Investors shun Nvidia, Meta, Apple

Posted on July 26, 2024 by Olumide Adesina

Sellers of some of the best technology stocks for 2024 continued to compound Thursday’s losses on the S&P 500 and Nasdaq Composite. The S&P 500 closed at 5,399.22 index points, down 0.51%, and the Nasdaq slid 0.93% to settle at 17,181.72 index points.

Investors’ persistent shift toward small caps helped to drive the Russell 2000’s 1.26% gain. For a second day, investors shunned technology. Advanced Micro Devices, was down by more than 4%, and Nvidia was down by 1.7%. The Microsoft stock sank 2.5 percent, Meta Platforms dropped 1.7%, and the VanEck Semiconductor ETF declined about 2%. Alphabet

The second quarter GDP report, which revealed 2.8% economic growth—much greater than expected—was also evaluated by investors. Economists surveyed by Dow Jones projected 2.1% growth. Wall Street saw the largest one-day declines following a losing session, in almost a year on the S&P 500 and Nasdaq. Lethargic tech earnings announcements were the driving force behind those losses.

Investors now view the recent declines as a sign of an overdue correction in an overbought market, with small-cap equities and more cyclical sectors replacing mega-cap tech. Ford Motor Company’s stock fell 18.4%, marking the worst day since 2008, as the company’s second-quarter profits were below analyst expectations.

ServiceNow surged 13% with better-than-expected earnings, having its best day since 2019.
The Dow Jones Industrial Average closed at 39,935.07, up 81.20 points, or 0.2%, from the closing value of the major averages. At session highs, the 30-stock index increased by around 585 points or roughly 1.5%.

Revolut eventually gets a UK banking license

Posted on July 25, 2024July 25, 2024 by Olumide Adesina

The UK’s Prudential Regulation Authority stated that British fintech firm Revolut had been granted a restricted banking license. There have been lengthy delays when Revolut first sought in 2021 for a banking license.

The London-based company will likely fortify its financial and business foundation in the UK before making its official debut.

“The news we made today represents a big advancement for Revolut and our clients. Being a bank in the UK carries a great deal of responsibility, thus Francesca Carlesi, CEO of Revolut UK, stated, “We will work tirelessly to offer products and services that improve the financial lives of everyone who uses Revolut.”

Revolut will be able to accept deposits from customers and provide credit cards and loans with a U.K. banking license. It now stands alongside a plethora of other challenger banks, such as Monzo and Starling, that want to compete with established banking giants like Barclays.

Getting a banking license is crucial in helping Revolut develop faster. This is because it allows the company to go beyond its current state as an e-money startup that acts as a middleman between customers and banks with licenses.

Having a license in the UK will enable it to retain client deposits, creating new revenue opportunities as it may begin financing loans and mortgages under its brand. However, it would have to guarantee customer deposits of up to £85,000 and comply with stricter restrictions.

The issuance of the banking license follows Revolut’s financial stability regaining in 2023. After posting a pre-tax loss of £25.4 million in 2022, the corporation turned a profit this month with a pre-tax profit of £438 million ($545 million) for 2023. Group revenues increased from £920 million in 2022 to £1.8 billion, a 95% increase.

U.S tech stock market loses $1 Trillion, posts worst day since 2022

Posted on July 25, 2024July 25, 2024 by Olumide Adesina

The Nasdaq 100 Index had a $1 trillion sell-off on Wednesday as investors lost faith in AI due to uncertainty over how long the large investments in the technology would take to pay off.

The Nasdaq indices dropped by over 3% on the lowest day since October 2022. The list of laggards included a who’s who of AI technology darlings, led by semiconductor behemoths like Nvidia Corp., Broadcom Inc., and Arm Holdings Plc.

The selloff was sparked by Alphabet Inc.’s lackluster earnings report late on Tuesday, which featured an exaggerated capital expense. With a more than 5% decline, the company’s shares posted their worst performance since January.

Artificial intelligence (AI) firms had some of the biggest drops amid an impressive year. Super Micro Computer Inc. lost 9.15%. Nvidia saw a 6.8% decrease and Broadcom Inc. lost 7.6%. Mega-caps also experienced declines, including 2.9% for Apple., 3.6% for Microsoft Corp., and 5.6% for Meta

Tesla posted a more than 12% decrease for the day after Chief Executive Officer Elon Musk made brief remarks on his company’s autonomous vehicle effort.
The volatility of Nvidia’s options hit its highest level since the middle of March, and the put premium for Broadcom Inc. hit a three-month high.

It has been two weeks since a lower-than-expected inflation number caused the market to swing dramatically away from tech leaders and into small-cap stocks and other companies that would most benefit from a reduction in Federal Reserve interest rates.

