May. 21 at 7:40 PM
$NVDA the problem with Nvidia's stock is just the absolute Enterprise Value of
$5+ Trillion - the law of large numbers - as a doubling of the stock implies a
$10 Trillion firm - which institutions have a very hard time wrapping their arms around. This is true for other MAG-7 stocks like
$GOOGL . Not to say that these firms can't continue to go up towards that
$10 Trillion over time, if the earnings continue, but investors are far more likely to add to positions on market pullbacks and then take profits as these firms get back to
$5+ Trillion EV. The Nvidia buyback and dividend certainly help return capital to investors, but
$80 Billion on a
$5+ Trillion EV is really nothing on a % basis. Investors are just seeking other firms which have a higher probability of greater absolute returns over time. This is why
$NVDW and
$GOOW are interesting plays, as they will dollar-cost-average positions in both stocks on a weekly basis if you reinvest the dividends.
