Metadoro
Products
News and analysis

News and analysis

Check market insights shared by our community members

11.08.2022

Perspective Peers of Ethereum: Avalanche

Avalanche is ranked by Coinmarketcap at the 12^th position by market cap with $7.8 billion, which is 4% less than Ethereum’s market cap. AVAX prices dropped by 82% of its peak values, allowing investors to buy it at early 2021 prices. Avalanche’s infrastructure consists of three logically isolated networks, each of these with their own processing, validators, and own set of rules.

This platform is often compared to the existing internet web infrastructure with core connection protocols like HTTP, surrounded by a huge number of networks to their apps. Avalanche allow for the creation of public and private systems as a blockchain or DAG (Directed Acyclic Graph) and for the use of different virtual machines for apps, including EVM engine (Ethereum Virtual Machine) that allows Enthereum network programs to be developed.

Avalanche includes C-chain to create smart contracts that are processed on an advanced EVM engine, P-Chain that coordinates validators that process transactions and also allows for the creation and management of new subnetworks, and X-Chain which is a directed acyclic graph regulating issuance and trade of cryptoassets. DAG systems record new transactions on top of the old ones, allowing for processing speed to be increased and for capacity substantially. It is quite different to other blockchains, where transactions are compiled in blocks in order to be processed.

The advantage of Avalanche is that it provides anyone with the opportunity to create his or her own isolated blockchain with its own set of parameters, including access to apps and the programming language with which it will work. Every subnetwork can process around 4,500 transactions per second compared to 14 processed by the Ethereum network.

06.10.2022

Top 3 Financial Stocks: CME Group

CME Group is the largest market place for derivatives. CME stocks dropped by 25% from the beginning of 2022. The only reason for such a decline is the overall market correction and not any business issues. High volatility is a benefit for the company as it offers the most important derivatives to mitigate financial risks. Among those are the most popular S&P 500 index futures and other indexes linked to derivatives, agricultural products, gold, silver, and crude derivatives. So, the company continues to receive decent profit that allows for the payment of high dividends to its investors.

Free Cash Flow (FCF) of the company in 2022 is expected to hit $2.8 billion. CME is improving its efficiency as every Dollar received in 2021 was converted into $0.48 of FCF, while this year this figure is expected to rise to $0.55, and in 2023 to $0.57. Regular annual dividends is at $4 or 2.3% of share value. CME is also paying interim dividends. By doing so, it paid $3.6 regular dividend and $3.25 interim dividends in 2021, or $6.85 per share, slightly above FCF per share at $6.77.

CME has a solid business model and sound financials without substantial debt. These facts allow the management to take more care of the company’s shareholders. The current overall downside configuration offers great opportunities for investors to add CME stocks to their long-term investment portfolios.

11.01.2023

Advanced Crypto Assets: dYdX

DYDX tokens suffered a lot during the ongoing market correction and lost over 95% off their peak prices. dYdX is an advanced decentralised exchange, where clients can exchange cryptocurrencies and derivatives with marginal collateral. There are no KYC procedures to be followed within the exchange, as well as no need to disclose your personal data.

dYdX is runs on the Ethereum blockchain, known for its expensive transaction fees. However, StarkWare solution allows for lower fees as only commissions for trading are charged. The platform now runs on Layer 2 protocol which is incorporated into Ethereum’s main network. This solution allows for transactions to be conducted instantly, while traders do not have to pay miners for validating transactions.

Market players are closely monitoring the dYdX V4 vehicle, which is a standalone Cosmos blockchain, featuring a fully decentralised, off-chain, orderbook and matching engine. In other words, developers are going to create the entire trading infrastructure to scale up processes without involving any third-party applications. The service cancelled two stimulus programs in order to lessen the effects of inflation within the dYdX platform and to support token prices.

15.09.2022

Safe Haven Assets for Long-Term Investments: Broadcom

Broadcom is an American semiconductor and infrastructure software development company. Soon it is expected to close a merger deal with VMware, a cloud computing and visualization company, that will open new cross-sales opportunities for Broadcom to boost its revenues. Broadcom stocks are now 25% off their peak values.

