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The iShares 20+ Year Treasury Bond (TLT) and the Vanguard Long-Term Treasury ETF (VGLT) ETFs have slipped this year, which may continue in February. The VGLT fund traded at $55.67, down by 11% from its highest level in December last year. Similarly, the TLT fund traded at $87.76. 

Federal Reserve decision

The TLT and VGLT ETFs retreated after the Federal Reserve delivered its first interest rate decision of the year. 

In it, the bank decided to leave interest rates unchanged between 4.25% and 4.50% as it continues its battle against inflation. 

The Fed also hinted that it will hold interest rates steady at this level for a while as it watches trends on inflation. 

Economists expect that the Fed will hold interest rates steady for a few months. The CME FedWatch tool estimates that the first interest rate cut will happen in July this year, followed by another one in December.

The Fed is concerned that inflation will remain high for a while. US data showed that personal consumption expenditures (PCE) rose slightly in December. The headline and core figures remained above the Fed target of 2.0%.

Donald Trump’s tariffs

US inflation will likely remain high in the next few months after Donald Trump imposed large tariffs on imported goods from China, Mexico, and Canada. The US will charge a 25% tariff on Canadian and Mexican goods, and 10% on those from China. 

Trump cited the substantial number of undocumented migrants from Canada and Mexico. He also cited the drug inflows from these countries. 

However, Trump is mostly concerned about the substantial trade deficits the US has with these countries. 

His view is that by imposing tariffs, many companies that do a lot of business outside of the US will move back their plants to the country.

The reality, however, is that companies will simply raise prices on imports because of the complexities of doing business in the US. For example, the US has a minimum wage of $7.25 a hour, while many workers in countries like China and Bangladesh earn that amount a day. 

These factors impact the TLT and VGLT ETFs, which track US long-term government bonds. As the tariff threat occurred, 30-year government bond yields rose to 4.80% on Friday. Similarly, 10-year and 5-year yields continued rising.

These yields may rebound in the next few weeks now that the odds of Federal Reserve interest rate cuts have fallen. 

TLT ETF outlook

TLT stock chart by TradingView

The weekly chart shows that the TLT ETF has struggled in the past few years. It peaked at $158.70 in March 2020 and has dropped to the current $87.76. 

The ETF has remained below the 50-week Exponential Moving Average (EMA) and the 23.6% Fibonacci Retracement level. It has also fallen below the key point at $95.80, its lowest levels in 2016 and 2018. 

Therefore, the path of the least resistance for the TLT fund is bearish, with the next point to watch being at $78.35, its lowest level in 2023, down by 11% from the current level. The same is true with the VGLT, which may drop to an all-time low of $50.

The post How will US tariffs affect the TLT and VGLT ETFs? appeared first on Invezz

About 25% of the companies in the S&P 500 have so far reported their earnings for the December quarter.

Collectively, they’ve recorded a 31% annualized increase in earnings.

Among names that are now scheduled to report their financial results next week, a handful have a history of beating Street estimates and seeing a positive response in terms of stock price action.  

Two of them that look particularly attractive to own at writing are: Chipotle and Monolithic Power.

Let’s take a closer look at what each of these has in store for investors.

Chipotle Mexican Grill Inc (NYSE: CMG)

Chipotle is scheduled to report its fourth-quarter earnings on February 4th.

The consensus is for it to earn 24 cents on a per-share basis in its recently concluded quarter versus 21 cents per share a year ago.

The chain of fast-casual restaurants exceeds Street estimates more than 75% of the time and sees its stock price climb some 1.6% on average on the day after the release.  

Heading into its Q4 report, analysts are bullish on Chipotle stock. RBC sees it rallying to $75 by the end of 2025.

Its price target indicates the potential for another 30% gain from current levels.

The investment firm has immense confidence in CMG’s ability to do fairly well irrespective of the macroeconomic backdrop.

Potential for operational efficiencies and international unit growth could help drive the company’s share price up this year, it told investors in a recent note.

Despite a 10% decline since its recent high, Chipotle stock is not, however, inexpensive to own currently.

It also doesn’t pay a dividend at the time of writing.

Chipotle stock is particularly attractive to own at writing as it’s currently down about 10% versus its recent high.

It does not, however, pay a dividend at the time of writing.

Monolithic Power Systems Inc (NASDAQ: MPWR)

Another name that has a history of beating earnings estimates and tends to push up a day after is Kirkland-headquartered Monolithic Power.

The company that designs, develops, and markets power solutions for various electronic systems exceeds Street estimates more than 85% of the time and typically gains over 2.0% the next day.

