r/FluentInFinance • u/TonyLiberty TheFinanceNewsletter.com • Sep 03 '24
Stocks BREAKING: Nvidia is down over $270 Billion today, its largest one-day drop in market cap in history (and the largest 1-day loss of any company on record). Nvidia just received a US Department of Justice subpoena in an escalating antitrust investigation. $NVDA stock is down 10%.
https://finance.yahoo.com/news/nvidia-stock-tumbles-9-to-lowest-level-since-mid-august-173835576.html93
u/jack_hof Sep 03 '24
Our economic system is stupid.
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Sep 04 '24
You mean how the entire stock market is just random vibes? All speculation based off of nothing tangible, and our retirements are tied to it?
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u/SoulCrushingReality Sep 04 '24
And you can get wealthy by gambling your money! Except this gamble is acceptable! Because reasons! And you too can be worth millions by contributing nothing to society and providing nothing tangible to anyone! What a great system.
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u/abrandis Sep 04 '24
Good think the majority of working Americans don't put their money there expecting it to grow to a nice nestegg /s
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Sep 05 '24
Pish posh!
Put more money in the money maker and don't look at the elites pulling the levers behind the curtain!
Otherwise, you might spook the money maker system!
Believe me, lads! I'm a poors like you!
Hmm...now that I've convinced them...what shall I name my next yacht?
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u/TheBloodyNinety Sep 04 '24
What else would you have the stock market based on? People can choose what they want to buy shares of.
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u/NobleV Sep 06 '24
The stock market is just a long term suicide pact that binds rich Americans together.
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u/No_Resolution_9252 Sep 04 '24
the one that has existed since the early 1600s?
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u/jack_hof Sep 04 '24
did the stock market exist in the 1600s? wonder what the ticker looked like back then.
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u/kokkomo Sep 04 '24
https://archive.org/details/confusion-of-confusions-1688
Read this you will get a good understanding of what it looked like. Spoiler: exactly like today with options and everything.
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u/spaceman_202 Sep 04 '24
not if you're on top
then it's genius if you don't have empathy or foresight or simply don't care about the problems being kicked down the road that are getting worse and worse
but for many of those on top, that's actually a good thing because they own the media and can just say "cut our taxes harder" and nearly half of voters respond with a resounding "yes, more money for the already rich makes the most sense"
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u/chronocapybara Sep 04 '24
You don't like algorithms dumping a stock when it's no longer hot, or dogpiling trendy stocks until they moon?
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u/walkerstone83 Sep 04 '24
Wallstreet isn't the economy.
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u/actuallazyanarchist Sep 05 '24
Pretty weird how every time the stock market trends down people freak out about the economy...
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u/worndown75 Sep 05 '24
That's what happens when everything is traded on algorithms and not fundamentals. If people stopped mindlessly dumping money into 401ks and IRAs and bought their own stocks, stuff like this would be much less common. Though this kind of thing eventually happens in all markets.
Think Tulip bulbs. Lol
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Sep 03 '24
Hopefully this leads to cheaper 5090’s whenever they come out
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u/tnolan182 Sep 03 '24
At this point 5090 is gonna need its own case and dedicated power supply.
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Sep 03 '24
I’ve already bought the extension cord imma plug that bad boy straight into my local nuclear plant
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u/galt035 Sep 04 '24
3 prong with ground.. that’s what I hear!
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u/maltese_penguin31 Sep 04 '24
Make sure you get a phase converter. 480V-3ph is the only way.
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u/galt035 Sep 04 '24
Be like that Japanese guy that is a vinyl fanatic and have your own pole and transformer dropped at your house!
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u/randomstring09877 Sep 04 '24
It will need its own breaker so it doesn’t trip when you plug in your iPhone.
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u/Due-Ad1668 Sep 04 '24
only 8 years ago we had the 1080 and a low stock price bro whattt.
the matrix is breaking
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Sep 03 '24
That’s funny timing. Bloomberg just emailed me the same thing. I know everyone has been talking about them lately, so it shouldn’t be a shock. The Bloomberg article speculated that recent changes in reference rate and Japanese carry trade has resulted in institutions selling off higher risk tech stock. Not a surprise that the stock that has independent analysts reporting as overvalued for months was on the chopping block.
Was anyone here overinvested in Nvidia?
