Nvidia (NVDA) Pre-earnings Analysis The semiconductor giant, Nvidia, is set to report to earnings this week and their outcome is set to impact their entire industry. Over the last 12 months, Nvidia has become the face of artificial intelligence and innovation within its sector, which has exponentially moved its stock higher. The excitement around artificial intelligence drove the entire semiconductor industry to very tenacious multiples, so Nvidia’s earnings this week will either justify those multiples or it will crush them. Nvidia is currently trading at a price to earnings ratio of about 95, which is 6-8 times higher than the healthy average. This means Nvidia needs to report numbers far above expectations to bring down the multiple. Nvidia has done...
RIVN Chart done on daily timeframe. Shares of Rivian are trading near their all time lows ahead of their quarterly earnings. Investors of the company who purchased shares since their public market debut have been on a wild ride. Rivian shares reached a high of nearly 200.00 at one point before entering a long correction period that seems to still be going on. Electric vehicle companies as a whole experienced a similar path that Rivian has as sales fell and demand fluttered, but Rivian is one of the few names that has a standing chance in the future of EV. The consumer direct vehicles have surpassed expectations, reaching more than 50,000 in 2023, but unfortunately their profitability moved the other...
NIO Chart done on daily timeframe. NIO is another Chinese stock that’s become a victim of geopolitical tensions and unrest. Like many of its China based peers, the company has impressive numbers, but investors are just too uncertain to buy. This could be seen as a major opportunity because chances are, tensions will either simmer down, or Wall Street will find them too good of a risk/reward investment to pass up. NIO in specific has grown its revenue from under 1B in 2018 to over 7B last year. Their market cap is only 9B currently, meaning they’re close to grossing as much as revenue as their market valuation. Their balance sheet has a positive asset to liabilities ratio, but cash...
Airbnb Post-Earnings Analysis Chart done on daily timeframe. It’s always a challenge to identify a healthy valuation for a young company like Airbnb, but now that they’ve had about seven years of public earnings, we’re starting to see what the company is capable of. Since its initial public offering (IPO), Airbnb has grown its annual revenue by 400%, all while slowly crawling their net income to a positive territory. The company’s bookings have grown significantly and leadership is optimistic they’ll continue penetrating international markets in the coming quarters. New international markets means more revenue for the company, and based on the way their leadership have managed revenue in the past, they’ll likely continue growing everything from their income statement to...
AVGO Chart done on daily timeframe. Semiconductor companies have been big winners in the last 12 months. While most of the focus has gone to Nvidia and AMD, Broadcom has swiftly moved its way to all time highs, gaining more than 100% since this time last year. The rise in market valuation has moved its price to earnings ratio to 39, doubling its valuation from last year, and making the stock more expensive than the healthy average of 25-35. However when we compare AVGO to NVDA, AVGO is still far cheaper in terms of price to earnings ratio. Broadcom brings in more revenue and offers a healthier balance sheet, which explains the attention it has received in the last year....
