• Metadoro
  • Products
  • News and analysis

News and analysis

Check market insights shared by our community members
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.

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.

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.

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.

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/
BAT Is Pushing to $0.2500

Basic Attention Token (BAT) has surged by 13.2% to $0.2187, outperforming the broader market, with Bitcoin (BTC) up 10.5% to $98,435. This rally allowed BAT to break through the $0.2000-0.2150 resistance zone, setting its sights on the next target at $0.2500.

However, risks remain. If Bitcoin faces a correction from its critical $100,000 resistance level, BAT could follow suit, especially as it lacks significant fundamental catalysts to sustain its momentum.

2762
B
Another Feat For the AI Glory

This autumn earnings season on Wall Street was dominated by varying bets on NVidia release. As a bright example, Barclays analysts shared their views that the heightened anticipation surrounding NVidia's results was a reflection of the outsized impact of the AI agenda to become the "defining market catalyst of the year", eclipsing regular macroeconomic news including US inflation dynamics and Federal Reserve decisions. And now, when the hyping chipmaker, which is also the world's largest issuer in terms of market caps, eventually posted its blowout numbers and forward guidance, on record highs as usually, I am personally pleased, being calm about the overall bullish trend in most techs and generally in the S&P 500. Investors may set higher goals after NVIDIA simply took a firmer foothold in the direct vicinity of its all-time peaking price in what I might call the natural and normal way of self-effacingly thanking the market crowd for its kind attention. With no sharp fluctuations to follow the report, NVidia price has hovered between 0.3% and 2.0% in after-hours activity, literally a small step below its closing level at $145.89 on the previous regular session on November 20. Just stepping up to the occasion was enough to grow above $148, which corresponds to +1.5%, at the very first moment of today's pre-market activity. A fresh all-time peak at $152.88 has been shown immediately when the regular session began, which is setting the next standard bar, even though the price retracement back to $145 area or below would still be O.K. without spoiling the overall mood. Another real feat for the AI glory is taken casually by most in the market.

NVidia did not provide another jump in terms of market prices, yet it technically build another to-the-moon-bridge. The company's CEOs officially announced Q3 EPS (earnings per share) of as much as $0.81 (more than doubling its profit achievements at $0.402 in the same quarter of 2023) on revenue of $35.1 billion (against $18.12 billion only one year ago and $30 billion in the previous quarter of 2024). We know that human greed knows no bounds, and so nobody could be fully satisfied with a new historical record by NVidia, which is a clear reason for the market's muted response, but the pool of high-rated analysts at leading media agencies including Reuters and Bloomberg anticipated EPS of $0.75 on revenue of $33.09 billion. The actual results from NVidia were 8% better in profit and 6% higher in terms of revenue. Meanwhile, NVidia updated its own forecast for revenue of $37.5 billion, plus or minus 2%, for the current quarter, which means additional 5% to 9% of growth in nearest three months, compared with previous consensus estimate of $37.09 billion (+5,66%) on average, according to data compiled by LSEG.

NVidia actually readmitted that only supply snags is the factor to temporarily limit growing deliveries amid the boom of demand. And so, I could raise my personal target for NVIDIA well above $220. Maybe not everybody on Wall Street was impressed, but I am surely not the only market dreamer who admired the recent NVidia business performance and its further plans. Analysts from Rosenblatt Securities are even greater optimists as the reputable financial group even raised its price target for NVidia share to $220, maintaining a Buy rating, of course. They especially noted "a positive outlook for the January quarter", primarily because of "higher-than-anticipated demand for its Hopper products", while Blackwell wafers line is "also anticipated to experience a significant supply ramp-up, as it is expected to be sold out for the next several quarters".

The new line of processors "has been embraced by NVidia's customers", with the company going to exceed its initial projections "of several billion dollars in sales" of the new generation of processors in Q4, NVidia's Colette Kress confirmed during a conference call. When asked about media reports that NVidia's latest Grace Blackwell liquid-cooled server containing 72 of the new chips allegedly met overheating issues during initial testing, CEO Jensen Huang commented there were no issues like that and NVidia large customers including Microsoft and Oracle are already updating the systems. The bottleneck for more chip supply is just the limited capacity for advanced manufacturing techniques at the company's fabrication partners like TSMC. As Jensen Huang said, when ramping Blackwell chips up, more production lines would be available to improve the yield, which is usually considered as the number of working chips per wafer, as well as the cycle time. I was fully satisfied with these comments, and what about you?

2942
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/
Synthetix is Losing Momentum

Synthetix (SNX) is up 3.0% this week, trading at $1.650, lagging behind the broader market where Bitcoin (BTC) surged 10.0% to a new all-time high of $97,890. Earlier in the week, SNX rallied by 19.7% to $1.909 but failed to sustain those gains, retreating after hitting the middle of its ascending channel.

While an upside recovery remains the likely scenario, it faces a strong resistance zone at $1.900-$2.000. If SNX manages to break through this level, it could gain significant momentum, potentially rising by 50% to reach $3.000.

3137
Not Every Retailer's Performance Is Encouraging: Lowe's

Unfortunately, some leading U.S. retailers failed to inspire investors. While Walmart (WMT), Costco (COST) and Home Depot stocks continued to rise in November, Lowe’s Companies (LOW) lost nearly 5% this week, despite improved forward guidance and nominally better than expected quarterly results in both top and bottom lines, yet it was a peanut compared to a 18% plunge in the market value of Target Corporation (TGT) in today's pre-market trading.

Lowe’s is a well-known big box home improvement chain, which operates over 1,700 stores and employs about 300,000 associates. The stock became clearly overbought by mid-October as its market value increased by almost a third since the beginning of 2024. That's why updating historical records at $287 per share led to a natural price correction, which accelerated its pace when Q3 numbers confirmed that the chain's revenue and profit came down YoY, even though moderately beating consensus estimates. Overall, further sliding below $250 per share, or even to $225-235 per share, is our baseline scenario at the moment, with the stock's potential to willingly resume its uptrend after bottoming out.

Lowe’s provided net sales of $20.2 billion in the recent three months, better than $19.95 billion averagely expected by expert polls but 1.5% below its achievements in the same quarter of 2023. Same store sales lost 1.1% YoY, hit by big-ticket items, especially large "do-it-yourself" projects. Online sales and loyalty programs grew to soften the damage. Another portion of good news is that the company's management coped well with the task of cutting costs of sales, which came down 1.5% to $13.4 billion, while administrative and other expenses only added 1.7% to $3.8 billion. This helped to improve additional losses of profit, which were reduced to 11.5% vs potentially worse analyst projections.

Based on this data, the company's own guidance for the whole year of 2024 was adjusted to a higher range of $83.0 to $83.5 billion, vs $82.7 to $83.2 billion in August estimates, but it was still below the $84 billion to $85 billion range, which was set at the beginning of the year. The guidance for same store sales drop has been lowered in Q2 from the 2% to 3%, and now it is raised to a range between 3.0% and 3.5%. It is still better than the previous estimate of a 3.5% to 4.0% loss in same store sales.

 

3533
71

Join our community

Share your professional and amateur observations, exchange experiences, anticipate developments

Category
All
Stocks
Crypto
Etf
Commodities
Indices
Currencies
Energies
Metals
Instruments
Author
All
Metadoro
Contributors