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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.

15.12.2022

Three Undervalued Value Stocks: Costco

Costco Wholesale Corporation has presented quite disappointing earnings report for the Fiscal Q1 2023. Revenues were reported up 8.1% year-on-year to $54.44 billion missing expectations of $54.65 billion. This is obviously not the reason for long-term investors to remove COST stocks from their portfolios as the company is set to maintain strong financial discipline and cost structure, not to stimulate high growth in the short term at any cost.

The operational margin in financial Q1 2022 was at 3.4%, and in Q1 2023 it was 3.2%. Costco is aiming to provide the most reasonable prices on their products to keep their clients loyal. That is why the operational margin is suffering. Meanwhile, EPS was up by 4.4% to $3.1, and membership fees rose by 6% year-on-year. So, the strategy seems to be buying itself.

Inflation in the United States is expected to return under control over the next year. So, there will be no need to deliver various marketing activities like coupon sales and others while loyal clients will be grateful for the support during the period of uncertainty. Costco is planning to open 24 new stores in 2023, increasing its potential to generate revenues.

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.

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.

MetadoroIn-house analytics

13.09.2023

Stocks Gaining Weight Slowly and Steadily: Walmart

Walmart stocks (WMT) rose from a $160 area a week ago to its fresh historical highs above $165. Many a mickle makes a muckle, as people say in Scotland. In a similar way, many small daily gains, put together, become a large amount over a long distance. Thus, the share price of Walmart already climbed by more than 10% since the beginning of this summer. The famous chain of discount stores in North America is seen not only a "well-positioned" business, according to the statement of its CEO Doug McMillon, but is a good way to escape inflation headwinds. Walmart is winning retail wars while its rivals from the discretionary consumer sector like Target or Macy's are still losing ground.

The pace of activity growth looks to be the worst in five years, according to a report released by Deloitte. Sales across physical stores and online channels are expected to rise by 3.5% to 4.6% between November and January, compared to a 7.6% increase in 2022. Walmart also said there was a reason to be cautious about the consumer in the second half of the year, owing to the restart of student loans, gas prices creeping back up again and pressure from high interest rates - factors the company said could pressure its profit margins.

As Doug McMillon noted at the 2023 Goldman Sachs Global Consumer Conference, Walmart is "with brick and mortar, with stores and clubs, with curbside pickup and with various forms of delivery", which is enough for the retailer to continue to drive growth. He sees "commonality across the various countries" Walmart operates in, with the consumer environment in the U.S. still "better than he would have expected it to be at the start of the year". So, "things have held up better" than the Walmart CEO would have guessed, while the employment situation, wage increases, and some "pockets" of disinflation are helping the company feel "pretty good about where the consumer is in the U.S." Focusing on pricing, McMillon believes customers "are going to feel some relief" over the next few months as "general merchandise prices are coming down", though food and consumables has gone up, yet many households are choosing cheaper options where they would buy groceries and other goods of daily use. He hopes price pressure will be slightly lower in 2024 compared to 2023.

Therefore, we see target price for Walmart could be moved to at least $175-185 area.

WMT

1080

MetadoroIn-house analytics

13.09.2023

Stocks Losing Weight Quickly: Oracle

The share price of Oracle Corporation (ORCL), which is the world's second largest software company after Microsoft in terms of both revenue (nearly $50 billion a year) and market caps ($297.5 billion as to the closing price at September 12), suddenly plunged by 13.5% on Tuesday. A show of weakness came as a direct response to the company's own estimates of its future financial results. Its revenue forward guidance signalled an expected sales increase of 5% to 7% for the current quarter, which was falling short of the 8% average estimate of the Wall Street pool of analysts.

Single digits are not enough for a greedy investing crowd anymore, after the stock already climbed about 55% since the beginning of 2023 amid general agitation over generative AI (artificial intelligence). Cloud services demand is still high. Oracle CEO Safra Catz said that the transition of Oracle’s Cerner business to the cloud is “resulting in some near-term headwinds” to the unit’s growth rate. In summer 2022, Oracle closed a $28.2 billion deal to purchase the electronic health record software company, so that customers are still in the process of "moving from licensed purchases, which are recognized upfront, to cloud subscriptions which are recognized ratably,” she detailed the problem. Sales in Oracle’s cloud services and license support segment rose 13%, while sales in the cloud license and on-premises license segment dropped by nearly 10%, missing preliminary estimates.

Even though Oracle’s EPS (earnings per share) of $1.19 topped average estimates of $1.15, also surpassing a $1.03 profit from the same season of 2022, it was a substantially quarterly decline compared to a $1.67 spike in Q1 2023. Oracle now reported its fiscal first-quarter revenue of $12.45 billion, which was basically in line with consensus. Yet, many investors are fearing that its cloud growth may be peaking. So, some analysts including JPMorgan made a decision to downgrade Oracle stock to ‘neutral’ from ‘overweight’. “Oracle deserves credit for its multi-year accomplishments and total recurring revenue growth, but we view a low/mid-20s uFCF multiple as fair for ~8% non-Cerner growth glide path targeted this year, and perhaps mid-single-digit growth in aggregate, with some hurdles emerging in the next several quarters,” JPMorgan analysts wrote. As a result, JPMorgan pushed their price target for Oracle by $12 lower to $100 per share, compared to the current range of between $107 and $112. However, in our opinion, the base scenario could be a temporary drop in Oracle share price by $5-15 below $100, as its 13-week technical support was broken, and the stock already got a strong negative momentum, which may lead to deeper correction.

ORCL

1187

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/

13.09.2023

Tezos May Make a Short Pit Stop around $0.60

Tezos prices are falling at full throttle, and passed $0.70 support level in mid-August. The coin lost another 8.5% since then and is nearing $0.60 resistance level. There are few chances prices will hold at this level for a long period, but a short pit stop here is possible.

Tezos has presented limited McLaren F1 Italian GP NFT collection. However, this “McLaren Moments” NFT collection is unlikely to stop coin prices from falling. But it will certainly make some F1 fans happy.

XTZUSD

1441

Alberto Jiménez

13.09.2023

Dogecoin Continues Down

Dogecoin is under control of bears and its prices continue to decline after a short upside correction on September 10-11. They could hit the resistance of the downtrend at 0.0615-0.0620. Thus, it would be wise to look for short trades at the above indicated area with a target at 0.0590, the low of September 11. The stop-loss could be set at 0.0627, the low of September 7.

DOGUSD

1045

180

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182

Popular

11.08.2022

Perspective Peers of Ethereum: Avalanche

AVAUSD

2267

11.01.2023

Advanced Crypto Assets: dYdX