Advisers
Learn
Newsletter
Offers
Podcast
About
  Back
~
2
min read
· Posted on
February 21, 2024

Nvidia beats expectations - but its share price decreases

When you're already killing it...a slight over-achievement ain't enough to rock investors' socks.

What's the key learning?

  • Nvidia's fourth-quarter earnings report revealed it pulled in US$7.64 billion in revenue
  • The company's share price actually decreased 2% on the news
  • Nvidia’s expected revenue of US$7.4 billion or more was already priced into its share price by investors.

Background: Nvidia is a US chip company that designs graphics processing units (GPUs). Basically, the tech that displays images, graphics and animations onto computer screens.

 

What happened: The company just released its fourth-quarter earnings report...and it was 🔥. It pulled in US$7.64 billion in revenue.

 

What else: It just wasn't enough for investors though. In fact, the company's share price actually decreased 2% on the news.

 

🔔 What's the key learning?

 

💡There is no 'perfect equation' that tells us exactly how the price of a stock will behave - which is why sharemarkets are so hard to predict.

 

💡But we do know there are 3 main forces:

  1. Fundamental factors (think: company earnings and profitability)
  2. Technical factors (think: chart patterns and expectations for the upcoming quarter)
  3. Market sentiment (think: the psychology of individuals... ahem FOMO)

💡Nvidia’s expected revenue of US$7.4 billion or more was already priced into its share price by investors, so slightly over-achieving on that revenue didn’t actually impact the share price.

‍

Ready to win at money?

Sign up for Flux and join 100,000 members of the Flux family

Sign Up
A button to App StoreGoogle Play store button
Excellent  4.9 out of 5
Star rating
© 2024 Flux Technologies Pty Ltd and Flux Media Pty Ltd
All rights reserved.
Explore
HomeLearnPodcastAboutNewsletterFlux at WorkAdvisers
Offers
Home LoansSavings AccountsBank AccountsShare TradingCar LoansCredit Cards
Support
CareersContact usPrivacy PolicyTerms of Use
Disclaimer: Flux Technologies Pty Ltd (ABN 86 634 507 172) is an authorised representative (Representative No. 1283166) of Mozo Pty Ltd who is the holder of AFSL No. 328141. We also provide general advice on credit products under our own Australian Credit Licence No. 530103. The product information presented does not constitute an offer and we are not recommending or suggesting any particular product. Any product advice presented is of a general nature only, and is not to be taken as any sort of advice as it has not taken into account your personal circumstances, objectives, financial situation or needs. Flux may not cover all products available to you. Check out our Credit Guide and Financial Services Guide for more information.

All information contained in the Flux app, www.flux.finance, www.joinflux.com, app.flux.finance and any podcast of Flux Media Pty Ltd (ABN 27 639 804 345) is for education and entertainment purposes only. It is not intended as a substitute for professional financial, legal or tax advice. Flux Media Pty Ltd is the owner of the registered trade mark, 'What the Flux'. While we do our best to provide accurate information on the podcast, we accept no responsibility for any inaccuracies that may be communicated.
No items found.