sharkybear said:
Nvidia? Seriously? I owned that stock several years ago, thinking that it might go somewhere. It was a mistake. Look at their financials, their revenues since the past two years have been down and their expenses are up. That is a sign of a bad company. Nvidia used to be good, not anymore.
Well lets be fair. In 8 of the last 10 years, they had steady earnings as well as climbing EBIT...while not super great , they were at least consistent. The cost of doing business must have gone up because their earnings went to **** in the past 2 years. They have been conservatively financed and have taken on such small debt, one year of profits would wipe their books clean.
My knock on it is that nvidia's products have little brand loyalty. In the video card market, other companies also have good market share including ASUS who make high quality products. In order to further business, they must cut margins to compete, upgrade equipment just to stay in the game. This isn't conducive to long term growth even though I think NVDA seems like a solid company overall.
NVDA has also had to issue over 100 million shares in the past decade, likely to raise capitol so that influences their books. Shareholder equity as a result has been diluted.
This is a cursory analysis of the company. A real analysis would be looking at the marketplace for the product and reading the annual reports. thats a ton of work!