MPWR has lost about 30% over the past three months which has made the risk-reward all the more favorable when it comes to investing in it.

Monolithic Power is scheduled to report its fiscal fourth-quarter results on February 6th.

The consensus is for it to earn $3.13 per share – significantly better than the $2.04 a share it earned in the same quarter last year.

Heading into its earnings release, Wall Street has a consensus “overweight” rating on Monolithic Power stock.

The Street-high price target of $1,100 indicates potential for an exciting 70% upside from current levels.

Unlike Chipotle, MPWR currently pays a dividend yield of 0.78% as well which makes it even more attractive for investors in search of an additional source of passive income.

The post These 2 stocks reporting earnings next week often beat estimates appeared first on Invezz

Wall Street’s early gains faded on Friday after the White House confirmed that President Donald Trump’s new tariffs on major US trading partners would take effect on Saturday.

The S&P 500 slipped 0.6%, the Dow Jones Industrial Average tumbled 345 points (0.8%), and the Nasdaq Composite dropped 0.4%, as investors reassessed risks tied to trade tensions.

Tariffs trigger sell-off in key stocks

The market turned lower after White House press secretary Karoline Leavitt announced that Trump’s 25% tariffs on Canada and Mexico, along with a 10% duty on Chinese imports, would be made public this weekend.

Stocks with significant exposure to these regions, such as Constellation Brands (Corona’s parent company) and Chipotle, fell 2% and 1%, respectively.

Energy stocks also slumped, with Chevron and Exxon Mobil declining 4% and 3%, respectively, after posting disappointing Q4 earnings.

Meanwhile, Apple initially rallied on stronger-than-expected services revenue, despite weak iPhone sales, but later gave up gains to trade 1% lower.

Markets wrap up a volatile week and month

Despite Friday’s losses, major indexes managed to recover some ground from Monday’s tech-led selloff.

The Nasdaq Composite, which plunged 3.07% earlier in the week amid concerns over China’s DeepSeek AI startup, trimmed its weekly losses to 1.7%.

The S&P 500 is on pace for a 1% weekly drop, while the Dow is set to finish 0.2% higher for the week.

Nvidia, a key driver of recent tech volatility, rebounded from a 17% Monday plunge to pare weekly losses to 14%.

For January, all three major indexes posted gains despite the turbulence.

The S&P 500 rose 2.6%, the Nasdaq advanced 1.5%, and the Dow outperformed with a 4.7% monthly jump.

Inflation data keeps Fed watchers on edge

Friday’s release of December’s Personal Consumption Expenditures (PCE) price index—the Federal Reserve’s preferred inflation gauge—showed a 0.3% monthly rise and a 2.6% annual increase, in line with expectations but higher than November’s 2.4% rate.

The core PCE, which excludes food and energy, climbed 0.2% monthly and 2.8% annually, raising concerns about persistent inflation pressures.

With the market grappling with trade policy uncertainties, earnings surprises, and inflation signals, investors remain cautious heading into February

The post US markets slide as Trump’s tariffs rattle investors; S&P 500, Dow, Nasdaq fall appeared first on Invezz

The USD/MXN exchange rate will be on the spotlight this week as investors watched the happenings in the US and Mexico. The pair ended last week at 20.67, where it has remained in the past few days. 

US and Mexico tariffs

The USD/MXN pair wavered after Donald Trump threatened sweeping tariffs on Mexican goods that will have a big impact on the two economies. 

In an X post, Trump announced that his administration would impose a 25% tariff on imported goods from Mexico. Meanwhile, Mexico said it would introduce new tariffs and non-tariff responses to the new measures. 

These tariffs will hurt the two countries. US will experience higher inflation, which will push the Federal Reserve to maintain a hawkish tone. 

On the other hand, the Mexican economy may go through some volatility and even a recession and crash the peso. 

The US and Mexico are some of the top trading partners globally, handling over $1.5 trillion worth of trade in 2024. The US exported goods worth $309 billion to Mexico, while the US imported goods worth $466 billion. 

Mexico sells more goods to the US because of the low cost of doing business there than in the US. For example, the US has a minimum wage of $7.25 an hour, while Mexico’s one stands at 278.80 pesos a day or $20. 

Therefore, many companies will opt to do business in Mexico and then ship them to the US and boost prices.

On the positive side, Donald Trump may want to cut a deal soon, which explains why he planned to launch the tariffs on Tuesday. 

