Both nvidia and alibaba just announced their earnings for the previous quarter. The numbers reported for both companies was essentially beautiful, music to the ears of the book camp, but by the time the dust settled on the trading day. The stocks didn't really react. The way you think they should have what's going on moon gang, i hope you're having a great day.

My name is matt and in this video i'll be discussing both nvidia and alibaba's earnings. I'll share why? I think the reaction to these earnings was a little lackluster and also give you my two cents on what i think may happen next, if you're interested in this type of stock market related content join the moon gang by hitting the subscribe button. Also, don't forget to turn on your notifications, so you don't miss any of the new videos. Okey dokey.

Then, let's get started nvidia, whose stock symbol is nvda reported first on the evening of august 19th. By the time the next trading session ended. It was up a measly 0.02. The market's reaction was interesting, to say the least.

When the numbers were first reported, there was an abrupt spike all the way up to 500. This was short-lived because it quickly died off, but when the market opened today, there was another bullish push. Unfortunately, by the time the market closed, it was essentially break even so. This brings up the question.

What is possibly going on nvidia reported a second quarter, revenue of 3.87 billion on earnings of two dollars and 18 cents per share. This beat the analysts expectations of 3.65 billion on earnings of 1.98 per share so far, so good beating expectations is exactly what you want to see. The gaming revenue for the previous quarter rose 26 year over year to 1.65 billion. This beat the estimates of 1.41 billion nvidia's data center segment saw the jump of 167, which amounts to 1.75 billion.

This also beat expectations which were pegged at 1.71 billion gaming and data centers account for roughly 80 of nvidia's revenue. So the fact that they were able to beat on both is a great sign. The revenue for the automotive segment and professional visualization did drop, but keep in mind. These revenues are in terms of millions, while the gaming and data center revenue are in terms of billions.

To give you a little bit more of an insight, the ceo of nvidia was quoted saying, despite the impact on a professional visualization in automotive platforms. We are well positioned to grow as gaming, ai cloud computing and autonomous machines drive the next industrial revolution around the world. So this all sounds great. Why didn't the stock rally today? What gives the answer doesn't really have anything to do with something negative in nvidia's earnings report, it's more so because the stock has already been rallying since the low in march.

To put it in perspective, since that low nvidia is up a whopping 168 percent between the argument of profit taking and the positive results already being priced in, it's not that surprising that nvidia is flat on the day. With that being said, i'm still bullish on nvidia, and here are the specific levels i'll be watching as long as the bull camp can hold. This 460 to 470 area 500 is still in play. If the stock can break this key psychological region.

That would then set up a run at 535, which is a fibonacci level for anyone who's interested, but on the other hand, if this does officially mark a rejection and 460 is given up, i would be looking for a bounce off the next support. There was a lot of consolidation around 450 dollars and it's also roughly where the 50-day moving average sits. So it could bounce off of that. But i'm more interested in 432 overall i'll be playing this in one of two ways.

If the stock does rotate higher i'll continue to take some of my profits off the table, but if it declines i'll be looking to buy more shares at this key support of 432. Now, let's switch gears to the chinese e-commerce giant alibaba alibaba, whose stock symbol is baba, also reported a relatively positive quarter, but ended the trading day down just over one percent, alibaba reported stronger than expected. First quarter: earnings before the market opened on thursday august 20, as lockdown owners in china stoked online spending in the world's second largest economy. Their quarterly revenue rose by 34 relative to last year, which topped analysts expectations.

Their mobile users rose to 874 million, which was an increase of 28 million, so in the end alibaba's report was pretty similar to nvidia's in the sense that they beat analyst expectations across the board. The ceo was also similarly optimistic. He said, alibaba delivered excellent results. This past quarter, we are well positioned to capture growth from the ongoing digital transformation, which has been accelerated in both consumption and enterprise operations.

This statement is definitely reassuring, but when it comes to the stock market, i put more trust in numbers rather than quotes, and if you watch my last alibaba video, you know i care most about their cloud computing numbers. This segment of their business rose by 59 to 1.75 billion dollars in revenue. To me, this is a bullish signal because in general i believe the cloud computing sector will continue to explode in the future, and alibaba is well positioned to take advantage of the massive chinese market. So once again the report was positive, but the stock didn't really act like it what's going on.

I would argue that the answer to this is twofold. The first is political. President trump said he could exert pressure on more chinese companies, such as technology giant alibaba after he moved to ban tiktok asked at a news conference whether there were other particular china-owned companies. He was considering a ban on such as alibaba trump replied.

Well, we're looking at other things. Yes, i know this is vague, but risk, even if it's small is something that the stock market and investors hate. The second reason is more technical. Ever since mid-july, alibaba has been stuck in a consolidation wedge, many people, including myself, are currently sitting on the sidelines waiting for this stock to break one way or the other.

If it does break upward, i would be paying close attention to the previous resistance and all-time high at 268. if it gets above that, i would then target the fibonacci level at 292, but if it does end up breaking downward, i would be looking for a bounce Off the previous support just below 241 overall, i am bullish on alibaba, but i'm less bullish relative to nvidia because of the risk of rising political tensions for both nvidia and alibaba. If you're aggressively bullish, you should be looking for a rotation higher, but if you're more of a conservative bull, you should be looking for dips to buy if you made it this far in the video. I truly appreciate your support.

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