NVIDIA Corp. | $NVDA Stock | Shares Rally On Earnings After Scary Selloff




It is hard to feel sorry for stocks, because as we all know stocks are not people or pets, but you had to feel sorry for any company who reported earnings after the close today when the market saw a fierce sell off at the end of the day as the 4 p.m. bell approached.

Nvidia was one such company reporting earnings after the close of regular trading on Thursday February 8,2018. It was their fiscal 4th quarterly earnings numbers. In a wild and wacky market, the shares closed down -$11.28 in the regular session at $217.52.

That was a nearly 5% decrease. However in the after hours session, shares rose +7.53 % and closed at $233.90.

The Numbers

The company reported net income for the fourth quarter of $1.12 billion dollars which is $1.78 per share. This Compares with $655 million or $0.99 a share in the same period one year ago. This blew away earnings. Analysts had been expecting Higher revenues of $2.68 billion but only $1.16 per share of earnings.

Company Comments

Jensen Huang, founder and chief executive of Nvidia had this to say on the numbers;

“Industries around the world are racing to incorporate AI. Virtually every internet and cloud service provider has embraced our Volta GPUs.

The Charts


The above price chart shows the daily action going back a few months for NVIDIA. You can see how the shares have sold off in the recent week, but the green oval area shows  where shares will likely open in the morning for trading.


The above price chart shows the intraday action on the left in black and the after hour session on the right in shaded Gray. You can see how shares weren’t really doing much in the after hours until the earnings were announced and then you can see the explosive move higher and the subsequent pull back to about the 50% Fibonacci retracement level.

Company Profile

NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, GPU and Tegra Processor. The GPU segment offers processors, which include GeForce for PC gaming; GeForce NOW for cloud-based game-streaming service; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla for deep learning, accelerated computing, and general purpose computing; and GRID for cloud-based visual computing users.

The Tegra Processor segment provides processors that integrate a computer onto a single chip under the Tegra brand name; DRIVE automotive computers, which offer self-driving capabilities; and tablet and portable devices for mobile gaming and TV streaming under the SHIELD name.

The company’s products are used in gaming, professional visualization, datacenter, and automotive markets. It sells its products primarily to original equipment manufacturers, original device manufacturers, system builders, motherboard manufacturers, add-in board manufacturers, and retailers/distributors. NVIDIA Corporation was founded in 1993 and is headquartered in Santa Clara, California.-YahooFinance