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Nvidia Corp.’s market performance over the past six months is a good illustration of the difference between a good company and a good stock.
Nvidia — the company — has performed phenomenally. Its cumulative earnings per share over the past two quarters were more than 800% higher than the comparable two-quarter total a year earlier. Yet Nvidia’s stock NVDA fell after the company’s earnings report last week.
The so-called magnificent seven – the seven largest US tech companies that famously make up more than a third of the S&P 500 by market cap – are among the world’s largest firms. They also have some of the greatest geographical distributions – in some cases operating in over 100 countries.
Yet filings for these tech giants show that three of them – Amazon, Meta and Tesla – choose not to hedge their day-to-day foreign exchange exposures. They reveal no holdings of offsetting FX derivatives
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Amazon, Meta and Tesla – three of the so-called magnificent seven tech firms that drive US stock market performance – decline to hedge their day-to-day foreign exchange exposures. So concludes a study by FX Markets of the firms’ quarterly filings over the past five years.
Corporates operating in dozens of countries typically hedge the FX risk from their foreign revenues and expenses with derivatives. But a study of the three companies’ filings shows no evidence of any FX hedging activity. What’s
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You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
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