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14.01.2025
Merck Becomes Interesting to Be Added to a Portfolio

Merck & Co (MRK) stocks have shown signs of becoming a compelling buy opportunity. Over the past six months, the stock has been in a downtrend, declining 29.8% to $94.50 per share. However, since mid-November, MRK has demonstrated a reversal of momentum, rebounding by 10.0% to reach $104.87 on December 5. Following a brief pullback and consolidation period, the stock has retested the downtrend resistance and appears poised to continue its upward trajectory.

With prices currently positioned to target $110.00, this represents a potential 9-10% upside from the present levels. Setting a stop-loss at $93.50 aligns with a prudent risk management strategy, providing protection against further downside while allowing for upside potential. The recent consolidation phase further supports the case for a breakout, making this an attractive moment to consider initiating or adding to a position in MRK.

16.01.2025
Delta Is Taking Off To Update Its Highs

Delta Air Lines stock rose markedly by low double digits in the first ten days of the new year. The U.S. carrier has served more than 200 million customers in 2024, when it was also recognized by J.D. Power, a leading American data analytics and consumer intelligence company, for being No. 1 in First/Business and Premium Economy Passenger Satisfaction. Travelers became more willing to spend extra money for swanky seats when meeting a high level of service. Delta is just positioning itself as the nation's premium airline. And what's more important, its Christmas quarter's earnings reportedly surpassed average analyst pool projections. Driven by stronger travel demand, smart financial management and capacity discipline, Delta business provided last three-months' profit of $1.85 per share vs $1.28 at the same period one year ago, compared to $1.75 in consensus estimates. On January 10, the airline industry leader put its future profit levels within a range between $0.70 and $1 per share in the current quarter through the end of March, while analyst expectations were focused on $0.77 cents, according to data compiled by LSEG. The starting months of each year always perform worse. It is clear that all carriers made losses in the Covid years of 2020-2022, but Delta profits only recovered into a range from $0.25 to $0.45 in the first quarter of 2023 and 2024, respectively, but Q1 profit numbers varied from $0.75 to $0.96 even in the three blessed years before the pandemic. Delta added that it is forecasting annual earnings in excess of $7.35 a share, which would be the highest in its 100-year history, based on its planned revenue growth of 7% to 9% in the March quarter from a year ago. The announcement could be compared to an adjusted profit of $6.16 a share in 2024. The company happily breaks through ticket prices' rising effects, almost undisturbed by a reduction in airline seats in the domestic market, which was peculiar for most carriers. Thus, new expectations created a fertile ground for setting new price records, even though price movements on Delta charts look most convincing among its other American rivals.

By the way, Citigroup analysts freshly updated their outlook on Delta Air Lines shares to raise their price target to $80 from the previous $77, vs the actual range around $65 per share where the stock just came after a reasonable market correction from last week's and all-time highs. Citigroup said it has included factors like higher revenue per available seat mile, projections of slightly lower fuel prices, increased taxation, a minor rise in share count, and the incorporation of fourth-quarter 2024 results into their financial model, which has projected Delta's profit at $7.49 per share in 2024 and $8.72 in 2025. Delta shares are Buy-rated at Citi, and we agree with their positive estimates in general, while keeping in mind even better price goals somewhere between $82.5 and $85.

10.01.2025
Dollar Strength Is a Given

The very first slice of statistical data on business activity from the United States this year reaffirmed an almost clear irrelevance and even potential hurtfulness of any immediate steps towards further lowering interest rates on U.S. Dollar-nominated loans from a purely economic point of view. The ISM Manufacturing PMI (Purchasing Managers Index), based on polls compiled from executives in over 400 industrial companies in late December, came out at 49.3 points vs 48.4 a month ago and 48.2 in average analyst estimates. This showed that a slowdown was occurring at a slower or even insignificant pace, keeping inflation risks on the table, especially when the price component increased from 50.3 to 52.5 with a similar rate of increase in new orders. Meanwhile, non-manufacturing PMI came out at 54.1 on Tuesday, compared to 53.5 in analyst polls and 52.1 a month ago, with a contribution of business activity components even jumped to a surprising 58.2 against declining from 57.2 in November to only 53.7 in December.

