Nvidia posted their results where it showed a drop of 13% in revenue, but they gave a massive outlook increase in revenue justified by the boom in AI usage. This led to a massive rally in its stock price. Some time ago Nvidia bought back $10B of their stock at $160, and now they are re-issuing $10B in the high $300s to use the current “artificial” hot air rally that took place. Just calculate the gain they made on the back of clueless buyers of the stock. This cash will be locked-in by Nvidia and it is a massive wealth transfer from the stock buyers who have not realized their gain yet and are happy with their unrealized artificial wealth on their brokerage account. I am sure most of the buyers of Nvidia stock have not seen such news and just buy on hype.
Algos just needed a reason to pump the market.
Few!!
AI algos pumping AI stocks and dumping non-AI stocks, hmm, nothing to see here folks
This is all I needed to know. If Centene is not buying (yet) we are far away from the peak. Destination: Moon
🚀 good luck!!
Someone missed out on the pump? Not buying but holding firm from low 200s. This 🚀 is just getting started
Ok cashing out some of my 800% gain.
I sold a little portion just to feel good about it.
How much did u short?
Watch it go $600
Someone is salty they took a max loss on their puts.
Lol
I shorted at $389. Let’s see where this goes.
A better trader than me once said never short a hot story
Yup, remember what Benjamin Graham said - “the market can remain irrational longer than you can remain liquid”. Shorting is a fools game for retail investors. 100% of them don’t have the discipline or the capital margins to maintain those shorts if the market moves in the opp direction. Also, NVDA is not overvalued, and based on my analysis it’s going to 600 by end of 2024.
Chill. This was reported by Reuters in Feb 2023. It’s a mixed shelf offering. No big deal. It was already priced into the stock when the news came out a few months back. Also, 10B/1 trillion = .01, which means 1%. There is still time to buy the stock if you are a long term investor. AI boom is just getting started
That’s correct, mention AI AI bandwagon in all earning calls!!
This is another one. So 20B now. It's not insignificant. 20B being sold off in NVDA over a short term period of time would drive down the stock a lot. Also the AI boom may be just getting started but it's a long way from maturation. Nvidia is already at a 1T MC pretty much. They've already priced in years of hyper growth. It's not exactly a bargain at the moment. In a decade could it be much higher? Sure but I wouldn't expect it in the next couple years especially with everything going on in the current market environment and the fed still trying to keep inflation in check.