NVidia Losses half of its value

[exetras]

According to TechCrunch

https://techcrunch.com/2018/12/12/nvidia-perfect-storm/

 

Quote

Over the past two months, Nvidia’s stock has dropped from a closing price of $289.36 on Oct. 1 to today’s opening of $148.42, a decline of 48.8%.

It takes a lot for a company to lose nearly half its value in such a short period of time, but Nvidia is proving that an otherwise strong technology business can disappear in a blink of an eye. The company faces an almost perfect barrage of headwinds to its core products that is stalling its plans for long-term chip domination.

To step back a bit first though, Nvidia has traditionally made graphical processing units (GPUs) that are excellent at the kinds of parallel computation required for gaming and applications like computer-assisted design (CAD). It’s a durable and repeatable business, and one that Nvidia has a commanding market share in.

 

Personal Opinion: I always thought NVidia was over valued but this seems to be quite a dip, more than markets adjusting to the crypto crash. This crash will be interesting to follow as it might be a sign people who invested in crypto and GPU makers trying to recoup any money.

 

https://www.nasdaq.com/symbol/nvda/interactive-chart?timeframe=2y

 

 

[DrMacintosh]

Why would Nvidia be going down that much? The only negative new's I've heard from them is that they have had a bit of overstock. 

[Taf the Ghost]

(Quietly) Nvidia's balance sheet never supported a valuation over 200USD. They're slaughtering the pigs. *shhh*

[Ashley MLP Fangirl]

1 minute ago, DrMacintosh said:

Why would Nvidia be going down that much? The only negative new's I've heard from them is that they have had a bit of overstock. 

and that RTX 2080Ti's have some problems... and that ray tracing doesn't perform that well.. 

[I-r0k]

On 12/12/2018 at 10:43 AM, firelighter487 said:

and that RTX 2080Ti's have some problems... and that ray tracing doesn't perform that well.. 

I don’t that is the only reason their stocks went down. 

[79wjd]

3 minutes ago, DrMacintosh said:

Why would Nvidia be going down that much? The only negative new's I've heard from them is that they have had a bit of overstock. 

https://www.google.com/amp/s/markets.businessinsider.com/amp/news/nvidia-softbank-reportedly-looking-sell-stake-setup-under-pressure-2018-12-1027803053

[Taf the Ghost]

4 minutes ago, DrMacintosh said:

Why would Nvidia be going down that much? The only negative new's I've heard from them is that they have had a bit of overstock. 

They took Nvidia for a "ride". It was never worth the numbers it had been at for most of the year.

[ThePD]

The whole market is down. This isn't just Nvidia, the same applies to Intel and to AMD. The same trends are seen in all tech stocks.

[Ashley MLP Fangirl]

2 minutes ago, I-r0k said:

I don’t that is the only reason their stocks want down. 

maybe sales are low... 

[Tristerin]

Its...the...stock...market...

 

Most investors are looking for a quick ROI.  They invested low, NVIDIA crested high, and its continual decline require Investors, seeking a certain ROI - to either pull and get that ROI or pull and get as close to the ROI they wanted as possible.  The stock will likely continue to fall but nothing that will cripple the company imho as their stock SOARED over the last couple years.  SOARED.

 

Unless they made bad investments and owe banks (took out loans) than they will be just fine.

[exetras]

Even Roku has a similar spike in price, https://www.nasdaq.com/symbol/roku/interactive-chart

[Coaxialgamer]

10 minutes ago, DrMacintosh said:

Why would Nvidia be going down that much? The only negative new's I've heard from them is that they have had a bit of overstock. 

Arguably NVIDIA was overvalued. This is a particularly large drop especially considering the time frame, but the market will likely correct and the stock will rebound a bit. Consider that their current stock price is only a bit lower than it was a year ago. And that was after an already strong year, roughly 16 months after the launch of pascal.

I mean it was just 2 and a half years ago that Nvidia stock was only valued at about 25$, at a point where they were already in a strong market position.

