Metadoro
Products
News and analysis

News and analysis

Check market insights shared by our community members

28.12.2022

eBay stocks are trading 50% off their peak prices despite significant progress in key businesses that increase the possibility of an increasing turnover of the auction platform. The dividend yield of the company is at 2.2%, while its buyback yield is at an impressive 24.4%. So, the overall reward for investors is at 26.6% in 2022, a record among public corporates. eBay has bought back shares for $5.3 billion during the last four quarters. So, outstanding shares have been reduced to 551 million from 685 million a year ago.

The company is actively developing collectable trading, including an acquisition of TCGplayer, a marketplace where enthusiasts exchange their collectables like Pokemon, Magic: The Gathering and others. The most important service that the platform provides is guaranteed authenticity of the collectables that ensures the buyers will not be subject to scams and also protect sellers from any malicious fraud. eBay has recently made this service available for jewellery above $500.

The company has published strong forward guidance for Q4 2022 with turnover at $17.8 billion, revenues at $2.46 billion, and EPS at $1.06. The EPS in the Q4 2021 was at $1.05. So, considering the tense situation in the retail market this year, any figures above record values of 2021 should be considered an achievement. eBay stocks will be able to recover rapidly to their peak prices once the market reverses to the upside, and that would mean 100% profit from the current values.

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.

24.11.2022

Major Risks for Tech Giants: Tesla

Tesla is unique in terms of its share price. TSLA stocks rallied long before the company established the production of viable and steady electric vehicles (EV) and also thanks to the reputation of its leader Elon Musk. It is true that Tesla sometimes misses its mark and deadlines to launch new models and products but it seems that the crowd invests in Tesla not for its hit-and-run strategy but because of their belief in Musk’s ability to transform our everyday life in the long run.

Tesla stocks are trading 60% off their peak prices thanks to the market correction that has been squeezing the market since the end of 2021. Nevertheless, market participants are discussing some drivers that may hit the company’s business. For example, lower gasoline prices may hamper EV sales. It is true that Americans are now paying around $3.6 per gallon compared to $5 a few months ago. But this driver is largely exaggerated as gasoline prices is not the major reason for someone to buy an electric car. A move towards green energy and minimising carbon footprints is not a short term affair, but a sustainable long-term trend that is supported by governments, including the United States and China. Besides. oil producers forecast global demand will outweigh the supply side over the coming years while also betting on higher prices of fuel. So, no short-term movements of gasoline prices would affect EV buyers, as well as TSLA stock buyers.

The more serious issue is the declining prices for Tesla’s second-hand EVs. Tesla used cars are now 15% cheaper after a summer peak. If this downtrend is sustained pressure on sales of new model could mount. Tesla is planning to increase EV’s quarterly production to 500,000 by the end of 2022 and it is likely to increase production further after launching new production facilities in Berlin and Austin. But Tesla is not a mass market. So, Tesla fans are unlikely to pay much more to get a brand-new Tesla.

24.11.2022

Major Risks for Tech Giants: Apple

Apple stocks have had a very impressive performance amid a clearly bearish market while losing only 20% of their peak values. However, investors should be prepared for elevated turbulence in these stocks considering the situation in China.

China’s zero-tolerance policy to COVID-19 led to a massive exit of employees from Zhengzhou city plant amid fears over tightening curbs. Over 200,000 workers are rumoured to have left the plant. If this is true, the production of iPhone 14 Pro and iPhone 14 Pro Max would be very complicated with no clear outlook on when it could be resumed. The delivery delay shown on Apple’s website has already hit six weeks. Americans who ordered the brand new IPhone for Thanksgiving Day will only receive it for Christmas now. Meanwhile the last two months of the year are very valuable for any mass-market company in terms of holiday sales.

Apple is planning to move iPhone production to India. But that would require years. The company has already invested $75 billion in the Chinese market and now this investment may be at risk as the ruling Communist party in China may put a local ban on the sale of Apple products. China is the third largest market for Apple with the United States at the first place with $153 billion and Europe at the second with $95 billion. Wall Street is expecting Apple’s earning to go up by five percent over the next three years. So, any troubles with production in China may alter these forecasts.

