Nvidia is falling, time to Buy ? Read & decide.
On Tue, 21 Nov 2023, US stocks closed lower, signaling a pause in the November rally.
This is “understandable” given the following catalytic circumstances:
(1) Disappointing Q3 2023 earnings results from US retail stocks of:
(2) Investors waited on the sides for $NVIDIA Corp(NVDA)$ quarterly earnings to be announced after market has closed.
(3) Although unmentioned, I think people have begun making way home in time for Thanksgiving, on Thu, 23 Nov 2023.
US stocks trading volumes:
US 3 composite index trading volume - 19 Oct to 21 Nov 2023
The 3 composite indexes’ trading volumes (for the past 4 weeks) have tapered especially this week. (see above)
They “spiked and peaked” on Tue, 14 Nov 2023 after October 2023 Core CPI lower than expected readings gave US market the much-needed jolt.
Trading volume has since been trending steadily downwards.
By the time market called it a day:
DJIA: -0.18% (-62.75 to 35,088.29).
$S&P 500(.SPX)$ : -0.20% (-9.19 to 4,538.19).
Nasdaq: -0.59% (-84.55 to 14,199.98).
Although US pre-market indicators “seemed” to present a positive market sentiment, (see above) I believe it would turn south.
This is because there will not be many catalysts to help prop up the market.
On a brighter note, investors who decided to sit & wait for Nvidia’s quarterly earnings should not be disappointed.
Nvidia’s Q3 2024 Report Card:
Earnings per share (EPS): $4.02 per share, adjusted, vs. $3.37 per share expected.
Revenue: Came in at $18.12 Billion vs $12.61 Billion expected (Refinitiv). In terms of YoY growth it was a very healthy +206%.
Net income: Was $9.24 Billion vs $680 Million, a rocking +13.59% gain.
Gross margin: Increased by +20.4% (YoY) from 53.6% to 74.0%.
Q4 2024 revenue forecast was $20 Billion, implying a +231% growth YoY.
However, Nvidia's CFO - Colette Kress has warned that export restrictions to China will impact its sales figures.
The mere mention of possible China sales impact gave investors the jitters.
Nvidia’s fell after market closed.
Its pre-market indicator for Wed, 22 Nov 2023 continued to exhibit a fall. (see below)
On the eve of Thanksgiving, I think Nvidia will continue to fall today, mainly due to lack of trading volume.
If Nvidia falls further, is it Time to Buy?
Do you think Nvidia will continue to dip today?
Do you think today will present a buying opportunity of Nvidia?
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