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12.05.2022

Perspective ETFs in the ESG energy segment: Invesco Global Clean Energy Portfolio ETF

This ETF invests in green energy ventures. The pandemic led to a 300% increase of its share price. But since the beginning of 2022 they have lost 30%, twice as much as the S&P 500 SPY ETF. The net capital which has outflown from the Fund has reached $31.5 billion over the last 12 months, while the major outflow was recorded in December 2021. However, its shares are still seen to be overbought as P/E multiplier is at 24 that is well above the average of 20 for the EFT’s that are linked to the S&P 500, while the dividend yields are above PBD’s numbers.

Inflation in the United States is rising negatively affecting all shares with a high P/E ratio. So, we may expect a further decline of the PBD share price and other similar assets that cannot be protected from rising risks. Traditional energies are looking more attractive on this background and could be a perfect hedge asset amidst geopolitical uncertainties.

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.

12.04.2024

CarMax Is More Committed to Innovations But Market Conditions Make It Sinking

CarMax (KMX) quarterly report came out on April 11, vividly displaying why any immediate investment into the used car market still sounds like not a good idea. The stock quickly lost ground, wasting a double-digit number of percentage points as a response to its net income drop to $0.32 per share against $0.44 cents per share a year ago, also compared to much stronger $0.52, $0.75 and $1.44 per share in the previous three quarters. Analyst polls estimated a net income per share at about $0.50, which would be 56% better than the reality.

This almost looks like a financial fiasco in the company's efforts to withstand slowing demand in the segment. CarMax Q4 2023 revenue decreased by 1.7% to $5.6 billion, slightly below consensus expectations of $5.8 billion, indicating the lack of gross marginality of the business. This happened even though the total supply of unsold used vehicles on dealer lots grew by 9% YoY to 2.27 million units in March, according to Cox Automotive data. CarMax CEOs delayed their own goal of selling over 2 million units annually, when measuring combined retail and wholesale actions, to between 2026 and 2030, from its prior target of 2026.

A "higher-for-longer" Fed fund rates is demonstrably bad for car sales volumes, be it new generation Tesla cars or just pre-owned vehicles, while operating costs for warehouses are growing. Besides, easing some semiconductor constraints in North America may help marginally improving orders for new cars, leaving used-car sales under the same pressure. Meanwhile, the entrance of Asia players offered significant discounts. Therefore, North American and European operators of the used car market need to sell many great cars at cheaper prices. CarMax already posted its official warning of a potential "hit to profit-sharing revenue" due to inflationary impact to its partners, before last Christmas. "While affordability of used cars remains the challenge for consumers, pricing improved during the quarter," Enrique Mayor-Mora, executive vice president and CFO admitted.

It was only a smaller division of CarMax Auto Finance, which managed to get a 19% better income due to "a lower provision for loan losses" and an increase in average managed receivables. Yet, this was rather news from the side business, which was clearly not enough to be optimistic. The company added that it is now focused on enhancing its omni-channel experience and leveraging data science and automation. Carmax said it delivered "strong retail and wholesale" graphic processors, which helped to increase "used saleable inventory units" more than 10%, but used total inventory units was unchanged despite innovations. The company seeks to achieve efficiency improvements in its core operations, believing that they "are well-positioned to drive growth as the market turns", according to Enrique Mayor-Mora. This may be useful to strengthen competitiveness in better times for the segment. Yet, the current challenges are too heavy to be ignored by market crowds.

Bash

21.07.2025

Pips and Dips for Netflix

Ahead of the widely anticipated parade of tech giants, when Google, Tesla and IBM need to confirm the strength of the overall tech rally on the night before July 24, a modest quarterly release of the world's leading streaming service Netflix, with its market value of "just some" half a trillion greenbucks, released last week, went nearly unnoticed. This is quite understandable, because the Q2 figures had not much food for deep thought inside them to impress the investment community this time. If so, the market purely dropped from under the $1275 closing price on July 17 to test the $1200 area. However, this $75 initial pullback represents only 5.88% of Netflix's share price, not enough to generate active buying interest in an asset that grew from $927.50 on April 1 to an all-time high of $1341.15 by the end of June.

It went 44% up in three months, then pulled back 5% long before the Q2 report, and roughly another 5% after the report. The path behind suggests that all the clever bulls who rode the rally have done their job properly, and then took profits from their quick actions in two short waves, but overall expect this growth to continue gradually. They are simply not ready for intense action right from the current levels. This can also be judged, since the initial rebound in the beginning of the new week has been rather small so far, just within 1.5%.

I would draw my personal range of potential valuation for Netflix shares in the coming months, the bottom of which could be between $1050 and $1100. Yet, I don’t see any options or fundamental reasons for the asset to move lower. So, anything closer to $1100, if the market would give us such prices, is a basic territory for active Netflix purchases, with targets around $1450 to start with, I would say. This harvest looks modest in terms of quantity, though promising good taste if we appreciate small but easy profits in a short period of time. Again, buying any local dips in Netflix could later transform into a story when one bought near long-term lows.

