There are about 100 public companies with market caps larger than $100 billion. Of these, NVDA is the only stock up more than 200% since the beginning of 2016. In fact, NVDA is up more than 600% in this period. NVDA is acting as if execution risks do not exist.
But they do, and they are never more apparent than right now. When a stock sells off while analysts are not budging – you know something is wrong. These are the 10 reasons why NVDA is on its way to $200
A great valuation that already reflects a great company but ignores risks going forward: High multiple stock that is no longer beating and only meeting expectations
Since Q1 FY16, NVDA has beat on both revenue and EPS every single quarter (i.e., 13 straight quarters). However, Q2 FY19 revenue beat by less than 1%, while EPS only beat by <5%. This is disappointing for a company that is notorious for managing the Street’s expectations, and this quarter was by far the smallest beat on both metrics in the last 3 years (after beating on revenue and EPS by as much as 20% and 70%, respectively, in prior quarters).