Nvidia
Shares of Nvidia (NVDA) are 5%+ higher after the company’s earnings report this afternoon.
The company beat their earnings per share target by $0.52. That comes to a number that is 9.2% better than analysts were looking for. For comparison, the company beat last quarter’s earnings per share (EPS) target by 12%.
The company’s management guided their quarterly outlook slightly higher than Wall Street expectations. In addition to that, they dropped news that it had approved a 10:1 forward stock split along with an increase to the stock’s quarterly dividend.
The bundle of good news hasn’t been enough to solicit much buying interest in after-hours trading as the stock is trading just 6% higher. That said, shares are above the $1,000 mark for the first time.
Tomorrow morning will be the real proof point. Shares need to show a strong reaction to this afternoon’s report. Failure to do so will result in a “sell the news” situation that is likely to see Nvidia stock trade to $800 or lower.
This is all part of the dangers my latest YouTube video pointed out as Nvidia has become “The Most Dangerous Stock in the World”.
Target
Target (TGT) stock traded 8% lower for the day after the company’s earnings results this morning.
The company fell short of their earnings expectations by $0.03 while also missing their revenue target for the quarter. Year-over-year revenue comparisons made matters even worse as Target experienced negative revenue growth, again. Last quarter’s revenue showed growth of 1.6%, but this quarter’s revenue slide posted shrinking numbers for three out of the last four quarters.
On top of the earnings results, Target’s management had a dour outlook for the company’s business, delivering the same message we’ve heard from many retailers this quarter… the retail consumer is tired and done spending.
Target stock fell to $140, a price that the stock last saw in February. Shares rallied 20% after the company’s last earnings report showed some signs of consumer life and inventory control. The company needed follow through on that report though, and they got the opposite today.
Today’s closing price for the stock has shares literally sitting on the line of demarcation between a long-term bull and bear market trend with its 20-month moving average resting at $143.06. A move below $140 will put Target stock back in a long-term bear market with a price target of $100.
lululemon
lululemon (LULU) shares dropped more than 7% today as the company announced a shake-up at the management level.
The company guided their earnings expectations lower on March 21 as they cited that consumer behavior has shifted and become more challenging for the producer of athletic sports apparel.
Following that announcement, LULU stock slipped quickly into a long-term bear market trend with the price careening below its 20-month moving average at $375.
Since then, LULU shares have been trying to establish a foundational price bottom at $375, a foundation that was blown out with today’s news.
Those psychologically significant “100” level prices I often talk about kicked in today with the stock finding some support at $300.
A look at the long-term price chart of LULU stock instantly warns investors of holding that $300 price as the stock’s bottom as the stock patterns are drawing a trend to $250 over the next four to six weeks.
About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.