported a total revenue of `5656.61 Lakhs, a substantial increase from the previous year's `779.75 Lakhs. This growth is largely driven by the company's success in securing significant orders, particularly from Indian Railways for Passenger Information System (PIS) displays, which contributed `4549.90 Lakhs to the revenue. The net profit for FY 2023-24 stood at `6183.88 Lakhs, a significant jump from the previous year's `14.56 Lakhs. This impressive profit growth is a testament to the company's efficient operations and strategic business decisions. Historical Financial Performance Historically, MIC Electronics has demonstrated robust revenue and profit growth. The company's annual revenue growth has been impressive, with a 3-year CAGR of 269% and a 5-year CAGR of 62%. The net profit has also seen substantial growth, with a 3-year CAGR of 130% and a 5-year CAGR of 32%. Value and Ratios Analysis **Key Financial Ratios** 1. **Price to Earnings (P/E) Ratio:** - The P/E ratio of MIC Electronics stands at 31.43, indicating that the stock is trading at a premium but still within reasonable valuations considering its growth trajectory. 2. **Return on Equity (ROE):** - The company's ROE for the year ending March 31, 2024, was 50.7%, outperforming its 5-year average of 33.93%. This high ROE indicates efficient use of shareholder equity to generate profits. 3. **Return on Assets (ROA):** - The ROA of 72.77% highlights the company's ability to generate profits from its assets, reflecting strong operational efficiency. 4. **Debt to Equity Ratio:** - With a debt to equity ratio of 0.18, MIC Electronics maintains a healthy capital structure with low debt levels. 5. **Current Ratio:** - The current ratio of 3.32 indicates that the company has sufficient short-term assets to cover its short-term liabilities, ensuring liquidity and stability. Technical Analysis Price Action and Trends - **Current Price:** The stock is currently trading at around `81.62, with a 52-week high of `99.94 and a 52-week low of `22.85. - **Short-Term Trends:** The stock has shown significant growth in the past year, with a 1-year return of 163.53%. - **Support and Resistance:** Key support levels include `70 and `60, while resistance levels are around `90 and `100. Technical Indicators 1. **Moving Averages:** - The 50-day moving average is above the 200-day moving average, indicating a bullish trend. - The Relative Strength Index (RSI) is around 50, suggesting that the stock is neither overbought nor oversold. 2. **Volume Analysis:** - Trading volumes have been increasing, which is a positive sign for the stock's momentum. Potential Support and Resistance **Support Levels:** 1. **`70:** This level has acted as a strong support in the past and is likely to provide support again if the stock corrects. 2. **`60:** A psychological support level that could attract buyers if the stock falls to this range. **Resistance Levels:** 1. **`90:** A significant resistance level that the stock needs to break through to continue its upward trend. 2. **`100:** The 52-week high, which could act as a strong resistance if the stock reaches this level again. Conclusion MIC Electronics Limited has demonstrated impressive financial growth, driven by its strong performance in securing and executing significant orders. The company's financial ratios indicate healthy operational efficiency and a robust capital structure. From a technical perspective, the stock shows a bullish trend with potential support and resistance levels that investors should monitor. Investment Strategy: - **Long-term Investors:** Given the company's strong financial performance and growth prospects, long-term investors can consider MIC Electronics as a promising addition to their portfolio. - **Short-term Traders:** For short-term traders, buying on dips around the support levels of `70 and `60 could be a good strategy, with a target to break through the resistance levels of `90 and `100. **Disclaimer:** This analysis is for informational purposes only and should not be considered as investment advice. Always conduct thorough research and consult with a financial advisor before making any investment decisions.
NSE:PGELLong
by stocktechbot
Rotation - Growth Stocks > Value Stocks Growth Stocks: Growth stocks are shares in companies expected to grow at an above-average rate compared to other companies in the market. These companies typically reinvest their earnings to accelerate growth in the short term rather than paying dividends. Value Stocks: Value stocks are shares in companies that appear to be undervalued by the market. These companies typically have stable earnings and often pay dividends. They are often found in more established industries like finance or utilities. In different economic conditions, one type may outperform the other, leading to rotations between growth and value in the market cycle. Analysis: The stock market is currently experiencing a unique situation where major indices like the S&P 500, NASDAQ, and Dow Jones are setting new highs, but this growth is primarily driven by a small number of large tech companies (the "Magnificent 7"). This has led to a significant divergence between growth and value stocks, with growth stocks outperforming.
