Today, Stephen Weiss, Founder, Short Hills Capital Partners and Bryn Talkington commented about whether NVDA-Q, NKE-N, XLE-N, DVN-N, INDY-Q, UNH-N, AAPL-Q, NVDA-Q are stocks to buy or sell.
He used to own it and likes it long term. But the government requirements are shifting the risk in Medicaid and Medicare payments to doctors. If doctors spend more on a patient, then doctors must eat that loss and don't receive all the Medicare/Medicaid to cover that amount. This has hurt companies like Humana. But UNH has such a dominant position in the market and is a permanent compounder.
Other tech stocks like Meta are up today, so it's only Nvidia correcting, and it needed to correct after shooting so far, so fast, way above its moving averages. This quarter, tech earnings are supposed to rise 16%, but remove NVDA and it's 6%. Considering tech in 2000 as an historical measure, there will be a time when NVDA will have an earnings pause. Warning.
You can start buying this now. It's underperformed. It reports Thursday. Last April, shares held the September 2023 low and was slightly higher. In recent weeks, shares have based and are rising to its critical 200-day moving average. He will take a small position today and add if this cracks its 200-day.
It's selling off today because those who got in during momentum and can't resist momentum any longer are selling it today. Those who come in last are the first to get out. They have no loyalty. It happened with meta after a disappointing report and sell-off; that's when he bought that. NVDA will offer the same opportunity, but the caution is that these semi stocks could weaken.