Massive Problem In The Stock Market We Have Right Now

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Facebook google houston we have a problem right now we have a disease that is spreading throughout the stock market right now and it is single-handedly taking down stock after stock right now and look no further than nvidia today nvidia stock down over 15% as i’ve taken this screenshot down to the lowest level it’s been since the stock market went down to that

21,000 level last month so unbelievable moved down for nvidia today and nvidia shareholders now let’s keep in mind in video was a stock that was over 290 dollars a share four months ago four months ago this was a $290 stock and we’re at a hundred and thirty five on it’s well over a cut in half right there guys that is absolutely vicious and what worries me about

Nvidia is is basically what worries me about a lot of stocks that are doing business globally right now let’s explain this okay so back when the nvidia came out with his latest earnings back in november first off they missed on revenue numbers that they were supposed to hit but that was not the biggest issue the biggest issue was around guidance so after seeing two

Years of stellar growth in his gaming and data center segments we’re seeing a leveling offer nvidia and expectations have suddenly come down dramatically the company itself cites excessive channel inventory related to the post cryptocurrency boom which will be corrected thus revenue guidance first fiscal q4 in january has been ratcheted down to 2.7 billion dollars

From 3.4 billion which was expected by analysts okay that was a massive missing guidance like usually if companies miss on guidance what basically analysts were expecting for that upcoming quarter usually it’s like a slight like i like something like that would’ve been like all we might expect 3.2 or i might expect three point three instead of three point four

Or what analysts were expected two point seven is like a dramatic bad mess okay so this was already heading into nvidia stock and this was a big reason why in video stock was already crashing so bad but then you get news that came out here just a few hours ago and you’re like it is so much worse for nvidia than we had previously thought okay nvidia just although

Most in two months after cutting it outlook for fourth quarter revenue reflecting weaker than forecast sales of its gaming and data center platforms due to the slowing global economy especially in china the biggest maker of chips for computer graphics cards said it sees fiscal fourth quarter revenue of 2.2 billion dollars down from a previous forecast at 2.7 so

To get that understood basically analysts were expecting three point four billion dollars in revenue for nvidia just like literally about three or four months ago then in videos like no we’re probably gonna do 2.7 now they’re like no we did around 2.2 that is a dramatic mis guys that is a dramatic myth on a catastrophic type scale okay deteriorating macroeconomic


Conditions particularly in china impacted consumer demand for nvidia gaming gpus the santa clara california based company said on a statement on monday some of the sales of the high-end graphics processing unit using nvidia’s latest touring design for realistic video and images which is sick product what they announced we’re also lower-than-expected the company

Said some customers may have delayed purchases waiting for lower prices and further proof of the technology in actual games according to the company there’s a lot of the technology and those isn’t even available because most games aren’t even using it and yet but we got a massive massive issue okay this is bigger than just nvidia first off in videos business is

An absolute disaster here in the short term okay nvidia has a lot of things to look forward to if you’re a long-term investor in the stock 2020 through 2030 you know this should be a massive growth company once again but needless to say this year is gonna be an absolute disaster for nvidia they’re gonna likely be down every single quarter but this is a bigger issue

Than just nvidia okay just earlier this month apple came out and specifically cited that iphone sales in china were very weak and pretty much their entire mess that they had as far as their guidance went and whatnot pretty much all came from the china region caterpillar one of the biggest companies in the world also had the same exact issue weakness coming out of

China right so this is bigger than oh it’s just nvidia and it might be some weakness in nvidia it’s actually a lot of weakness in china in general and some other markets around the world but china specifically all right and basically any company that does business in china right now is going to see their numbers drop you’re over here it’s pretty much a given at

This point in time that every single company that does business in china if you own a stock and they do business in china expect numbers to be weaker okay and that’s whether they do business directly in china or indirectly in china like a semiconductor stock that might sell smartphones into china or something like that like those other stocks are effective pretty

Much anything across the board china related it’s just it’s just a hurting stock after sock out there now some of this has already been priced into some of these stocks because they’ve fallen big-time but some of them honestly an invidious case for instance it wasn’t priced in because it was even much much worse than expected to take guidance down from 3.4 billion

