NVDA Pre-earnings Analysis Artificial intelligence has taken the market by a storm in 2023, leading companies like Nvidia to up more than 200% YTD, and moving its valuation to trade at a price to earnings ratio of 119, much higher than the average healthy ratio of 15. The astronomical valuation could be accredited to Nvidia’s ability to post substantial growth in revenue and earnings following the sharp increase in demand for artificial intelligence microchips. Analysts and markets are pricing the stock as if the growth will continue to grow at the same rate. This quarter, analysts are projecting Nvidia to post 3.03 in earnings per share, six times higher than same quarter last year when it posted .44 in EPS....
BABA Q3 Earnings Analysis AliBaba and other Chinese companies are once again at the mercy of political circumstances between The U.S. and China. The company announced earnings this week and the stock plummeted after they canceled their cloud computing spinoff plans. Investors are were highly optimistic about this, but AliBaba cited U.S. tensions to be the reason behind the change of plans. Political tensions between the two countries are not new, for years we’ve seen foreign publicly traded companies experience volatility due to politics, but most of the time the storm passes and there comes a short period of time where foreign investments thrive. It’s important to note, AliBaba’s change of plans doesn’t mean they will no longer pursue cloud-computing...
NVDA After a phenomenal performance in 2023 so far, the company is setting itself to launch higher into 2024. AMD’s recent earnings foreshadowed what we can expect from leaders in the artificial intelligence space after the company reported a guidance of $2B in AI chip sales for next year. Nvidia is likely to follow the same route with even higher numbers. Last quarter’s revenue doubled, citing exponential demand in AI chips. The company’s revenue has grown their cash reserves to $10B and their asset to liability ratio to 2:1, with 41B in assets. Wall Street is bullish on Nvidia and will remain upbeat as long as AI demand continues to increase. The artificial intelligence market is currently worth around $150B,...
Disney (DIS) Q3 Earnings Analysis Disney shares are rocketing higher after the company’s third quarter earnings topped analyst expectations. The biggest highlight of their earnings was their Disney+ subscriber growth, which came in at 112.6 million, above the 109 million expected. Disney’s struggle since the pandemic was largely become of their losses on Disney+, so subscriber growth in the weakest link is a great sign. The company is also still very focused on cost-reduction, aiming to bring annualized costs down by another $7.5B, which gives hope to investors that they will start dividend distributions once again in the near future. Disney’s interim CFO stated that management will recommend bringing back the dividend before the end of the year, massive news...
UBER Q3 Earnings Analysis Uber shares reached a 52-week high after the company reported their third quarter earnings. According to an article by Wall Street Journal, Uber is the largest company in terms of market cap to not be included in the S&P 500, and this recent earnings makes them eligible for inclusion. This is a massive achievement for any company and it can explain the rise in the stock despite the earnings miss. The company missed on revenue expectations, which came in at $9.29B versus $9.54B expected. Earnings per share on the other hand did beat expectations, coming into at 10 cents a share versus the seven cents expected. Year over year bookings and revenue have grown for the...
