Friday Feedback: Nvidia’s Negative Nancies
Are you ready, Great Ones?
Aye, aye, captain!
Now there’s the enthusiasm we need for a hearty helping of … drumroll please … Reader Feedback!
Today’s the day when we dig through the Great Stuff inbox for those delectable morsels you send us on the daily.
Then we chew them up, spit them out, read some tea leaves … and answer your burning stock market questions … in the most Great Stuffy of ways. Yeah, let’s go with that.
If you don’t see your email below in bright, bold virtual print, you might’ve cursed too $&@*#$(% much. I might also ask … did y’all write to GreatStuffToday@BanyanHill.com in the first place?
Let’s remedy that for next week! Hit me with any and all questions, rants, crystal ball predictions and, well, anything else that passes through your mind — investing-related or otherwise.
Now for today’s featured presentation:
What’s good, Great Stuff? Is Nvidia still a buy after this week’s earnings report? — Cameron
Thanks for writing in!
Long story short? Mmhmm.
Short story long? Mmmmhmmmm!
Here we have it, Cameron: Wall Street’s 2020 2021 2022 two-step is alive and well this earnings season. (Dude … so many twos.)
The proof? It’s in Nvidia’s (Nasdaq: NVDA) earnings pudding. I just hope it’s not tapioca…
For all intents and purposes, Nvidia delivered a double-beat-and-raise, picture-perfect report — RTX enabled, indeed.
By the headline numbers, earnings are up 69% year over year, while revenue rocketed up 53% year over year.
Nvidia expects $8.1 billion in revenue this quarter, topping analysts’ estimates of $7.29 billion with room to spare. Not too shabby, right? It certainly doesn’t sound like a report that’d warrant NVDA’s 8% plunge yesterday … what gives?
Cameron, since you’re asking if Nvidia is still a buy, I presume you’ve read through all the reasons why Great Stuff Picks first recommended NVDA shares … back in the oh-so-distant past of May 29, 2021.
And boy howdy, were there enough reasons to buy into NVDA stock. There still are enough reasons, but there used to be, too. Name another metaverse-building, AI-learning, digital-designing, game-processing, data center pro, and I’ll show you … well, Nvidia.
Gaming sales are still Nvidia’s bread and butter, but cloud business ain’t cloudy one bit: Data center sales shot up 71% year over year and reached $3.2 billion. All those GPUs that gamers have been dying for? Sorry, those are going to cloud data providers and AI researchers…
Then you have the drafters and designers and other software-aided workers who use Nvidia’s chips for “Professional Visualization,” aka drawing stuff. Revenue here shot up 109%, which is insane even by Nvidia’s standards.
Virtually every aspect of Nvidia’s business is growing by leaps, bounds and whatever other measures one might grow by … except for its automotive biz, which is down 14% on the quarter as automakers struggle with their own supply chain problems.
But … that couldn’t possibly be the reason why Nvidia dropped like a GeForce 3080-sized stone after its report … could it? Or could it be those dreaded supply chain issues that plagued everyone’s reports this year — automakers and chipmakers alike?
Not exactly. CEO Jensen Huang said that the company’s supply constraints were easing, predicting that Nvidia’s product supply will increase substantially in the second half of this year.
Even analysts are throwing spaghetti at the wall to see what sticks concerning Nvidia’s sell-off. Susquehanna Analyst Christopher Rolland said the quiet part out loud, noting: “We are confused.”
I mean … same, Rolland. Same.
The Susquehanna analyst also noted that the sell-off might’ve been “perhaps driven by less [gross margin] expansion and elevated operating expenditures.”
So, is Wall Street’s overall uncertainty infecting any and all positivity and optimism again? Or is Nvidia just too growthy for its own good, failing to beat and raise by Wall Street’s ever-increasing expectations?
Hey, I thought you were answering questions today, not asking them.
Oh yeah! About that…
Methinks Rolland is on to something here. Nvidia entered the earnings confessional with every analyst and their mother already expecting a double beat and raise.
Then, NVDA sold off as the market sold off. Why was the market selling off? Uncertainty over … well, everything: Russian tensions, inflation conversations, you name it.
Combine that uncertainty with how fiercely the market punishes growth right now, and NVDA’s sell-off might’ve just given all y’all a new buying opportunity on the stock. The chipmaker’s report shows it’s still growing in all the ways Great Stuff expects — and then some.
As I told you last week: Hang on to those NVDA shares and … maybe … buy the dip and pick up a few more.
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Well, I do declare! There must’ve been something truly funky bubbling in the Great Stuff wellspring this week, cause y’all really outdid yourselves on the ranting and raving side of Reader Feedback.