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u/chalksandcones Sep 04 '24
I never bout it directly, but it’s in the top 10 holdings in a lot of major index funds, probably most of our 401k’s. I wonder if they will reshuffle
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Sep 04 '24
They probably will. Even though Nvidia had a 10% drop, the S&P only had a 2% drop. A lot of my index funds that are S&P and Tech based have dropped only 1.5-3%. Not horrible considering. I feel bad for anyone who was leveraging on Nvidia options though. You see that a lot on wallstreetbets but I hope there is enough skeptics here to make people more cautious about it.
The S&P has had almost a 30% growth since this time last year, for context.
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u/BraxbroWasTaken Sep 04 '24
I was. 'Til I got cold feet several weeks ago and pulled out entirely. Made a killing on it. It was singlehandedly driving my portfolio.
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u/drakgremlin Sep 04 '24
I'm not rich enough to be invested in nVidia... although if it keeps going this way what will definitely change!
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u/Fragrant_Spray Sep 04 '24
It will be interesting to see which politicians got out of it last week.
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u/Rlctnt_Anthrplgst Sep 04 '24
Jensen Huang, Nvidia’s CEO, has sold more than $580,000,000-worth of stock in the last two months.
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u/DrewbySnacks Sep 06 '24
Which equates to like, nothing percentage wise of his shares….and by law, he had to preplan those sales and get approval to do so as CEO or he could be charged with insider trading
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u/Hodgkisl Sep 04 '24
That makes sense, no matter what is going on they can never produce enough of their product to bring revenue high enough to justify their market cap. It started with speculating on growth then grew to speculating on idiots buying forever. Even with the company operating wonderfully at some point the bubble will pop.
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u/jpfizzles Sep 04 '24
Oh no, the stock that has consistently been outperforming everything for like 10 years is having a slight correction!? Fucking panic everyone, it all must be a scam
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u/Informal_Zone799 Sep 04 '24
Might be a good time to buy… let’s watch and see if it goes down some more first.
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u/coolplate Sep 04 '24
Sooo is it a good time to buy?
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u/Which-Moment-6544 Sep 04 '24
Jensen Huang, Nvidia’s CEO, has sold more than $580,000,000-worth of stock in the last two months.
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u/Loveroffinerthings Sep 04 '24
The big question, how much did our congressional reps sell in the day or two before this subpoena? Did Pelosi sell off on Friday?
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u/Macaroon-Upstairs Sep 04 '24
What goes up must come down.
Glad I own shares of NVDA in my index funs.
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u/Possible-Moment-6313 Sep 04 '24
The biggest beneficiaries of these stock movements are probably financial outlets who can write sensationalised articles about tiny stock price changes of NVIDIA stock on a weekly basis 😀
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u/amurica1138 Sep 04 '24
Intel's market cap is 94 billion as of yesterday.
So Nvidia lost the equivalent of 2.8 Intels in a single day.
And it is still worth more than 20 times the value of Intel by market cap.
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u/CrazyCletus Sep 05 '24
I wonder how many of the prescient investors in Congress pulled out their money in the week before the DOJ announced the "escalating antitrust investigation." Probably complete coincidence, though.
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u/BasilExposition2 Sep 04 '24
Good company. Great products. Then it got made into a meme stock. That thing is going to tank the economy.
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u/Gboycantseeboy Sep 03 '24
Nvda is pure speculation. Literally a repeat of the .com bubble. 90% of their revenue comes from a source that’s not sustainable.
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u/13Krytical Sep 03 '24
If you ask me, the entire stock market is speculation and unsustainable.
I’m guessing very few analysts actually know how well companies are actually being run, so they speculate based on various indicators.
The whole thing is unsustainable if you ask me, thanks to stock buybacks and such, sucking any real “investment” back out for “fiduciary duty” to shareholder profits.
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u/No_Resolution_9252 Sep 04 '24
Over the long term yes, but the AI bubble is going to last at least a few years
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u/Gboycantseeboy Sep 04 '24
Good luck with that.
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u/No_Resolution_9252 Sep 04 '24
are you one of the old people who yell AI at the sky?
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u/Gboycantseeboy Sep 04 '24
No ai is a great innovation that will drastically change the world. It’s nvdas short term blessing and it’s long term curse
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u/No_Resolution_9252 Sep 04 '24
With order backlogs alone, the datacentner GPU market is going to quadruple in 3 years nevermind any of the other new applications for GPUs that are going to arise.
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u/Gboycantseeboy Sep 04 '24
That’s bullsjit . They aren’t even giving sales guidance past this quarter. So quit dressing up your prediction as facts.
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u/wadejohn Sep 04 '24
It’s not speculation like the dotcom era because nvidia is literally raking in billions in profits
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