Trump’s tariff threat on Mexico also risks undoing the progress made in terms of immigration. A weaker Mexican economy will lead to a higher unemployment rate and more migration from the country to the US.

Additionally, Mexico may decide to focus on other areas of the economy instead on enforcing migration issues. Recently, the government has put in place more measures to prevent and reduce illegal migration, and stop drug trafficking. 

Federal Reserve and Banxico rates

The USD/MXN pair is also reacting to the Federal Reserve and Banxico divergence. In its first interest rate decision, the Fed left interest rates unchanged at 4.25% and 4.50% and maintained a hawkish tone. 

Economists expect that the Fed will maintain higher rates for a while because of the rising inflation rate in the country. The upcoming tariffs will worsen the state of inflation in the country.

Mexico, on the other hand, has adopted a more dovish tone in the past few months. It has already cut four interest rates, and analysts expect a further cut later this month. 

USD/MXN technical analysis

USD/MXN chart by TradingView

The USD/MXN exchange rate peaked at 20.92 on January 17 and then retreated to the current 20.67. It has remained above the 50-day and 25-day Exponential Moving Averages (EMA).

However, there are signs that it may stage a strong bearish breakdown in the coming weeks. For one, the Trump tariffs have been priced in by market participants. 

The pair has formed a rising wedge pattern, a popular bearish chart pattern. The MACD and the Relative Strength Index (RSI) have formed bearish divergence patterns. 

Therefore, the pair may have a breakdown soon, with the next point to watch being at 20.

The post USD/MXN forecast: Mexican peso may rebound despite tariffs appeared first on Invezz

The Telegram gaming sector is witnessing a major shift as Dogizen (DOGIZ) moves from the TON blockchain to Sui, setting the stage for heightened competition with Catizen (CATI).

The move comes amid explosive growth in the GameFi industry, which has surpassed $1.1 billion despite being less than a year old.

Dogizen’s presale has already raised $3.85 million, and its ICO model is designed to mitigate the risks associated with airdrop-based launches—one of the key issues that Catizen faced after its initial listing.

With the DOGIZ token rising 21.43% in value during the presale, early adopters are already seeing strong returns, positioning Dogizen as one of the most promising entrants in Telegram-integrated gaming.

Meanwhile, Catizen has maintained its dominance, with 55 million players and $23 million in revenue between March and December 2025.

However, its reliance on airdrops to attract users has led to airdrop-hopping phenomenon, where players claim free tokens and leave, resulting in massive sell-offs when tokens become tradable.

With Dogizen set to list on exchanges on 7th February, its move to the Sui blockchain—known for low transaction costs, scalability, and gaming-friendly infrastructure—could give it an edge over Catizen in the next phase of Telegram’s GameFi expansion.

Why Dogizen chose Sui over TON

Dogizen’s decision to leave Telegram’s native TON blockchain in favour of Sui is part of a growing trend among gaming projects.

While TON has strong integration with Telegram, Sui’s blockchain architecture is optimised for gaming applications, offering faster transaction speeds, improved efficiency, and better smart contract capabilities.

The Sui network, developed by Mysten Labs, has positioned itself as a high-performance blockchain designed to support Web3 gaming and NFT ecosystems.

Its parallel transaction execution model enables higher throughput, making it an attractive choice for high-traffic gaming platforms like Dogizen.

By migrating to Sui, Dogizen aims to avoid network congestion issues that have affected TON, particularly as more projects launch on Telegram’s ecosystem.

Sui’s developer incentives and lower transaction fees create a more sustainable environment for both players and investors, further reinforcing Dogizen’s long-term viability.

Can Dogizen disrupt Catizen’s market share?

Catizen, one of 2024’s biggest airdrop success stories, has managed to retain a large player base, but cracks are beginning to show.

The project launched its App Center in August 2024, introducing a reward-based ecosystem where players earn allocation points by completing in-game tasks.

Despite Catizen’s efforts to build long-term engagement, its airdrop-driven model has faced challenges.

The first seasonal airdrop event, which lasted 90 days, distributed 10 million CATI tokens. While this brought in millions of new users, many of them cashed out immediately, contributing to price volatility.

Dogizen, on the other hand, has bypassed the airdrop model entirely, instead opting for an ICO-based approach.

This means that investors buy into the project upfront, making them more likely to hold their tokens rather than dump them on the market.

Furthermore, Dogizen’s target market cap of under $10 million at launch suggests significant upside potential.

By focusing on organic growth, community engagement, and strategic partnerships, Dogizen is positioning itself as a long-term player rather than a short-term speculative token.

