Nvidia Stock: Evidence Gaming Bottomed And Why It's Important
Nvidia (NASDAQ:NVDA) has overcome strong headwinds over the past few years, including United States-China tensions, supply chain disruptions spanning many components, tough comps on the data center, tough comps on gaming, and a less-than-rosy macro environment. However, the most impactful ofall has been Ethereum’s merge to Proof of Stake (POS), which led to a $2.5 billion cumulative miss in revenue.In September, we made a prediction in the analysis entitled “Nvidia Stock Is Ready to Rumble with RTX 40 Series and H100 GPUs”that Nvidia’s new gaming release would soften the blow when we said the following: “First, Nvidia is restricting supply on its current gaming model. Per the CFO: ‘Across those two quarters, the Q2 of ‘23, the Q3 of ‘23, we have likely undershipped gaming to our end demand significantly.’ […] We estimated forour premium membersthat the amount undershipped is a minimum of $1 billion. The reason behind this is to help keep prices stable and to increase demand for the RT
Unity Software - Is It Worth Considering After The ironSource Acquisition?
Down 75% from so far this year, and by 82% from its high, should investors consider the shares in the current environment?Of course being down 75%-80% in the last few months is far less of a distinctionthan it used to be. And, I for one, am far less interested in the percentage decline of shares, as opposed to considering if their present valuation makes sense and can provide an investor with a reasonable return.Unity Software (NYSE:U) is another of acrop of busted IPOs.The shares went public in Sept. 2020 at $52 andrapidly climbed to $201, before descending almost 83%. Fact is they are up by almost 60% from the low they made just before the company’slatest earnings report on 11/9and yet they are still down 83%.The company went public at a time ofvery rapid growthin its space and for Unity specifically, and significant enthusiasm about its sophisticated tools to build mobile apps that could be monetized by selling in-game ads. The company’s tools were indeed responsible for some except
Bed Bath & Beyond May Not Survive Financial Restructuring
2022 has been a challenging year for consumer discretionary retail companies as many people reduce spending amid the sharp rise in living costs. While this trend has weighed on virtually all consumer stocks, it has pushed some to the point ofbankruptcy. Bed Bath & Beyond (NASDAQ:BBBY) has lost around 70% of its value this year and is roughly 95% below its all-time high. The company is racing for liquidity after S&P global ratings downgraded the firm's debt,expecting it to enter selective default. Bed Bath & Beyond fell dramatically last week as it filed tooffer up to $75M in new shares, dramatically diluting its ~$400M in market capitalization.While the company is trying tostave off a liquidity crisis, it appears there is little it can do to avoid bankruptcy and may only delay the inevitable. Many of its bonds aredown nearly 80% this year, offering staggering yields of 50%+. Of course, it is questionable, and likely improbable, that the firm finds the liquidity to make coup
NIO's stock price has been obliterated, dropping by a staggering 85% from its ATH in 2021.Ironically, while the bulls were out in force when the stock was trading in the stratosphere, many investors are screaming sell now.NIO is a unique company with excellent growth prospects and significant profitability potential.Moreover, at around 1.2 times forward sales estimates NIO's stock is dirt cheap now.As uncertainties fade, sentiment should improve, and NIO's stock will likely move much higher in the coming years.
Li Auto is a company that has grown at a very fast pace over the last few years and it is estimated that this rapid growth will continue.But the company has a lot of risks that each investor should carefully weigh.In my opinion, there's a significant potential risk, as well as a possible reward.
SoFi has fallen to new lows due to irrational fears surrounding the immaterial crypto business.The Biden Admin. extending the student debt moratorium by up to 6 months isn't problematic to the long-term business prospects.The stock trades at just 2x '23 sales estimates despite strong forecasts for 34% revenue growth next year following a year with 50% growth.
Back in July 2022, a Reuters report called, correctly, the chip industry is facing a toilet paper hoarding moment.The chip shortage experienced earlier in the year has turned into a glut at leading companies like Nvidia and Micron.This article shows the signs that the toilet paper hoarding issue may have peaked at Nvidia and Micron.Inventory is near a record in a decade and so is revenue contraction.Historically, chip cycles have demonstrated a duration of ~3.5 years. And I foresee the current contraction to end in mid to late 2023.
The prices of crude oil and LNG are linked as they both play key roles in the global energy mix.I try to take advantage of this linkage in order to trade GUSH and BOIL.At the same time, the historical perspective starting from 1998 shows that history while not repeating itself, certainly rhymes especially with the post-2010 period.The verdict is that GUSH is a buy while BOIL is a sell.Traders are also reminded that these are leveraged ETFs and should therefore be handled with care because of the compounding effect which can trim gains.
How Do Meta Platforms' Layoffs Impact Their Stock Outlook?
Elevator PitchI rate Meta Platforms, Inc.'s (NASDAQ:META) shares as a Buy.In my prior September 8, 2022write-upfor META, I highlighted that "slower-than-expected headcount growth" is one of the key catalysts for Meta Platforms. This catalyst relatingto the moderation in headcount expansion has been realized taking into account META's recent announcements, and the company's layoffs are the focus of the current article.I believe that there should be a better alignment of Meta Platforms' costs and revenue in the future taking into account its layoff plans, which will boost META's 2023 profitability. As such, I maintain a Buy rating for META.META Stock Key MetricsThere are some key metrics pertaining to META's layoff plans that are worth noting.Earlier, Meta Platforms publishedan articletitled "Mark Zuckerberg's Message to Meta Employees" in the "Newsroom" section of its corporate website on November 9, 2022. In this article, META's CEO Mark Zuckerberg mentioned that the company has "decid
Pinduoduo faced similar long odds when it rose to prominence in China despite its short history and entrenched competition from Alibaba and JD.com. One of its biggest edges is its vast network of Chinese manufacturing partners built up over the years. It continues to work diligently with that group, announcing last month it would invest billions of dollars to “cultivate 100 export-oriented brands.”Apart from cutting out middlemen, Pindouduo has also taken other cost-cutting steps to boost its chances for Temu’s success in the U.S. and other overseas markets.Its initial cooperation policy stipulates the company doesn’t need to pay merchants until an overseas customer places an order and confirms receipt of the merchandise. The company can also return unsold inventory to merchants after a period of time, meaning it shoulders relatively low inventory risk.That said, Pinduoduo will still need to invest heavily in overseas user acquisition and retention, which could be its biggest challenge