Major Investment Firm Sold Nvidia Shares Before Q3 Earnings Report

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Major Investment Firm Sold Nvidia Shares Before Q3 Earnings Report

Major Investment Firm Sold Nvidia Shares Before Q3 Earnings Report

Ark Investment Management LLC is a famous investment firm that focuses on buying tech company shares. Recently, the investment firm has sold 167914 Nvidia shares ahead of the company's Q3 earnings report. Does this mean that the investment firm is worried that its earnings report for Nvidia will not be up to the market's expectations? Or is it just a move to free up some liquidity so the firm can buy Nvidia stock again at a better price? That question still remains unanswered!

The date for the Nvidia earnings report is November 17th, and it seems that Ark Investment has already made a move. Earlier, the CEO of Ark 'Cathie Wood' also played a similar move of selling stock ahead of Nvidia's earning report. At that time, Nvidia's earnings were $1 billion lower than the market estimates.

Now that Cathie Wood has made a similar move again, it seems that markets will take it as a negative event once again. However, we still have to check the actual numbers of the quarterly earnings report from Nvidia.

All Chip Companies Are Facing Decline

Nvidia isn't the only company that is going through a rough patch... In fact, AMD, Samsung, and Intel are also facing declines since the start of 2022. However, analysts believe that AMD could perform better despite a declining market thanks to growth in its data centre unit.

Coming back to Nvidia, it seems that the company's fate is controlled by Ark Investment Management LLC. Looking back, Ark purchased 400,000 Nvidia shares when the company was at its 2-years low.

If we look at the markets, it seems that Nvidia is facing an uphill battle and has been lagging behind other chip companies in terms of innovation. Maybe that's one of the reasons why Ark is moving away from investing in Nvidia stock.

It is only a few more days before we actually get to see the quarterly data of Nvidia. It is only after seeing the data that one can determine whether this move by Ark was a smart one or not!

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