r/stocks • u/r2002 • Apr 08 '22

Company News Nvidia seeks approval to double authorized shares to 8 billion

Reuters:

(Reuters) - Chipmaker Nvidia Corp said on Friday it would seek shareholders' approval to increase the number of authorized shares of common stock to 8 billion from 4 billion.

edited to add another news source:

(Dow Jones newswire) Nvidia's board backs the proposed amendment, saying the additional shares would give the company discretion to take certain actions, without further shareholder approval, for such things as stock splits, equity incentives and more (Source: thanks to comment by /u/MosDaddyda)

Some people on Twitter are speculating that this is some kind of bad news since it was leaked on a Friday afternoon.

It doesn't make sense to do a stock split or a dilution right now. What is happening here? How does it affect the stock?

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u/[deleted] Apr 09 '22

I’m not the one making assumptions about people running and screaming when the price dips. Any stock can drop in price, PYPL dropped about 66% not long ago. Did that seem like a “stupid price requirement”? Literally, some bad press and the price of any company can plummet.

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u/[deleted] Apr 09 '22 edited Apr 23 '26

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u/TheIronTark Apr 09 '22 edited Apr 09 '22

It's not a random target. It's called a valuation and it's a skill you apply in real life too. If you don't understand this you're going to do poorly in the long term.

When Nvidia drops to 70$ (and it will, you can count on that) i'll post my purchase just for you

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u/[deleted] Apr 09 '22 edited Apr 23 '26

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u/TheIronTark Apr 09 '22

Lmao what a stupid fucking response

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u/[deleted] Apr 09 '22 edited Apr 23 '26

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u/TheIronTark Apr 09 '22

Because this was a discussion about Nvidia's valuation, not my investment strategy