Investors Turn Bearish on Nvidia (NVDA) Ahead of Earnings - What's Next for the Stock?

Wednesday, 28 August 2024, 11:09

Finance enthusiasts note that investors are turning bearish on Nvidia (NVDA) ahead of the Q2 2024 earnings report. Despite expectations of strong earnings growth, unusual options trading suggests concerns over potential downward movements in the stock.
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Investors Turn Bearish on Nvidia (NVDA) Ahead of Earnings - What's Next for the Stock?

Nvidia's Earnings Anticipation

Although Nvidia (NASDAQ: NVDA) is expected to surpass analysts’ Q2 2024 earnings, some investors are exhibiting bearishness ahead of the call. Data shared by Trend Spider highlighted unusual options activity with notable bearish call selling.

Options Trading Insights

A snapshot of options contracts from August 21 to August 27 reveals significant bearish sentiment, particularly with a $140 PUT contract for January 16, 2025. This trade suggests a strong bearish outlook for Nvidia in the long term.

Drivers of Bearish Sentiment

  • Nvidia's leadership in AI and GPUs.
  • Elevated stock valuations amidst the earnings announcement.
  • Potential for profit-taking or market corrections.

Analysts project $28.7 billion in revenue for the quarter, with concerns that any earnings miss may lead further to negative sentiment. Overall, expectations for Nvidia's future performance remain pivotal.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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