Major Banks Weigh In: Sum Up Nvidia's Earnings in One Word!
The highly anticipated $NVIDIA Corp(NVDA)$ earnings will be released after the market closes on August 28.
Major banks have shared their analyses and perspectives.
$Goldman Sachs(GS)$ expects a market fluctuation of $300 billion;
$Morgan Stanley(MS)$ is bullish on the report, predicting a 3%-15% swing;
while $Bank of America(BAC)$ advises buying SPY puts to hedge against potential risks.
1. Goldman Sachs predicts that Nvidia could see its stock price swing by over 9% following its earnings.
Nvidia could experience a market value fluctuation of $298 billion—higher than the total market cap of 95% of S&P 500 companies.
Based on Nvidia's closing price on Tuesday and the option's implied volatility, the Black-Scholes model predicts that Nvidia's closing price this Friday will be approximately $117.15 to $139.45, which represents a fluctuation of -8.69% to +8.69%. This is close to Goldman Sachs' expectation of a 9% move.
2. Morgan Stanley is optimistic about Nvidia's performance
$Morgan Stanley(MS)$ expects the company's earnings to likely exceed expectations, with an upward revision in market forecasts for next quarter's revenue guidance.
If Nvidia's revenue exceeds expectations, AI-related stocks could see a 3-15% increase. Conversely, if Nvidia's results disappoint, the AI stock group could decline by 5-10%, with a possible reversal in stock selection priorities.
3. Bank of America advises to hedge risk
They suggest a hedging strategy against potential losses by purchasing put options on SPY instead of Nvidia's put options, which they argue are cheaper and more attractive.
If you could describe Nvidia's post-earnings performance with one word, which word would you choose?
bullish, red, moon, rocket, happy, Pelosi, printer, crush, sideways, ATH....
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well, that depends on the reports...
either way, the market will swing [Sly] just that which way [Thinking]
$NVIDIA Corp(NVDA)$ is one of those stocks to hold for long term [Wow]
@LMSunshine @rL @GoodLife99 @Universe宇宙 @HelenJanet @koolgal @Shyon @Aqa @SPACE ROCKET @TigerGPT
If you could describe Nvidia's post-earnings performance with one word, which word would you choose?
Leave your comments and also post to win at least 5 tiger coins~
Describing Nvidia's post-earnings performance as "volatile" captures the tendency of its stock to experience significant price fluctuations in the aftermath of earnings reports.
1. Earnings Surprises: Nvidia's stock often reacts strongly to earnings reports, especially if the results deviate from analyst expectations. Positive surprises can lead to sharp gains, while negative ones can result in quick declines.
2. Market Sentiment: The stock’s reaction can be amplified by market sentiment and investor expectations. For instance, if Nvidia posts strong earnings but issues cautious guidance, the stock might see a volatile response as investors digest the mixed signals.
Overall, "volatile" reflects the characteristic unpredictability and significant price movement Nvidia’s stock often exhibits following its earnings announcements.
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