I don’t think I’ve seen this much vitriol in our virtual mailbox since *checks notes* last week when I brought up Spotify and Rogan. Y’all doing OK out there? Or is 2022 not shaping up to be the divine boogaloo you were promised?
I brought my dancing shoes, but the music ain’t playin’, son.
Well, let’s crank up the volume and see what kind of song — erm, feedback — requests your fellow Great Ones wrote in with this week, shall we?
If you haven’t submitted anything in a while, there’s no time like the present. All you have to do is email us at GreatStuffToday@BanyanHill.com and let us know what’s on your mind.
With that out of the way … enough pitter-patter, let’s get at ‘er:
Do You Like Canna Coladas?
I’d like to taste a pina colada flavored cannabis drink if you’ve got any say to their recipes. I read your “show” tonight and busted out a laugh about cottonmouth and mango drinks. You are good sir.
Jack, my boy! Thanks for writing in!
Unfortunately, I don’t have any “ins” with the Monster Beverage (Nasdaq: MNST) brewers.
But if there’s anybody out there (can anybody hear me?) who knows someone who knows someone in the spiked energy drink market … can you please do us all a favor and pass along Jack’s colada-cannabis concoction?
There are good ideas, and then there are Great ideas — and that, my friend, is the exact kind of bubbly-induced buzz I can get behind.
What other cannabinoid recipes do you have cooking on the back-burner, Great Ones? Let me know in the inbox.
And thanks again for writing in, Jack!
On Mike Carr’s Super Bowl Breakdown
WOW! That is a Deep Dive. IMPRESSIVE
— Michael H.
In the words of Bachman Turner Overdrive … “You ain’t seen nothing yet!”
If you think that’s a deep dive, Michael, you should hear Mike Carr when he gets going about the options market.
I don’t know anyone else who gets that jazzed over technical analysis indicators and charts … and this is coming from someone who spent the first half of his career slinging options.
But you wanna hear something even more impressive than Mike’s Super Bowl breakdown?
It’s a trading strategy that Mike developed using special algorithms commonly used in the Air Force. With this method, Mike not only helps remove the stress of what and when to trade … but has also helped his readers get up to 100% gains — and sometimes more — in a matter of days!
To see how Mike does it, click here for the full details.
Thanks for being a Great One, Michael!
When Up Is Down And Down Is Up
SOOO… GREAT ONE 😁….
AND THIS IS NOT A HYPOTHETICAL QUESTION..
WHAT IS GOING TP HAPPEN…. AND HOW SHOULD WE… I POSITION MYSELF WHEN SOME SMART ASS ANNOUNCES…. AND HAS A GREAT REVEAL…
OF RADICAL NEW TECH..
BASICALLY DOING THE SO CALLED IMPOSSIBLE???
PERPETUAL MOTION IS BOTH REAL.. AND VERIFIABLE NOW..
YOU ARE WELCOME…
I CAN EVEN TELL YOU WHO HAS ALREADY AGREED TO ACQUIRE MFG RIGHTS FOR AUTOS N TRUCKS… ETC…
I CAN ALSO TELL YIU WHICH COUNTRIES HAVE AGREED TO BINDING 75 YEAR EXCLUSIVE ELECTRICITY GENERATION CONTRACTS…
HINT… IT AINT US….
ANYWAY… IF YOU FELT THE EARTH SHAKE A
IT WAS JUST ME DECIDING THAT THE TIME IS VERY CLOSE TO SHARE THIS AND MAKE SOME MONEY…
EVERY GOVERNMENT AGREED TO MY TERMS AND PAYMENTS… EXCEPT ONE.. and IT WAS US…. TOO MUCH CHEAP ENERGY???
AND I ASK FOR A LOT…
THIS IS AMERICA AFTER ALL… I DID NOT DO THIS JUST TO TAKE CARE OF THE WORLD….
THIS IS REAL, FACTUAL,,, DUPLICABLE,, & SCALABLE..
AND DOES NOT VIOLATE ANY OF THE SO CALLED LAWS OF PHYSICS… IT ACTUALLY VALIDATES THEM… I HATE THAT TERM….
THERE ARE NO “LAWS” OF PHYSICS..
SORT OF PISSED ME OFF A BIT ACTUALLY… I WAS HOPEING THST IT WOULD ACTUALLY…
WELCOME TO THE NEW REALITY….
UP IS DOWN….
N DOWN IS UP….
LETS SEE IF YOU ACTUALLY READ YOUR EMAIL HERE 😁😁😁
— ARLEN M.
Thanks for writing in, Arlen … I think?
That about wraps it up for this week. If you have any stock market questions, investing rants or stocks you want covered in the these here virtual Great Stuff pages, email us at GreatStuffToday@BanyanHill.com.
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Until next time, stay Great!