Nvidia’s impressive Q2 earnings report, which exceeded market expectations, has unexpectedly triggered a “sell the news” reaction in the cryptocurrency markets.
JUST IN: Nvidia $NVDA reports $30 billion in revenue for Q2, 3.8% higher than expectations.
— Watcher.Guru (@WatcherGuru) August 28, 2024
Despite the positive financial results, with Nvidia reporting $30 billion in revenue—3.8% above forecasts—the news led to a downturn in several crypto assets.
QCP: Nvidia’s impressive earnings report last night triggered a classic “sell the news” reaction in the crypto markets today. Risk reversals until Oct are still skewed towards Puts in both BTC and ETH, indicating that the market remains cautious about the downside. In the lead-up…
— Wu Blockchain (@WuBlockchain) August 29, 2024
In its Q2 FY25 report, Nvidia posted a 15% quarter-over-quarter increase in revenue, reaching $30 billion, which included a $1.3 billion beat over projections.
The company also reported a gross margin of 75%, down 3 percentage points from the previous quarter, and an operating margin of 62%, also down by 3 percentage points.
Non-GAAP earnings per share (EPS) came in at $0.68, beating estimates by $0.04. Looking ahead, Nvidia provided guidance for Q3 FY25, projecting revenues around $32.5 billion, which is $0.8 billion above expectations.
$NVDA NVIDIA Q2 FY25 (ending in July).
• Revenue +15% Q/Q to $30.0B ($1.3B beat).• Gross margin 75% (-3pp Q/Q).• Operating margin 62% (-3pp Q/Q).• Non-GAAP EPS $0.68 ($0.04 beat).
Q3 FY25 guidance:• Revenue ~$32.5B ($0.8B beat). pic.twitter.com/3T9fGGxUzd
— App Economy Insights (@EconomyApp) August 28, 2024
Market Reaction Shows Low Enthusiasm
Despite these strong figures, the market reaction was less than enthusiastic. Cryptocurrencies like $TAO, $NEAR, and $RNDR experienced declines following the dip in Nvidia’s stock, reflecting a broader risk-off sentiment.
https://twitter.com/iCryptoAI/status/1829010561822347279?t=vI6QPKkggSx0j2rvsUlFNQ&s=19
This market caution is also evident in the options market, where risk reversals for Bitcoin (BTC) and Ethereum (ETH) through October are still skewed towards puts. This indicates that traders remain wary of potential downside risks.
As the market anticipates next week’s non-farm payroll report, volatility is expected to continue its downward trend. Investors are positioning themselves cautiously, with an eye on potential interest rate cuts by the Federal Reserve. This cautious stance reflects the broader uncertainty in the market, as traders weigh the impact of macroeconomic factors on both traditional and digital assets.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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