Nvidia's Post-Earnings Price Action Shows Fatigue Despite Strong Results
here's what I observed:
when companies like $NVIDIA Corp(NVDA)$ and $GitLab, Inc.(GTLB)$ consistently beat earnings and revenue expectations for consecutive quarters, the post-earnings price action often shows signs of fatigue despite the strong results, the market get numb to this numbers and growth.
instead, the focus and market expectations elevate toward their YoY growth in quarterly sales guidance in their earnings call. the same already happened to nvda in last quarters
"Nvidia forecast fails to meet the loftiest estimates for AI star"
NVDA After hours 142.20 −3.69 (-2.53%)
Image
another consideration is the magnitude of the ER beat to their market cap. even a 800% eps/sales beat has very minimal price interference for a 20M market cap company, but a +20% beat for a 100B market cap company brings a lot of attention to the market, and more impactful post ER price reaction because they are significant company to give clues of near term economic activity within their sector/group
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- KSR·11-22👍LikeReport