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Nvidia stock getting slaughtered...

Discussion in 'Graphics Cards' started by littlepuppy, Nov 20, 2018.

  1. Flake87

    Gangster

    Joined: Jul 27, 2015

    Posts: 223

    It's always the case that half of them win and half of them lose !
     
  2. Participant

    Caporegime

    Joined: May 13, 2003

    Posts: 30,223

    Location: Warwickshire

    If Nvidia said the collapse of the crypto market wouldn't overly effect their business, they're talking about net earnings not share price. If secondary markets chose to build in overly-ambitious value for the future crypto market, I'm not sure how this is Nvidia's fault.

    I personally think people are getting mixed up between accounting balance sheets and corporate finance balance sheets, i.e. current profit expectations vs. what's going on in secondary equity markets.
     
  3. h4rm0ny

    Soldato

    Joined: Jun 25, 2011

    Posts: 5,451

    Location: Yorkshire and proud of it!

    To be honest, I'm still not really seeing it. If the company says: "hold on, wait and see", that's still on the investors. It's not like Nvidia said "there is 0% chance of our sales dropping and we guarantee that". I see a lot of people arguing by analogy but the only statements I've seen actually quoted from Nvidia that are supposedly sue-worthy, have just been vague, non-factual statements of confidence.
     
  4. 4K8KW10

    Soldato

    Joined: Sep 2, 2017

    Posts: 5,544

    https://schallfirm.com/cases/nvidia-corporation/
     
  5. Marine-RX179

    Capodecina

    Joined: Feb 6, 2010

    Posts: 14,094

    If I'm not mistaken, good old merica love suing and bring lawsuit toward everything and anything, simply because the system is designed in a way that people that bring the suits generally got nothing to lose but everything to gain, thus leading to people abusing the use of the system.
     
  6. muon

    Capodecina

    Joined: Nov 8, 2006

    Posts: 17,496

    Location: London

    This lawsuit is just complete BS. Nvidia failed to predict the future and gambling investors lost. Boohoo.

    It's not even like nvidia profits are down.

    https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-third-quarter-fiscal-2019

    They are actually up from last year. What are they supposed to do other than make profits? Somehow control the share price?

    They definitely didn't say that. They said they would continue to make profits and they'll control the impact of the cryptoboom. Guess what, according to their revenue/profit numbers they did that.

    It was the market which was pricing in a ridiculous P/E ratio which is now coming down to reasonable levels.

    The P/E ratio even now is still 17.8. Think about what it was when nvidia share price was over double that.

    https://ycharts.com/companies/NVDA/pe_ratio

    High P/E ratios are supposed to mean that you expect profits (or at least there is a likelihood) to rise substantially and thereby making the price okay.

    Here are Intel's numbers, a well established large tech manufacturing company.

    https://ycharts.com/companies/INTC/pe_ratio
     
    Last edited: Jan 1, 2019
  7. 4K8KW10

    Soldato

    Joined: Sep 2, 2017

    Posts: 5,544

    Read it (and also the §§10(b) and 20(a) of the Securities Exchange Act of 1934):

    "Rule 10b-5: Employment of Manipulative and Deceptive Practices":
    It shall be unlawful for any person, directly or indirectly, by the use of any means or instrumentality of interstate commerce, or of the mails or of any facility of any national securities exchange,
    (a) To employ any device, scheme, or artifice to defraud,
    (b) To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, or
    (c) To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person,
    in connection with the purchase or sale of any security."
     
  8. shamus21

    Wise Guy

    Joined: Aug 29, 2004

    Posts: 1,618

    Location: Alpha centauri

    After the sales performance of this new gen of cards i should think so. Nvidia need to make up their minds stay with GPU`s or go down the AI hype road.
     
