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Rumble stock price has soared: time to short it now?

Rumble stock price has gone parabolic this month as it surged to a record high of $17.35, its highest level since February 2022. It has soared by 28% this week and 380% from its lowest level this year, pushing its valuation to over $3.6 billion. 

Rumble shares soared after Tether, the biggest stablecoin provider in the world, made a big investment in it. So, is it a good investment or is the stock about to suffer a harsh reversal in the coming year?

Rumble stock faces major challenges

Rumble shares have soared in the past few months, thanks to the company’s $775 million investment from Tether and Donald Trump’s victory in the United States. This victory was important for the company because it is often seen as a free speech alternative to mainstream platforms like YouTube.

Tether’s investment is also notable because of its scale, which gives the company the cash it needs to fuel its growth without diluting its existing shareholders. The most recent financial results showed that the company was burning cash fast as its cash and short-term investments fell to $132 million. 

Rumble has also invested in other solutions to boost its business. Its most notable solution is its cloud computing solutions that it hopes will attract customers from companies like Google, Amazon and Microsoft. Rumble Cloud has onboarded clients like Miami Dolphins and Hard Rock Stadium as clients.

Rumble is also diversifying its content by focusing on sports and entertainment. This move is intended to attract a wider audience and advertising dollars. 

Still, the company is facing major challenges. The most notable one is that its audience is falling despite the recent Trump victory. According to SimilarWeb, total visits in November dropped by 1.64% to 59.49 million. YouTube had over 28.5 billion users in that period. 

Rumble’s business is also not growing as expected in an election year. The most recent results showed that the company’s revenue rose by 39% year over year to over $25.1 million, up 12% from the previous quarter. 

The results showed that the monthly active users rose to 67 million, while the average revenue per user was just 33 cents. It had a net loss of over $31.5 million, higher than the $29 million it lost in the same period last year.

Rumble’s key challenge will be monetizing its users as most mainstream companies always avoid advertising in conservative platforms. The other issue is attracting more users since it is still associated with right-leaning politics. 

Also, Rumble stock is highly overvalued at a time when its growth is slowing. Analysts forecast the stock at an average of $8, much higher than the current $16.2. That is a sign that RUM stock is severely overvalued.

Rumble stock price analysis

The daily chart shows that the Rumble share price has gone parabolic in the past few months. It has flipped the important resistance level at $11.25, its highest level in June 2023 and $9.20, its highest point in March. 

The stock has jumped above all moving averages, meaning that a mean reversion is possible. Mean reversion happens when a stock retreats and returns to its historical levels. 

The Relative Strength Index (RSI), MACD, and the Klinger Oscillator have all continued rising. Therefore, the stock will likely drop, and retest the support at $11.26 or $9.20. This performance is known as a break and retest, and is often a bullish sign. A move below the support at $9.20 will point to more downside in the longer term. 

Read more: Rumble stock price pattern points to a bearish breakdown

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Asian markets trade mostly higher: Nikkei breaches 40,000, Hang Seng inches up

Asian markets continue to show resilience, with traders remaining cautiously optimistic as they navigate year-end trading amidst mixed global cues and expectations of a more accommodative monetary policy environment in 2025.

However, trading volumes remain subdued as investors approach the end of a holiday-shortened week.

Nikkei breaches 40,000 mark

In Japan, the Nikkei 225 is significantly higher, building on gains from the previous sessions.

Positive reactions to domestic economic data, including retail sales growth exceeding expectations, have boosted sentiment.

Retail sales in Japan rose 2.8% year-on-year in November, surpassing the 1.7% growth forecast and recovering strongly from a revised 1.3% increase in October.

The Nikkei 225 is up 629 points or 1.59%, trading at 40,197.96 after touching an intraday high of 40,203.40.

Gains are led by index heavyweights and technology stocks, with SoftBank Group and Fast Retailing advancing over 1%.

Automakers Toyota and Honda are also contributing to the rally, gaining more than 1% and 1.5%, respectively.

Kospi continues to dip as political crisis deepens

South Korea’s Kospi index fell below the 2,400 mark on Friday morning amid heavy selling by foreign and domestic institutional investors.

The weakness in the market persists as the Korean political crisis gets deeper.

South Korea’s opposition parties have filed an impeachment motion against the acting president, Han Duck-soo, 

The Kospi stood at 2,394.71 down 1.44% from the previous close.

After opening 0.42% lower at 2,419.46, the index extended losses to dip below 2,400.

While individual investors were net buyers, foreign and institutional investors were net sellers.

Other Asian markets remain mixed

Hong Kong stocks were jittery as the market reopened after a two-day break, following an official report revealing a fourth consecutive month of profit declines for Chinese industrial companies, raising concerns about corporate earnings.

The Hang Seng Index was up 0.12% to 20,121.80, while the Hang Seng Tech Index rose over 1%.

On the mainland, the CSI 300 Index edged down 0.1%, while the Shanghai Composite Index inched up 0.1% in early trade.

But we were seeing some recovery in the mid-market hours of trading on Thursday.

The Australian stock market is also notably higher, extending its upward momentum for the third consecutive session.