28.12.2022

The Most Generous Corporates: Capital One

Capital One Financial corporation shares are trading at 50% off their peak prices. This has inspired the management of the company to deliver a massive buyback program bringing the buyback yield to 19.3%. Together with 2.7% dividend yield, this has made the company one of the most generous in the market. COF shares are in great demand among investors that are focused on value stocks, such as Oakmark Fund with more than $45 billion in assets under management.

The specialisation of Capital One is mostly credit cards, auto loans provided to substandard borrowers, or in other words, people with high credit risk profiles. This business is highly profitable, although it does bear high risks too. The company says it has a reliable risk assessment model in place to run the business. The lender generates not only higher margins compared to its peers, but overruns regulators’ requirements of capital adequacy with 13.6% vs required 6%. Considering these criteria, the company is in line with some of the largest banking institutions in the world, like JP Morgan with 14.1% and the Bank of America with 12.8%.

The company’s capital base, which is built on clients’ deposits, is enough to conduct high-margin lending. Such a model of cheap resources is not only profitable but it is also stable. Capital One has a margin of 10-15% on its tangible equity. The interest for the company’s services is unlikely to decline in the foreseeable future considering the current economic environment. So, COF shares could be selected for long term investments with the upside potential of 30-40% once the market starts recovering.

Bash

04.06.2024

A Midpoint of 5700 is the Next Target

Last week on Wall Street finished with US stock futures' initial drop to the area slightly below the major 5,200 support, led by corrections in some tech assets, yet the negative start of Friday's trading session was quickly replaced by a powerful and broad rebound to the next big figure of 5,300. This proves the general bull's commitment to buy more shares at the earliest opportunity. A bounce nature of the market's sentiment was later confirmed during the following two days. A current market's ability to retest lows shrank to 5,233.50 this Monday, followed by one more spike to 5,290. US manufacturing activity data slowed for the second month in a row to strengthen expectation of lower interest rates rather sooner than later, bond yields moderated to clear the ground for purchasing stock assets as well. Today many traders expected the US Labour Department's numbers of new job openings may serve as a one more pillar to give more confidence. As a matter of fact, 8.06 millions of new job vacancies is worse in terms of the labour market conditions, compared to 8.37 million in average expert estimates, while the previous month's number was revised from a 3-year low of 8.488 million to 8.355 million. Yet, this revived hopes for a dovish turn in the Federal Reserve's policy cycle. As traders and investors, we don't care much about the American or world economy, but what we exactly need for the continuation of the rally is just some hope for milder monetary conditions, even if this hope caused by a depressive economic situation. Persisting inflation worries represent another important driver for long-term investors to convert their savings from cash to growing stocks. The season of corporate earnings is very close to the end, and it was rather successful, especially for the AI-related segment of the market. And that's why I would adhere to the buy and hold tactics, related to chosen stocks for my portfolio at least, betting on higher S&P 500 levels already in the course of the summer. I also agree with Wells Fargo analysts who freshly advised "staying invested in the S&P 500", despite the market's "strong performance so far in 2024", as they see more "potential upside", mentioning that "historically, the S&P 500 has performed well in election years and the year following". Indeed, the last three election cycles faced even stronger performance. As to Wells Fargo's target for the S&P 500, the reputable banking institution lifted it to "a midpoint of 5700" by the end of 2025. Reinvesting later may be difficult, Wells Fargo said, as it could lead to "missing out on periods of strong performance".

US500

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/

04.06.2024

McDonald’s is Ready for Another Rebound

McDonald’s (MCD) stock prices are moving alongside a sustainable uptrend since October 2016. Prices have reached the uptrend support five times since then and every time they rebounded by 15-20% within the following two-three months.

