Why is $NVDA stock splitting?
It is no secret that $NVDA stock has reached an all-time high. Maybe too hig! Regardless of what you believe will be the future and what AI could do for us, we are not there yet, and $NVDA should not be considered the largest company in the world. I would love to see people starving eating $NVDA graphic cards, I would love $NVDA to be the solution to world problems, but it is not. People are still starving in the world, and most of the 8.1 billion people living in this world has no use for AI. It will not farm food and prepare delicious dishes. AI doesn’t cure the cause, it cures only the symptoms.
The split is happening to allow small investors to buy $NVDA stock at a lower price. $1000 for 1 stock is prohibitive for the average joe. So what big companies do is split 1 stock into many small stocks, so that $NVDA will not cost $1000 anymore to buy, but just $100? A real bargain, if it weren’t for the whales!
Let’s talk about whales.
Why do whales, which can move the market at their will, want to split a stock? Well, that is easy to understand. Whales have already stocked up on $NVDA, why? BECAUSE THEY CAN! Because $1000 to them is more like $0.1 to the average joe, so they stock up on the hype.
Are you starting to get the picture now?
So, the average joe will buy cheap $NVDA stock from the whales, which will happily cash out some goodies. And what happens when a whale sells? THE PRICE WILL DROP FAST!
In 2020 $TSLA reached an all-time high JUST BEFORE the split. And it took 2.5 months to go back to level. In 2022, the price kept on level for another 3 weeks before starting to go down (it was a 3-for-1 split)
In 2024, today, at the apex of the global economy, the all-time-high for everything (DOWJONES, NASDAQ, S&P 500, GOLD, SILVER, CRYPTO, etc.), $TSLA stock is more near the price before the first split…
What will happen on June 7th, 2024?
The end of the global economy as we know it.
$NVDA whales will sell to the average joe, which will see his money vanish in an overpriced stock. Whales will cash out, and the average joe will have a big fat loan to pay back to the bank or see its bank account go to 0$.
The average joe will not have the money to pay the mortgage, and the average joe eats food every day… What will the average joe do to sustain his family? He certainly cannot eat $NVDA stock contracts, right?!
Be ready… it is going to be a mess soon.
Wish you good luck with any of your decisions.
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