Is Nvidia in Trouble? Or Is This a Buying Opportunity?
Sometimes, companies choose to divulge earnings before their scheduled date. Nobody does this if results are in line -- it's only done if they are either really good or terrible. This decision to report early is a sign of honest management as they want shareholders to know if anything drastic has occurred that could change the investment thesis.
Nvidia (NASDAQ: NVDA) did precisely that, choosing to release its results three weeks early. Unfortunately for investors, the news was terrible. After the release, the stock traded down around 8% but has since recovered those losses, and then some, due to the broader rally in the market.
That seems like an odd reaction to a terrible announcement, but the market sometimes does strange things. So, was this rally truly deserved, or should buyers beware? Let's find out.
Source Fool.com
