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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.

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.

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.

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.

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.

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/

22.05.2025

Dogecoin is Rallying on Market Positive Sentiment

Dogecoin (DOGE) is rising by 9.0% to $0.2430 this week, riding the wave of Bitcoin’s (BTC) phenomenal 16.0% surge to a new all-time high at $111,865. This explosive move followed the U.S. Senate’s approval of the stablecoin GENIUS Act, which sets up a regulatory framework for stablecoins and is expected to channel significant capital into the crypto space.

Investor enthusiasm is building across the board, with DOGE benefiting from the broader rally. The momentum could propel the meme coin toward the $0.3000 mark, with the potential to extend gains toward $0.4000 if market conditions remain favorable.

DOGUSD

2510

Rafael Quintana Martinez

21.05.2025

Tezos Poised to Continue the Rally

Tezos (XTZ) is trading flat at $0.614 this week, underperforming the broader crypto market as Bitcoin (BTC) rises by 2.0% to $106,200. The token appears to be consolidating after breaking through key resistance at $0.600. It reached a recent high of $0.700 on May 13—the highest level since March 28—before pulling back to retest the new support zone.

This retest suggests a potential continuation of the upward trend. Momentum is supported not only by improving overall market sentiment but also by the recent Rio upgrade, which enhances staking flexibility, bolsters Layer 2 development, and strengthens the validator framework. With these developments in place, XTZ may continue its upward trajectory toward the next target at $0.800, representing a potential 30% gain from current levels.

XTZUSD

2559

MetadoroIn-house analytics

21.05.2025

Home Depot Rides a Rising Tide

The share price of the U.S. and multinational home improvement retailer Home Depot initially jumped $10, from under $380 to nearly $390, or 2.5%, in the first few minutes after the opening bell on May 20. The price later dropped to test the $380+ area again, but was bought back to climb by nearly 2% once again. This probably consolidated the overall positive contribution of the corporation's quarterly earnings released that day to a more than 15% rising tide since its April 9's low at $328.60, when the market just got rid of the scourge of global tariff war in its most acute form.

Home Depot's sales clearly beats the analyst pool's estimates. Its overall comparable sales slid by 0.3% in the last three months, but reportedly hurt by weaker results in February because of improper weather. All in all, the company posted net sales of $39.86 billion, that is 1.5% better vs average expectations of $39.25 billion, according to data compiled by LSEG. At the same time, adjusted EPS (equity per share) came out at $3.56 vs $3.60 expected and $3.63 in the same season of 2024, but all those numbers look much higher than the one-off drop in profit numbers to only $3.13 per share in the Christmas quarter.

Two points were seemingly most important for keeping the investment sentiment on a positive side. The first point is that The Home Depot promised to hold its consumer prices unchanged despite tariffs' threat, citing resilient demand from professional contractors to lead to maintaining its former annual forecast unchanged. The other one is that the company's CFO Richard McPhail ensured that in the next 12 months, no single country outside the U.S. will represent more than 10% of its purchases", after it has cut its previously high exposure to China substantially in recent years. A well-diversified supply chain strategy should help Home Depot to "generally maintain current pricing levels across its portfolio", he added.

The HD's oath to keep prices steady are especially vital in contrast to Walmart’s warning only several days before that the major U.S. discounter may have to implement higher prices tags due to tariffs, which immediately drew the ire of U.S. president Donald Trump, who claimed that Walmart should "eat" the import tariffs and not to pass on the costs to consumers. This public controversy hasn't actually stopped Walmart from continuing its upside rally, but Walmart appears to have much more fundamental reasons for growth, and so a similar story with Home Depot could hurt its stock's performance.

Now, even though Home Depot could hardly be called a stable growth stock and it may be subject to moderate volatility as before, the Home Depot's ultimate price targets above $425, just corresponding to its January's highs of 2025, still prove their right to be kept in mind for the rest of the year. This happens despite some consumer-facing companies have shared rather sad quarterly results, pulling down their YoY forecasts.

2419

Bash

20.05.2025

A Crowd of Those Thirsty for Quick Money Now Loves Aave

Without much further ado I present to you another favourite crypto asset of mine at the moment, which is Aave. The thing is that Aave digital token is initially related to a decentralized lending platform. It allows crypto adepts to borrow and lend against crypto collateral without any involvement of traditional banking institutions. This is the so-called DeFi (Decentralized Finance) system, which has a potential to gain more rising momentum as interest rates in the Euro and the US Dollars would go down further. The project is based on the Ethereum blockchain to operate through smart contracts' mechanisms in order to ensure the automatic execution of transaction terms. The current market cap is over $3 billion. The maximum supply of Aave tokens is algorithmically capped at 16 million, with about 80% of those already in circulation. This cap helps maintain the value of the token. Aave tokens can be staked through special security modules, which acts as a joint insurance fund to reduce risks where the token holders receive additional rewards for helping to secure the protocol.

The highly reputable Bernstein investment house believes that Aave has a chance to exceed $300 by 2030, as lending yields for stablecoins are ranging from 3.7% to 3.9%. The fact that the Federal Reserve is gearing up to cut interest rates later through 2025 makes DeFi yields more attractive again, they said, being a catalyst to reboot crypto credit markets. "For example, if plain vanilla lending USDC stablecoin offered a 3% yield, the free token incentives would juice the yield to 15-20%," the same group of analysts explained in late 2024, even though these high yields could be unsustainable, of course. As interest rates increased in 2022-2023, even standard USDC yields became less attractive compared to US money market yields, but the situation may transform in favour of credit tokens when interest rates become lower. This means the crypto lending markets are waking up. Aave is surely the largest lending market based on Ethereum. Bernstein noted that the number of unique monthly DeFi users has approximately tripled or quadrupled in 2023-2024, with the supply of fiat-backed stable coins in circulation hitting a new high of $158 billion by September 2024.

Many analyst estimates on Binance crypto platform are $100 to $150 higher, while the asset has already grown from nearly $180 to more than $260 since the beginning of May, that is, by a total of 44%, including a sudden spike in demand to drive Aave by around 20% over the past 24 hours. I don’t know about you, but I’m ready to join this crowd of those thirsty for quick money on any minor 3% to 5% intraday corrective move in Aave. With the rising flag's technical pattern on H1 and H4 charts here, freshly broken upside today, my chances of a successful outcome are even higher.

AAVUSD

2695