Nvidia: The Company That Sucked All the Oxygen Out of the Market

During their recent episode, Taylor, Carlisle, and George Livadis discussed Nvidia: The Company That Sucked All the Oxygen Out of the Market. Here’s an excerpt from the episode:

Tobias: It must have been. Pretty clever. What about Nvidia? I don’t know much about Nvidia at all. It feels to me a little bit like it came out of nowhere and it just sucked up all the oxygen in the room. It was really only this year/ It’s probably only early February this year when they said, “Our next earnings are going to be out. We’re up 70%,” or something like that, projecting like they’re going to double.

George: Yeah. It definitely feels like days where it’s up a lot, the rest of the market is down and vice versa.

Tobias: What does that say to you? Is that short covering or something like that? I don’t know. Or, just all the money in the room?

George: I don’t know. I think the phrase you used I think is probably right where it just sucks all the oxygen out. Everybody’s focused on it. But I don’t know, it’s not my world to–

Tobias: Yeah. Mine either. I just sort of look at them with envy.

Jake: It’s a podcast. You’re free to speculate them.

Tobias: Could have just bought the Mag Seven and headed to the beach.

Jake: Well, it is an interesting– We’ve talked about this a little bit before, but it feels like there’s an element of double counting when it comes to– Nvidia’s revenues are Facebook, Amazon.

Tobias: Are depreciated-

Jake: -their CapEx.

Tobias: -in other people’s books. Yeah.

Jake and George: Yeah.

Jake: We’re spreading out their CapEx over, I don’t know, whatever, seven years is the useful life for some of this equipment. And so, you take 1/7th of the hit for your earnings, but you recognize all the revenue for one of the companies. So, if you blend them all together, it feels like you’re not fully counting everything. I don’t know.

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