Hey, I like NVDA. It's a very well-run company that produces exceptional products, but the recent numbers, while OK, are not exceptional. In fact, most of their numbers are down from a year ago. This includes:
- Sales
- gross margin dollars
- gross margin percentage
- operating margin dollars
- operating margin percent
- net income
- return on sales
- earnings per share
Graphs of these items are on the attachment link below. A fifth grader could look at these graphs and see that Q1 of 2023 WAS NOT A BLOWOUT quarter!
I think the excitement is centered around the 11 billion sales projection by their CEO. It's a perfect example of people buying the sizzle without looking at the steak! It reminds me about the early 2000's when companies were selling "vaporware". Vaporware is the concept of some software, but it only is an idea in someone's head. Laughable, right?!
Hey, I got an idea in my head for some business idea, maybe I can put out an IPO at 3 billion. Clearly, there are enough fools out there to market the "concept".
NVDA openned up 25% today. Would I buy at these levels? Not if my life depended on it!
Be smart, be well-read, be aware and be successful.
"The four most dangerous words in investing are, it’s different this time."
- Sir John Templeton
