Monday, January 28th 2019
NVIDIA Revises Financial Outlook for 2019 by $500 million, Immediately Hit Back by the Stock Market
NVIDIA's stock value has been falling precipitously in the last several months. We reported in December that the company lost some 48.8% in value between October and December, moving from an all-time peak of $289.36 on October 1st, to just under $149 on December 14th. At the time, excess inventories were the cause, alongside a less than glamorous reception to their new RTX series of graphics cards. Now? NVIDIA cites "deteriorating macroeconomic conditions, particularly in China" as harming demand for their gaming GPUs. But this now comes alongside a its datacenter business also falling short of expectations - that's two of NVIDIA's most lucrative markets being put towards the red, or at least, with lower than expected income revenues.
This led the company to revise its financial outlook for the year, lowering revenue estimates by $500 million, down to $2.2 billion from its initial $2.7 billion forecast. Gross margins have been lowered by some 7%, which means lowered earnings for investors. Since the December plunge, NVIDIA's stock had recovered up to around $160 per share, but has now dived 14.52%, down to $136.90 - even lower than before. The company has seen its market valuation shrink by more than 50% inside of four months - while the company is still well in the green side of the limbo, so to speak, these certainly don't serve to improve the company's spirit.
Source:
Yahoo Finance
This led the company to revise its financial outlook for the year, lowering revenue estimates by $500 million, down to $2.2 billion from its initial $2.7 billion forecast. Gross margins have been lowered by some 7%, which means lowered earnings for investors. Since the December plunge, NVIDIA's stock had recovered up to around $160 per share, but has now dived 14.52%, down to $136.90 - even lower than before. The company has seen its market valuation shrink by more than 50% inside of four months - while the company is still well in the green side of the limbo, so to speak, these certainly don't serve to improve the company's spirit.
55 Comments on NVIDIA Revises Financial Outlook for 2019 by $500 million, Immediately Hit Back by the Stock Market
Good.
edition.cnn.com/2019/01/28/tech/nvidia-earnings-warning-china/index.html
In short, only NVIDIA haters will cheer on this news. The others don't need to apply.
Nvidia was valued in line with their earnings forecast. They corrected the forecast and stock went down.
This is how stock markets are supposed to work.Do you actually know what IBM is selling these days? :-)
And I wouldn't call Nvidia a "one trick pony" for sure.
They are a graphics company that got too big for their britches, now their ass is showing.
I'm surprised they haven't started to adjust pricing on Turing, yet.
This might sound hypocritical coming from an Nvidia owner, but thruth is, I've been waiting for an adjustment in their stock for quite some time now.
Nvidia is forgetting about the costumers who put the company in the place it is now. Hardware enthusiasts who love our craft, the comments of their CEO almost seem detached from reality sometimes.
i dont think they care...Sooner or later stocks will increase.
Since the world solely relies on them for GPU technology.(majority of them)
For datacentersWhere they go? Don't they know, "The more you buy, the more you save!!!"
AMD dropped 8% yesterday for the same reason (and that's even before they give their fundamentals). And remember China was expected to be AMD's great saviour - e.g. with orders from Baidu. It will be interesting to see what happens to the x86 joint venture.
China's GDP growth rate: