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11.08.2022
Perspective Peers of Ethereum: Avalanche

Avalanche is ranked by Coinmarketcap at the 12th 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.

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.

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. 

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.


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.

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/
NEO Is Struggling to Climb

Neo (NEO) is down 2.4% to $6.05 this week, underperforming the broader crypto market, where Bitcoin (BTC) has slipped only 0.6% to $121,750. The token failed to capitalise on Bitcoin’s breakout above key resistance and remains stuck in a flat range between $5.00 and $7.00. Its inability to approach the upper boundary suggests weakness in momentum, despite ongoing project activity. Neo released a platform update in mid-September, yet it has not translated into notable price gains.

Still, a renewed rally in Bitcoin could offer Neo another opportunity to retest the $7.00 resistance. If the breakout succeeds, the next target would likely be around $10.00.

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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/
ApeCoin Could Be Preparing for a Rally

ApeCoin (APE) is down 0.7% to $0.555 this week, underperforming Bitcoin (BTC), which is trading flat at $122,418. The token remains stuck in a five-month consolidation range between $0.500 and $0.600, with support holding firm while resistance appears increasingly vulnerable amid the broader crypto rally.

Bitcoin’s decisive breakout above the $117,000–$120,000 resistance zone has opened the path toward $155,000–$165,000, driven by substantial inflows into spot Bitcoin ETFs. As large investors continue to pour capital into BTC, momentum across the crypto market is strengthening. Several altcoins have already broken out of their consolidation ranges alongside Bitcoin’s advance, suggesting that if the benchmark cryptocurrency continues its upward trajectory, ApeCoin could soon follow suit with a sharp move higher.

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Netflix Made Money on Content, Now Let Them Share It

I now see an interesting investment opportunity in purchasing some Netflix shares after Elon Musk urged his X followers to cancel their Netflix subscriptions over a controversy surrounding “Dead End: Paranormal Park” animated show and its creator. The world's largest streaming service lost up to 5% of its market caps last week soon after Tesla and X owner posted on his platform saying, “Cancel Netflix for the health of your kids”. He did it in response to an image, which accused Netflix of carrying out a transgender woke agenda. I personally have no intention of cancelling my long-standing Netflix subscription because of one show I am not going to watch or wouldn't show to my child. Besides, I don't think a huge number of subscribers would actually unsubscribe because of one show.

I want to see Nero The Assassin right now, as only one example, where the French Césars nominated Pio Marmai starred as a man who must rescue his estranged daughter from malevolent forces in XVIth century France. I am waiting for Rowan Atkinson's return with "Man Vs Baby" as a Christmas follow-up series to Man Vs Bee, as another example. And who knows, what else? And I also want to make money on my stake in further Netflix shining. Especially since its share price has not only bounced off the local low of around $1,133, but also formed a symmetrical triangle pattern near the news-given bottom and even managed to take-off recovering to $1188. The incident seems to be over, at least in the field of stock market's reaction, while Musk's X post seems more like a warning to Netflix owners not to overdo it with untimely attempts to please queer supporting audiences. In short, I believe that Netflix share will revisit its target levels of no less than $1,350, where the price action already took place in mid-summer, with this sad episode marking the end of sideways corrections of the last three months for the stock.

As for the essence of the “Dead End: Paranormal Park” story, if anyone is still interested, I have done some research. When asked what the gender colouring is there, Google's Gemini assistant gave me an answer that the main protagonist of the show, named Barney, is transgender. And, to be more precise, Barney is an out trans teen boy who finds a job as a security guard of an amusement park with a haunted house. Barney is surrounded by friends and a family who support him, which is probably O.K. but the children marketed cartoon "seeks to explore how passive toleration isn't what every young queer person needs or wants". Well, I prefer that children of the world associate either Barney or Barny name only with a famous brand of wheat flour cake bears or a character from an old cartoon. It's too bold to mix it with children-marketed shows digging into a conflict between queer people and their parents that's directly about the trans gender world to resonate with a lot of queer wish fulfilment of fantasies.

