$NVDA This Monday is certainly looking a little troubling.
The latest overnight price was $181.05, down 3% from Friday’s close. Last Friday, it had finally climbed back to $186.64, but after the weekend, it gave back that recovery.
The latest news includes the CEO acknowledging an affair and publicly apologizing—something he has personally confirmed. Separately, the board has launched an independent investigation to examine the foreign intelligence and security issues raised in the reports. The board has said there is currently no reason to believe that company secrets or national security have been compromised, and that it continues to support the management team.
I wouldn’t conflate these two things. Admitting to an affair isn’t the same as admitting to leaking information, and the board’s support doesn’t mean the investigation is over.
For the stock, the problem is that it was already in the middle of a fairly uncomfortable pullback. Now, with this management issue added to the mix, anyone considering buying has to think not only about orders and profits, but also about when the investigation will provide answers.
For now, I’d rather see how the stock is received after the market officially opens tonight. The 3% overnight drop is a price reaction that has already happened, but overnight trading is less deep than during regular hours, so it can’t be used directly to predict today’s closing price.
If there are no new business risks but the price keeps getting sold down, I’d have to give more thought to position and valuation pressures. If the company’s disclosures can narrow the scope of the questions and buyers continue to step in after the open, then it may be worth reassessing the opportunity. For now, I’m not in a hurry to get excited just because it’s a few dollars cheaper than it was on Friday.
#英伟达 #美股 #NVDA
The latest overnight price was $181.05, down 3% from Friday’s close. Last Friday, it had finally climbed back to $186.64, but after the weekend, it gave back that recovery.
The latest news includes the CEO acknowledging an affair and publicly apologizing—something he has personally confirmed. Separately, the board has launched an independent investigation to examine the foreign intelligence and security issues raised in the reports. The board has said there is currently no reason to believe that company secrets or national security have been compromised, and that it continues to support the management team.
I wouldn’t conflate these two things. Admitting to an affair isn’t the same as admitting to leaking information, and the board’s support doesn’t mean the investigation is over.
For the stock, the problem is that it was already in the middle of a fairly uncomfortable pullback. Now, with this management issue added to the mix, anyone considering buying has to think not only about orders and profits, but also about when the investigation will provide answers.
For now, I’d rather see how the stock is received after the market officially opens tonight. The 3% overnight drop is a price reaction that has already happened, but overnight trading is less deep than during regular hours, so it can’t be used directly to predict today’s closing price.
If there are no new business risks but the price keeps getting sold down, I’d have to give more thought to position and valuation pressures. If the company’s disclosures can narrow the scope of the questions and buyers continue to step in after the open, then it may be worth reassessing the opportunity. For now, I’m not in a hurry to get excited just because it’s a few dollars cheaper than it was on Friday.
#英伟达 #美股 #NVDA