The battle for GameFi dominance in Telegram

As Dogizen prepares for its 7th February exchange listing, all eyes are on whether it can challenge Catizen’s dominance.

With the Sui blockchain’s advanced infrastructure, Dogizen could offer a more efficient and rewarding experience for players while avoiding some of the pitfalls that earlier GameFi projects have encountered.

While Catizen still boasts impressive engagement metrics, Dogizen’s strategic positioning, tokenomics, and blockchain migration may give it an edge in Telegram’s evolving GameFi landscape.

If it successfully captures a portion of Catizen’s user base, Dogizen could emerge as a serious competitor in this rapidly growing sector.

With the GameFi industry expected to see exponential growth in 2025, Dogizen’s decision to move to Sui may be a pivotal moment in the battle for Telegram gaming supremacy.

The post Dogizen moves to Sui blockchain, challenging Catizen in Telegram GameFi appeared first on Invezz

The iShares 20+ Year Treasury Bond (TLT) and the Vanguard Long-Term Treasury ETF (VGLT) ETFs have slipped this year, which may continue in February. The VGLT fund traded at $55.67, down by 11% from its highest level in December last year. Similarly, the TLT fund traded at $87.76. 

Federal Reserve decision

The TLT and VGLT ETFs retreated after the Federal Reserve delivered its first interest rate decision of the year. 

In it, the bank decided to leave interest rates unchanged between 4.25% and 4.50% as it continues its battle against inflation. 

The Fed also hinted that it will hold interest rates steady at this level for a while as it watches trends on inflation. 

Economists expect that the Fed will hold interest rates steady for a few months. The CME FedWatch tool estimates that the first interest rate cut will happen in July this year, followed by another one in December.

The Fed is concerned that inflation will remain high for a while. US data showed that personal consumption expenditures (PCE) rose slightly in December. The headline and core figures remained above the Fed target of 2.0%.

Donald Trump’s tariffs

US inflation will likely remain high in the next few months after Donald Trump imposed large tariffs on imported goods from China, Mexico, and Canada. The US will charge a 25% tariff on Canadian and Mexican goods, and 10% on those from China. 

Trump cited the substantial number of undocumented migrants from Canada and Mexico. He also cited the drug inflows from these countries. 

However, Trump is mostly concerned about the substantial trade deficits the US has with these countries. 

His view is that by imposing tariffs, many companies that do a lot of business outside of the US will move back their plants to the country.

The reality, however, is that companies will simply raise prices on imports because of the complexities of doing business in the US. For example, the US has a minimum wage of $7.25 a hour, while many workers in countries like China and Bangladesh earn that amount a day. 

These factors impact the TLT and VGLT ETFs, which track US long-term government bonds. As the tariff threat occurred, 30-year government bond yields rose to 4.80% on Friday. Similarly, 10-year and 5-year yields continued rising.

These yields may rebound in the next few weeks now that the odds of Federal Reserve interest rate cuts have fallen. 

TLT ETF outlook

TLT stock chart by TradingView

The weekly chart shows that the TLT ETF has struggled in the past few years. It peaked at $158.70 in March 2020 and has dropped to the current $87.76. 

The ETF has remained below the 50-week Exponential Moving Average (EMA) and the 23.6% Fibonacci Retracement level. It has also fallen below the key point at $95.80, its lowest levels in 2016 and 2018. 

Therefore, the path of the least resistance for the TLT fund is bearish, with the next point to watch being at $78.35, its lowest level in 2023, down by 11% from the current level. The same is true with the VGLT, which may drop to an all-time low of $50.

The post How will US tariffs affect the TLT and VGLT ETFs? appeared first on Invezz

Goldman Sachs has upgraded Ultrapar Participações S.A. (UGPA3) from hold to buy, despite lowering its target price from R$25.10 to R$19.70.

Goldman Sachs believes Ultrapar is well-positioned for mergers and acquisitions (M&A) in the current macroeconomic environment.

Historically, economic downturns have led to corporate consolidations, and Ultrapar’s lower debt levels provide it with greater flexibility to strengthen its market position.

Lower leverage allows the company to improve financial stability, pursue strategic investments, and return more capital to shareholders through dividends and buybacks.

Goldman expects total shareholder returns of 7% in 2024 and 9% in 2025 while keeping its Net Debt/EBITDA ratio below 1.5 times.

Ipiranga vs. Vibra

Goldman Sachs highlighted Ultrapar’s fuel distribution unit, Ipiranga, and its ongoing competition with Vibra Energia.

