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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.

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.

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.

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.

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.

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Cardano is Likely to Continue Up

Cardano is moving alongside an uptrend since November 1. Yesterday its prices touched the support of the uptrend and bounced to the upside. ‘Bullish engulfing’ candlestick pattern was formed, enforcing an upside scenario. It would be interesting to consider long trades at 0.3500 with a target at 0.3565, the high of July 14. The stop-loss could be set at 0.3340, the low of November 5.

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Starbucks: The Best Time to Buy

Starbucks deserves a special place in my stock portfolio. My intention is to buy more of the coffee shop shares, after it bounced by nearly 9.5% to follow the strong Q3 financial report on November 2. I believe the stock has a potential to climb at least 7% to 10% above its current psychological resistance near the round figure of $100 per share, if one takes into account that it just peaked at $115.48 not so long ago, in late April this year.

Starbucks not only beat Wall Street experts' estimates in Q3 to jump over $1 of quarterly profit per share for the second time in its corporate history (the first belongs to Q2 2021), but also made it on all-time record sales. The company also provided an upbeat annual forecast, relying on its updated store technology and seasonal menu enhancements. Elevated demand for its Pumpkin Spice Latte since August and other new fall-themed drinks like Iced Pumpkin Cream Chai Tea Latte and apple-flavoured Espressos, new types of croissants is here, as it already led U.S. same-store sales to 8% rise in the quarter. Starbucks foresee its fiscal 2024 per-share profit growth of 15% to 20%, above analysts' estimates of 15.1%, with its comparable sales growing between 5% and 7% globally, including China's rise 4% to 6% in the last three quarters of 2024.

Placer.ai data indicated a more than 20% surge in visits on the day of the Pumpkin Spice Latte launch, while Starbucks CEOs said the seasonal assortment created record average weekly sales. The Christmas quarter always looks lovely for the "affordable luxury" stores, and Starbucks is occupying even a more comfortable customer base niche, as many gourmands may easily allow to pamper themselves by just a little bit more expensive coffee breakfast. Even younger audience would probably feel O.K. with another morning coffee fix. The choice of more affluent clients could be also shifted if favour of relatively cheaper chain stores including Starbucks, as wider restaurant industry is much more painfully exposed with an inflation slowdown of demand.

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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/
Tezos Rally is Seen Terminated at $0.80

Tezos (XTZ) prices are rolling back towards $0.77 after an unsuccessful attempt to pass through the resistance at $0.80. The token has rallied by 30% since October 20. Most intriguing is that there were no news associated with this rally. Partnerships of Tezos with McLaren Manchester United and RedBull Racing were rocking the agenda in early October. Thus, the recent upside is associated only with the spot Bitcoin-ETF rally. The sentiment is now turning to the negative side. So, without any good news that could push ZTX prices above $0.80 per coin it would likely slid to the support at $0.70.

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Cosmos is Offering Buy Opportunities

Cosmos is moving alongside an uptrend since October 19. The ATMUSD went into correction in the recent few days and it is nearing the support of the uptrend. Thus, it would be interesting to consider long trades at 7.7980-7.4870 with a target at 8.4560, the high of August 15. The stop-loss could be set at 7.0333, the low of October 29.

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