According to the Q3 FY 2022 financial report that ended July 31, consolidated revenues grew by 25% year-over-year to $8.46 billion, and EPS went up by 40% to $9.73 per share. The semiconductors segment, that added 32% year-over-year, was the primary driver for the company’s profit. The company’s free cash flows (FCF) topped $4.3 billion, allowing it to spend $1.7 billion on dividends and 1.5 billion on the shares repurchase program. The company is planning to continue spending at least 50% of FCF on dividends that added 43% every year on average since 2016.

According to the Q4 FY 2022 forward guidance, the company is expecting its revenues to go up by 20% year-over-year to $8.9 billion and for EDITDA to go up by 25% to $5.6 billion. Broadcom has great experience in expanding its product portfolio by M&A operations, and apparently it will continue on this way. The company is also expected to benefit greatly from the $52.7 billion CHIPS bill in the United States.

04.08.2022

Ethereum’s Most Important Update

ETH is a native token for the Ethereum blockchain and is one of the two most reliable digital assets in the market along with Bitcoin. Ethereum is the first platform that became a hub for thousands of blockchain apps and other digital solutions. The recovery of ETH prices to November 2021 peaks at $4,900 would bring investors 190% profit.

Second layer solutions (Layer2) were introduced to improve stability and effectiveness of the Ethereum blockchain. These are blockchain network add-ons that are added on top of the primary blockchain. The most popular add-ons are Arbitrum, Loopring, Immutable X, and Polygon that have recently partnered with Meta (Facebook owner). In other words, the Ethereum blockchain network has a much broader use than the native blockchain itself.

Ethereum developers promise to release a new Proof-of-Stake (PoS) consensus protocol in late 2022. This protocol will allow miners to stake tokens to a special deposit to mine blocks. Some networks within the Ethereum blockchain have moved to PoS protocol this summer, while others are expected to move to this protocol in the middle of September. This move will allow for the increase of processing capacity of the network to almost 100,000 transactions a second from the existing 30 transactions and lower commissions. This would also allow for ETH to switch to the deflation model when coins are algorithmically burned, while some coins would be removed from circulation as they would be blocked by staking - more than 13 million ETH or 10% of overall coins in circulation are blocked by staking. The problem is that coins are blocked for a long period of time and cannot be sold or exchanged for fiat currency.

Alberto Jiménez

05.10.2023

Curve is Likely to Continue Up

Curve is moving inside an uptrend. The coin went into correction since the beginning of the week, losing around 11% since then. Its prices are testing the support at 0.4630-0.4770. This seems to be a good entry point for opening long trades with a target at 0.5440, the high of the week. The stop-loss could be set at 0.4380, the low of September 22.

CRVUSD

1038

MetadoroIn-house analytics

04.10.2023

Two Stocks That Look Undervalued: AMD

The boom of artificial intelligence (AI) ran a bit ahead, yet the recent price corrections of a too fast rally on chip stocks may give investors a chance to buy them cheaper. A smart purchase often follows the market crowd's blood tears.

For example, the recent estimate about AI chip availability by Microsoft CEO Kevin Scott he just shared during the Code Conference on September 27 was an improved access to NVIDIA AI chips compared to a few months ago. Yet, he also noted that demand was far exceeding the supply of GPU (graphic processing units) capacity that the whole ecosystem could produce. The situation is resolving, but it’s still tight, and that was a piece of news of one of the world's largest chip users and players on this market.

A Microsoft top manager did not confirm directly any rumours about his company’s work on proprietary AI-related chips with Advanced Micro Devices (AMD), just limited himself by saying that Microsoft is doing a bunch of interesting work with AMD to make increasingly compelling GPU offerings. Probably, we will get even more good news ahead on that front.

Meanwhile, Advanced Micro Devices CTO Mark Papermaster said later, at Mizuho Software Conference in early October, there is a growing interest in "open-source, hardware non-specific" AI architecture in the cloud and enterprise sectors, potential resolutions for data portability issues through software containers, increased software focus with a significant headcount increase, and the introduction of Siena, which is AMD's low-power roadmap with 64 cores designed for telco/edge and hyperscale applications. Buy rating for AI chip production leaders, including NVIDIA and AMD, looks justified, with at least a nearly $140-150 price target range for AMD, as its chips are seemingly ready for a massive market share capture with its MI300X chip model in 2024-2025. The current AMD stock price is just around $100, plus or minus $2, compared to almost $133 in the beginning of June, in the wake of the AI first hyping wave of 2023.

