On August 26 at 10 PM Central European Time, the world's most valuable company will release its quarterly earnings — and the entire financial world is watching.
The Story Behind It
NVIDIA has surged 19 percent in the last two weeks. The stock now sits just 4 percent below its all-time high. Those who got in five years ago have multiplied their money tenfold. But that's exactly what makes these earnings so exciting: can the growth continue, or is the big correction coming?
Analysts expect revenue of $78.9 billion in the last quarter and earnings per share of $1.75. These are gigantic numbers. For comparison: most German DAX companies generate such revenue in an entire year — NVIDIA does it in three months.
What It Means for You
If you own a global ETF — whether MSCI World, S&P 500, or FTSE All-World — you own NVIDIA. The company is so large that its quarterly numbers don't just move tech stocks, they move the entire market. A positive surprise lifts everything. A disappointment drags everything down.
How Professionals Are Reacting
Hedge funds have purchased options worth over $1.8 billion in recent weeks — betting on a massive move in either direction. This is called a straddle strategy: you simultaneously buy bets on a price increase and a price decrease. The professionals don't know exactly what will happen either — they just know it will be a huge move.
First Steps for Beginners
If you're just starting out: never buy or sell frantically before such events. Earnings volatility is brutal. Those who invest long-term leave their money in the ETF and watch calmly. Those who want to gamble should only use money they can afford to lose completely — because anything is possible in both directions.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results.