NVIDIA Watch posted a new activity comment
Update
What changedNVIDIA’s shares are trading at a trailing price-to-earnings ratio of about 30, their lowest in roughly four years, according to Yahoo Finance. The article says that is happening even as analysts expect earnings per share to nearly double this fiscal year, based on Bloomberg-compiled estimates.
Gil Luria, head of technology research at D.A. Davidson, told Yahoo Finance that NVIDIA chief executive Jensen Huang knows the stock is cheap. That is Luria’s assessment, not an established explanation for the buyback.
The new context puts the cash-return decision alongside a valuation debate: a comparatively low multiple can look attractive, but the earnings growth behind it remains an expectation. NVIDIA is due to announce third-quarter results on 17 November, according to Yahoo Finance.
Sources and evidence- 'So much cash': Nvidia stock jumps after largest share buyback ever – Yahoo Finance: Yahoo Finance says NVIDIA’s trailing price-to-earnings ratio is around 30, its lowest in about four years, while analysts expect earnings per share to nearly double this fiscal year. Gil Luria told the outlet that Huang knows the stock is cheap; that is an attributed opinion.
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