The Rolls-Royce share price remains at its all-time high as investors assess whether its spectacular rally in the past few years. Its stock was trading at 600p, bringing the 12-month gains to near 100% and its market cap to over $68 billion. It has become the 15th biggest company in the UK. 

So, can the Rolls-Royce stock price continue rising after forming an ascending triangle chart pattern on the daily chart?

Rolls Royce share price has thrived

The company has experienced a strong turnaround in the past few years as demand for its products and services rose. Management’s cost-cutting measures and major macro themes, including wars, the ongoing travel boom, and the energy supercycle, also benefited the company. 

The company has slashed costs in billions in the past few years by laying off workers and either selling or shutting off some of its least profitable businesses. 

It is also benefiting from the ongoing travel boom after the COVID-19 pandemic that has helped push airline stocks like United Airlines and IAG to their multi-year highs. 

The ongoing wars in the Middle East and Europe and the growing tensions between the United States and China have increased demand for defense products. This is notable since the company manufactures products in air combat, submarines, and space. 

Most recently, Rolls-Royce has positioned itself as the leading player in the nuclear energy industry, which is making a big comeback. The UK plans to use its technology to launch multiple small modular reactors (SMRs).

SMRs are in high demand because of the artificial intelligence industry that is seeing robust growth. Just on Tuesday, Donald Trump unveiled a $100 billion investment from Softbank, OpenAI, and Oracle. The plan will fund AI infrastructure in the US, including data centers and campuses. 

Many data center companies are considering using modular nuclear power plants, which are small and cheaper to operate long-term.

The most recent results revealed that Rolls-Royce’s business was doing well. Its operating profit rose by 74% in the year’s first half, while its operating margin improved to 14%.

Rolls-Royce’s free cash flow rose by 225% to £1.2 billion, while the return on capital was 13.8%. Management wants to continue the trend of increasing operating margins. The civil aviation division’s operating margin rose to 18%, a 5.6% increase. Defense and power systems had operating margins of 15.5% and 10.3%, respectively. 

The next catalyst for the Rolls-Royce share price will be the upcoming GE Aviation earnings which will provide more information about the state of the aviation industry. GE’s earnings are notable because the two companies operate in the same industry and are affected by the same factors. 

Rolls-Royce will then release its full-year results on February 27. Based on the recent trading update, the management noted that the full-year numbers will be in line with guidance. This means that the company expects to make an operating profit of between £2.1 billion and £2.3 billion and free cash flow of between £2.1 billion and £2.2 billion. 

Rolls-Royce share price analysis

RR chart by TradingView

The daily chart shows that the RR stock price has been in a strong uptrend for a long time. It has found a strong resistance at 600p. The stock has formed an ascending triangle chart pattern, a popular continuation sign. This pattern is made up of a horizontal line and an ascending trendline. 

The Rolls-Royce share price has remained above the 50-day moving average. Therefore, the stock will likely continue rising in the near term because of the triangle pattern. If this happens, the next point to watch will be at 650p. 

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According to a Reuters report, President Donald Trump’s administration is preparing to abolish the National Space Council, a key policy body for coordinating the United States’ space agenda, citing inefficiency and lack of utility.

The council’s uncertain fate has stirred controversy as SpaceX, led by CEO Elon Musk, emerges as a dominant force shaping space policy under the new administration.

This move signals a significant shift in how space exploration and governance may evolve in the Trump era, particularly with SpaceX’s growing role in national initiatives.

The council, which was chaired by Kamala Harris, primarily worked on international space policy coordination and fostering collaborations with allies.

The council’s activities have reportedly drawn criticism from Trump’s aides and SpaceX lobbyists, who consider it redundant in the current space ecosystem.

SpaceX’s growing influence in US space policy

SpaceX’s increasing proximity to the White House under Trump is evident in its expanded role in shaping the national space agenda.

With Elon Musk pledging support for ambitious projects such as manned Mars missions and deep-space exploration, SpaceX appears poised to benefit from the dismantling of the council.