AMD

1206

MetadoroIn-house analytics

04.10.2023

Two Stocks That Look Undervalued: Boeing

The share price of this powerhouse of the aviation industry has been slowly moving down from $230+ area in the late summer to the levels below $190 in the beginning of October. A thick fog of broad correction on Wall Street indexes prevents the investing crowd from detecting whether a landing strip for Boeing stock is already somewhere closely beneath the chassis, or this smooth descent may have larger space ahead. Nevertheless, Boeing capitalization now returned to its values of Christmas 2022, hence it significantly outstripped many other industrials and tech companies in a pace of decline during the recent months.

The situation looks increasingly abnormal, even though the famous plane maker has not generated profit since Q2 2021. The pandemic blow was painful, yet Boeing CEOs just came up in July with a more or less adequate and precise plan on how they were going to come back. The number of new orders, especially from Asian airlines, are growing during this year, while the regulatory troubles with 737 family planes are over. Boeing is also a prominent player in the U.S. defence industry. Therefore, its quarterly losses improved from more than $6 billion in Q3 2022 to $0.82 billion in Q2 2023, which was also less than many experts feared. Boeing revenue surplus is accelerating from $14 billion in the first three months of 2022 to $19.8 billion in April-July 2023. All of the above reasons are enough for Boeing stock to fly from its $200-220 range of the first half of the year to a peaking price of $243 after July's earnings report.

A 180-degree turn from a former uptrend happened after several investing funds and research companies downgraded Boeing to Hold from Buy in their portfolios. For example, the Centre for Financial Research and Analysis (CFRA) cut Boeing stock price target to $210 from $253, based on revision of earnings estimates to higher expected loss per share of $3.29 in 2023 and to smaller earnings per share (EPS) of $5.39 in 2024. As CFRA detailed, Boeing previously guided for potential deliveries of its family of 737 planes at 50 per month by the 2025-2026 period, but the company's own current guidance remained below its guidance levels of 2019. Some part of a downturn has been attributed to Boeing supplier issues with Spirit AeroSystem. JPMorgan's analysts slightly lowered their estimate to a $245 price target for this reason, yet this is still 30% above current price levels for Boeing.

Yet, even sceptics recognize that a long-term potential for aircraft demand is growing, as many estimates are saying that more than 75% of the 2022 global fleet may require replacement by 2042. This unveils new opportunities for Boeing, as well as its European rival Airbus. United Airlines has announced on October 3 that a significant expansion to its fleet is needed. The airline has ordered an additional 110 aircrafts, including 50 Boeing 787-9s and 60 Airbus A321neos. Deliveries are scheduled to be launched in 2028 to be finished in early 2030s. United Airlines also secured options for an additional 50 Boeing 787s and purchase rights for 40 more A321neos. Both Groups will continue to benefit from this. Even though the long and winding road may lead the share price of Boeing at first to a forced re-test of lower technical support levels like $170 or even $150, then a return at least to price targets between $220 and $240 seems to be a basic scenario for the airline industry giant.

1265

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/

04.10.2023

EOS May Shoot Out in Either Direction Soon

EOS prices dropped by 2.5% to $0.57 per coin since the beginning of the week after an unsuccessful effort to hold above the support at $0.60. The coin signals that the extremely narrow consolidation would be over soon.

The same type of consolidation in the first half of August resulted in a 30% drop of EOS prices to $0.51 per coin. This doesn’t meant that the story will be repeated this time. The coin has enough examples to shoot out of the consolidation in either direction. The most intriguing is that this consolidation is extremely narrow, which may signal a strong move out. This could be similar to October 2020, when EOS prices first lost 15% and latter jumped by 73%.

This is not certain too. But it is likely that the coin could lose about 13% to $0.50 first as prices are below the support of $0.60 per coin. Further developments should be closely monitored amid the nearing end of the crypto winter.

EOSUSD

867

167

168

169

Popular

11.08.2022

Perspective Peers of Ethereum: Avalanche

AVAUSD

2373

06.10.2022

Top 3 Financial Stocks: CME Group