Nvidia (NASDAQ:NVDA) defiled itself with earnings which should undercut investor faith in the company for many quarters to come. The graphics chip firm took a charge of nearly $200 million for releasing a faulty chip. It posted a loss of $120 million and revenue dropped slightly. Nvidia also says it underestimated competition from rival AMD (AMD), one of the worst run technical companies on the planet.
As a nifty way to offset all of that bad news, Nvidia said it would buy-back $1 billion of its shares. That spiked the stock price up 10% after hours. It still trades near its 52-week low, but under normal circumstances a bad quarter would have knocked the stock down.
Since Nvidia has a market cap of only $6 billion, it is taking a lot of its shares out of circulation, which should, in turn, improve EPS.
The rise in NVDA shares is a sign of how desperate the market is to find some scintilla of good news in a sea of disastrous earnings. That could bring share buy-backs back into vogue.
It may be a cheap trick, but it looks like it works.
Douglas A. McIntyre
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
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