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Nvidia Stock Enters Correction Territory, Erasing $450 Billion in Market Cap Amid 15% Drop and Insider Selling

Jun 24, 2024, 02:31 PM

Nvidia's stock has entered correction territory, experiencing a significant decline of around 15% from its all-time high just three days ago. This sharp drop has erased approximately $450 billion from its market capitalization. The decline follows a period of rapid growth, with Nvidia's stock up 158% year-to-date and hitting an all-time high earlier in the week. Despite this, Nvidia remains the most expensive stock in the S&P 500, trading at roughly 23 times the company's projected sales over the next 12 months. Insider selling has been rampant, with Nvidia insiders selling $427 million worth of shares this month alone. Additionally, Nvidia's CEO Jensen Huang sold $95 million of stock recently. The stock's forward P/E ratio is 49, and its price-to-sales ratio is the highest in the S&P 500. Nvidia closed the week at $126.57, down about 10% from the high of the week, and is now the third most valuable company on earth with a market cap surpassing $3 trillion. Nvidia now accounts for 34.5% of the S&P 500's growth this year. Analysts remain divided on the stock's future, with some raising price targets while others express caution.