NVDA is shooting up today and just about every analyst is raising their "price targets" for the company.
NVDA earnings yesterday weren't bad, but they sure weren't a blowout. You would think it was a blowout given the 25% upside on the open today.
When these types of significant movements occur, analysts are likely to go along with the herd. Why? Their jobs are at risk if they don’t follow the pack. If they go with the pack and the pack is wrong, they will not be fired since all the other analysts did also. If they call the recent price movement overblown and everyone else is benefiting (short term) from the spike, their management will come down on them like a ton of bricks and they might be out on the street.
So don’t expect candid advice from analysts at most firms when a spike like this occurs. Afterall, it’s your money at risk (OPM – other people’s money) versus theirs. NVDA’s P/E is 217. Oh, they can grow right into that! Right! By the way, I have some beach front property in Arizona. Would you like to buy some?
Be smart, be well-read, be aware and be successful.
“There are old investors, and there are bold investors, but there are no old bold investors.”
- Howard Marks,
