Nvidia’s stock plunge erases $118B in market cap

Nvidia’s (NVDA) reign as the most valuable publicly traded company was brief. The semiconductor giant extended its losses, shedding $118 billion in market capitalization. The company, which recently surpassed Microsoft (MSFT) to claim the top spot, is seeing shares drop amid the market’s triple-witching Friday.

Read more about Nvidia’s run here.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Angel Smith

Video Transcript

Our top story this morning, shares of NVIDIA extending losses this morning after Thursday’s trading fueled more than $118 billion of losses in market cap, pushing Nvidia’s market cap back below.

Microsoft’s the chip maker no longer the most valuable public company, some jousting for sure, taking place for that number one spot as Ludacris would say, of course, little music reference for uh Friday.

But anyway, all things considered, it’s more than just NVIDIA that you’re gonna see.

You’ve got individual stocks indexes, ETF S contracts, weekly contracts and monthly options contracts set to expire on Friday.

So this the famed triple witching, the uh premier event of the summer.

I think Jared L we just called it.

I know the the highest liquidity that we’re gonna see of the summer after the longest day of the summer, you can see on your screen right here.

The explanation what happens with expirations today.

You’re looking at stock options, stock index, futures and stock index options all expiring today.

Now, this is interesting to look at when we think about the downward pressure that we saw in video yesterday heading into triple, which are the two related in some reports and notes this morning saying yes.

And that is because you do tend to see a little bit of an opportunity to sell off and some of the biggest players in the stock market heading into a triple which day.

But interestingly, a study about some of the kind of uglier reversals that we’ve seen historically heading into triple which day does indicate that those high flying names do tend to be moving to the upside in a pretty big way.

A couple of months later after we get through the next 24 hour period.

So it’s interesting you can’t really separate the individual stock price action that we’re seeing from that broad broader triple, which picture and I wonder if that is why in video has lost its number one spot in the stock exchange is any kind of idiosyncratic reason.

Yeah.

And with a volatility event or a volume event, which can also prove and transition into a volatility like event.

Story continues

I’m looking at some of the options A I data that’s actually looking out even into next week and trying to predict that expected move post triple witching for NVIDIA and as well, a bunch of other names and indexes in the market.

And it looks like there’s an expected move of about 7.2% and I direction post triple witching four NVIDIA by this time next week, June 28th.

So that’s gonna be interesting to track because of course, that will mean, uh, that we’ll also be rounding out the second quarter by that juncture as well and staring down, uh, the third quarter, my goodness, third quarter of 2024 begins in just, you know, nine or 10 days time here.

Right.

We’re, we’re almost ready for earning season to restart again.

It hasn’t even finished.

Why not?