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11.08.2022
Perspective Peers of Ethereum: Avalanche

Avalanche is ranked by Coinmarketcap at the 12th 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.

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.

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.

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.

Two Stocks to Benefit in September: ABNB

Airbnb's share price was growing rapidly since early summer. A global marketplace, which is familiar to many travellers, climbed from a range between $137 and $139 to nearly $155 within the next three weeks after our recommendation.

The company delivered its Q2 2023 earnings report on August 3. It reported $0.98 of equity per share (EPS) on $2.5 billion revenue, which looked stronger against consensus of about $0.80 of EPS on $2.4 billion revenue. This is especially true if one compares it to $0.48 and $0.18 cents of EPS on $1.8-1.9 billion revenue in the previous two quarters.

The logic of profit-taking on good news led Airbnb to a rollback below $125 per share in the rest of August. However, the business conjuncture remained suitable as renting apartments instead of booking tours helps to save money for families as their incomes are deteriorating amid persistent high inflation, and higher borrowing costs in U.S. Dollars and Euros.

Perhaps, a new wave of Airbnb rally to its higher targets well above $150 just needed a push. And this push happened when S&P Global announced that Airbnb would be included in the S&P 500 list. It would be effective prior to the open of trading on Monday, September 18. The company’s index inclusion may drive significant buying from index funds, which are used to distribute their invested money between the companies from the S&P 500 list in appropriate proportion with each company's caps, as well as numerous investors who scrupulously try to track the S&P 500 structure or even to copy its composition. That's very good for the company, which became public through IPO only in December 2020, and now its market value is more than $90 billion.

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Two Stocks to Benefit in September: Blackstone

There are more a lot of investors and fund managers who scrupulously track the S&P 500 structure and try to repeat it in general or even to copy its whole composition. Therefore, news on the latest additions to the S&P 500 list most often contribute to the market value of any "newcomer" stock on Wall Street.

Founded in 1985, Blackstone Group Inc (BX) specializes in real estate management, hedge fund solutions and in private equity. Its share price added 3.6% on September 5 after the news that the stock will be added to S&P 500 list on September 18. Altogether, Blackstone is trading nearly 16% higher than at the end of June, yet its recovery rally still looks unfinished, as the current price range of $108-110 represents a big 27.7% discount compared to almost a $150 peaking price of November 2021.

Blackstone became a public company in 2007. Initially, the company was formed as a mergers and acquisitions advisory boutique by two former co-workers of Lehman Brothers. Meanings of their names gave the name to their firm, as "schwarz" in Schwarzman surname is German for "black" and both parts of Peter Peterson's name are associated with Greek words for "stone" or "rock".

The company’s index inclusion may drive significant buying from index funds, which distribute their invested money strictly between the companies from the S&P 500 list, in appropriate proportion with each company's caps. Blackstone's value is currently more than $122 billion, so that it is probably the world’s biggest alternative asset managing operator. To qualify for the S&P 500, companies must have a market capitalization of at least $14.5 billion, also meeting profitability, liquidity and share-float standards. Why did it happen that Blackstone was not a part of the S&P 500 list before now? It was only in April 2023 when S&P Dow Jones decided to drop its previous rule that barred corporations with multiple share classes from index membership, and Blackstone has the so-called dual share structure with unequal voting rights.

The decision on S&P membership for Blackstone would be effective prior to the open of trading on Monday, September 18, according to recent updates to S&P 500 lists. A press release on quarterly rebalancing for the S&P Global indexes, in order to ensure each index is more representative of its market capitalisation range, came out last Friday. The company's price soared by 7.23% during the following Wall Street session.

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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/
Regulatory Pressures Push Monero Down

Monero prices are down by 1.6% this week to $138 per coin. This decline is more than twice as big as Bitcoin prices drop. The coin could be heading toward $125 amid regulatory pressures on crypto assets. Monero is focused on privacy and confidentiality, which is a major disadvantage in the eyes of officials. Many crypto exchanges have delisted Monero, while Huobi and Binance have disabled trading of privacy coins like Monero, ZCash and Dash in France, Italy, Spain and Poland. This disable is likely to be extended to other jurisdictions outside Europe amid increasing regulatory pressures, especially from the U.S. SEC. Middle East countries like United Arab Emirates have banned operations with privacy coins. There is no way how Monero and other privacy coin would avoid that ban to attract investors.

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B
Dell Shares Are Hitting All-Time Highs

Share prices of Dell Technologies (DELL) went through the roof by adding more than 22% since September 1 to set their new record high above $70. The start-up, initially aimed to sell IBM compatible computers built from stock components, now costs nearly $50 billion. It currently benefits from mad waves of artificial intelligence (AI) hype and improving demand for hardware, which may replace more than a year of rather inactive market. The latter tendency was previously revealed by companies like Cisco and Hewlett Packard, but it was Dell to seize the momentum as it reported $1.74 of EPS (equity per share) on $22.9 billion sales compared to expert consensus of only $1.14 for EPS on $20.85 billion. Servers and networking revenue climbed by 11% vs Q1 2023, driven by "higher demand for AI-optimized servers", Michael Dell, Dell CEO said. He also raised company's full-year financial forecast.

Investment groups are raising target prices for Dell. Wells Fargo set its new target to $75 from $65, Citigroup put it to $70 from $60 and JP Morgan raised its target to $68 from $61. Yet, my mind combined with technical analysis experience are telling me that the next $80 bar could be even exceeded. Measuring the previous price progress and watching on relative behaviour of other AI-boosted stocks before exemplifies this view. Anyway, odds of a another surge could be sold better than bets on a roll back to the levels last seen before Q2 report, even if some price squatting occurs.

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