Watch This Before Nvidia Reports Earnings Today!
In a Nutshell
Nvidia earnings are expected at $1.75 EPS and $78.82B revenue, with the market already pricing in a strong beat at $225 per share. Markets rallied on false hope of an Iran deal, but the speaker sees this as another instance of irrational optimism that could reverse after the report. He views Nvidia as a long-term investment, not a trade, and prefers to buy only on a pullback rather than chasing at current levels.
These notes were generated by AI and may contain inaccuracies.
Happy Nvidia day. The NASDAQ market began trading higher. Shortly after news got announced, US oil prices fell right as the NASDAQ market was about to break below major support on the 5-minute time frame. The market was very close to dropping into the red when news was announced.
The speaker will go live on YouTube for Nvidia's earnings today for free. Viewers should subscribe to the channel and drop a thumbs up. The live session will begin about five to 10 minutes before markets close to watch the market react to Nvidia reporting earnings.
The big focus right now is that bond yields and oil prices fell in hopes of an Iran deal. This news got factored into the market today. For 7 to 8 weeks in a row, the market has continued to fall for the same news over and over again. Markets can support this news when markets stay irrational. All the stars are aligning right before Nvidia reports earnings. The US is working on an Iran deal, but most likely won't get approved. Markets will rally 1 to 2% but when the deal never gets closed, the market will correct maybe half of a percent.
President Trump says that the US is in the final stages of a peace talk with Iran. The speaker asks how many times Trump has made this claim in the past 7 to 8 weeks and still no deal has been signed. Markets are eager for this and this is why markets were pushing higher, all based off of the false hope that a deal will actually be closed.
Markets will rally like this and then into the close they begin to derisk. There is always uncertainty. Even with Nvidia, there is a very high probability that Nvidia will report better than expected earnings. But is it already baked into the price? That is really the question a lot of investors are asking themselves. Is Nvidia a good enough deal to want to buy at $225 per share to hope it rallies if it actually blows its earnings expectation out of the water? Or is it overbought enough that it could begin to pull back and therefore better deals can likely present themselves?
Today's market expectation for Nvidia is 1.75 for its earnings per share and its revenue is 78.82 billion. Nvidia prints money. Not only do they make a lot of money in revenue, they also keep a lot of it when it comes down to net income, over 50% margins. Nvidia has not only been a very accelerated stock with its price performance, but also its revenue. Its revenue is incredible and its net margins are more incredible. It trades at a 45 P/E ratio, which isn't low, but it's not incredibly high, especially with its recent price performance. Its net income is 120 billion. Revenue is nearly 16 billion. So more than half of it is actually net income. It is incredibly impressive. It is a hard company to try to bet against ahead of this AI revolution.
Based off of its recent earning reports dating back since 2024, the pattern shows green, green, red, red, red, green, red, red, red. There has been some more red than green. But right now, sentiment is incredibly bullish. Markets are incredibly optimistic. Markets are positioned to push higher after Nvidia earnings come out. Statistically speaking, the odds are not in your favor based off recent earnings. But sentiment is such a powerful thing, especially when markets are rational.
The speaker still hasn't made up their mind if they want to trade Nvidia after it reports earnings because they view Nvidia as an investment, not as a trade. Two very different things. Nvidia is the speaker's favorite stock. They would love to buy more Nvidia, just not at $220 per share. If overall markets begin to correct because of the red flags that have presented themselves with the bond yields, inflation, and labor market, and Nvidia begins to fall, they would love to buy more Nvidia then as an investment.
There are a lot of companies that trade kind of like a proxy of Nvidia, meaning that because of Nvidia going up, other stocks will go up and those tend to be much more volatile. The speaker wants to pay attention to how Nvidia influences the rest of the market once it reports earnings.
During a volatile time like today when a big company, the largest company, is about to report earnings, it is not the most ideal time for you to be overly aggressive with trades you choose to take. If you want to take a trade, you are an adult and you can do whatever it is that you want. For beginners, don't use leverage and don't put yourself in a position in which you cannot tolerate. Make sure that it is intentional, that you understand your upside potential and your downside risk, and do the math before you actually take the trade. Prepare ahead of time. Use tools to plan out your trade and your position size so you have a full understanding of what your profit and loss potential is before you actually take it.
The speaker made $3,500 on Marvel today with an overbought reversal short. Yesterday they made over $4,000 shorting Marvel. Two days in a row shorting Marvel.
The software used to do a little bit more of a deeper analysis in the companies that are being invested in is called Investing Pro. They have a huge sale going on for those that are interested. It breaks down to less than $9 a month. There are a few hours left and it is the first link in the description. The speaker hopes to see viewers for Nvidia's live earnings on the YouTube channel. Viewers should drop a thumbs up and subscribe. Let's make sure that we end the year on a green note.
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