NVIDIA slapped with class action lawsuit over crypto crash.

[D13H4RD]

4 hours ago, Blademaster91 said:

Wait what, People are blaming Nvidia for the crypto crash? No one really expected the crypto market to completely crash as it was way too unpredictable, if you invested over $100K into such an unstable market that isn't the companies fault.

 

I did. It was a classic case of a market bubble.

[mr moose]

4 minutes ago, Delicieuxz said:

 

Following Crypto Mining Crash, GPU Producer Nvidia Worst Performer in S&P 500

 

If Nvidia was the worst performer, then they didn't fall in-line with the market. And if "the market" is being defined as just AMD and Nvidia, then the drop for both companies indicates that crypto-currency mining was indeed a big factor in the high share price, which would give evidence that any claim made by Nvidia that the gaming market was the primary source of GPU demand is false.

That's not how it works.

 

The dow jones took a terrible turn December,  that requires a lot of companies lose a lot of value together.

 

https://www.marketwatch.com/story/this-brutal-stock-market-rout-mirrors-the-1987-crash-in-1-important-way-2018-12-21

 

What they are alleging was the cause and what actually happened are two very different things. 

[TetraSky]

Wow, what a joke.

The rich sure are pathetic for not owning up to their own stupidity.

[rawrdaysgoby]

Lol they won't win with such a weak as argument 

[Delicieuxz]

59 minutes ago, mr moose said:

That's not how it works.

 

The dow jones took a terrible turn December,  that requires a lot of companies lose a lot of value together.

 

https://www.marketwatch.com/story/this-brutal-stock-market-rout-mirrors-the-1987-crash-in-1-important-way-2018-12-21

 

What they are alleging was the cause and what actually happened are two very different things. 

 

This doesn't address the point I made.

 

If Nvidia's stock price fell in-line with the market, then its lost value would be roughly comparable to an average percentage of stock-value loss in the market. But, Nvidia's stock-value loss exceeds that of all the rest of the market, which is what makes it not in-line with the rest of the market.

 

Nvidia’s 54 percent plunge this quarter makes it the biggest loser in S&P 500

 

Also, Nvidia's losses didn't just start happening in December, or November. Nvidia's stock started plunging October 3rd.

 

Chipmaker Nvidia plunges after missing on revenue and guidance

 

The stock market took a tumble in December. But Nvidia's took a worse tumble during that time than all other stocks because Nvidia's were already tumbling for reasons particular to Nvidia's business before the stock market tumbled as a whole.

 

Articles have been attributing the loss in value of Nvidia's stock to the crash in crypto-mining for a while, which probably is what motivated the lawsuit against Nvidia to allege that Nvidia misled investors by any claims that changes in crypto-mining wouldn't impact overall demand for GPUs.

[rawrdaysgoby]

5 hours ago, Blademaster91 said:

Wait what, People are blaming Nvidia for the crypto crash? No one really expected the crypto market to completely crash as it was way too unpredictable, if you invested over $100K into such an unstable market that isn't the companies fault.

 

Errr a lot of people expected it to crash it was sooo over brought with no real backing what so ever.... It was just a matter of when it would crash.

[mr moose]

9 minutes ago, Delicieuxz said:

 

This doesn't address the point I made.

 

If Nvidia's stock price fell in-line with the market, then its losses would be roughly comparable to an average percentage of stock-value loss in the market. But, Nvidia's stock-value loss exceeds that of all the rest of the market, which is what makes it not in-line with the rest of the market.

 

Nvidia’s 54 percent plunge this quarter makes it the biggest loser in S&P 500

 

Also, Nvidia's losses didn't just start happening in December, or November. Nvidia's stock started plunging October 3rd.

 

Chipmaker Nvidia plunges after missing on revenue and guidance

 

The stock market took a tumble in December. But Nvidia's took a worse tumble during that time than all other stocks because Nvidia's were already tumbling for reasons particular to Nvidia's business before the stock market tumbled as a whole.

 

Articles have been attributing the loss in value of Nvidia's stock to the crash in crypto-mining for a while, which probably is what motivated the lawsuit against Nvidia to allege that Nvidia misled investors by any claims that changes in crypto-mining wouldn't impact overall demand for GPUs.

 

Who cares what the media attribute their losses to.  You can't claim that nvidia stock price fell for one specific reason when A. there is no specific evidence and B. the entire market nose dived a the same time.

 

 

[YoloSwag]

A lot of people still talking about the crypto-market and why it fell lol.

 

A big reason for this was no one really wanted a crypto-currency as a medium for trading with other goods.