NASDAQ:NDXLong
by Flow-Trade
The economy peaked in April 2023"JOBS, JOBS, JOBS!" As Obama said during the recovery period post GFC This chart shows the employment level --- how many people are employed in the States / divided by the unemployment level --- the number of people without a job. . A simple Ratio With all the official Recessions highlighted in the red box. The dates of the recessions are from Wikipedia. JOBS are the ECONOMY Goods and services are still made by people. (That is obviously under attack by robotics and AI) --- but will likely lead to new economies being birthed and new jobs created. THE #FED is late to cut and will likely cut too slowly guaranteeing a GDP contraction therefore further job losses. HOLDING RISK ASSETS IS RISKY needless to say.
FRED:CE16OV
by BallaJi
TRN Trinity Industries (Long) (MidTerm)Fundamental - Company is growing fast. - The last earnings surprise was intense. Technical - Stock is very underpriced compared to the price paid on the day earnings came out. - If the liquidity on the upside remains this low, one big rational buyer will aim for the 38 zone as a target. Macro - The company will profit more if interest rates go down, driving the earnings up. - Expecting the growth is exceptional this will work out in the outlook soon.
NYSE:TRNLong
by leohanhart1996
NVIDIA: As growth slows, Market will correct evaluation of AINVIDIA continues to announce reports of a growing business, but this growth's velocity is slowing down. The chip designer has reached peak interest on the financial market both in institutional and private investors, for which the buy-back plans of NVIDIA might be the only remaining driver of evaluation. The delay of Blackwell will lead to a stall of growth for the whole business, as data centers establishing new circuits for AI business rather pre-order the newest generation of chips and wait out their expansion than make do with the current set - after all, this hardware is supposed to run for years and rushing it won't help the bottom line when customers asked for most efficient and most recent cutting-edge hardware. Known problems with generative AI aside, resistance against training AI with the internet is moving forward. X, formerly Twitter, excluded web access to it's data treasure ever since Elon Musk took over, and other websites are to follow. Internet service providers and web services announce a significant rise of traffic and requests - according to their own identification: AI training bots scraping the internet for training data. The problem: these bots aggressively scrape even for pages the web service providers don't want any bots to see. Google established the standard of putting a simple text file called robots.txt with a list of pages you don't want in the index up onto the top of your website. The new AI training and scraping bots ignore this text file and violate the privacy and consent of service and content providers. So what began with Elon Musks attempt to make a profitable business out of the internet's once most favored website, is now becoming a movement in size similar to the movement of blocking ads. Large content providers will take measure against illegitimate scraping or AI bots themselves, so the largest database of training data will soon vanish away from sight if AI bot engineers won't pick up the fight against measures counterfeiting their product. To see how the fight might end, one can refer to the war against Ad Blockers, which is in a similar bind of endless fights. Google, the most dependent business on advertising, would rather have them out sooner than later, and even manipulates the most favorized browser in the world to render ad blockers ineffective. However, any measures taken by Google to counterfeit the users' legitimate measures to select the content they want to see as well as protecting their computer from malicious intent lead to Ad Blockers coming out even stronger in their function, ending Google partially giving up the fight. For AI, training with the applied and collective knowledge of the internet could become much more expensive as important content providers such as Stack Overflow, a large Q&A solutions database for engineers, might want to cash in on the AI industry early-on. In general, the quality of future AI models is not only endangered by a degression of quality (by ingesting AI results and being unable to tell the difference) but also by a degression of free access. The AI expansion in the industry is underway, but as the generative nature of it, with all its disadvantages, as well as upcoming difficulties, whether in court or in the web, putting brakes on the growth of the industry, AI products might take longer to establish. AI systems in its current generation are limited to assisting in service; they're unable to creative or critical thinking and make the best impression on people who are easily impressed and lack of deeper understanding of what the AI generates. For a finished product of high quality, manual improvements and, in general, humans assisting the process are required. Purely AI-generated products directly distributed, due to common availability of the technology, already give the impression of being cheap, untrustworthy and probably something the internet generated, according to surveys of analysts in the public communications and marketing sector. The generative nature of AI products works well in products relying on repetition and a low intellectual approach, such as production of pop songs or any other action movie, but will come to show negatively on everything requiring deeper thought, such as the creation of tailored software solutions. For the present, as long as AI is only the generative machine deriving a remix of everything humans once wrote down, AI will remain more to be an Assisting Intelligence rather than being Artificial Intelligence.
