Nvidia shares dropped by 15% due to a forecast reduction

It seems that 2019 will be hard for many giant IT companies and Nvidia isn`t an exception. Company`s shares have dropped by 15% due to financial forecast reduction by $500 m. The main reason is “deteriorating macroeconomic conditions, particularly in China.”
Nvidia announced a revision of the forecast for revenue for the fourth quarter of 2018 on January 28. Nvidia shares have fallen sharply more than by 15% after the announce. The stock price rose slightly and, as result, the fall declined to 12% by 15:40 London time. So, the company is going to publish its report on February 14.
Initially, Nvidia was counting on revenue of $ 2.7 billion for the quarter, but the forecast has been lowered to $ 2.2 billion. “A number of deals in the company’s forecast did not close in the last month of the quarter as customers shifted to a more cautious approach,” said company`s representatives.
Also, the manufacturer motioned changes in the macroeconomic conditions in the world and China in particular.
“Fourth quarter was an extraordinary, unusually turbulent, and disappointing quarter,” Nvidia CEO Jensen Huang said in a statement. “Looking forward, we are confident in our strategies and growth drivers. The foundation of our business is strong and more evident than ever.”
It will be recalled; the same statement was published by Apple in early January 2019. The company had lowered its revenue forecast, explaining that weak sales in China due to economic conditions and tensions in the country's trade relations with the United States.

The information above cannot be considered as an investment advice and past results do not indicate future performance.
**Investors should have experience and understand the risks of losing all the initial investmen

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