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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.

16.06.2022

Not Every Tech Stocks are Equally Strong: SAP

SAP stocks have lost 30% since the beginning of 2022. The German tech company develops enterprise software and solutions to manage business operations. For example, one of its services can be used to manage all business travel financial activities and related spending. In other words, it is quite a routine company with a stable and strong cash flow. Once SAP software is installed on a corporate level it is hard to do without it as it is deeply integrated into the business core processes. Moreover, SAP is restructuring its business model around its subscription base and this will allow for cash flows to be even more predictable and balanced through the financial year. Such a model is in favourable to Wall Streel investors.

The war in Ukraine has a 300-million-euro negative effect on SAP business, and it is only a marginal 1% of the overall revenue base for the company, while its dominance in the ERP segment is secure. The revenues added 11% year-on-year to 7.08 euros in Q1 2022. The revenues grew by 6% in Q4 2021.

The company has made some successful M&A deals, acquiring Qualtrics, a cloud-based subscription software platform, that delivered +48% revenue in Q1 2022. This company had a gross margin above 90% in 2021 while SAP’s gross margin was at 70% for the same year.

SAP management promised to triple its cloud-based business by 2025, and boost revenues to 22 billion euros, while operational profit is forecasted to grow by 40% from the current 8.4 billion euros. This is a very extensive growth for the company that has a high P/E ratio at 17. The company may not perform very high growth rates as its younger tech sector peers, but it may certainly recover to new all-time highs in the long-term perspective. However, the sector may require several quarters to recover, and the recovery would be headed by such reliable companies as SAP with a low risk profile.

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.

26.04.2023

Diversification Inside Tech Sector: Taiwan Semiconductor

TMS is the most valuable semiconductor producer in the world. Its stock went down by 40% during the recent market correction, and rebounded slightly after a strong Q1 2023 earnings report. The company reported an operational margin at 45.5% as production of 5 nm and 7 nm chips is increasing. The company continues to generate profit despite decreasing demand for personal computers after surging during the pandemic in 2020-2021. Its financials are looking much stronger than its major peer Intel. In the worst-case scenario TSM’s operational margin is expected to decline to 40%, while Intel is expected to deliver a 39% operational margin with a negative net cash flow in Q1 2023. Taiwan Semiconductor is planning to spent between $32 billion to $36 billion on CAPEX this year, while Intel has cut CAPEX to $20 billion despite being 30% co-funded by the U.S. government. On the negative side, the company is quite vulnerable to geopolitical risks as tensions between China and Taiwan are mounting. Although, it is hard to believe that Beijing will take the island by force, these threats could not be discounted. China is building its image as a global peacemaker while promoting its roadmap to establish peace between Russia and Ukraine, and the recent China-brokered agreement between Iran and Saudi Arabia. Economic ambitions of China are also a major hurdle for a military solution of the long-lasting conflict as the destruction of the chip production facilities of TSM will make such military operations pointless in the economic sense. In other words, TSM stocks may interest very optimistic investors that are seeking extra profit amid recovering demand for chips in the second half of` 2023.

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.

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/

11.02.2025

HP Promise 50% to the Upside

HP Inc. (HPQ) presents a compelling upside opportunity at an attractive price level. Several technical signals indicate a potential 50% gain over the next 12 months. The stock is maintaining support above the middle line of its ascending channel and has formed a two-year diamond pattern, now initiating a move toward its projected targets of $47–50. A 20% pullback in recent months offers an excellent entry point before a potential breakout.

I am entering a long position at $31.00–33.00, targeting a 50% upside. A stop-loss is set at $22.00, below the diamond pattern’s key support level.

HPQ

535

Bash

11.02.2025

McDonald's Fast Recovery on Smaller Damage

McDonald's seemingly gets away with its late October's E. coli incident. One person dead and dozens sick from infection linked to Quarter Pounder popular hamburgers. The market value of this huge and most famous fast food chain lost up to 12% after facing a following drop in visitors over the next couple of months. The deepest point of a pullback was at nearly $276.5 on January 16. However, it didn't take long to see the price jumping above $310. Thus, shares of McDonald's closed at $308.42 this Monday's regular session after a 4.8% bullish jump to follow the firm's comparable sales during the last quarter that topped consensus bets. The average estimate of Bloomberg analyst pool was focused around a possible quarterly decline around 0.90%. Global comparable sales of McDonald's expanded by 0.4% in the last three months of 2024, with performance being led reportedly by the Middle East and Japan. Demand pressure was limited after easing due to an informal boycott of Western chains over their pro-Israeli stance in the Gaza conflict. It is probably a thing of the past. And now weakness in the largest market for McDonald's, which is certainly the U.S., has been mostly overcome as well, due to lower-priced options and "exciting menu innovations" like a Chicken Big Mac and bringing back snack wraps to restore consumer confidence, according to the fast-food chain's CEO Chris Kempczinski. Extending its $5 meal deal into December helped much, but the average transaction size reached more than $10 in the U.S. Group-wide, MCD revenue was only 0.3% lower YoY at $6.39 billion, while operating income rose 2.4% to $2.87 billion, despite the shocks, including an additional pre-tax expense of $221 million because of a restructuring process.

