- Jim Cramer noted with surprise that Nvidia’s better-than-expected financial report did not affect the stock’s growth.
- He believes that it is more practical to hold shares of the technology company rather than trade them.
Jim Cramer on Mad Money Monday сказал, that investors in Nvidia (NVDA) are not expecting much from the company, which has already become one of the largest players on the stock market.
He said he was still pleased with the company, but the reaction to its latest financial results had been negative, even though the figures had exceeded expectations.
“It’s a shame I couldn’t explain at the time of the deal what needed to happen for these shares to start rising again. “It’s undeniable that Nvidia really lost its luster this quarter,” Cramer said.
Previously, when Nvidia significantly exceeded profit estimates, it could have spurred stock growth. This time, Wall Street paid no attention.
Jim noticed, that the stock doesn’t seem to be as unconditionally popular with traders as it once was. In the five trading days leading up to the May 14 quarterly report, NVDA shares rose from $180 to a record high of $236.
In this regard, the TV host suggested that perhaps Nvidia should be reclassified as “owned, not traded.” He believes the company needs a new plan, for example, for capital allocation.
He cites AAPL shares as an example in this case, and former Apple CFO Luca Maestri helped the company spend its huge cash wisely.
Risk Warning:
The information on this website is for informational and educational purposes only and does not constitute investment advice or financial recommendations. Cryptocurrencies and digital assets carry a high level of risk, including possible loss of capital. The editors are not responsible for decisions made based on the published materials. It is recommended that you conduct your own research (DYOR) before making investment decisions. Read the editorial policy. https://happycoin.club/about/