The smaller caps beat the mega-caps for the fourth straight session and the eleventh time in eleven days. This week, the S&P 500 and Nasdaq 100 are down 1.5% and 2.6%, respectively, while the Russell 2000 is up 0.5%.

The rotation is still visible, but the actions were so forceful. In particular, investors are paying attention to growing talk in certain Wall Street circles about the impending collapse of the AI boom, which created a bubble that increased the value of the S&P 500 by $9 trillion in the last year. Even though it might not begin on Wednesday, the size of the decline is concerning.

Tesla’s Q2 earnings sink stock

Posted on July 24, 2024 by Olumide Adesina

Tesla posted a disappointing second-quarter number after the bell. The producer of electric vehicles did, however, say that it was on track to start making new cars in the first half of 2025, most likely a less costly EV. Furthermore, according to Tesla’s forecast, its growth rate in 2024 will be “notably lower” than its 2023 results.

Tesla’s Q2 revenue of $25.05 billion was slightly higher than the $24.93 billion the company reported a year earlier, compared to the average forecast of $24.63 billion. Tesla announced adjusted EPS of $0.52 on non-GAAP net income of $1.8 billion, as opposed to $0.60

The electric maker’s stock price dropped by more than 8% in after-hours trade. With Tesla’s market capitalization of over $800 billion, such a change would result in a roughly $80 billion swing in the company’s valuation.

Tesla shipped 443,956 cars worldwide in the second quarter, above the 439,302 forecasts made by the street but falling short of the previous year by over 5%. Although the total number of deliveries in Q2 was significantly higher than the 386,810 vehicles delivered in Q1, some analysts expressed concern that the demand for Tesla vehicles was declining.

Elon Musk stated earlier in the year that Tesla would reveal its Robotaxi on August 8. However, after hearing in the media that the launch will take place in October, Musk hinted last week that the automaker would require additional time to implement a redesign.

“Production of new cars, including more reasonably priced models, scheduled to begin in the first half of 2025. According to Tesla’s Q2 earnings report, “These vehicles will be able to be produced on the same manufacturing lines as our current vehicle line-up and will utilize aspects of both our current and next-generation platforms.”

The revelation that Tesla had deployed 9.4 GWh (gigawatt hours) of battery energy storage in the second quarter—its biggest quarterly total ever and more than twice as much as the firm had deployed in the first quarter—in the company’s production and delivery report caught some investors by surprise.

Trade Alert data indicates that Tesla’s shares have decreased following the company’s results announcement in five of the last six quarters.

Google posts ad revenue of $64.62 billion in second quarter

Posted on July 24, 2024July 24, 2024 by Olumide Adesina

Alphabet, the parent company of Google, released second-quarter sales and earnings numbers after Tuesday’s bell, met analysts’ expectations but fell short on YouTube advertising income.

Alphabet announced a 28.6% year-over-year gain in profit in the second quarter of 2024. With a Q2 earnings announcement of $84.7 billion in revenue and net income of $23.6 billion, Alphabet crushed Zacks Investment Research’s prediction by over $14 billion.

Google’s advertising business is expanding, albeit more slowly than in the first quarter. The company reported ad revenue of $64.62 billion, up from $58.14 billion in the first quarter. However, this is after marketing budgets were tightened in 2022 and 2023 due to rising inflation and interest rates.

While YouTube’s ad revenue fell short of projections, it increased to $8.66 billion from $7.66 billion in the same quarter last year. Despite being the biggest video platform in the world, social media platforms like TikTok are becoming more competitive.

Compared to the same quarter last year, when net income was $18.4 billion, or $1.44 per share, it climbed to $23.6 billion, or $1.89 per share.

The CEO reported that Alphabet’s cloud division had an operational profit of $1 billion for the quarter, surpassing $10 billion in revenue for the first time.

“More than two million developers use our AI infrastructure and generative AI solutions for cloud customers, which have already generated billions in revenue.”
Income for Alphabet in the second quarter of this year increased by 14% over the same period last year, with Google and YouTube ads accounting for the majority of income

GOOGL has risen 31.5% as of now in 2024, outpacing the gains of Amazon (AMZN), Apple (AAPL), Microsoft (MSFT), and 21.1%, respectively.
All the listed equities, though, are underperforming GPU chipmaker Nvidia’s (NVDA) results this year. The business grew by 154.5% in 2024, and this month it momentarily eclipsed Apple and Microsoft to become the most valuable firm in the world.