  9. DarrenM343

    Mobster

    Joined: Oct 19, 2008

    Posts: 4,476

    I think it's unfair to call stock investors gamblers to be honest. Stocks are not crypto :). Some will gamble, yeah sure, as in any markets. I think there has been a degree of hiding the truth here by NVidia.
    I'm an nvidia shareholder and not a gambler. I bought years ago with a vision of the future. I don't expect a CEO to state mining will have no impact in a confident statement and then later state that "oops, sorry, yes it has". In fact there's been no "oops, sorry" aspect.
    I kind of think suing is a bit harsh though IMO and of course only the big shareholders can do this. If they win then any pay out should be distributed across all shareholders. It's better to just not trust what the CEO says in future regarding impacts and just invest off of the numbers they bang out and potential of the products.
    The PE ratio of NV is nothing compared to that of AMD's :). AMD is a car crash stock waiting to happen if they don't perform as well as the market has now priced in. But I think they will impress, personally.
    Being misled as a shareholder is the same as being misled as a purchaser of any other product IMO. Just because it's "investing" doesn't mean "your fault, gambling" - because some want to dislike investors.
    NV have done well for a good few years so personally will put it down to a bit of a **** up. Years from now we may look back at the **** up as a buying opportu ity.
     
    Last edited: Jan 12, 2019
  10. Wrinkly

    Wise Guy

    Joined: Aug 31, 2013

    Posts: 1,305

    Location: Scotland

    <insert facepalm image here>
     
  11. DarrenM343

    Mobster

    Joined: Oct 19, 2008

    Posts: 4,476

    Have you tried Investing yourself? :).
    I bought at around $18 and paid my house off with the profits and never had to pay a penny in tax (inside ISA) :). It was just a matter of time. Gambling is buying something on hope.
    Should read up gambling vs investing.
     
    Last edited: Jan 12, 2019
  12. mid_gen

    Sgarrista

    Joined: Dec 20, 2004

    Posts: 8,218

    Location: Düsseldorf

    Definitely been a good buying opportunity. nVidia is well sorted for the long haul.
     
  13. 4K8KW10

    Soldato

    Joined: Sep 2, 2017

    Posts: 5,544

  14. XeNoNF50

    Hitman

    Joined: Jan 11, 2016

    Posts: 830

  15. lnoton

    Mobster

    Joined: Apr 14, 2009

    Posts: 2,766

    Location: Global

    Should be some better prices soon.

    Likely better cards too.

    I love that DLSS is now seen as the bandaid to Ray tracing to keep up the FPS.

    Their stocks been too high for a while anyway.
     
  16. Flake87

    Gangster

    Joined: Jul 27, 2015

    Posts: 223

  17. Panos

    Sgarrista

    Joined: Nov 22, 2009

    Posts: 9,347

    Location: NE Lincolnshire

  18. D.P.

    Caporegime

    Joined: Oct 18, 2002

    Posts: 29,873


    Absolutely not, when HPC and deep learnign is seeing 400% revenue growth a quarter but most revenue is still with gaming Nvidia is absolutely doing the right thing by contiuing to support what generates their current revenue but investing in the future that sees the most growth.

    nvidia's high share was mostly linked to the data center GPU and the rise of deep learning in areas such as autonomous cars. Nvidia is well poised to take a large market share of a $50bn a year market in embedded deep earnings accelerators and computing for CAV, they are the current market leader. Why would they want to throw that away.
     
  19. D.P.

    Caporegime

    Joined: Oct 18, 2002

    Posts: 29,873


    muon's post above is spot on. Nvidia believed that crypto would continue to grow, as did many companies, Nvidia made a forecast for continued crypto sales growth, guess what, they were wrong.


    If Nvidia is guilty of misleading investors over Crypto boom risks then so our hundreds of companies, including AMD. The only difference here is Nvidia being the bigger market player generated more profit in the boom so saw a bigger drop in the crash.


    Anyone buying Nvidia shares around their peak were taking on a massive and well publicized risk. P/E were outrageous.

    the whole lawsuit is basically sour gamblers that jumped on the crypto bandwagon far too late and can;t understand why a micro boom and bust isn't a sustainable revenue growth.
     
  20. Kaapstad

    Man of Honour

    Joined: May 21, 2012

    Posts: 27,745

    Location: Dalek flagship

    Stock market is always a gamble, some of it high risk some low risk but you can lose money on any of it.