MCD stocks are declining this year reaching a dip of $248 per share. This 13.5% decline led prices to a trend support. They are now forming a recovery from this strong level. This indicates a highly likely upside within the next 2-3 months. The target price is at $310, with a stop-loss at $210.

MCD

Rafael Quintana Martinez

03.06.2024

Tron Still Has Many Upside Reasons

Tron (TRX) is down 1.4% to $0.1134 this week, following a recovery from $0.1100 lows last week, indicating that the current pullback could be temporary. The token has several factors in its favor that suggest a potential resumption of its upward trend.

Generally, Bitcoin (BTC) is up by 2.0% to $69,000 this week, highlighting a broader positive sentiment in the cryptocurrency market. Tron has recently integrated with the LayerZero bridge, enabling access to 70 other blockchains, significantly enhancing its interoperability and utility. Additionally, Tron has reported having over 233 active accounts on its network with more than 7.7 billion transactions made. These developments are very positive for TRX.

TRXUSD

Bash

31.05.2024

Another Moment for Dips Buying in Dell

Good Wall Street morning to everybody. Why do I consider this last morning of May as actually a good one? Because it gave me a good opportunity to buy even more shares of Dell at an amazingly low price. Indeed, a rapid 20% correction, from an all-time high at $179.70 just two days ago (on May 29) to $142.50 per share right at the moment, cannot be normally justified by the company’s own forward guidance, which was slightly lower than consensus estimates, while its Q1 results were brilliant. The reasonable background behind this mad overnight shift to a discounted trading in after-hours is rather of a technical nature, as Dell stock became overbought following its equally mad recent rally from $85 in February to almost $180 in May. This was too fast for an old and stable IT business.

I sought a chance to buy Dell within a $105-110 price range after the stock already soared to $130 on March 1. I found this opportunity when the market gave it to all of us, after a couple of weeks of waiting in an ambush, and so I used that chance. Yet, the current price of just above $140 after the peak of nearly $180 is an equivalent of nearly $100 after a previous peak of $130, and so the whole situation repeats itself at new levels.

So, this market is so merciful to indecisive traders to allow us another fantastic purchase opportunity in less than three months.

What were the fundamentals urging Dell shares to fall? The computer world giant reported its quarterly sales of $22.2 billion vs average analyst pool bets on $21.65 billion. This was also a 6% surplus compared to the same quarter of 2023. Dell’s Infrastructure Solutions Group is a standout performer, with the division’s revenue adding 22% YoY to $9.2 billion, helped mostly by a record 42% increase in servers and networking sales. This is great, or I am a space cadet fool. It was only the Client Solutions Group which remained flat YoY, while commercial client sales were at a 3% annual rise (not so high). The company's chief financial officer, Yvonne McGill, pronounced the magic two-sound mantra (not AUM, but AI) on artificial intelligence influence on the company's achievements. What else does the market need to return to the growing rally soon?

Dell's adjusted income (earnings per share, or EPS) was $1.27, also slightly above the analyst estimate of $1.25. The only disadvantage was that this profit number showed a 3% decrease vs the first quarter of the previous year. And does it cost a 20% discount for the shares price? You would better judge it yourself.

It certainly feels like this exclusive market volatility in Dell Technologies stock or, most of all, my regular posts on this issue (ha-ha) would make Dell shares a top choice financial instrument for private investors. Well, it is already very popular, because it’s moving like another meme stock, though its market caps (and thus, the ability of its next price moves to be forecasted) is 15 to 100 times more than the market caps of some hyping Reddit’s collective brainchild like GameStop and AMC. Let me hope this explosive combination of reasons would only attract many “newcomers” (in terms of never thinking on trading Dell before). Again, portfolio investors used to trade more solid flagships like Google or Amazon, but many of them became tired from disappointing behaviour of Tesla or Apple since the beginning of 2024. For all these groups of Wall Street inhabitants, a possible Plan B may include using some part of their trading volumes to trade a middle layer of IT stocks, which is also going to grow further on the AI, big data and cloud agenda. For me, DELL could be in a short-list of such assets.

DELL