After all, if the quarter before next earnings can result in just price stagnation no higher than $1450 or $1500, then the next earnings report on October 15 can boost the rally again. The only thing is that Netflix would barely cost $1100+ or $1200 at that moment. I think so because Netflix lifted its annual revenue guidance on July 17 to a higher range between $44.8 billion and $45.2 billion, thanks to "healthy member growth and ad sales" plus "weakening USD". Its previous guidance was up to $44.5 billion. Its April-to-June results topped consensus estimates as well, albeit slightly. There was no sign of weakness, that's my point! I don't like the "Squid Game" because I'm not a fan of hardcore. But the final season of this global phenomenon already helped Netflix to do math in Q2, and the streaming service's CEOs cited its effect when raising their forward guidance for the year as well. So I like the money that Netflix and I will make from this stupid story.

Yes, some part of the crowd did hope for more from the dominant movie in Q2, but Q2 diluted EPS (earnings per share) of $7.19 was only an inch higher than $7.08 in consensus forecasts. I suppose those expectations will be justified at last, after a short delay, that is, in the next two or three months, and during this time, some newer plots will do the rest of the job. "Wednesday" returns in August, and it seems to me that Tim Burton's style has an audience that does not quite match the audience of the Squid Game. So, new folks will come to pay and see. The final episodes of "Stranger Things" will be released in November and December to create extra expectations for the Christmas quarterб which always sells itself. From this, I conclude that we shouldn’t expect too deep lows, and then there may not be any explosive growth, but... before the end of the year, Netflix shares will make many small steps up. You will not notice how you will find yourself on a new peak with them.

NFLX

1846

MetadoroIn-house analytics

21.07.2025

Verizon Claims Strong Soil under Its Feet

To everyone's astonishment on Wall Street, Verizon Communications (VZ) suddenly added more than 5% to its market value already in the first trading hours this week. That's an unusually large gain in the telecom industry, even if we talk about a business with triple-digit market caps in billions of U.S. Dollars. The reason for the upside leap on July 21 lies not so much in the fact that both the company's Q2 core profit and revenue just topped consensus estimates by nearly 2.5%. What was perhaps more important was that it has bravely lifted its own inner estimates for the lower end of adjusted earnings for the full year of 2025.

Verizon said it may get an income higher by 1% to 3% from a prior range of 0% to 3%, because of rising demand for higher-tier plans. Its EBITDA (earnings before interest, taxes, depreciation and amortization) is seen rising by 2.5% to 3.5%, versus 2% to 3.5% in the company's previous projections. Now it improves customer retention via promotions to beat rivals like AT&T, T-Mobile and Comcast in the U.S., so that Verizon's broadband net additions came in at 293,000 for the last three months. Considering that the group-wide operating sales edged up by 5.2% YoY to $34.5 billion, compared to $32.8 billion in Q2 2024, these are not all trivial numbers.

In recent years, telecoms have generally not had very high profit margins, inferior to many technology companies that offer much more extensive innovation programs. They can't make money like cloud services or at least as manufacturers of gadgets with most advanced AI options. These are simple men of labour to provide 5G and 4G LTE networks for mobile phone and home internet plus information and entertainment products including streaming services as well as some business, consumer solutions. That's why the financial results look so impressive. When waiting for the fibre-optic internet provider Frontier deal for $20 billion, Verizon's CEO Hans Vestberg noted his firm has "momentum and a clear path forward".

A relative proximity of the $40 per share technical and psychological support area is also encouraging investors. The stock dipped below $40 only for a short period of one month and a half, starting before Christmas and ending in late January, then resurfacing to as high as $47.35. The further recovery scenario, back above $45, with possible attempts to climb some higher, looks widely expected, therefore. The company's attractiveness for conservative investors is also given because Verizon pays dividends of $2.71 per share (as much as 6.6% in current price levels).

Citigroup has even reiterated its Buy rating with $48.00 as a near-term price target, citing Verizon's consumer postpaid phone gross adds by 19% YoY among other drivers and the slight financial beat against cautious investor sentiment. Morgan Stanley resumed its Equalweight coverage with a $47.00 price target, while Bank of America Securities kept a Neutral rating with a $45.00 price target, which is also 4.8% above this Monday's highs.

1721

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/

21.07.2025

Bitcoin Could Continue above $125,000 in Coming Weeks

Bitcoin (BTC) is adding 1.0% to $119,070 this week, outperforming Ethereum (ETH), which rose by just 0.3% to $3,781. However, taking a broader view, Ethereum has surged 51% in July, significantly outpacing Bitcoin’s 11% monthly gain, a clear sign that altcoins are catching up in the rally.

Bitcoin has already updated its 2021 highs by 80%, while Ethereum is still working toward the same milestone. The leading altcoin remains 28% below its all-time high at $4,864, suggesting room for further upside if momentum persists.

BTC is now approaching the key resistance at $125,000. A breakout above this level in the coming weeks could trigger a fresh leg higher, with the next major target in the $150,000 zone. As altcoins continue to narrow the performance gap, market sentiment remains broadly bullish.

BTCUSD

1873

Rafael Quintana Martinez

18.07.2025

Cardano to Continue Rally

Cardano (ADA) is rising by 16.8% to $0.8550 this week, clearly outperforming Bitcoin (BTC), which is flat at $118,650. ADA broke through the key resistance level at $0.8000 on Thursday and surged to an intraday high of $0.8954. The token now appears poised to target the next major resistance at $1.0000, though a short-term pullback to retest the $0.8000 level is likely before any further advance.

Cardano continues to attract attention as a project of interest, with trading volumes on the rise — a strong sign of growing investor confidence. This momentum suggests that a sustained rally remains possible, especially if the broader crypto market maintains its current stability.

ADAUSD

1702