Personally, I also feel strongly that schools, kindergartens and the film industry need to stop offering all this woke agenda to children. This topic is mentioned for a certain segment of the adult audience who are interested in it, but there's no need to ruin children's psyches by forcing explanations to very young and inexperienced minds and souls on a subject that looks alien to them and that they can't understand at their age. Yes, I'm rather conservative on these issues. But I hate the very concept of the so-called "cancel culture" much more, seeing it as a substitute for genuine debate. Boycotts of public personalities or brands after they have done or said something considered objectionable is not going along with free speech society. Again, let's remember how the magnificent Johnny Depp was almost lynched for something he didn't even try to do. "Me too" stories with claims of attempted harassment, decades later and often without any evidence, after which people were lowered to the bottom of modern society. In short, they probably should find another space for queer culture promotion, but that's no reason to cancel Netflix subscription or stop trading its shares. They made money on content; let them share it with shareholders like me and you.

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Google Dreams Big Again

Folks, Google dreams with all our hopes for further rise are flourishing again! Even though it's autumn outside the window... And there's a reason. This search engine and cloud data giant, well known to everyone here, there and everywhere, just formed a "round saucer", also called "round bottom" pattern, on its share price charts, a familiar sight even to simple traders, who are non-experts in equity markets. The pattern is a strong but rather rare phenomenon to appear on daily charts. It usually signifies that the price is about to attract a large crowd of new buyers and those who are eager to increase their stake in the same asset which they already own. Both large funds and many ordinary people will try their best to find free money to cram more Google into their investment portfolios. And if the price of one Google share is $250 today, then in a couple of months - or, you may say, by Christmas time - it will likely reach the next tactical target between $275 and $285. And by next spring, perhaps we can see even $300 per share. After all, we started with $200 at the end of August and reached $255 just three weeks later, by the last ten days of September. Just think about it: one can get a 10% to 20% more return on invested capital in a very short period, for just a small stake in a super-reliable business, which is currently valued by the market at no less than $3 trillion. And if one trades Google through platforms that offer financial leverage 5:1, then one's investment could easily grow by 1.5-2 times using the same size of price action! Well, even Bitcoin doesn't offer such returns right at the moment. Not to mention that, on its triumphant climbing to the sky, Bitcoin is also fluctuating wildly, sometimes up and sometimes down, sometimes doing sideways corrections for so many days, keeping crypto investors awake at night, weekdays and weekends alike. It's much easier to keep track of stock investments in megacaps, and you save much of your neurons for your better health.

However, this "round saucer" signal is visible to everyone on Google charts, so people will act immediately. The movement could significantly pick up momentum even today or maybe tomorrow. Google share could add $3-5 more soon. To avoid missing the opportunity, maybe we should Google it now?

This Monday alone, the stock gained 2% on Nasdaq, which is quite a lot for such a tech behemoth. And there was a fresh piece of news behind the move: before the weekend, it was re-confirmed that Google would build a massive $4 billion cloud data center in Arkansas. On a thousand acres of American land, creating hundreds of jobs with the support of Governor Sarah Huckabee Sanders and the approval of Trump's cabinet, of course, Google will get another stable source of income for itself and its shareholders, in addition to the money flow from numerous Google advertisers who pay for ad impressions and users' clicks whenever ordinary guy or girl simply search for something on the internet again.

As I detailed in my previous two articles in early September, Google share rise is being mostly accelerated by closer ties with ChatGPT maker Open AI, also its own Gemini neural network assistant, and then a federal court ruling that definitively overturned a potential threat of dividing Google into parts like Google Chrome separate business, Android separate business etc, something that antitrust regulators persistently talked about within four years of Biden's sitting in the White House.

For those who meticulously count the numbers, Google's total revenue for the last quarter alone was approximately $96.5 billion. That's nearly $12 billion more than one year ago and $22 billion more than it was in the same season in 2023. Looking at quarterly earnings per share, you can see how this key metric has doubled from $1.44 to $2.81 in less than two years: from July 2023 to April 2025. Google knows how to multiply their money. So, can we do the same using Google skills?

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