Stock Market Today: Major Indexes End Mostly Lower After Two-Day Rally; Nvidia Weighs on Tech Stocks Despite Blowout Results

Nvidia’s Business Is Booming But Its Stock Is Lagging. What Gives?

FROM 31 minutes ago

Nvidia’s revenue is skyrocketing. Its margins are holding up. Its stock is tumbling. What gives? 

Nvidia on Wednesday afternoon blew past fourth-quarter earnings estimates and forecast revenue growth will accelerate in the current quarter. Analysts all over Wall Street raised their earnings estimates in kind. UBS analyst Timothy Arcuri raised his earnings estimates for the next two fiscal years, while Bank of America’s Vivek Arya lifted his through the next three.

Yet shares of Nvidia (NVDA) fell more than 5% Thursday, erasing the stock’s year-to-date gains and putting it more than 10% off its October all-time high. 

For most of the past three years, Nvidia stock skyrocketed in lock step with the chip maker’s profits. Both its stock price and earnings increased twelvefold between the end of 2022 and the middle of last year. Then something changed. In the five months preceding Wednesday’s earnings report, Nvidia stock traded sideways while earnings estimates increased nearly 40%, according to a recent Goldman Sachs note. 

Read the full article here.

–Colin Laidley

Universal Health Services Leads S&P 500 Decliners Thursday

FROM 54 minutes ago

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