While Ipiranga’s margins remain lower than Vibra’s—expected at around 10%—Vibra benefits from greater scale and cost efficiency, giving it a competitive edge.

Goldman downgraded Vibra from ‘buy’ to ‘neutral’, cutting its target price from R$27.40 to R$19.50.

The downgrade reflects a 27% lower-than-expected 2025 net income forecast, as higher interest rates weigh on Vibra’s financials.

Debt concerns and cash flow strategy

Vibra’s debt levels are projected to more than double by the end of the year due to its Comerc Energia acquisition, which could limit its ability to return capital to shareholders.

Analysts expect dividends to remain at just 5% in 2025 and 2026, as the company prioritizes debt reduction.

Despite this, Goldman notes that Vibra’s free cash flow yield is expected to reach 18% by 2026-2027, signaling strong cash generation even as it works to lower its debt burden.

Goldman Sachs sees Ultrapar’s lower debt and M&A potential as key factors supporting its ‘buy’ rating, while Vibra’s debt pressures and margin challenges led to its downgrade.

As Brazil’s economic conditions remain uncertain, Ultrapar’s financial discipline and growth strategy could give it a competitive edge.

The post Why did Goldman Sachs upgrade Brazil’s Ultrapar to ‘buy’? appeared first on Invezz

Apple Inc (NASDAQ: AAPL) saw its gross margin hit a record in its fiscal first quarter on the back of continued momentum in its services business that helped offset the weakness in iPhone sales.

But that wasn’t enough for Dan Niles to change his view on the tech titan.

Niles continues to see Apple as a “low growth stock with a high multiple” and sees a few of the other mega-cap names like Meta Platforms and Microsoft as better picks for 2025.

Apple stock is currently up nearly 10% versus its year-to-date low.

What’s behind Apple’s slow top-line growth?

Niles is dovish on Apple shares as they’re currently trading at a massive premium to the broader market even though the company has grown revenue by only 5.0% in three years.

Plus, the iPhone maker is losing market share in China which suggests it’s struggling to remain competitive.

“The AI rollout has been slow, and what they’re offering, people aren’t all that excited about. That’s why we’ve got this slow-growing top-line,” he told CNBC in an interview today.  

Apple stock, however, remains somewhat more attractive for income investors as it pays a dividend yield of 0.41% at writing.

Could DeepSeek be a benefit for Apple stock?

Nile agreed that DeepSeek’s new AI model which is allegedly more powerful than the US mega-cap’s LLMs but costs significantly less to build and operate could help Apple Intelligence.

But the related benefit in terms of an upgrade cycle could take until next year to materialize for Apple, according to the founder of Niles Investment Management.

Additionally, the Nasdaq-listed firm “wasn’t spending too much on it anyways,” which is why the impact may not be meaningful for Apple Inc., he added.

That said, it’s important to note that AAPL investors, nonetheless, have been a happy lot since early 2020, given the company’s stock price has roughly quadrupled during that period.

What AAPL expects for its fiscal Q2

In the current quarter, Apple said its services business will likely grow in the low double digits but the overall growth may remain in the mid-single digits on an annualized basis.

The tech behemoth expects a strong dollar to be a 2.5% headwind for sales in Q2.

Note that Niles’s pessimism is not broadly shared by Wall Street analysts. The consensus rating on Apple stock currently sits at “overweight”.

That’s when the company’s iPhone sales printed at $69.14 billion in its fiscal first quarter – significantly weaker than the $71.03 billion that experts had forecast.

Analysts may be focusing more on AAPL’s services revenue of $26.34 billion which handily topped Street estimates of $26.09 billion and helped its gross margin come in at a record 46.9% in Q1.

The post Apple labeled a ‘low-growth stock’ despite record Q1 margins—here’s why appeared first on Invezz

The future of Portugal’s Novo Banco is taking a clearer shape as US private equity firm Lone Star signals its intention to pursue an initial public offering (IPO) for a stake of up to 30% in the lender.

This move comes as a departure from earlier speculation about a potential full sale, marking a significant development for the country’s fourth-largest bank.

The Portuguese Finance Minister, Joaquim Miranda Sarmento, confirmed this strategy on Friday, providing insight into the evolving ownership landscape of the institution.

From full sale to IPO: a shift in Lone Star’s strategy

According to a Reuters report, sources familiar with the situation indicated that in September, Lone Star, which currently holds a 75% stake in Novo Banco, was considering both a full sale and an IPO.

These sources suggested that the bank’s valuation could be around 5 billion euros ($5.2 billion).

