Why Nvidia Dropped Today
Shares of Nvidia (NASDAQ: NVDA) were dropping Wednesday, down by as much as 4.5% before recovering to a 2.1% decline as of 12:41 p.m. ET. But even the mild decline was notable in light of the overall S&P 500 being up today by about 0.5% at the same time.
Nvidia held its third-quarter earnings release and conference call last night, with its typical amazing growth numbers that handily beat expectations. But since this beat appears to have been largely anticipated, as Nvidia's stock had already appreciated some 25% off its recent bottom on Oct. 31, it appears the solid numbers precipitated a "sell the news" round of profit-taking.
In the quarter, Nvidia posted $18.1 billion in revenue, up a staggering 206% year over year, and beating analysts' estimates by just over $2 billion! Adjusted (non-GAAP) earnings per share came in at $4.02, up 593%, also beating expectations by a hefty $0.63.
Source Fool.com
