When a popular stock doesn’t shoot higher after a blowout quarter, the reasons are pretty easy to sniff out.
A stock can be richly valued, and even a classic “beat and raise” performance doesn’t justify the lofty forward multiples
Sometimes analysts get so far ahead of a company’s guidance that exceeding its public expectations still falls short of where Wall Street pros were perched. There could also be subtle hints that storm clouds are looming in the distant future, beyond the near-term enthusiasm. Nvidia (NASDAQ: NVDA) delivered spectacular results on Wednesday afternoon.
It posted the kind of growth that you would never fathom from the wearer of the market cap crown. It didn’t check off any of the three obvious scapegoats of market disconnect I singled out earlier. The initial market’s reaction was unimpressed.