The National Space Council, which traditionally serves as a platform for interagency coordination, has been deemed “unnecessary” by SpaceX lobbyists, the report said citing sources.

After Donald Trump’s election victory, his transition team reportedly did not engage with the space council, unlike its outreach to NASA and other agencies for transition plans.

The staff offices of the council near the White House have mostly been vacated, as per the news agency’s report.

Trump’s first administration had revived the space council in 2017 after it was disbanded in 1993.

The council played a key role in initiatives like the establishment of the US Space Force, plans to return humans to the moon, and reforms to commercial space launch regulations.

The company’s focus on commercialising space and driving forward its Mars ambitions aligns closely with Trump’s vision for a more privatised and efficient approach to space exploration.

In recent months, Trump has strengthened ties with Musk, attending SpaceX events and endorsing the company’s Starship rocket programme.

Jared Isaacman, a SpaceX ally and high-profile customer, was recently named to lead NASA, further underscoring SpaceX’s clout within the administration.

Critics argue that eliminating the council could weaken the government’s ability to build international partnerships and set long-term strategies for space governance.

Without a central coordinating body, experts warn of potential fragmentation in US space policy, which could hinder efforts to establish norms and rules for space exploration, especially in contested areas like lunar operations.

Implications for NASA and global partnerships

The removal of the National Space Council is likely to reshape NASA’s approach to international cooperation and long-term planning.

Under Biden, the council played a pivotal role in forming alliances for projects such as the Artemis programme, aimed at returning humans to the Moon and fostering international collaboration.

Without the council, NASA may face challenges in maintaining its leadership role on the global stage, as private companies like SpaceX dominate the narrative with their commercially driven goals.

This shift could also disrupt international consensus on critical issues such as orbital debris management, lunar exploration frameworks, and deep-space exploration ethics.

While Trump’s administration has yet to confirm the council’s official closure, the emptying of its offices near the White House and the removal of its webpage suggest its dissolution is imminent.

This is seen as a victory for SpaceX, which has long sought to streamline space policy in favour of commercial interests.

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The cryptocurrency market has long been characterised by its volatility, making Bitcoin a high-reward and high-risk asset.

A new class of exchange-traded funds (ETFs), branded as “Protected Bitcoin ETFs,” is set to reshape this narrative.

These ETFs aim to provide a safety net for investors by shielding them from losses while limiting their gains.

This approach could open the doors to a broader audience, particularly risk-averse individuals and institutional players hesitant to embrace digital assets due to their unpredictable price swings.

The debut of Calamos’ Protected Bitcoin ETF on the Cboe highlights a shift towards prioritising risk management in crypto investments.

Designed to protect investors from any downside in Bitcoin’s value, this fund comes with capped upside potential.

The strategy hinges on combining US Treasury securities with flex options, a mechanism previously employed in products covering the S&P 500 and Nasdaq-100.

Redefining the Bitcoin investment landscape

For years, Bitcoin’s inherent price volatility has deterred a significant portion of potential investors, from retail participants to registered financial advisors.

In 2023, a Fidelity Digital Assets report found that 48% of institutional investors viewed price fluctuations as the biggest obstacle to crypto investments, surpassing concerns about self-custody or regulatory clarity.

Protected Bitcoin ETFs could change this sentiment by offering downside protection that aligns with traditional financial risk management frameworks.

Calamos’ flagship ETF, priced at $25, introduces a model that caps potential gains at an estimated 10% to 11.5%. The ETF currently provided 100% downside protection.

Future iterations will expand this concept, providing options for 80% and 90% downside protection, each with progressively higher cap ranges. These are scheduled to be released next month.

The integration of Treasuries and customised options into these funds represents a sophisticated risk mitigation strategy, effectively bridging the gap between traditional finance and the crypto ecosystem.

By addressing volatility concerns, these ETFs could serve as a catalyst for broader adoption among conservative investors, particularly those seeking a safer entry point into the digital asset market.

