NVIDIA Corporation looked like it was going to have a strong day in the market. When the opening bell rang, the stock was actually trading well into the green. However, shortly after the bell, we started to see drastic declines, bringing the stock into the red. Below, we'll talk about what we're seeing in the market, why, and what we'll be watching for with regard to NVDA ahead.
What We're Seeing From NVDA
As mentioned above, NVIDIA looked like it was going to have a relatively strong day in the market today. Thanks to strong pre-market activity, the stock started the session well into the green. However, shortly after the opening bell rang, things quickly took a turn for the worst. The stock started diving, quickly making its way to the red. At the moment (9:40), NVDA is trading at $116.09 per share after a loss of $1.23 per share (1.05%) thus far today.
Why The Stock Is Falling
As always, as soon as we received a ping from one of our alert partners, the CNA Finance team started digging to see what was causing the movement. In the case of NVDA, it didn't take long to uncover the story. It seems as though the declines can be blamed on cautious comments coming out of one of the most trusted analyst firms in the business.
Early this morning, Citron Research released a report with regard to NVIDIA. In their report, the analyst firm outlined 6 concerns that they feel investors are discounting too heavily. As a result, they set a price target at $90 per share. Below is a snap shot of the note put out by Citron.
What We'll Be Watching Ahead
Moving forward, the CNA Finance team will be keeping a close eye on NVDA. In the short term, we'll be taking a dive into the claims made by Citron to see how valid these concerns really are. However, considering who Citron is, we would imagine that these are indeed real issues. Nonetheless, we'll be watching the news closely and bringing it to you as it breaks!
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[Image Courtesy of Flickr]