NVIDIA earnings report last night beat the Street by $.40 and guided higher than the Street in both revenues and earnings. So why's the stock down? We'll review that and how the CEO hinted that their guidance is way too conservative.
NVIDIA Guide
NVIDIA guided revenues to $3.1B for the July quarter which was higher than the Street consensus. The implied EPS guide calls for $.17-.37 upside versus the Street for the July quarter depending on which consensus estimate you use.
If NVIDIA Was So Good, Why Was The Stock Down In The Aftermarket?
Good question.
Let's see what NVIDIA did ahead of the earnings.
Off its very recent low April 25th, a mere 12 trading days ago, the stock made a 24% move. Not bad for twelve days of trading, right. Please don't annualize that, yet.
We told you April 13th and April 19th we thought NVIDIA would be good despite the crypto-bear stories.
Let's look at the chart.
The two left arrows are our reports that we loved NVIDIA.
The right arrow shows you that NVIDIA's stock was hitting all-time highs into the quarter.
So you were paid somewhat before the quarter was even reported.
Not bad.
But The CEO Gave You Even More
NVIDIA officially guided to $3.1B. But the CEO, Jensen Huang gave you a hint that their internal numbers are much much (much) higher than the guide they gave.
Let's listen to what he said,
“We're expecting Q2 to be better than seasonality… And we're expecting Q2 to be better than seasonality.”
He said it twice in one breath.
Nobody heard that?
Let's show you the math what that means.