In other words, the economy is not cooling, and is rather in a positive acceleration, which in turn may lead to a recovery in wage rises and therefore to higher demand pressure, which may be reflected soon in higher producer purchase and output prices. Doubts of the major U.S. financial regulator are understandable at this point after its triple rate cut from 5.5% to 4.5% in 2024. The Federal Reserve (Fed) will now pay closer attention not only to consumer inflation measures, but also to producer prices (PPI), which is just going to be released on coming Tuesday, January 14. And so, this will become the next reference point in the further U.S. Dollar’s trajectory. The Greenback index (DX) is picking up steam since reaching a new record high for the last two years at 109.35, with its temporary pullbacks being limited by a 107.50 support area that previously served as a strong multi-month technical resistance.

In this context, the British Pound (GBPUSD) updated its lows since November 2023 to touch 1.2237 on January 9, EURUSD feels quite comfortable within a range between 1.02 and 1.0450, which corresponds to its 2-year bottom, and having a bias towards a possible further decline. The Aussie (AUDUSD) is one-step away from taking the path for a breakthrough to a quite unknown territory of its 5-year lows that were last time recorded when the initial outbreak of the Covid-19 happened.

A varying extent of the American Dollar strength is surely data dependent as the market community is eagerly waiting for the U.S. job data later today. The average expectations on new Nonfarm Payrolls is just a bit above 150,000 vs 227,000 in early December 2024 and nearly 160,000 for the previous four months on average. However, any value close to 150,000, plus or minus 20,000, or any higher number, may be considered as another positive sign for the Greenback, following the ADP national employment report which contained only 122,000 on Wednesday. The oppressive nature of average hourly wage in its dynamics, +0.4% each time from September to December, also matters.

The protective quality of investing more funds into the U.S. Dollar and U.S. bonds against tariff threats is switched on anyway, based on more than a 95% chance for the Fed to keep rates on pause at its January 29 meeting, according to CME's FedWatch tool. Federal Reserve officials never go against a well-established market consensus, when it is almost unanimous, for not to rock the boat of relative market trend stability. The central bankers' reluctance to shift the Fed fund rates lower before mid-March, if not early May, continues to play in favour of short-term speculative transactions on the foreign exchange market, bearing in mind all the listed currency instruments. Some intraday volatility may take place, especially in the case of appearing an abnormal two-digit non-farm value, but not a change in overall direction.

09.01.2025
VeChain Is Suffering on Rising Borrowing Costs

VeChain (VET) has fallen 12.7% this week, trading at $0.0445, underperforming the broader cryptocurrency market. Bitcoin (BTC), the leading cryptocurrency, has declined by 5.6% to $93,220, with bearish momentum building as it approaches key support at $89,000-$91,000. This decline is largely attributed to tightening monetary conditions in the United States, which continue to weigh on risk assets. Investor confidence is further shaken by significant net outflows from spot BTC-ETFs, which lost $583 million on Wednesday, marking the second-largest single-day outflow on record.

If BTC falls below the critical support level of $89,000-$91,000, VeChain is likely to extend its losses, with prices potentially declining another 10% to $0.0400. A sustained drop in BTC could push VET even lower, towards $0.0300. Conversely, a strong rebound in BTC prices to the $100,000 level could drive VET back up to $0.0500, representing a recovery of approximately 12% from current levels.

14.01.2025
Tezos Is Seen Hodling above $1.200

Tezos (XTZ) has declined slightly by 0.2% this week, trading at $1.249, following Bitcoin’s (BTC) drop to $89,158, which triggered widespread altcoin sell-offs due to concerns of a potential further decline in BTC to $80,000. However, Bitcoin managed to hold above the critical support level at $89,000-$91,000, offering some relief to the broader crypto market.

