Last week, we discussed an ugly rumor that surfaced regarding NVDA’s sales.
While the jury’s still out on whether it’s just an ugly rumor… or the harsh truth…
For months now, Jeffry’s been warning that NVDA is dangerously overpriced.
The metric he keeps going back to is the Price-To-Sales ratio.
Anything over 20x price-to-sales, he tells us, is dangerously overpriced and due for a correction.
In the case of NVDA, with a 34x price-to-sales ratio…
He’s been warning that a correction of 50% would not be out of the question.
Then just last week a conversation cropped up in Discord that might have turned some heads:
It seems there’s some ugly rumors — or maybe harsh truths — about NVDA’s sales.
Over the next 5 days, NVDA seemed to sink… quite literally taking the stairs down:
This past week it had the slightest recovery, peaking out on Thursday at almost $460…
But Friday’s action was decidedly bearish, pulling the stock firmly down into a range it hasn’t touched since August.
So is NVDA finally done defying gravity?
With a target price-to-sales ratio of 20-to-1…
And Jeffry telling us that NVDA could still have another 30% to 50% to drop…
We’d steer clear of this former high flyer.
Enjoy and trade safe!
— The Prosperity Pub Team
