Esports - Strong Earnings Amid Rising Uncertainty

February 2020
By Denis Zinoviev, Associate Product Manager, VanEck

NVDA Topped Expectations

NVIDIA posted earnings results that topped expectations and sent the shares ~8% higher. Revenues came in at $3.11B vs the expected $2.85B while EPS came in 13% above consensus. The semiconductor giant also issued revenue guidance 5% ahead of expectations for Q1 of this year, and noted that while the effect of the coronavirus is difficult to estimate, the revenue guidance figure was reduced by $100M to compensate for its potential impact.

“Gaming is thriving”, as per the earnings call transcript

  • Strong channel demand for their whole gaming technology lineup, being driven by new blockbuster games like Call of Duty: Modern Warfare and continued eSports momentum.
  • Some of the latest gaming titles support ray tracing and NVDA’s GPUS are the only ones that support that technology.
  • Also launched GeForce NOW cloud gaming service, this week.
  • Partnered with Tencent to bring PC gaming in the cloud to China, the world’s largest gaming market.

Stuck at Home Gaming

Recent research by Bernstein described Tencent Holdings as one of the “shelters in the storm”, as people stuck at home flock online to play games and shop, cementing online habits.

About the Author:

Denis Zinoviev serves as an Associate Product Manager for Equity and Fixed Income ETFs at VanEck in the United States. His current responsibilities include product development, market research, and product support. Prior to joining VanEck, he held a Product Development position at FactSet Research Systems, where he was responsible for product development and implementation of Portfolio Analysis applications. He holds a Bachelor’s degree in Economics & Finance from Bentley University in Boston

The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.

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