Crypto market volatility burns $172 million

Posted on July 22, 2024July 22, 2024 by Olumide Adesina

Bitcoin’s price quickly sunk on Sunday following Joe Biden’s announcement that he would not run for president in 2024. Th sudden drop resulted in the liquidation of millions of dollars in long positions, though it was only temporary.

According to data from Binance, Bitcoin’s value fell from $67.4K to $65.8K in just 30 minutes, with sales likely being prompted by the uncertainty surrounding such a significant election upheaval.

The price charts of other popular digital assets like Ethereum and Solana, also show similar short-term declines, Over the previous day, 59,044 traders were liquidated, a total of $172.12 million. The biggest liquidation order was placed on Binance, $11 million worth of BTCUSDT.

According to CoinGlass data, most of those liquidations were long positions, totaling $110 million, most of which occurred during the significant market decline following Biden’s remark. At $49 million throughout that time, Bitcoin has been the most liquidated, followed by Ethereum at $31 million.

But since then, the values of Bitcoin and other valuable assets have increased to levels not seen in over a month, especially after Biden endorsed Vice President Kamala Harris to succeed him as the Democratic nominee.

Bitcoin reached a peak of $68,284, a level not seen since June 12; however, as of this writing, it has somewhat decreased. Furthermore, Solana is now at its highest price in the past two months at almost $185.

Popular political meme coins, such as KAMA, the most expensive meme currency featuring Kamala Harris, are manufactured on Solana. On Sunday, KAMA surged to a new all-time high price, surpassing $0.025 before beginning to decline. On the other hand, the most popular Biden token, “Jeo Boden” (BODEN), has dropped 52% today and is currently over 99% below its April peak price.

Ethereum takes spotlight, 5 ETH Spot ETFs set to begin trading

Posted on July 21, 2024July 21, 2024 by Olumide Adesina

Traders’ expectations are focused on how long the current bullish reversal in Ethereum’s price will endure, given the introduction of ETHer spot ETFs.

Five-spot Ethereum exchange-traded funds (ETFs) will begin trading on the Chicago Board Options Exchange on July 23 “pending regulatory effectiveness,” according to a July 19 announcement from the CBOE.

The US Securities and Exchange Commission (SEC) approved rule changes that permit numerous spot ETFs for the super altcoin. Before the new products could be sold, the regulator was still required to approve each fund issuer’s S-1 registration statements.

The five spot Ether ETFs that are set to open for trade include Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, Franklin Ethereum ETF, Fidelity Ethereum Fund, and 21Shares Core Ethereum ETF.

Nearly every issuer of an ETH ETF has stated plans to temporarily eliminate or decrease fees to fight for market share once the products begin trading. This is an attempt to get an early market edge.

The rise in the Taker Buy/Sell Ratio above 1 indicates a noteworthy positive mood among traders, per CryptoQuant. An increase in this indicator coincides with the most recent price rebound, affirming market players are growing more positive about Ethereum’s future. The Taker Buy/Sell Ratio may indicate a steady mid-term bullish trend and push prices higher if this upward trend in the ratio holds.

The recent price reversal of Ethereum and a spike in the Taker Buy/Sell Ratio point to an optimistic outlook for the futures market. A mid-term bullish trend may be confirmed if this ratio climbs, indicating strong buying demand. Traders will be keen to see if this trend continues, with the potential to drive up the price of Ethereum.

A thorough examination of Ethereum’s daily chart shows that the cryptocurrency started a bullish surge, breaking above the 200-day ($3152) and 100-day ($3340) moving averages, following a noticeable increase in purchasing pressure close to the significant $3K support area.

In addition, ETH has recovered the $3.5K resistance zone, a major challenge for buyers in recent months. This price movement suggests buyers are actively participating in the market and trying to set a new yearly high.

Ethereum has developed a sideways wedge pattern in the past few months. After a brief period of market consolidation, it is anticipated to resume its upward trend to surpass the wedge’s upper boundary at $3.7K. If that resistance line is broken, a new annual high above $4K might result.

Bitcoin shows resilience, hold $66K support line

Posted on July 21, 2024July 21, 2024 by Olumide Adesina

Bitcoin is up for the day after making a remarkable comeback from its previous dip to $63K during yesterday morning’s trading session. On the Binance exchange, it managed to chart a local daily high of $67,400 but dropped to where it is trading at $66.5K.

Even so, this is still a strong performance, and the bulls may be now consolidating ahead of a fresh rally toward the $70K mark.

The selling pressure from bitcoin whales is decreasing as the price of Bitcoin has risen over the last seven days and is now above $66.5K. Large Bitcoin sellers are running out of steam, and valuation metrics affirm a bullish momentum.

