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24.11.2022

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.

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.

28.12.2022

The Most Generous Corporates: eBay

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.

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.

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.

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/

23.04.2024

BAT Continues to Struggle Moving to $0.300

Basic Attention Token (BAT) has gained 2.7% to $0.266 this week, inching closer to its target of $0.300. In the previous week, BAT struggled to regain ground above the $0.250 support level following a significant 36% decline to $0.202. The token faced six consecutive days of trading below this support, indicating a potential further decline. However, it managed to stage a recovery last Saturday. Collaborations with Dow Jones Media, Quant, Cheddar, and other entities may offer some support to prices, although their impact is heavily influenced by market conditions. With Bitcoin (BTC) staging a fragile recovery from $60,000, BAT's upward momentum may falter if it fails to swiftly breach the $0.300 resistance level.

BATUSD

Rafael Quintana Martinez

22.04.2024

Synthetix is Trying to Recover

Synthetix (SNX) is adding 3.2% to $3.150 this week It is struggling to hold above its crucial support at $3.000 per token after a huge 49% slump in the first half of April. This support is fundamental for the token to recover towards $4.000. The recovery of Bitcoin (BTC) prices helps the token. The Synthetix Community Governance Call in late April will discuss project updates, staking rates, which could also support token prices.

SNXUSD

Bash

18.04.2024

I Have Enough Confidence in Netflix

The investing crowd is eagerly awaiting today's quarterly release by Netflix. It is going to come near the end of the day. However, let me be peaceful and undisturbed, feeling cool and far beyond the particular facts found in the report. The main reason behind my tranquillity is the strongest ever growth of Netflix in the second half of 2023 since the pandemic time. More than 22 million people signed up for the leading streaming service after its management successfully limited and monetized the sharing of passwords. Last quarter, Netflix has also enlisted even a greater number of its monthly subscribers for its new ad-supported tier. I am sure, this move made it possible at times to increase the money flow from advertising, even if the significant effect may not necessarily appear right now. The blockbuster growth will follow Netflix anyway considering the existing foundation. Consensus data suggested that Wall Street analysts are betting on 5 million new subscribers from January until the end of March, which would be 200% above 1.8 million additions in Q1 2023. Yet, even though Netflix might be having less new subscribers this time, there is no tragedy at all. This could form only a very short-lived market focus, with a potential ability for the share price to lose some steam or even a double-digit of percentage points at a time, but with a prospect of quick recovery to storm the tops again. My personal target for Netflix was re-established at $800 at the end of February, and I feel I should not turn back or stray from the path. I would even buy more Netflix in case of a one-time correction. Otherwise, I would be just calm and happy, following my way, if today's subscribers and profit numbers would satisfy the crowd to heat another jump in price. The trajectory can vary but the destination point would be the same when the pilots checked out there's sufficient fuel to complete the journey.

NFLX

MetadoroIn-house analytics

18.04.2024

Cheaper Oil Prepares a New Tidal Wave for Stock Bulls

Oil prices dropped by nearly 4.5%, with Brent crude contracts (BRN) sliding to $86.10 on April 18 noon. A 2.7 million barrels jump in US commercial inventories was far above a 1.4 million consensus. Meanwhile, the country's congress speaker Mike Johnson assured that four separate bills to provide military assistance to Ukraine, Israel and the Indo-Pacific region would be ready to vote soon, which is considered as a decision increasing immediate chances for money allocation to the Middle East. This may calm tensions after Iran's missile attack on Israel. In combination with indications on weaker domestic demand on fuel from China as the biggest importer, these factors came together to form a reason for a substantial price correction. A few hours later, oil futures steadied between $86.5 and $87.5/barrel. Despite this subtle recovery, the rest of the week looks like a proper time to lock in profits, selling the early spring rally in the petroleum segment, in case it hasn't been done before on higher levels.

A price upsurge to the area above $90 per barrel certainly had a solid impact on gross margins, which allowed ExxonMobil (XOM) to climb from $105 at the very beginning of March to more than $123 per share on April 12, as an example, which was the equivalent of 17% growth in market value. Marathon Oil (MRO) added more than 20% for the same period, while BP price gains were within 15%. Now the situation is rapidly changing, as the rally was extended only in sync with high oil prices.

Another consequence is that a wave of profit taking in a the oil sector, if becoming more widespread, may partly lead to an additional decline in composite indices such as the S&P 500 and the Dow Jones. Yet, the latter effect would probably represent only a fragmented and rather weak contribution into the broader market price adjustment on Wall Street. It is unlikely to have even a mid-term impact on the overall dynamics of other segments of the S&P 500, just in the manner like the recent pullback in the S&P 500 due to the decline in the banking sector seemingly does not pretend to become a braking factor for a long time.

What is more, declining oil provides another chance for easing inflationary pressures all over the world. In turn, potentially lower inflation may indicate that there is no need for longer delays in monetary policy easing by the Federal Reserve and major European central banks. A possibility of any earlier steps towards launching the next rate cut cycle, at least no later than early autumn, is a positive driver both for the global economy revival and for new waves of stock rallies in the markets.

The S&P 500 has slid from its 5,275 intraday peak on March 31 to the vicinity of the 5,000 round figure on April 17, when the Federal Reserve's (Fed) Beige Book content helped the downside momentum by saying that the current pace of inflation continued to dent business profit margins amid struggles to past higher costs onto consumers. Some improvement in economic growth in 10 out of 12 districts "hadn't stoked a faster pace of inflation", the report said at the same time, encouraging more hopes on rate cut moves during the year. Thus, the Fed is also trying to calm the markets with its other hand, while the prospect of cheaper oil in the summer driving season transforms further Wall Street recovery into even a more realistic scenario, even if the S&P 500 would temporarily dive under 5,000 before a new tidal wave comes to stock markets.

BRN