Crowdstrike and Nvidia - earnings and aftermarket action

hey everybody it's Elliot once again with Touchstone Financial education and I wanted to crank this podcast out because today is a very important day in the market we've got the earnings report from both crowd strike and Nvidia and of course there's others but these two in particular are going to help guide the market in the near term so let's just get right into IT Crowd strike announced their numbers and for those of you who follow the stock market they beat the street so they did quite well but of course remember they had that hiccup about six weeks ago with their product on the Microsoft platform that's why all those flights were delayed and canceled and so forth and some of you might have been caught in an airport and it is going to have an impact on the stock going forward we're looking at a reduction in Revenue so as they are guiding as the company is telling us what they're going to be doing they are including that hiccup into their own analysis which is very good they're being vocal they're being honest about it and as a result crowd strike is actually up in after hours trading today I really like the honesty and I'll tell you when companies get sold off because of a hiccup in a product or the service didn't work generally speaking especially in the tech Market they the stock is oversold and so crowd strike went from about $398 a share down to about 200 now it's trading somewhere in the $270 range so it's come off its low there's still some room to grow yes they've acknowledged the problem yes they will work to fix it it doesn't seem to have an impact on the number of customers they have at this point so if you are a holder of crowd strike and you bought it some time ago please take a look again and might want to buy some more while it's lower or if you've gotten in recently good for you hold on I think good things are coming for the crowd strike stop despite the issues the country the globe experienced six months ago with their cyber security platform as it relates to Microsoft so basically keep hope alive I do believe this is still a long-term great play and they will get past this if you're looking out crowd strike at $270 a share thinking maybe you missed something I'm going to say you have it from 270 to their previous high of 398 that's a nice chunk of change you can make for yourself hopefully in the short term but like I said I also like it as a long-term play in the cyber security space now let's go on to Nvidia interestingly enough Nvidia also beat the street with their numbers nvidia's Revenue growth is up 154% year-over-year that's insane it's wonderful will the company continue to grow revenues at that rate that means that they they have to do at least $30 billion a year in Revenue to continue that growth rate actually it's probably going to be closer to 32 but let's just say 30 billion that's going to be tough to maintain but if any company can do it these guys can now will the stock continue to grow as it has the last few years we might see a little bit of slowdown in the stock growth rate they announced a 50 billion stock buyback which should help to bolster the stock to today tomorrow the next week it'll be a short-term play but the stock is trading down in after hours because it didn't meet that hyper growth expectation it is still a growth play longterm for you and video holders It's a Wonderful way to go ahead and participate in the chip space just know that it might slow in terms of its stock growth here in the near term but keep the faith it will still be a great play I'm going to say is too if you have ndu the Nvidia ETF it's a leveraged ETF you might want to consider taking some profits here and I just say that because in the near term we might see a slight pullback or the stock to flatten out and there's no sense in hanging out there with a leveraged ETF again if you've made some money please use those stop loss orders and go ahead and think about getting out of nbu if you're long-term Buy and Hold for NVIDIA guess what this does not apply to you these are for your short-term players for my Traders out there but overall both companies are looking pretty good Nvidia and crowd strike it just determines the near term I should say this the near-term action is going to be determined by the earnings announced after the close today longterm not so much because they're both still on a wonderful growth trajectory so take your discipline into consideration are you a Trader are you looking for short-term money or are you a Buy and Hold investor who can ride through this if we do see a dip in Nvidia stock and you're holding it even if you've got some profit built in there think about buying some more because overall Nvidia does not have a demand problem they have a little bit of a supply problem which will slow their growth what that means is the stuff that goes into making their chips they can't get their hands on fast enough and that transl Ates to lower sales or lower Revenue in the short term but the demand is great other players are not going to catch up anytime soon Taiwan semiconductor AMD Texas Instruments Intel it's going to be a while for the rest of the space catches up to Nvidia so again have faith that things are going to work out hey guys thanks for listening I wanted this to be a short one today just on these two the markets are still doing great we're going to be moving into fourth quarter here soon maybe you're going to start looking at some of your losers in your portfolio please listen to my podcast on the wash sale rule we don't want to sell a loser in tech let's say and then get into another tech company because the IRS will not allow the loss it's the wash sale rule please watch that video as well and hey guys thanks for listening thanks for you new listeners thanks for you existing listeners please like follow share and subscribe check us out at Touchstone Financial education.com shoot us an email if you'd like us to speak about something we do include what our listeners say into the podcast love to hear from you guys I'm also on LinkedIn at Elliot Cox and by the way we just signed up for an X account we are Touchstone Finn Ed on X and we are Touchstone Financial education on Facebook and Tik Tok as well thanks for listening until next time