Since early 2022, Meta has lost 35% of its value, while Nvidia left 19% on the ground. If the former cries, Nvidia Corporation is certainly not uncorking the champagne. At least for now.
By merely reading the numbers, Nvidia on February 10 had a capitalization value of 667 billion dollars while Meta was at 599 billion. Updating the same numbers as of February 12 gives a gap of a different order: 628 billion dollars the capitalization value of Meta, 597 billion that of Nvidia.
However, the graph below demonstrates two things above all: i Company capitalization values are susceptible to marked variations and sudden and, remaining confined to the first American companies, in recent days all have suffered a contraction of their respective market caps.
Artificial intelligences between racism and the ethical question
by Emanuele Capone
The future makes the difference
In early February, Mark’s group Zuckerberg released the quarterly: in the last quarter of 2021, the turnover was 33.67 billion dollars, up compared to the previous year, and the profit fell by 8%, reaching 10.3 billion. The forecasts point to further contractions. To weigh on the shoulders of Meta Platforms, there is on the one hand the Facebook user base which is stagnating and the users who spend less time on the group’s flagship products, and on the other, the anti-tracking policies implemented by Apple which, according to the Menlo Park company, could have an impact on turnover in the order of 10 billion dollars.
Nvidia Corporation, che produce graphics cards for the videogame market and for the professional one, in addition to chips for both mobile and autonomous driving (and AI in general), it recorded a turnover of 16.6 billion dollars, which is 50% more than the year before and a net profit of 4.3 billion (+ 54%). As Reuters reports, it is above all in the AI sector that Nvidia is outpacing the competition, going so far as to outclass rivals Intel and AMD, which among other things Nvidia has considered buying, then taking a step back. The future of Nvidia seems to smile and the champagne will be uncorked perhaps not soon, but later in time, despite the decline on the stock market (-19%) registered on 11 February last, apparently for no real reason, other than the withdrawal of some investors near the quarterly report (published on Wednesday 16 February).
The capitalization value
The market cap, in Italian “capitalization value”, is the value of the share capital of a company and indicates the development phase of the business. Investing in companies with large capitalization values it is a form of prudence because usually there are no sudden jolts, neither in decrease nor in growth, but the case of Meta teaches that this paradigm is also susceptible to variations.
The graph above demonstrates that, when it comes to market cap, overtaking and counter-overtaking between companies are not uncommon. Since the value of the shares can change several times during any single day, and since the capitalization value is formed by the value of the shares, it is understandable that this can also move in a sinusoidal way.