I'm thinking of taking profits on Nvidia $NVDA+4.6% before earnings. I took a look at the expectations and it doesn't look good. For that, the 118% YTD looks more than good 😄.
Revenue is expected to drop by something like 20% and earnings per share looks like an even 30% drop.
What do you think? Take profits or hold on? 😶
Nvidia
NVDACapital Structure
Market Cap
3.2T
Enterpr. Val.
3.2T
Valuation
P/E
75.5
P/S
39.6
I'd hold off, in part, after all, it is to realize profits let there be no sadness then that the profit has run away :)
I'd be happy to sell off a little and buy back in.
Since I am a long term investor, I would hold and eventually if there was a drop I would buy in.
I would personally sell off at least part of it, or I would toy with the idea of trading some shorts 😊
Now, for me, it's pretty stretched out and near the top. I'd be cautious, earning can surprise on both sides. On the other hand, picking that profit is not a bad thing.
For me, the price is way over the top, and the expectations aren't great either. Unfortunately, I didn't take advantage of the crazy growth, which I feel is not contingent on anything.
In the time I've been investing, I've learned one thing. If I can't explain and justify the growth in a company, in most cases I sell before it's too late. I would say the same is true for Nvidia. Did something spectacular happen, did they introduce new technologies and chips? I don't know about that, but we're still at 118%.
I have taken profits long ago and have no regrets.
I've already collected the profits a long time ago. The growth didn't seem to me to have any justification 🤷
It's growing because of AI and the increasingly large amount of cheap money in the economy. It will go down, but no one knows when, it could be next year when high interest rates start to kick in.