The only reason it was desirable was for the sake of being traded - That's really all the demand there was. It had no underlying value.

It wasn't even properly regulated that's why it's not even good as a currency, no government is backing that up even.

 

Let's just call it the "Crypt-O-Market". _{since it's dead}

 

The lawsuit is about Nvidia promising that they'd be on top of this whole thing which lured more investors.

IMHO, this lawsuit isn't going anywhere as Nvidia's investors just had a case of the "salesman guarantee" which doesn't really mean anything.

[mr moose]

2 hours ago, YoloSwag said:

The lawsuit is about Nvidia promising that they'd be on top of this whole thing which lured more investors.

IMHO, this lawsuit isn't going anywhere as Nvidia's investors just had a case of the "salesman guarantee" which doesn't really mean anything.

 

Not only that, but they are in the same place they where 1.5 years ago, with much further to fall for many other reasons than crypt-O-bust.  People need to remember when Nvidias anticipated revenue from crypto fell short, it only fell short by $98M, their GPU business revenue is $2.6B. This did not contribute meaningfully to stock issues.

[D13H4RD]

2 hours ago, YoloSwag said:

A big reason for this was no one really wanted a crypto-currency as a medium for trading with other goods.

The only reason it was desirable was for the sake of being traded - That's really all the demand there was. It had no underlying value.

It wasn't even properly regulated that's why it's not even good as a currency, no government is backing that up even.

The root cause is simply its nature of being speculative currency. Bitcoin and other forms of cryptocurrency has no hardline value affixed to it and it is not regulated by firms like central banks.

 

Unlike actual currency like the US$ or the value of precious metals most often used for investment such as gold, crypto fluctuates on a far greater degree. This was why people like Warren Buffett don't consider Bitcoin an investment.

Quote

If you buy something like bitcoin or some cryptocurrency, you don't have anything that is producing anything. You're just hoping the next guy pays more. And you only feel you'll find the next guy to pay more if he thinks he's going to find someone that's going to pay more.

You aren't investing when you do that, you're speculating."

Buffett may very well be old and senile, but when it comes to the markets, he's on point. What I know is that any company whose stock is influenced by crypto ought to be treated with caution as it is reliant on an inherently unstable metric.

[YoloSwag]

58 minutes ago, mr moose said:

 

Not only that, but they are in the same place they where 1.5 years ago, with much further to fall for many other reasons than crypt-O-bust.  People need to remember when Nvidias anticipated revenue from crypto fell short, it only fell short by $98M, their GPU business revenue is $2.6B. This did not contribute meaningfully to stock issues.

Yeah I'd say those things go hand-in-hand. This shouldn't affect long term investments too, as people who've invested a year or more ago (Jan 2017 ~$105 - $110) wouldn't have lost anything except an opportunity to sell it when it was at it's peak.

 

Nvidia should heavily thank mining farms for their meaningful contribution to their financial statements though.

[hobobobo]

3 hours ago, mr moose said:

 

Who cares what the media attribute their losses to.  You can't claim that nvidia stock price fell for one specific reason when A. there is no specific evidence and B. the entire market nose dived a the same time.

 

 

Market nose-dived 1.5 months after nvidia dropped 30% of market cap in a day. They overpromised the hell regarding their eps and margins and failed to meet those promises in a spectacular manner. +lots of institutional investors consider semi industry to be on a slowdown, with weakening demand for d ata-center components and esp memory. IoT and 5G might break those notions, but, probably, not this year. Semi prolly would be on serious rebound come q3 (might even fix m stupid -15% micron buy)

NVidia dug this hole themselves, the market just helped to make it deeper.

[mr moose]

1 minute ago, hobobobo said:

Market nose-dived 1.5 months after nvidia dropped 30% of market cap in a day. They overpromised the hell regarding their eps and margins and failed to meet those promises in a spectacular manner. +lots of institutional investors consider semi industry to be on a slowdown, with weakening demand for d ata-center components and esp memory. IoT and 5G might break those notions, but, probably, not this year. Semi prolly would be on serious rebound come q3 (might even fix m stupid -15% micron buy)

NVidia dug this hole themselves, the market just helped to make it deeper.

Nasdaq started falling in sept. Nvidia oct 2. looks pretty much the same time to me.

 

 

[YoloSwag]

44 minutes ago, D13H4RD said:

Buffett may very well be old and senile, but when it comes to the markets, he's on point. What I know is that any company whose stock is influenced by crypto ought to be treated with caution as it is reliant on an inherently unstable metric.

That's right. Buffet still knows his burgers.

