Nvidia is seesawing after beating big on earnings and revenue (NVDA)

pulse

May 10, 2018 9:57 PM

Nvidia beat Wall Street expectations on earnings handily. The stock rallied in post-market trading, but is now falling. Shares overall this year are far outpacing the Nasdaq.

Shares first rallied post-market before trading lower.
The stock hit an all-time high during Thursday's session.
Nvidia shares are far outpacing the tech-heavy Nasdaq Composite this year.

Nvidia reported first-quarter earnings after the closing bell Thursday, and it beat Wall Street's expectations handily. The stock initially rallied in post-market trading, up more than 1% to above $264 a share, before falling 2% to roughly $254 a share.

Nvidia earned an adjusted $2.05 per share, beating analysts' estimate of $1.66 according to Bloomberg. Revenue came in at $3.21 billion, beating the estimate of $2.9 billion.

Perhaps its most impressive business segment, gaming revenue grew 68% year-over-year. Founder and CEO Jensen Huang made particular note of Nvidia 's gaming revenue. "

Nvidia's stock hit an all-time high of $260.50 a share during normal hours of the trading session, up more than 1% on the day. The stock gained 34% this year through Thursday’s close, far outpacing the Nasdaq Composite’s 7% rally.

Nvidia is not the only stock to be met by a lukewarm share-price reaction even after strong earnings. Most S&P 500 companies have topped earnings forecasts this season, but as of Wednesday, these companies outperformed the market the day after by just 0.5% on average, according to Wells Fargo.

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