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Nvidia Earnings Report Sparks Market Reaction
Nvidia Inc.’s (NVDA) earnings report on October 25, 2023, exceeded Wall Street expectations, but the stock plummeted over 3% the following day. Despite reporting a record net profit margin of 13.1% for Q3 2025, the S&P 500 finished down 1.5% as the market reacted negatively, citing concerns over the sustainability of the tech boom.
Industry experts noted that Nvidia’s receivables rose 89%, outpacing a 62% increase in sales, raising doubts about buyers’ affordability. Eric Fry mentioned that the market is failing to celebrate strong earnings, indicating a shift towards near-perfection expectations. The situation reflects broader anxieties in the tech sector, with increasing reliance on debt to finance growth.
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