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Highlights
- Revenue of NVIDIA Corporation (NASDAQ:NVDA) surged 68% YoY.
- The total net revenue of Robinhood Markets Inc. (NASDAQ:HOOD) surged 131% YoY.
- Shares of NVDA rose 1.79%, while Robinhood stock plunged 7.73% in intraday trading.
Technology company NVIDIA Corporation (NASDAQ:NVDA) and trading platform Robinhood Markets Inc. (NASDAQ:HOOD) reported robust second-quarter revenue growth after the markets closed on Wednesday.
The NVIDIA stock (NVDA) was priced at US$193.80, up 1.79 percent, at 5:18 pm ET, while Robinhood (HOOD) stock traded at US$45.95, down 7.73 percent, at 5:31 pm ET.
Despite strong earnings, Robinhood shares declined in the after-hours session after it predicted a slowdown in trading activity, which might affect its revenue in the ongoing quarter. The company made its NASDAQ debut on July 29, 2021.
Here we explore the Q2 earnings of the two companies.
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NVIDIA Corporation
NVIDIA reported record revenue of US$6.51 billion in Q2, 2022, up 68 percent, compared to the year-ago quarter. In addition, the company’s gaming revenue surged 85 percent YoY to US$3.06 billion, and data center revenue rose 35 percent YoY to US$2.37 billion.
Its GAAP net income in Q2 was US$2.37 billion compared to US$1.91 billion in the same period a year ago. The GAAP earnings per diluted share jumped 276 percent YoY to US$0.94, while non-GAAP earnings per diluted share soared 89 percent YoY to US$1.04.
The NVDA stock gained 48.38 percent YTD.
Its market cap is US$474.47 billion, the P/E ratio is 90.13, and the forward P/E one year is 58.96. The EPS is US$2.11. The highest and lowest stock price of NVIDIA for the last 52 weeks was US$208.75 and US$115.67. Its share volume on August 17 was 20,458,490.
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Source: Pixabay
Robinhood Markets Inc.
The company’s total net revenue surged by 131 percent YoY to US$565 million in Q2, 2021. Its transaction-based revenue rose 141 percent YoY to US$451 million, compared to US$187 million in the year-ago quarter. The loss before income tax was US$464 million in Q2, 2021, compared with income before taxes of US$58 million in the same period a year ago.
Its net loss was US$502 million, or US$2.16 per diluted share, while the non-GAAP adjusted EBITDA came in at US$90 million compared to US$63 million in Q2 of fiscal 2020.
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Despite strong earnings, shares of Robinhood declined in the after-hours session after the company predicted a slowdown in trading activity which might affect its revenue in the ongoing quarter.
The HOOD stock was priced at US$45.95, down 7.73 percent, at 5:31 pm ET on August 18. The stock surged 34.03 percent YTD. Its market cap is US$42.278 billion. The highest and lowest stock price for the last 52 weeks was US$85.00 and US$33.25. Its share volume on August 17 was 9,160,299.
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Bottomline
While the investors cheered the strong quarterly results of the two companies, it is expected that the sector would continue its strong momentum despite inflationary pressures.
However, the volatility in the market may keep some investors away from some growth stocks.