The potential ripple effect on the crypto ecosystem

The introduction of Protected Bitcoin ETFs could spur growth across the cryptocurrency sector by attracting a more diverse investor base.

Beyond retail investors, these products are likely to appeal to financial advisors, wirehouses, and institutional players who have largely remained on the sidelines.

The timing of these developments aligns with Bitcoin’s broader institutionalisation.

Spot Bitcoin ETFs, launched in the US last year, have already seen inflows exceeding $36.2 billion, signalling robust demand for regulated, accessible investment vehicles.

Moreover, Bitcoin’s price has surged 133% since the debut of these ETFs, underscoring their role in driving market activity.

Protected Bitcoin ETFs could also pave the way for similar risk-managed products tied to other cryptocurrencies, fostering innovation within the digital asset space.

As adoption widens, the broader crypto market could experience reduced price volatility, enhanced liquidity, and increased regulatory engagement, further solidifying its role within the global financial system.

The combination of risk management and accessibility positions Protected Bitcoin ETFs as a game-changing innovation, with the potential to transform not only the perception of digital assets but also the landscape of global investment.

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American Airlines stock price continued its strong uptrend this week as investors cheered the strong earnings by its peers. The AAL share price soared to a high of $18.65, its highest swing since July 2023. It has soared by about 105% from its lowest level in September last year. So, is AAL a good buy ahead of earnings?

US airlines are doing well

Large American airlines are firing on all cylinders as demand remains high, and Boeing’s problems have helped maintain higher-than-expected prices.

A good example of this is United Airlines, which published strong results on Tuesday. Its total operating revenue rose by 7.8% in the fourth quarter to $14.7 billion, while its pre-tax earnings rose to $1.3 billion.

Delta Airlines, the biggest carrier in the country also reported strong results as its revenue and operating profits hit a record. Its revenue jumped to $15.6 billion, while the operating and pre-tax incomes rose to $1.7 billion and $1.2 billion.

These companies will likely continue doing well because of the rising demand and monetizing options. A good example of this is in how airlines have intensified their focus on profits by investing in premium segments. 

United, American, and Delta have also become like banks by focusing on their rewards solutions that have attracted millions of customers. They have also increased their routes to meet demand. 

Read more: Is the Delta Air Lines stock a buy near its all-time high?

American Airlines earnings next

American Airlines is also doing well as it works to catch up with other big players in the airline industry. In particular, the company is working to regain the lost market share among corporates, who have mostly moved to Delta.

Its third-quarter revenue was a record $13.6 billion, which was higher than most analysts expected. Excluding the net special items, its net income was $205 million.

The next key catalyst for the American Airlines stock price will be its earnings, scheduled for Thursday. Analysts expect these numbers to show that revenue rose 2.76% in Q4 to $13.4 billion. If these estimates are correct, this will bring the company’s annual revenue to $53.94 billion, a 2.17% increase from 2023.

American Airlines’ forward guidance for its revenue will be $56.4 billion, a 4.60% annual increase, meaning that its growth will accelerate. These forecasts are in line with what IATA predicted recently when it estimated that airlines will thrive this year. 

Still, AAL faces numerous challenges ahead. For example, while its margins are improving, they remain much lower than Delta and United. The company also has a higher debt burden than its peers. It ended the last quarter with $11.8 billion in available liquidity and is more than $13 billion toward reducing its debt by $15 billion by the end of this year. 

Read more: United Airlines stock boomed in 2024: time to book profits?

American Airlines stock analysis

AAL stock chart by TradingView

The weekly chart shows that the AAL share price bottomed at $9.10 in August last year and then bounced back to a high of $18.6, its highest swing since April 2022.

The stock has moved above the key resistance point at $16, its highest swing on February last year. It also jumped above the upper side of the falling wedge chart pattern that formed since 2021. A falling wedge is one of the most bullish patterns in the market. 