I mentioned my target price at $325 to be touched even before the end of winter or at least in the beginning of spring, citing factors of more cost-conscious consumers to choose reasonably priced food, attractive and new limited-time offerings and potentially lower interest rates. The last argument remains an unfulfilled hope, but the stock has travelled most of its supposed path without a proper contribution from central banks. This means the ultimate goal could be shifted even to a higher price area, let's say between $330 and $350. By the way, Citigroup analysts see a Buy rating with a $336 price target. In early November, we discussed a great chance of adding more buy positions for MCD in case of retesting "the levels around $275 or a bit lower" as I didn't believe in larger damage to the stock. This assumption was one hundred percent hitting in terms of the bottoming area. The next question is how accurately the upper target will be achieved. Hope to see it soon.

When pointing at potential post-election gainers, I added a few more U.S. budget chain store names like Target (TGT) and Walmart (WMT), besides McDonald's. If Target shares have so far only seen a partial recovery, then Walmart's price has found a path from $82.5 three months ago to $103 in the first week of February. Gradually, the turn of the remaining forecasts comes.

MCD

435

MetadoroIn-house analytics

11.02.2025

Tariff Wars Are Buying Opportunities

Major world market indices tend to ignore the impact of U.S. president Donald Trump's trade war actions. The investment community calmly digested his announcement of 25% tariffs on all steel and aluminium imports to the U.S., just a few days after unsurprising 10% on China's goods. The metal tariffs will be added to current levies, which Trump already imposed during his first term, as the measures were partially retained by the Biden administration. As a result, the S&P 500 broad barometer of Wall Street stopped climbing around 6,100 for going backwards last Friday's evening on February 7 and began regular trading on February 10 just one step below the psychologically important figure of 6,000, particularly at 5,992.80. However, it ended the regular session at 6,065.50, which represented a gain of more than a full percentage point. These same types of smoothed-out effects were seen during Trump's first term. Mutual protectionist measures clearly limited global economic growth in 2017-2019, but did not prevent the stock market rally from developing further to new record highs. At that time, the U.S. S&P 500 has grown from nearly 2,250 to almost 3,400 points. In 2025, the capital flight from accumulated inflation seems to be equal to a scorched earth effect under the feet of rich and middle class who previously held conservatively to cash deposits and Treasury notes, and now enhancing their stakes in sustainable businesses and pushing risk-on buttons for the artificial intelligence as well as various big data and cloud tech names.

Investors may be hoping that Trump's tough first steps are more of a bid to open subsequent trade talks with more balanced end-terms. Just new positioning for the new division of our small world. If so, then some relief may be offered at least to Mexico and Canada as immediate neighbours. As an example, Trump already postponed actually imposing 25% tariffs on these two major suppliers for the U.S. industries. Trump's team also granted quotas for exemptions from initial tariffs during his first term, for particular countries, and then struck a "big deal" with China based on concessions from hard-line starting positions. We consider the idea of markets expecting similar scenarios here and now.

It seems, however, that the degradation of the purchasing value of depreciated dollars and euros, as a result of the intense previous activity of the printing press in the COVID times, as well as printing money because of geopolitical tensions and internal problems, is simply a much stronger driver of buying more stocks despite climbing indexes compared to the negative factor of tariff battles. January inflation may push the S&P 500 even more upstairs if signs of cooling price growth will be demonstrated on a MoM or YoY basis. But even sticky inflation pressure scenarios would result in some delay in the bullish race, though reversal patterns on charts could currently be excluded from being considered.

Even though the leading EU economies are clearly unhappy with the prospect of Trump's nearly promised tariffs for the EU as well, European stock markets continue to grow as if nothing had happened. Although German industrial companies are suffering from expensive energy supplies, the German DAX 40 index of blue chips (GER40) is at new historical highs and only a hundred points away from the 22,000 mark. It was ranging from 19,000 to 19,650 before the end of last autumn, but managed to gain double-digit percentages in a couple of months. This looks as a proof that market growth is not at all identical to economic growth forecasts. A need to avoid risks is a more notable motivator than economic comparison or the AI-driven optimism led by Nvidia. Yet, the recent sell-off in Nvidia, triggered by Chinese startup DeepSeek’s breakthrough, is a buying opportunity again, which is confirmed by a nearly 17% rebound from fresh dips.

US500

714

Rafael Quintana Martinez

10.02.2025

Graph Is Likely to Recover Strongly

The Graph (GRT) is up 8.0% this week to $0.1365, outperforming the broader crypto market, where Bitcoin (BTC) is rising by 2.7% to $97,820. The altcoin is now trading slightly above the level where the Trump-driven rally began last November. After gaining 159%, GRT has since lost most of those gains, bottoming out at $0.1026 on February 3.

GRT's price movements are largely influenced by the overall crypto market trend. If BTC manages to stay above $90,000 by the end of February, GRT could see a strong recovery from the $0.1000–$0.1500 levels.

GRTUSD

883