[Mira Yurizaki]

Show of hands of who actually trades on the stock market.

 

Because this type of news is only relevant to them.

[D13H4RD]

A lot of stocks have been down, especially over at the NASDAQ. Many for a multitude of reasons.

[ThePD]

1 minute ago, M.Yurizaki said:

Show of hands of who actually trades on the stock market.

 

Because this type of news is only relevant to them.

I actively trade tech stocks but that's about it.

[pas008]

they didnt meet their revenue forecast

which was already brought up before on other topic

and along with all stocks are sinking pretty much

[Crunchy Dragon]

2 hours ago, firelighter487 said:

and that RTX 2080Ti's have some problems... and that ray tracing doesn't perform that well.. 

I can see the 2080Ti problems causing a dip, but not that low.

 

In my opinion, people need to stop complaining about ray tracing performance. It's not unplayable, I don't see too much of a problem. It'll also get better, as it is a fairly new technology for consumers.

[ThePD]

Just now, Crunchy Dragon said:

I can see the 2080Ti problems causing a dip, but not that high.

 

In my opinion, people need to stop complaining about ray tracing performance. It's not unplayable, I don't see too much of a problem. It'll also get better, as it is a fairly new technology for consumers.

The fact that people believe the 2080Ti having some issues is somehow the cause of Nvidia's stock price falling is laughable. RTX seems to be very harshly scrutinized for a feature that can be turned on/off...

[Ashley MLP Fangirl]

Just now, Crunchy Dragon said:

I can see the 2080Ti problems causing a dip, but not that high.

yeah ok... 

 

1 minute ago, Crunchy Dragon said:

In my opinion, people need to stop complaining about ray tracing performance. It's not unplayable, I don't see too much of a problem.

people with the money to buy one would probably expect better.

 

1 minute ago, Crunchy Dragon said:

It'll also get better, as it is a fairly new technology for consumers.

if your argument is that it's not great now but it will get better, that means it was rushed and nvidia shouldn't have released it at the time they did, but rather when it got good enough to get decent frame rates. 

[Mira Yurizaki]

Just now, Crunchy Dragon said:

I can see the 2080Ti problems causing a dip, but not that high.

 

In my opinion, people need to stop complaining about ray tracing performance. It's not unplayable, I don't see too much of a problem. It'll also get better, as it is a fairly new technology for consumers.

NVIDIA implements a few new things in tech, one being a "holy grail", people mock it. AMD goes "we made a 7nm chip", people hail them as their lord and savior.

 

In any case, I wish people would stop posting these investor stories [line where this post no longer applies to the quoted person] ...

 

... because the stock market doesn't affect the company's bottom line (except maybe what they have to pay out in dividends). The valuation is just what people think the company's ownership is worth.

[ThePD]

The only logical way the 2080Ti would be the cause of Nvidia's stock price falling would be due to its insane pricing. The whole 2000 series was dramatically overpriced and thats why I sold my shares on the 2000 series launch. Q4 Sales numbers will confirm whether or not RTX was more of a driver towards Nvidia's stock price drop.  But to say that the 2080Ti was the sole cause.... that is totally illogical. Less than 1% of gamers even considered the 1080Ti... let alone a 2080ti.

[Drak3]

15 minutes ago, ThePD said:

The fact that people believe the 2080Ti having some issues is somehow the cause of Nvidia's stock price falling is laughable. RTX seems to be very harshly scrutinized for a feature that can be turned on/off...

Yeah, it's obviously because Apple dropped support for them.

 

/s

[Guest]

Markets can shrink and grow due to various and very specific, multiple and complicated reasons, only an expert can understand

[yian88]

Market crash? bear market?  Seems like everything thats overvalued is at risk of crashing in 2019 hopefully  not the banks again.

[Amazonsucks]

2 hours ago, M.Yurizaki said:

Show of hands of who actually trades on the stock market.

 

Because this type of news is only relevant to them.

Me for one.