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With Nvidia (NVDA) earnings on the horizon investors are expecting great things from AI's golden child. However, when markets go up, they also come down. Harvest Portfolio Management CIO and Portfolio Manager Paul Meeks joined Yahoo Finance Executive Editor Brian Sozzi on Opening Bid to discuss what signals to look for if (and potentially when) Nvidia takes a turn. One of the things to look for to get a little bit ahead, Meeks explained, is "when you see these fast growth stories like NVIDIA no longer have sequential revenue growth."
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How do investors know when that top is in in tech? Like I want to get people prepared for if Nvidia disappoints, I mean, we're getting a market sell-off. I mean, that's just the reality situation.
Oh, yeah. Look at.
Yeah, so what I would tell you is one of the things that I look for to at least try to get me out a little bit ahead of the rest when, you know, the theater catches on fire, we're all trying to, you know, get out that crowded door is all analysts and even the media typically report on revenues that grow at a certain percentage year to year. When you see these fast growth stories like Nvidia no longer have sequential revenue growth.
Oh, such a good point. Oh, love it.
Yeah, so that's a pretty good sign, right? Because, you know, the valuation is already in some cases ridiculous. You'll see a slowdown in sequential growth well before you see the year-to-year comp. And that's usually a pretty good sign to say, okay, you know, maybe it continues growing, but I got to start trimming my position.
Shout out to Yahoo Finance's Thomas Sieban. I know, uh, he's an avid watcher of opening bid. Let's get that clip out there on X. I mean, one valuation tool you should be using to evaluate a tech stock from Paul Meeks. I mean, that is that's awesome.