Nvidia Nvda Stock faces May 20 earnings after $78.8 billion forecast
Nvidia nvda stock goes into May 20 earnings with analysts expecting $78.8 billion in revenue and $1.77 in per-share earnings. John Bromels, who has positions in Nvidia, is watching a report that could reset expectations for a company with a market capitalization above $4.8 trillion.
May 20 and Nvidia
Analysts’ revenue estimate is up 78.6% from a year earlier, and the per-share earnings forecast is up 118.5%. Nvidia briefly topped $5.2 trillion in market cap in April, a level that leaves little room for a routine quarter.
The company has already beaten analysts’ adjusted quarterly earnings consensus in all four quarters, but the market has not treated those beats as a straight line higher. Nvidia stock has gone down after earnings more often than it has gone up over the past year.
Seven of 10 reports
The shares have declined in the wake of seven of the company’s last 10 earnings reports. That pattern shows up clearly in the recent sequence: the stock rose 4% in the week before the Feb. 25 report, then plunged more than 9% in the two days after the announcement.
Before the Nov. 19 report, the stock had been trending downward, then fell 4.7% over the following week. Ahead of the Aug. 27 report, it rose 3% in the week before earnings and then dropped 8% by the end of the next week.
What buyers watch
For investors weighing Nvidia nvda stock before May 20, the practical question is whether strong results will lead to a quick gain or another post-earnings slide. John Bromels, the Motley Fool author and Nvidia investor, points to that tension while noting that the Stock Advisor analyst team’s 10 best stocks for investors to buy now did not include Nvidia.
That is the friction in this setup: Nvidia has delivered growth that many companies would envy, including 73% share-price gains over the past year, yet traders have still sold the stock after earnings more often than they have rewarded it. The next move will matter less to long-term narrative than to anyone trying to decide whether to buy before the report or wait for a drop after it.