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To 2.2 is ridiculous guys like that that’s like mind-blowing okay now no thing that’s affecting nvidia in a very negative ways just crypto currency right now bitcoins price around 3,600 if we remember you know about a year and a month ago okay so 1314 months ago bitcoin was around 20,000 and cryptocurrencies were flying high if i recall the etherium was well

Over a thousand countless cryptocurrencies were just booming and booming and basically that was just pushing up pricing for basically a lot of the gpus and whatnot that nvidia sold and a lot of i remember a lot of gamers were mad at those particular times they’re like all the wii they can’t get the products we want or the prices are so elevated like insane right

Now so that is i think nvidia always kind of like downplayed the cryptocurrency boom like oh it’s just this little thing over here or something i think it was actually way more impactful for invidious business than what they even thought or what they publicly disclosed because when supply and demand gets so out of whack and you know the demand is just insane for

Invidious products like it was like it just pushes up pricing and pushes up pricing okay and then if we look here right year ago nvidia did 2.9 billion dollars in sales and they’re expected to do around 2.2 for this current january quarter so basically that’s a big big decline there guys it was already a seven percent decline if they came in at the 2.7 but now

That’s 2.9 we’re talking about a very big double-digit decline in revenue year over year and as far as next quarter will be easily another double-digit decline in revenue and if we look at the current year you know it was expected that they were to actually grow revenue year-over-year at this point in time i don’t see how they grow revenue year-over-year i don’t

See how nvidia will grow revenue in 2019 like i want to just look at the numbers how weak this this first quarter was how weak the next quarter is going to be and probably the next let’s say two quarters are going to be i don’t see how nvidia is gonna grow revenue year-over-year basically in 2019 versus 2018 like it to me it’s just isn’t adding up so this went

From a company that was growing you know quite fast at a 20 plus percent clip so also a company now that’s probably gonna have revenues decline year-over-year and that’s a that’s a big big change and that’s how you get a stock to go from $290 to literally a hundred and thirty bucks like in a four month span when you have when you go from you know nice double-digit

Growth to also oh oh now we might actually shrink you over you’re like that is incredible guys and if they do somehow grow in 2019 is gonna be a very slim growth it’s not gonna be they’re not gonna do 26% of revenue growth i guarantee you laughs that’s not gonna happen so you know it’s gonna be tough sledding for nvidia this year and they just have a lot of issues

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To work through but china is just a disease that’s spreading right now and basically any company you own directly or indirectly that does business in china is being hurt right now and we don’t know when the the hurt will stop it might not stop until the trade war ends but even at that time it might take you know at least a few quarters for it to get back up and

Running so a short-term i wouldn’t expect much from your stocks as far as you know the what the companies actually report for numbers this quarter and what they guide for next quarter if they do business in china i just wouldn’t expect a lot from it guys that’s the bottom line there are certain stocks out there that don’t have chinese exposure and some of those

Stocks were always thought of oh man that chinese is exposure that’d be so great right like a facebook for example right facebook doesn’t do any business in china so that’s a business that you know they shouldn’t probably be hurting as far as their numbers go we’ll get to see their numbers here in a day or two but that’s just that’s a company that has no exposure

To china something like google has no exposure to china so there are certain stocks that don’t have exposure to china that might actually be okay in this situation but if it has any type of exposure directly or indirectly a china i would just say don’t expect a lot guys and expect probably revenue guides down and things like that and maybe even eps guides down

Because justjust it’s just weakness like there’s no doubt about it like the chinese numbers that china has shown are weak the weakest we’ve seen in a long long time and then you don’t company after company these are the biggest companies in the world are citing weakness in china like there’s no question china is messed up right now like there’s no question about

That if you were doubting that you were sorely mistaken at the moment but we’ll see how long it takes to get it back up and running but right now china’s not a good place because every single company is reporting weakness out there from china right so anyways hope you guys enjoyed this as always let me know what your opinion is down there in that comment section

Makes you follow me on instagram thank you for watching and have a great day

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Massive Problem In The Stock Market We Have Right Now By Financial Education

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