The stock market slid on Thursday after President Trump proceeded with his new tariffs on auto imports. Such raised concerns on a potential trade war and consequently, global economic uncertainty.
Overall, S&P 500 fell 0.3% to 5,693, while NASDAQ was down 0.5% to 17,804.
Tweet of the Day
NVIDIA numbers look great in this chart. But there are two figures not shown that worry me.
Accounts Receivable jumped to $5.4 billion last qtr from $1.7 billion a year ago.
And Non-GAAP gross profit margins have fallen the past four qtrs, from 78.9% to 75.7%, then 75.0% and… https://t.co/ypo0m7KkGL pic.twitter.com/qgzT31n4CL
— David Sharek (@GrowthStockGuy) March 27, 2025
Chart of the Day
Here is the one-year chart of NVIDIA (NVDA) as of March 17, 2025, when the stock was at $120.
NVIDIA is the stock market leader, but the shares have not been acting that way even though the fundamentals are fantastic.
NVIDIA stock has been getting negative press this year as a market laggard. Looking at last quarter’s numbers, the company delivered 72% profit growth on 78% revenue growth. That was a rock-solid. Meanwhile, Datacenter segment revenue continues to be the highlight each quarter. It jumped 93% year-over-year and now makes up 90% of NVIDIA’s total sales a year ago. This big jump on Data Center revenue was due to the Blackwell ramp and Hopper 200 continued growth.
There are two negatives David Sharek, Founder of School of Hard Stocks, sees in NVIDIA stock. First, Gross Profit Margins have simmered down recently. Non-GAAP gross profit margins have fallen in the past four quarters, from 78.9% to 75.7%, then 75.0% and most recently 73.5%. Management guided analysts to 71.0% next quarter. Second, Accounts Receivables jumped to $5.4 billion last quarter from $1.7 billion a year ago. Be prepared for profit estimates to be reduced.
NVDA is the top holding in our Growth Portfolio and Aggressive Growth Portfolio. My analysis shows the stock is going from around $120 to $200 by the end of 2025, but there is risk in that assumption.