Speculation about a shift in U.S. trade policy has provided additional support to crypto assets. Reports suggest the new U.S. administration may pursue a gradual increase in tariffs rather than an abrupt hike, which could help alleviate inflationary pressures and lead to a less aggressive monetary stance from the Federal Reserve.

This development is a positive signal for the cryptocurrency market and may help Tezos maintain its position above the key support level of $1.200.

Another Brick in Wall Street's Bullish Tower

Broadcom (AVGO) was the last but surely not the least semiconductor giant among multinational tech megacaps to report this quarterly earnings season. And neither its numbers nor its future projections did not disappoint investing crowds.

The company broke its all-time record for quarterly revenue, showing $15 billion exactly against the previous record of $14.92 billion and the consensus expectations of the expert pool of $14.95 billion. Broadcom also fell only 1.25% short of matching its March 6 quarterly earnings all-time record of $1.60 per share, as it came out at $1.58 this time, but beat the market's consensus estimate of $1.57. So, it's all right in this field, too. The achievement has been made "on continued momentum in AI semiconductor solutions and VMware", said Hock Tan, president and CEO of Broadcom. VMware provides virtualization and cloud computing software and services, acquired by Broadcom in 2023. Q2 AI revenue grew 46% YoY to over $4.4 billion, driven by robust demand for AI networking". Various chip-related solutions, which is Broadcom's core business, added 56% to $8.41 billion, and infrastructure software's segment gained 44%% to $6.6 billion.

Future projections are no less impressive than current and past growth paces. As CEOs shared their inner forecast for Q3 revenue of $15.8 billion, compared with average market estimates of $15.77 billion. This would be a $0.8 billion (+5.3%) of additional sales for the next three months. That's a lot for a global developer and distributor of chip solutions with a market cap of over a trillion dollars. "We expect growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3, delivering ten consecutive quarters of growth, as our hyperscale partners continue to invest," Broadcom CEO Hock Tan confirmed during the conference call on the night of June 5-6.

Broadcom's share price was forced to retreat about 5% in the after-hours due to the overall S&P 500 pullback to 5,925 on profit-taking at the time, which looked pretty normal after a 17% rally in just the last two weeks to an all-time high near $265 and a cumulative 36% gain in the month since May 6, when the price was below $200. Our price target is above $300 for the rest of the year, so any temporary lows could be used for active repurchases, in our opinion.

Broadcom remains the key player in the AI hardware ecosystem, being a critical part of designing custom processors, highly specialized integrated circuits for cloud computing companies, including Microsoft's partner OpenAI and Google. Broadcom's earnings is just another brick in Wall Street's bullish tower, which touched the 6,000 landmark for its broad S&P 500 indicator late this week and then retreated slightly for a while, largely driven down for a while by Tesla's local correction. Broadcom's further progress is destined to contribute to the treasury of other tech megacaps' growth with a visible cumulative effect for the Nasdaq 100 (now peaked at nearly 22,000 points) and the major segment's XLK ETF (now peaked at $239.5) in nearest months.

7
B
Anti-Musk Propaganda Helps To Buy Tesla Low

The Trump-Musk so-called "public feud" issue has been most likely pulled out of thin air by global media syndicates. Or, at least, it seems far-fetched right at the moment, hardly sufficient to justify a more than 15% slump in Tesla share price on June 5, especially as this happened within only one trading session. Such a great chance here and now to get a very good, mostly perfect, double-digit discount on purchasing a very popular asset that has already gained momentum for the last couple of months. Tesla has fallen to almost $275, but I bet in a couple of weeks, if not a couple of days, it will be worth $50 more, and then it will pave the way again to $360 and then above $500, so we can assume the possibility of doubling the capital. Tesla bulls are always coming home soon! Also, the current price is right at the top of the previous range that Tesla had from April to mid-May, so it technically looks like a classic support area after the break, which followed that range trading. My conclusion was clear, so I bought right here and now.

