BING-JHEN HONG
Summary
- Nvidia Corporation reported a double beat in Q3 earnings, but shares pulled back due to conservative guidance and investor expectations for a larger earnings beat.
- Revenue growth is decelerating, with Q3 showing a 90% year-over-year increase, down from 270% in Q4 last year, indicating a growth slowdown.
- Gross margins appear to have peaked at around 75%, limiting future profit growth; Q4 guidance suggests further margin compression.
- At over 50x net profits, NVDA’s valuation is high, and with slowing growth, it may not be an ideal buying opportunity right now.
- I am Jonathan Weber. I hold a degree in engineering and I’m a freelance analyst covering primarily value stocks for nearly a decade. I contribute to the investing group Cash Flow Club
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Article Thesis
Nvidia Corporation (NASDAQ:NVDA) reported its most recent earnings results on Wednesday afternoon. Despite a double beat, the company’s shares pulled back, likely due to guidance that wasn’t overly strong, while investors.
Is This an Income Stream Which Induces Fear?
The primary goal of the Cash Flow Kingdom Income Portfolio is to produce an overall yield in the 7% – 10% range. We accomplish this by combining several different income streams to form an attractive, steady portfolio payout. The portfolio’s price can fluctuate, but the income stream remains consistent.
Jonathan Weber holds an engineering degree and has been active in the stock market and as a freelance analyst for many years. He has been sharing his research on Seeking Alpha since 2014. Jonathan’s primary focus is on value and income stocks but he covers growth occasionally. He is a contributing author for the investing group Cash Flow Club where along with Darren McCammon, they focus on company cash flows and their access to capital. Core features include: access to the leader’s personal income portfolio targeting 6%+ yield, community chat, the “Best Opportunities” List, coverage of energy midstream, commercial mREITs, BDCs, and shipping sectors,, and transparency on performance. Learn more.
