Nvidia: Growth Normalization Continues, Slower Margin Recovery Ahead (Upgrade) (NVDA)
1. NVIDIA had a double beat on revenue and EPS for Q4 FY2025. 2. Concerns raised about a potential 8% drop in NVDA stock.
FAQ
Why Bearish?
Historically, strong earnings can lead to price drops if market expectations are not met. An unexpected drop can lead to investor anxiety and sell-offs, as seen with other tech stocks in similar scenarios.
How important is it?
The earnings report is significant given NVDA's impact on the tech market. An 8% drop signals investor caution, which can affect overall market performance.
Why Short Term?
The immediate market reaction to earnings reports typically occurs within days. Investors often assess guidance and sentiment quickly, affecting short-term stock movement.