NASDAQ:NVDAShort
by Johnny_TV
Analyzing the XAUUSD Chart: A Potential Major Trend Reversal?Key Observations: OANDA:XAUUSD Trend Channel: XAUUSD is in an upward trend channel, defined by the upper and lower bands. Previous High: The price has recently tested the previous high of the trend channel. Rejection at Upper Band: If price breaks the previous high and is rejected at the upper band, it could signal a potential reversal of the upward trend. Pattern Formation: There is a developing pattern, a rising wedge reversal pattern. Interpretation: The analysis suggests that the XAUUSD pair might be nearing a significant turning point. If the price fails to break above the previous high or breaks it and is subsequently rejected at the upper band, it could indicate a potential reversal of the upward trend. Potential Trade Ideas: Short-Term: If the price is rejected at the upper band, traders might consider selling with a stop-loss placed above the recent high. Short-Term Bullish: If the price successfully breaks above the previous high and shows sustained strength, it could signal a continuation of the bullish trend. In this case, buying with a stop-loss below the recent low might be considered. Long-Term Bearish: If the price is rejected at the previous high or the upper band, traders might consider a swing trade targeting the 2440-2480 zone with targets at 2472 and 2455. A safe stop-loss would be above the previous high or just outside the upper band. Additional Considerations: Fundamental Factors: After yesterdays positive GDP data we can anticipate a stronger USD. Risk Management: Always use appropriate risk management techniques, such as stop-loss orders, to protect your capital. Confirmation: Wait for further confirmation of the pattern or trend reversal before entering trades. Conclusion: The XAUUSD chart presents an intriguing possibility for a potential major trend reversal. However, it's crucial to exercise caution and conduct thorough analysis before making any trading decisions.
OANDA:XAUUSDShort
by TradeFX_Nexus
2
Nvidia Fails to Wow Traders. What to Make of Its Earnings ReportNvidia stock (ticker: NVDA ) is up nearly 3,000% in the past five years. Back then, in 2019, no one really cared about its earnings report as it was known mainly for its niche products targeting geeks, gamers and crypto miners. Now, when Nvidia reports, the world listens. Everyone and their moms were glued to the screen Wednesday afternoon when the company released its quarterly earnings report. The numbers were good — triple-digit growth was there and guidance was calling for even more growth. Yet investors proceeded to dump the stock. Big time . Shares lost as much as 10% of their valuation in after-hours trading before Nvidia fans scooped up some of those bruised gems at a discount. Nvidia is worth $3 trillion (depending on the day) — that’s about 6% of the massive $50 trillion valuation of the S&P 500. The lofty price tag is largely due to Nvidia leading the AI boom with its chips being the hottest commodity in the tech world. As a result, Nvidia has turned into a top pick among the thousands of stocks available out there. That gives you an idea of this stock’s important role. Markets are placing so much significance on Nvidia’s earnings update that you might as well put it on par with the jobs report or a Fed event. Good but Not Absolutely Mind-Boggling Amazing Analysts: We expect revenue growth of 115%. Nvidia: Here’s 122%. Analysts: Nooo, why not a bigger beat? Disappointed! Nvidia posted another blockbuster quarter with $30 billion in revenue, up 122%, surpassing Wall Street’s estimates of $28.7 billion. Earnings per share landed at 68 cents a pop, up 152%, eclipsing consensus views of 65 cents. Thanks to the wide profit margins, Nvidia pocketed some $16.95 billion in net profit. It did say, however, that gross profit margins narrowed quarter on quarter. For the three months to July 28, Nvidia generated an adjusted gross margin of 75.7%, down from 78.9% the previous quarter. Full-year gross margins are projected to sit above 75% while total revenue is expected to hit $120 billion. With Great Returns Comes Great Responsibility Here’s a harsh truth: the bigger you become, the higher the expectations for more breakneck growth. Nvidia’s revenue blasted by a supercharged 265% in the previous quarter. And if 122% can’t keep shares above the flatline, then Nvidia’s rapid expansion has turned against it. And by the looks of it, that growth is going to be increasingly challenged. Large-cap rivals are threatening to chip away (pun intended) at Nvidia’s dominance, potentially taking from its market share, diminishing the profit margins and pulling some of its Big Tech clientele. For the October quarter, Nvidia chief executive Jensen Huang projects revenue of $32.5 billion, which exceeds the average consensus of $31.7 billion. But, then again, it doesn’t exceed it by a lot — and that didn’t sit well with the overly optimistic investors out there. Not everything was above market expectations. Nvidia’s next-generation AI chip — Blackwell — still hasn’t started shipping and that unnerves some stock holders. Huang tried to assuage investor fears during the earnings call, saying that despite some design-related delays , Blackwell will ramp up production as expected and will bring in “several billion dollars” still this year. In a move to instil confidence and maybe patch things up, Nvidia authorized a juicy $50 billion stock buyback, which is a mere 2% of its market cap. What are you doing with Nvidia’s shares? Are you a long-term holder or looking for the right entry? Maybe buying this dip? Let us know in the comment section!
NASDAQ:NVDA
by TradingView
14