"Sentiment on Reddit and X shifted sharply negative between 3am and 6am ET this morning, dropping 19 points just before market open. Posts across r/wallstreetbets and r/options are currently dominated not by NVDA-specific concerns but by viral loss threads and general trading anxiety about the market in general. Specifically, one post about a trader facing a $6.5M margin call has resurged across multiple subreddits, while another thread about failed credit spreads continues circulating with thousands of upvotes.."
"The negativity lacks substance when examined closely though. There is no recent negative news about NVIDIA itself driving the shift. That doesn't mean there aren't reasons to be bearish, simply that nothign new has materialized as of this morning. Going into market open today bears would say: Valuation remains stretched at a forward P/E of 29.94 The stock ran overbought in late October with RSI levels approaching 73 Broader market anxiety is contagious. When traders see massive loss posts trending, they sell shares to de-risk, even from fundamentally sound positions"
NVIDIA's retail sentiment plunged to a bearish 41/100 from 89/100 on October 26, even as shares opened over 3% higher. Social platforms shifted negative between 3am and 6am ET, driven by viral loss threads rather than NVDA-specific news. A post about a trader facing a $6.5M margin call and circulating failed credit spread threads amplified trading anxiety. No new negative company-specific information was identified this morning. Bearish rationales cited a stretched forward P/E of 29.94, RSI near 73 from late-October overbought levels, and contagious market anxiety prompting de-risking. Despite sentiment, price remains up 7.99% month-to-date and 48.93% year-over-year.
Read at 24/7 Wall St.
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