There is conjecture on whether it can reach $69,000, but traders are closely watching to see if it can remain above the long-monitored important support $65,000 mark.
Before the recent rally, Bitcoin hadn’t touched $67,000 since June 12, and traders seek further bullish signs pointing to a potential increase.

The bitcoin price has recovered to the Short-Term Holder Realized Price, a crucial metric for traders since it represents the total expense incurred by more speculative holders of the cryptocurrency—wallets holding it for 155 days or fewer.

This follows a turbulent month for Bitcoin, which dropped below $60K to $53.9K on July 5 before climbing again. The CryptoQuant Network Value to Transactions (NVT) Ratio is a crucial instrument for examining changes in the market. It generates either short- or long-term signals by comparing the short- and long-term NVT patterns.

A market top is indicated by an NVT value above 2.2, but a market bottom is suggested by a value below -1.6, which indicates overselling. Currently, local bottoms are indicated by an NVT value of less than -1.8. In the near term, there may be positive action if the 111-day moving average (DMA) remains above $65,000. These indicators confirm an oversold market that might be ready for a reversal.

The S&P 500 and Nasdaq post highest weekly losses since April

Posted on July 20, 2024July 20, 2024 by Olumide Adesina

U.S. stocks dropped on Friday as Wall Street wrapped up a week marked by significant profit-taking across market spectrum.

The S&P 500 and Nasdaq experienced their largest weekly losses since April, falling 1.97% and 3.65%, respectively. The six-week winning streak ended with the tech-heavy Nasdaq. Conversely, the Russell 2000, which focuses on small caps, increased by 1.68%, while the Dow gained 0.72%.

The S&P 500 closed at 5,505 index points, down 0.71%. The Nasdaq Composite closed at 17,726.94 index points, down 0.81%. At 40,287.53 index points, the Dow Jones Industrial Average dropped 377.49 points, or 0.93%.

The last trading session was another day of general market falls, with the Russell 2000 down 0.63%. However, it seems that the weekly trend is moving toward stocks that are thought to benefit more from the Federal Reserve’s interest rate reductions, such as small caps.

Following a significant IT disruption that affected businesses worldwide, CrowdStrike fell 11.1%. The Nasdaq and the New York Stock Exchange stated transactions on these exchanges were unaffected.

The Nasdaq’s poor performance this week may be explained by a move away from mega-cap artificial intelligence benefactors. Similarly, with a 5.1% decline, the information technology industry led the overall S&P 500 lower.

Investors are withdrawing their funds from large tech stocks and putting them in other sectors due to their strong performance. Some market analysts were earlier concerned that the surge was becoming overly reliant on a small number of large tech stocks, but this divergence has given them hope. In the meantime, smaller and more cyclically oriented firms have benefited from growing optimism regarding impending interest rate reductions from the Fed.

Bitcoin on a rampage, highest levels since June 17

Posted on July 20, 2024July 20, 2024 by Olumide Adesina

A fresh wave of volatility hit the crypto market, pushing up the price of Bitcoin by almost $3,000 within a day.

Bitcoin’s price increased by more than 14% this week, and on Friday it broke above a key trendline. Right now, it’s trading at just over $66K. On-chain statistics indicate that Bitcoin is in an oversold position, suggesting that the market may be nearing a bottom.

BTC started to rise from $64,000 during early U.S. trading hours on Friday, it surpassed $67,000 for the first time since June 17. The price increase was accompanied by high trading volumes for BlackRock’s spot bitcoin ETF (IBIT). At the time of publication, the largest cryptocurrency asset was trading for just over $66.5K on the Binance exchange

Still, this resurgence was triggered by the event many regard as one of America’s worst days. The assassination attempt on US presidential candidate Donald Trump served as the impetus for the market’s recovery. Many believe that the events in the past week have improved Trump’s chances of winning the US presidency.

Coinglass data shows that U.S. spot Bitcoin ETF inflows reached $84.80 million on Thursday, marking the fourth consecutive daily inflow. By this Thursday of this week, the total amount of these inflows had reached $861.50 million, suggesting growing investor confidence and maybe pointing to a 5.5% short-term increase in the price of Bitcoin.

It is essential to watch these ETFs’ net inflows to understand investor mood and market trends. These 11 U.S. spot Bitcoin ETFs owned $52.22 billion in total Bitcoin reserves as of Thursday.

Despite a modest uptick in the cryptocurrency market this week, favorable feelings about Bitcoin have drastically decreased, per Santiment’s data on the cryptocurrency funding rate and positive sentiment.

At the same time, many traders are opening short bets on sites like Binance in anticipation of a further drop in Bitcoin. The possibility of higher volatility in the bitcoin market is heightened by these reasons taken together.