Konstantin Oldenburger, analyst at broker CMC Markets, pointed to the ambiguity of Nvidia’s newly announced share buyback program. “Such a step is rather atypical at such an early stage, since high investments are likely to be necessary in the future,” said the expert. Companies bought back shares for two main reasons. One reason is the conviction that the titles are being traded too cheaply. With an increase of over 250 percent, the Nvidia share is clearly no longer valued cheaply. “So now that Nvidia is returning $25 billion to investors, it suggests that it doesn’t have any projects where it could spend the money more wisely,” Oldenburger commented.
Investor euphoria after numbers from Nvidia is waning
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