Impossible to believe this story could actually have far-reaching consequences. In my opinion, some losing revanchists’ forces may potentially emerge in this strong leadership tandem, they are simply blowing this story out of its realistic proportion to make a big mountain out of a molehill. One or two social media posts or another friendly joint appearance by Musk and Trump will clear up this whole trash agenda soon, not to mention the bare fact that the world leader in innovation has a sustainable EV business, including the segment's dominative infrastructure, meaning not only cars as they are but also charge stations and accumulators, used by Tesla's rivals as well. The benefits of launching robotaxis and other related AI technologies will soon give Tesla a big profit and will leave no stone unturned against the arguments from the pessimistic camp.

However, Musk has previously said that he doesn't care about the withdrawal of tax credits, and Tesla will even benefit from this compared to competitors. Musk's real motive is that the bill continues to inflate the budget deficit and national debt, which his DOGE department, to which he was appointed by Trump, actually fought against as best it could. "The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts," Trump said in a Truth Social post, but these are only words. In his real life, I guess Trump will not be selling even his Bromance Red Tesla that he bought from Musk with a great public promo before. The drama is for the audience. A grandstand play, folks, to mute reputational risks of excessive closeness to each other in the first post-election months, and nothing more.

As to the bill itself, again, the fact is that this bill is clearly a compromise, and does not fully satisfy even Trump himself, but it must ensure his whole party's support and pass through Congress. This even makes Musk the right mouthpiece for expressing critical ideas, which is beneficial to Trump, and everything else is just a cover for this verbal game.

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Rafael Quintana Martinez
Money Manager de alto rendimiento, con una sólida formación académica, profesional y de campo. Más de 9 años de experiencia especializada en el comercio de mercados financieros internacionales. La devoción, la fiabilidad, la responsabilidad y la ética impulsan mi vida. Actualmente me desempeño como Analista Senior para Metadoro. https://metadoro.com/es https://mx.investing.com/members/contributors/235587671/ https://es.tradingview.com/chart/EURUSD/rE9gVips/
Cardano Is Struggling to Keep Up

Cardano (ADA) is trading flat this week around $0.6790, slightly outperforming Bitcoin (BTC), which declined by 0.62% to $104,736. The market remains cautious despite heightened speculation and optimism surrounding ADA.

Key developments include the U.S. SEC’s clarification that staking itself is not a security, which has raised hopes for a spot ADA ETF approval. However, the approval process has been delayed, with a new deadline set for October 22, 2025. Additionally, a lot of speculations are surrounding inclusion ofCardano into U.S. crypto reserves.

Despite the bullish narrative, ADA failed to hold above the key $0.8000 support, retreating to $0.6533 amid renewed U.S.-China tensions. The token is currently in a consolidation phase, with no clear momentum in either direction.

From a technical perspective, ADA is at a pivotal point. A move above $0.8000–$1.0000 would confirm bullish continuation. Conversely, a drop below $0.6000 could trigger deeper corrections before any rebound. At this stage, both scenarios remain equally probable.

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Rafael Quintana Martinez
Money Manager de alto rendimiento, con una sólida formación académica, profesional y de campo. Más de 9 años de experiencia especializada en el comercio de mercados financieros internacionales. La devoción, la fiabilidad, la responsabilidad y la ética impulsan mi vida. Actualmente me desempeño como Analista Senior para Metadoro. https://metadoro.com/es https://mx.investing.com/members/contributors/235587671/ https://es.tradingview.com/chart/EURUSD/rE9gVips/
Maker Is Likely to Move towards $2500

Maker (MKR) is surging by 14.2% to $1,827 this week, after briefly touching $1,953 on Tuesday. The rally was fueled by the announcement on June 2 that MKR tokens would transition to SKY—the rebranded version of the Maker project—unlocking staking rewards for holders. Interestingly, the price began climbing before the announcement, signaling strong market anticipation and positive expectations from investors.

The rally pushed MKR close to the key resistance at $2,000, where it saw some profit-taking. Still, momentum remains strong. With continued support from the broader crypto market, and if sentiment stays bullish, MKR could break through $2,000 and aim for the next major upside target at $2,500.

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