Finance
Nvidia investors should've sold the stock a month ago, strategist says
One Nvidia (NVDA) bear warned the time has come for investors to sell.
Nvidia failed to meet sky-high expectations when it reported its fiscal second quarter earnings on Wednesday. Nvidia reported profits and revenue that topped forecasts but not by as much as investors hoped, delivering its smallest earnings beat in the last six quarters.
Nvidia stock fell 6% on Wednesday evening in reaction to the results and continued to slide 4% lower on Thursday afternoon. Year to date, the stock remains up nearly 140%.
When asked when it might be time to sell, David Bahnsen, chief investment officer of Bahnsen Group, said, “About a month ago. Two months ago. Today. Tomorrow.”
“People are paying for perfection,” Bahnsen added (video above). “You’re buying Nvidia banking on there being another investor who’s a bigger sucker than you are.”
The warning from Bahnsen comes as the stock has rallied 1,000% from its October 2022 lows. His call is based on one data point: Nvidia’s price-to-earnings ratio, which sits just above 56 after earnings but neared 80 in July.
He offered a reminder that a company and its stock are not the same thing.
“This is not me bashing on Nvidia,” Bahnsen said. “This is a success story. I’m commenting on the valuation — that when you start paying those prices, the risk-reward skew becomes very unattractive.”
Still, it’s a risk that the 89% of analysts with a Buy rating on the stock are willing to take. The stock has zero Sell ratings, which is understandable considering Nvidia posted $30 billion in revenue in the second quarter, a 122% increase over the same period last year.
Nvidia’s future depends in part on other Big Tech companies. Hyperscalers Microsoft (MSFT), Meta (META), Alphabet (GOOG, GOOGL), and Amazon (AMZN) are responsible for 40% of Nvidia’s revenue, according to Bloomberg estimates.
Alphabet CEO Sundar Pichai indicated on the company’s earnings call this quarter that the company’s spending on artificial intelligence would not slow down. “The one way I think about it is when you go through a curve like this, the risk of underinvesting is dramatically greater than the risk of overinvesting for us,” Pichai said.
Alphabet’s investment in AI, which represents a significant portion of Nvidia’s revenue, could be a bullish signal to come. But those business fundamentals aren’t the only focus.
“The estimates for next year and the year after that are starting to get way, way out of control,” D.A. Davidson managing director Gil Luria told Yahoo Finance.
The next big question for investors is whether the Street’s reaction to Nvidia results this quarter will be enough to dampen earnings expectations heading into Q3.
For Bahnsen, it may already be too late.
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Finance
Air Lease Corporation Executive Chairman to Speak at Deutsche Bank Aircraft Finance & Leasing Conference
LOS ANGELES, August 29, 2024–(BUSINESS WIRE)–Air Lease Corporation (NYSE: AL) announced today that Steven F. Udvar-Házy, Executive Chairman, will be presenting at the Deutsche Bank 14th Annual Aircraft Finance & Leasing Conference in New York City on Wednesday, September 4th at 1:30pm Eastern Time. The presentation will be broadcast live through a link on the Investors page of the Air Lease Corporation website at www.airleasecorp.com. Alternatively, virtual attendees may access the webcast directly via this link: Deutsche Bank 14th Annual Finance & Leasing Conference. Please visit the website prior to the webcast to register, download and install any necessary audio software. Any materials utilized for this speaking engagement will be posted in advance of the presentation time to the Investors section of the ALC website at www.airleasecorp.com.
About Air Lease Corporation (NYSE: AL)
Air Lease Corporation is a leading global aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. ALC and its team of dedicated and experienced professionals are principally engaged in purchasing new commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions. The company routinely posts information that may be important to investors in the “Investors” section of its website at www.airleasecorp.com. Investors and potential investors are encouraged to consult Air Lease Corporation’s website regularly for important information. The information contained on, or that may be accessed through, ALC’s website is not incorporated by reference into, and is not a part of, this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240828943676/en/
Contacts
Investors:
Jason Arnold
Vice President, Investor Relations
Email: investors@airleasecorp.com
Media:
Laura Woeste
Senior Manager, Media and Investor Relations
Email: press@airleasecorp.com
Ashley Arnold
Senior Manager, Media and Investor Relations
Email: press@airleasecorp.com
Complaints from bank customers in the UK over financial products soared 70% last quarter from a year earlier, mostly driven by disputes linked to credit cards and car loans, according to the country’s Financial Ombudsman Service.
New complaints jumped to almost 75,000 in the three months through June, from about 44,000 in the same period in 2023, the ombudsman said in a statement on Thursday. Of them, more than 18,000 were about credit cards and roughly 16,000 around motor finance, it said.
Nvidia (NVDA) will report its second quarter results this afternoon. The stock’s rally has been driving the market gains, so Wall Street will closely watch the results. Also reporting today are Salesforce (CRM), CrowdStrike (CRWD), and Affirm Holdings (AFRM). Super Micro Computer’s (SMCI) stock is plummeting following the company’s announcement of a delay in filing its 10-K report. This development comes in the wake of accusations of “accounting manipulation” made by short-selling firm Hindenburg Research. Yahoo Finance trending tickers include Li Auto (LI), AeroVironment (AVAV), and Foot Locker (FL).
Key guests include:
3:10 p.m. ET Tim Urbanowicz, Innovator Capital Management Head of Research & Investment Strategy
3:30 p.m. ET Stephen Suttmeier, BofA Securities Chief Equity Technical Strategist
4:05 p.m. ET Dan Skelly, Morgan Stanley Wealth Management Managing Director, Head of Market Research and Strategy Team
4:20 p.m. ET Gil Luria, D.A. Davidson Managing Director
4:35 p.m. ET Matt Hedberg, RBC Capital Markets Managing Director and Head of Global TIMT Research
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