However, the recent communication from Lone Star to the Portuguese government reveals a narrowed focus on a partial divestment through an IPO.

This change in direction will likely impact the broader Portuguese banking sector landscape.

Novo Banco: a legacy of restructuring

Novo Banco’s history is rooted in the 2014 bailout of Banco Espirito Santo by the Portuguese government, which led to the bank’s creation.

Lone Star acquired its majority stake in 2017, while the remainder of the shares are held by Portugal’s resolution fund and the state.

Government confirms IPO plans

Finance Minister Miranda Sarmento on Friday told reporters that both Novo Banco and Lone Star had communicated their intention to carry out “an IPO of around 25% to 30% of the capital” of the bank.

He clarified that the government had “never been informed that Lone Star is selling its entire 75% stake in the bank”, effectively dispelling rumors of a complete ownership change.

Novo Banco has declined to comment on the matter, and a request for comment has also been sent to Lone Star.

Banking sector consolidation and Novo Banco’s independence

Although the top five Portuguese banks collectively control over 80% of the country’s banking assets, analysts see potential for further consolidation to enhance competitiveness.

However, Novo Banco’s board has expressed a preference for maintaining its status as a standalone lender, reflecting differing views on the ideal structure for the bank’s future.

In June, the CEO of state-owned Caixa Geral de Depositos (CGD), Paulo Macedo, indicated that Portugal’s largest bank was exploring all possible avenues for acquiring another lender to maintain its market position, particularly amid the growing presence of foreign banks, notably those from neighboring Spain.

Addressing this, Miranda Sarmento stated:

If CGD decides to evaluate what the market conditions and what future developments may be, the government will then make decisions based on this evaluation, but we will not interfere in the management of CGD.

The other leading banks in Portugal include Millennium bcp, Santander Portugal (owned by Spain’s Santander), and BPI (owned by Spain’s CaixaBank), further highlighting the competitive nature of the country’s banking sector.

The post Portugal’s Novo Banco to launch IPO amid bank consolidation speculation appeared first on Invezz

Cipher Mining Inc (NASDAQ: CIFR) has received $50 million in investment from SoftBank which it said will help it build more data centers in the United States.

The Japanese investment firm bought over 10 million shares to become a “significant primary investor” in CIFR today.

Additionally, the Bitcoin miner signed a one-month exclusivity agreement with SoftBank this morning that disables it from selling its Barber Lake site to another party.

Cipher Mining stock rallied as much as 30% following the news on Friday.

What SoftBank investment means for CIFR

CIFR sees the new investment as a tailwind for its HPC data center development business.

High-performance computing data centers are specialized facilities designed to handle intensive computational tasks that require immense processing power. According to Tyler Page – the company’s chief executive:

This investment comes at a pivotal moment in Cipher’s growth trajectory, as we continue to attract attention for our pipeline of sites and innovative solutions in industrial-scale data centres.

Ultimately, the Nasdaq-listed firm wants to position itself as the leader in HPC systems.

Despite a sharp surge this morning, Cipher Mining stock that does not currently pay a dividend is still down more than 20% versus its high in mid-December.

Is it too late to invest in Cipher Mining stock?

The SoftBank news made analysts at JPMorgan reiterate their “overweight” rating on CIFR.

While $50 million may not be immensely significant in the context of HPC data centers, the investment “could be a sign of things to come,” they noted in a research note on Friday.

Simply put, the Japanese firm’s investment signals a broader interest in the emerging technology and that’s what makes owning Cipher Mining stock an exciting investment proposition at current levels.  

The news arrived only days after DeepSeek launched a new, open-source AI model that it claims is more powerful than any other LLM out there and requires significantly fewer resources to build and operate.

The Chinese startup’s announcement triggered a sharp sell-off in the US bitcoin mining stocks.

How Cipher did in its latest reported quarter

According to JPMorgan, the SoftBank deal “validates continued demand and interest in large sites with power agreements in place.”

The investment firm remains bullish on CIFR shares even though the company reported a not so encouraging financial results for its third quarter in early November.

Cipher Mining saw its revenue come in at $24 million in Q3 – down about 21% on a year-over-year basis as net loss widened by an alarming 390%.

At the time, CEO Tyler Page told investors:

We’ve created a pathway to become one of the largest data centre developers by finalising the purchase of options to acquire three new sites.

Note that at one point last year, CIFR was reported to be considering a sale after receiving a takeover bid.

The post What made Cipher Mining (CIFR) stock rally 30% on Friday? appeared first on Invezz