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Nvidia shares we're almost doomed to crash. âď¸đ
One important question to ask yourself when investing, is
"what is this company's fundamentals, and what is expected of the stock?"
For example, before $NVIDIA Corp(NVDA)$ released earnings, we can access 3 things:
â the valuation for Nvidia was way too high
â earnings estimates were way too high
â the hype around of Nvidia was too high
This made it difficult for Nvidia to rip estimates.
$PDD Holdings Inc(PDD)$ is a industry leading ecommerce service provider to individual merchants. It is the parent company of temu.
Recently however, it has plunged over 30% due to plans to spend on increasing platform security and quality. As highlighted in the earnings call, it is focusing on "quality".
improving quality isn't a bad thing! It is improving the quality of the product, which will bring in more customers, foster brand recognition, and be better for the long term.
PDD Is valued with a 10x PE for such a massive and dominant company.
After the earnings call, the fear & greed for PDD has been absolutely horrendous, as demonstrated by investors' lack of confidence in the Chinese market.
It is easy for PDD to beat expectations.
So, that makes PDD a strong buy.
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