Billionaire Ray Dalio's firm sold 1.8 million shares of Nvidia stock, signaling potential profit-taking.
From Nasdaq: 2024-11-25 09:45:00
Billionaire hedge fund manager Ray Dalio’s firm, Bridgewater Associates, sold 1.8 million shares of Nvidia stock in the third quarter, reducing their position by about a quarter. This move is part of a trend as the firm has steadily decreased its holdings of Nvidia each quarter of 2024.
Nvidia’s stock has been on a legendary run over the past two years, but fund managers like Bridgewater Associates are trimming their positions to realize gains. While Nvidia continues to excel, selling off some shares to secure profits may not be a bad idea for individual investors as well.
Nvidia reported impressive financial results in Q3, with revenue rising 94% year over year to $35 billion and earnings per share increasing 111%. The company expects 70% revenue growth in Q4. Despite its success, Nvidia’s stock is trading at a high forward earnings multiple of 51, indicating extreme expectations.
While Nvidia is currently performing well, investors should consider the stock’s high valuation and the potential for headwinds in the future. Trimming positions to secure gains, especially if Nvidia has become an outsized part of a portfolio, could be a smart move. The Motley Fool has identified 10 best stocks for investors to buy now, with Nvidia not making the list.
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