American Airlines stock has also soared above the 50-week and 25-week moving averages. Also, the Relative Strength Index (RSI) and the MACD have continued rising. Therefore, the stock will likely continue rising, with the next point to watch being at $26, its highest swing in June 2021, and up by 40% above the current level.

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India’s food delivery giant, Zomato’s share price crashed after the company posted its earnings report for the quarter ended December earlier this week.

Zomato’s stock has slumped over 15% this week.

Zomato reported a 57% decline in its consolidated net profit for the December quarter, posting ₹59 crore compared to ₹138 crore in the same period last year.

However, the company’s revenue from operations reached ₹5,405 crore, reflecting a 64% increase from ₹3,288 crore in the corresponding quarter of the previous financial year.

Zomato share price: technical analysis

“Zomato’s post-results price action has breached the key support of ₹239, testing a major support zone between ₹207-₹200.” said Anshul Jain, Head of Research, Lakshmishree Investments & Securities.

The analyst added that in the near term, this range is expected to act as a solid buying zone, with the potential for a bounce back towards ₹239.

Jain told Invezz:

Looking ahead, we anticipate range-bound movement between ₹200 and ₹300 for the upcoming quarter. Traders should watch for a confirmed reversal at this support level, as it could offer opportunities for short-term gains in the near future.

Riyank Arora, technical analyst at Mehta Equities, said that the stock may slip further from these levels.

Arora said that the stock gave a sharp breakdown below its major support mark of 240 and fell as much as 10% after the quarterly results came in.

The analyst added:

The overall technical structure of the stock is indicating a negative bias with sell on rise approach. A trailing stop loss is advised near 225 for potential downside targets of 200 and 190 coming in over time.

Brokerages mixed on Zomato

Analysts at UBS and Nuvama maintained their “buy” rating on the stock after the results came out.

Nuvama has a target price of ₹300 on stock, while UBS has a price target of ₹320.

Analysts at Nuvama said that the food delivery giants revenue for the quarter slightly surpassed the consensus estimate of ₹5,380 crore.

However, the EBITDA margin came in at 3.0%, falling short of the consensus estimate of 4.9%. The PAT was at ₹59 crore, much below the estimate of ₹229.7 crore.
The company’s Blinkit dark store additions are progressing faster than expected, leading to quicker growth.

However, Zomato is facing higher upfront costs for new store openings, which is temporarily weighing on profitability.

Nuvama believes that while the short-term profitability may suffer due to the higher costs, these investments should result in stronger profitability in future quarters as these stores mature.

UBS also considers Zomato’s Q3FY25 results as decent, with strong growth in GMV from quick commerce helping offset margin deterioration and a modest slowdown in food delivery.

The brokerage noted that revenue grew by 64% YoY, exceeding consensus by approximately 2%.

Food delivery revenues were up 3% QoQ (about 17% YoY, but 2.6% below consensus), while Blinkit revenue grew by 21% QoQ and 117% YoY, beating consensus by 2.3%.

The analysts at UBS added that while the slowdown in food delivery was a surprise, margin expansion was a positive.

Blinkit’s growth was better than expected and the margin decline was anticipated due to increased competition in the space, as per the analysts.

On the other hand, analysts at Macquarie are not so bullish on the stock. The brokerage has a target price of ₹130 on the stock.

The brokerage said that underperformance in the December quarter was primarily driven by increased investments in Blinkit—including higher marketing spends and operating expenses—as well as higher employee expenses related to Blinkit and the “Going Out” business.

In the Quick Commerce segment, Gross Order Value (GOV) grew by 120% YoY, which exceeded expectations, largely due to strong monthly transacting user additions.

However, the analysts said that the growth in GOV was likely driven by increased marketing spends, leading to an adjusted EBITDA margin of -1.3% (of GOV), significantly lower than the near-breakeven expectations.

Macquarie analaysts added that while they view Zomato as an efficient quick commerce and food delivery platform, they caution that a limited margin of safety remains for the shares at current levels.

Macquarie also anticipates that rising competition in Q-Com could dent consensus forecasts for the company going forward.

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