Nvidia Stock: Bear vs. Bull
With Nvidia (NASDAQ: NVDA) stock losing 22% of its value since the beginning of December 2021, savvy investors may be wondering if it is a good time to buy shares of this graphics cards specialist whose growth isn't showing signs of slowing down.
Nvidia finished fiscal 2022 with a 61% spike in revenue to $26.9 billion, and its adjusted earnings increased 78% year-over-year to $4.44 per share, so using the sharp pullback in the company's stock price to buy more shares may look like a no-brainer. However, a closer look at the current stock market scenario may make those investors looking to buy Nvidia a tad jittery. Let's see why that may be the case by focusing on the bear case for Nvidia stock.
Nvidia's valuation remains a major concern, despite the stock's massive pullback over the past few months. The company currently trades at 63 times trailing earnings and 23 times sales. While those multiples are lower than last year's average earnings multiple of 90 and sales multiple of 30, they are still on the higher side when compared to the S&P 500's sales multiple of 2.8 and earnings multiple of 30.
Source Fool.com
