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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.

23.01.2025
Ontology Is Sliding Towards $0.2000

Ontology (ONT) is down 2.3% this week, trading at $0.2176, in line with the broader crypto market where Bitcoin (BTC) has declined 2.0% to $101,632. While the new U.S. administration has made some strides toward fairer crypto regulation, Donald Trump has remained silent on the highly anticipated issue of adding Bitcoin to U.S. federal reserves.

Market speculation is rampant, with figures like BlackRock CEO Larry Fink suggesting Bitcoin could surge to $700,000 per coin if sovereign wealth funds begin accumulating. Other forecasts predict Bitcoin reaching $250,000 by year-end. While such projections could foster optimism, the lack of decisive action or announcements regarding U.S. crypto reserves is weighing heavily on the market.

For Ontology, the situation remains bearish. Having breached the critical support at $0.2500 last week, the token is now approaching the $0.2000 level. A failure to provide clear evidence or statements about U.S. federal crypto reserve plans could see ONT fall even further, breaching the $0.2000 mark and deepening its losses.

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.

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.

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/
USDJPY Chase Continues to the Downside

The USDJPY is wiggling like an attacking snake around 150.00. The pair has signaled a possible breakthrough last week and failed to do so. The Yen has strengthened to below 150.00, and is now flagging a downside towards 145.00 against the Dollar.

Markets have become more unpredictable recently. The uncertainty is high to detect a beginning of mid-term moments. I don’t want to miss out a good opportunity too. With the USDJPY it is a downside impulse below 150.00 and a breakthrough of the middle of the ascending channel. I plan to open short trades from 149.00-150.00 with a target at 145.00, which is the support of the channel. The stop-loss will be hidden above the recent high at 152.70.

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B
The Dollar May Recover After FOMC Minutes Disappointment

The Greenback may partially recover, as investors have not found any clues to the end of the interest rates hike cycle in the Federal Open Market Committee (FOMC) Minutes. Many currency traders were placing their hopes on a chance for more clear signs that chair Jerome Powell and his colleagues had eventually finished their rate hike marathon. U.S. central bankers left interest rates unchanged at 5.25-5.50%. However, those much esteemed gentlemen and ladies are trying not to hint directly on any potential turn around in their policy as they want to avoid mitigating effects of their previous actions.

Investors’ disappointment may result in covering sell positions in the U.S. Dollar ahead of the Thanksgiving holidays. As the Japanese Jen is probably the weakest link among reserve currencies, USD/JPY could test a range between 150.30 and 151.50 at least, as it is already knocking the 149.50 door. Yet, even some extended weakness in the single currency, as well as Kiwi and Aussie may follow the Yen's example, if the market loses faith in the Fed's verbal capacities to give exactly what investors want to receive.

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Stocks to Benefit from a Tech Rally: Palo Alto

This is a California-based company, which sells firewall appliances, domain name system (DNS) security software; and other protection management solutions to cover threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection etc. Government entities operating in education and energy, financial services and healthcare, Internet and telecommunications are also among its clients' base.

The company already released its solid Q3 numbers about a week ago, on November 15. Its EPS (equity per share) of $1.38 much exceeded consensus expectations of $1.16, even though it was little less than $1.44 in the previous quarter. A similar situation was for revenue of $1.9 billion compared to consensus estimates of $1.84 billion, yet lower than $2.0 billion in Q2.

This news pushed its stock prices down by 8.5% to $242.30 from its November high at $264.75. Some analysts, including the Bank of America's (BofA), downgraded Palo Alto Networks shares from Buy to Neutral. The BofA lowered its target price by $25 to $265 per share, citing a risk of additional pressure on billings and further shortening of debt burden duration. A solid increase in vendor financing activities was partially based on provision of financing in exchange for long-term commitments and larger deal sizes, they said, while watching a 36% QoQ decline in billings.

A progress of many IT companies follows a similar scenario, which does not prevent the explosive growth of their market values in 2023. Shares of Palo Alto Networks gained nearly 89% YTD and already closed a November 15-16 gap with a full comeback to the stock's former positioning. These developments may point to a further rally in Palo Alto Networks, as its shares could join many other favourites of the optimistic tech segment before the year end. Short covering may boost the stock higher in the short-term, at least.

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Stocks to Benefit from a Tech Rally: CrowdStrike

NVIDIA's strong Q3 report and upbeat guidance that was released on November 21 shore up investors' confidence in other companies of the segment, related to artificial intelligence, big data, chip and cloud technologies. CrowdStrike Holdings Inc, headquartered in Austin, Texas, could be included in a broader range of well-established business projects. A 12-year-old provider of cloud protection across endpoints and workloads offers managed security and vulnerability control services, identity and log protection, selling corporate and individual subscriptions to its Falcon platform and modules through its sales team and a global network of channel partners. With its nearly $50 billion of market caps CrowdStrike is an important player of the IT industry.

The nearest quarterly report from CrowdStrike is expected on November 28. Its share prices climbed from $149 in late August to $209, a record 40% increase this autumn and more than 95% performance year-to-date. However, there is still space for an upside considering performance of some other technology companies over the same period, as well as a 30% discount vs the company's own record two years ago, when CrowdStrike has been traded just a dollar and a half below $300 per share. Therefore, it has a further significant growth potential.

Continuation of a powerful rally looks as the major scenario for the stock, when the world's economy faces digital transformation. Many companies, as well as governments, are ready for extended cyber spending. CrowdStrike's strong fundamentals in top and bottom lines, most probably, would find more confirmations of their high altitude, yet some part of market optimists may provide additional rise of the stock even before the quarterly report on expectations, based on positive results for other IT companies. Consensus calls for Q3 EPS (earnings per share) of $0.74, which would be 85% better than $0.40 in Q3 2022, against $0.17 two years ago. Average sales' forecast is +34.8% YoY at $777.33 million. CrowdStrike has topped Wall Street’s consensus in every quarter since it went public in June 2019.

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