[mr moose]

8 minutes ago, YoloSwag said:

That's right. Buffet still knows his burgers.

I would take financial advice from an old senile dementia ridden buffet long before I did from any fresh out of uni economics student. 

[hobobobo]

3 minutes ago, mr moose said:

Nasdaq started falling in sept. Nvidia oct 2. looks pretty much the same time to me.

 

 

Thats not exactly falling, that was kinda reasonable correction, no one was surprised, everyone with a half a brain expected it with slowdown of gpu demand, falling dram prices and intels manufacturing process. Falling is what id describe december, -15% in a month instead of a rally. NVidia fared worse then the market from end of august to sept and then they released such an underwhelming earnings report that from nov 15 to nov 21 the market lost 5%, while nvidia dropped almost 30. Its nowhere close to being the markets fault, if anything - being indexed saved nvidia quite a bit of market cap

[D13H4RD]

7 minutes ago, mr moose said:

I would take financial advice from an old senile dementia ridden buffet long before I did from any fresh out of uni economics student. 

Same here. When it comes to that sort of stuff, he knows it.

[RejZoR]

I don't like many things NVIDIA does, but wtf, really? Blaming NVIDIA for investing on risky business and losing money on it. LOL

[YoloSwag]

27 minutes ago, mr moose said:

I would take financial advice from an old senile dementia ridden buffet long before I did from any fresh out of uni economics student. 

Actually gonna say this in my original response but got lazy lol.

 

I was thinking people might take it a different way but thanks for that.

[mr moose]

33 minutes ago, hobobobo said:

Thats not exactly falling, that was kinda reasonable correction, no one was surprised, everyone with a half a brain expected it with slowdown of gpu demand, falling dram prices and intels manufacturing process. Falling is what id describe december, -15% in a month instead of a rally. NVidia fared worse then the market from end of august to sept and then they released such an underwhelming earnings report that from nov 15 to nov 21 the market lost 5%, while nvidia dropped almost 30. Its nowhere close to being the markets fault, if anything - being indexed saved nvidia quite a bit of market cap

Well, I am sure if the judge entertains this enough to allow it even enter the courts that he/she will have someone take that into account for him/her. But if you think Nvidia's slide had nothing to do with the market falling flat and everything to do with the mining craze then be my guest.

 

[minervx]

NVidia was correct that the value of their cards were retained even after the crypto crash.  While they are not inflated, the demand of the gaming market has been keeping them very close to their MSRP.  

 

This is a trivial lawsuit, but in general, never give financial advice to anybody.

[hobobobo]

2 hours ago, mr moose said:

Well, I am sure if the judge entertains this enough to allow it even enter the courts that he/she will have someone take that into account for him/her. But if you think Nvidia's slide had nothing to do with the market falling flat and everything to do with the mining craze then be my guest.

 

Nah, mining craze is just a part of it, nvidia fell greater then the market coz they overextended, they admitted as much in the last conference call. Never claimed it had nothing to do with the slide, but its not just the slide, nvidia is included in Nasdaq general and nasdaq 100, which drags it with the markets, but at the same time offers some stability. The fact that they managed to go 30pp lower then the market while being directly tied to it is the miracle people are talking about.

I honestly have no clue how this would go through court and what can be argued, ppl are just butthurt nvidia fell futher then the general market.

 

Ps. Wanna see something that fell with the market - look at IBM. They lost 20% purely on the slide, there are no serious internal factors to justify it

[mynameisjuan]

10 hours ago, TetraSky said:

Wow, what a joke.

The rich sure are pathetic for not owning up to their own stupidity.

These are not the rich people, these are the people who probably took out a load a month before the bubble burst and not have 15 1080s sitting around now. Either way I hope Nvidia wrecks them.

[TVwazhere]

9 hours ago, mr moose said:

Who cares what the media attribute their losses to.  You can't claim that nvidia stock price fell for one specific reason when A. there is no specific evidence and B. the entire market nose dived a the same time.

^this^

 

As an example here are some of my mutual funds I hold shares in the NASDAQ compared to Nvidia. (Note the google chart shows actual share price while Yahoo shows % gains)

Spoiler

Nvidia wasnt exclusive to this either. AMD also had a downturn at the same time. For all intensive purposes, AMD should be doing extraordinarily well, so we cant jsut say Reason A or b is the sole reason Nvidia fell. It's a good thing they had the boost period from July-Sept because they'd be in the same boat as everyone else right now

Spoiler

I am by no means a market expert. I just wanted to give clarity to those who haven't been watching the NASDAQ for three years

[Emanbaird]

maybe if they'd release an affordable GPU they would all drop it