SoylentNews is people
SoylentNews
Nvidia Just Can't Grab a Break. Revenues up, Profit Nearly Doubles... and Stock Down 20% :
Ongoing Bitcoin woes left the channel holding all the cards, and that's not a good thing
Nvidia has turned in growth in revenue and profit, but has been punished for missing its guidance in the third quarter of its fiscal 2019, all amid a continuing sharp drop in demand from crypto-currency miners.
Its stock fell as much as 20 per cent after it reported on Thursday:
- Revenue of $3.18bn, up 21 per cent year-on-year, during the three months to the end of October.
- Net income of $1.23bn in that quarter, up 47 per cent year-on-year.
- GAAP diluted earnings per share of $1.97, up 48 per cent year-on-year.
Nvidia missed forecasts because of a decline in what was formerly one of its most important growth markets – cryptocurrency mining rigs. With Bitcoin and Ethereum declining in value, big mining rigs are less economic.
As CEO and cofounder Jensen Huang said in the company's media announcement: "Our near-term results reflect excess channel inventory post the crypto-currency boom, which will be corrected."
CFO Colette Kress told analysts on a conference call that GaaP gross margins grew 90 basis points year-on-year, reflecting "our continued shift towards higher-value platforms", but the crypto collapse meant Nvidia suffered a "$57mn charge for prior architecture and chips."
[...] The company's announcement noted that in the last year, there was "a 48 per cent jump over last year in the number of systems using NVIDIA GPU accelerators, climbing to 127, including the fastest in the world, No 1 in the US, No 1 in Europe and No 1 in Japan".
Was nice while it lasted. Now that Bitcoin has dropped from $19,500 to $5,500 over the past 11 months and other cryptocurrencies like Ethereum and Litecoin have seen drops of 80-90%, a one-time bright spot in NVIDIA's revenue stream has passed. How much of an opportunity is this for AMD?
(Score: 1, Interesting) by Anonymous Coward on Friday November 16 2018, @07:42PM (1 child)
Unfortunately, that is not true. As per a very thorough research that was reported here on SN several years ago, it was found that day-trading is real gambling, which is still better than slot machines because slot machines are written to give only ~90% return asymptotically. Long term trading, on the other hand, is so well researched that you would envy the knowledge these people have about a business they don't have any direct relationship with. You would envy that you don't have the tools or the vision. Just to remind people, Michael Burry [wikipedia.org] "through his analysis of mortgage lending practices in 2003 and 2004, correctly forecast that the real estate bubble would collapse as early as 2007". Forecasting 2-4 years into future is normal, and people who have the mental fortitude, interest, zeal and knack for it, make a lot of more everyday.
Of course, most traders are not like that, just like most managers are not good at managing, and most engineers aren't good at engineering, and most coders aren't good at coding. Most people get-by their life by taking shortcuts in the hope that no-one would get caught, and statistically they stand correct. And just like that, most traders do make money by aping the good ones, until they lose a lot of money, which most of them don't.
(Score: 0) by Anonymous Coward on Friday November 16 2018, @08:04PM
Long-term traders are mostly not modelling businesses, or reality.
They are modelling the behaviour of other traders!! (successfully so)