The S&P/ASX 200 is up 36.70 points or 0.45%, trading at 8,257.60, while the broader All Ordinaries Index has gained 43.10 points or 0.51% to reach 8,514.60. Gains are broad-based, led by strength in mining and energy sectors.

The Australian market reopened on Friday after holidays on Wednesday and Thursday, with optimism from Wall Street’s mixed performance providing some support.

Wall Street ends mixed

After opening lower on Thursday, US stocks regained ground throughout the day, with the major averages ending the session narrowly mixed.

The Dow edged up 28.77 points, or 0.1%, to close at 43,325.80, while the Nasdaq slipped 10.77 points, or 0.1%, to 20,020.37, and the S&P 500 dipped 2.45 points, or less than 0.1%, to 6,037.59.

The Dow marked its fourth consecutive day of gains following a ten-day losing streak.

Early losses were driven by profit-taking after recent market gains, which saw the Nasdaq and S&P 500 recover nearly all of last week’s declines.

On the economic front, the Labor Department reported that initial jobless claims unexpectedly edged lower to 219,000 for the week ended December 21, down 1,000 from the previous week’s 220,000.

Economists had forecast an increase to 224,000.

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Indian stocks jump sharply on Friday: Sensex up 500 points, Nifty up 0.72%

The Indian stock market galloped on Thursday morning showing strong signs of recovery.

The Sensex advanced 531.45 points, or 0.68%, at 79,009.03, while the Nifty gained 172.15 points, or 0.72%, at 23,924.

Foreign institutional investors (FIIs) offloaded equities worth ₹2,376.67 crore on December 26, while domestic institutional investors (DIIs) stepped in as net buyers, purchasing equities worth ₹3,336.16 crore on the same day.

Indian stocks in focus on Friday

In the Nifty, IndusInd Bank, Tata Motors, and ICICI Bank were rallying, while TCS, HCL Tech, Larsen, and Toubro and were among the top losers.

The Nifty Auto index led sectoral gains, rising 0.9% driven by Bajaj Auto, Hero MotoCorp, M&M, and Tata Motors, which climbed between 1% and 2.5%.

Sectorally, all indices were in the green.

The Nifty smallcap index gained 0.4%, while the midcap index was up 0.25%.

IndusInd Bank shares surged over 3%, following the bank’s decision to sell ₹1,573 crore worth of MFI loans.

Asian markets mostly higher

Asian markets continue to show resilience, with traders remaining cautiously optimistic.

In Japan, the Nikkei 225 surged 629 points, or 1.59%, to trade at 40,197.96, hitting an intraday high of 40,203.40.

The rally was fueled by stronger-than-expected domestic economic data, with retail sales in November rising 2.8% year-on-year, exceeding forecasts of 1.7% and rebounding from October’s revised 1.3% increase.

South Korea’s Kospi index fell below the 2,400 mark, trading at 2,395.75 in the morning session amid heavy selling by foreign and institutional investors, as political turmoil in the country deepened.

Hong Kong stocks were jittery after reopening from a two-day break, as a fourth consecutive month of profit declines for Chinese industrial companies raised concerns about earnings. The Hang Seng Index edged up 0.12% to 20,121.80, and the Hang Seng Tech Index climbed over 1%.

On the mainland, the CSI 300 Index slipped 0.1%, while the Shanghai Composite Index inched up 0.1% in early trading.

Australia’s S&P/ASX 200 gained 36.70 points, or 0.45%, to trade at 8,257.60, extending its upward momentum for the third consecutive session.

Wall Street mostly flat on Thursday

After opening lower on Thursday, US stocks regained ground throughout the day, with the major indices ending the session mostly flat.

The Dow added 28.77 points, or 0.1%, to finish at 43,325.80, marking its fourth straight session of gains after a ten-day losing streak.

Meanwhile, the tech-heavy Nasdaq dipped 10.77 points, or 0.1%, to 20,020.37, and the S&P 500 eased 2.45 points, or less than 0.1%, to 6,037.59.

Early losses in the session stemmed from profit-taking after recent market recoveries, with the Nasdaq and S&P 500 reclaiming nearly all of last week’s declines.

On the economic front, the Labor Department reported a slight decline in initial jobless claims to 219,000 for the week ended December 21, down from the prior week’s 220,000 and defying expectations of a rise to 224,000.

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Here’s one reason why the SPY, QQQ, DIA ETFs may plunge in 2025

The SPDR S&P 500 (SPY), Invesco QQQ (QQQ), and SPDR Dow Jones (DIA) ETFs have had a strong performance in the past two years. The QQQ ETF had total returns of 54% in 2023 and 30% this year.

Similarly, the SPY fund rose by 26% and 28% in the same period, while the DIA jumped by 16% and 17%. This performance happened as American companies published strong financial results, and the AI tailwinds continue. Still, there is a risk that the bond market will push these indices sharply downwards in 2025.

US bond yields are rising

Top economists are warning that the performance of the bond market could lead to a crash of the stock market in 2025.

In a recent X post, Moody’s chief economist Mark Zandi said that most assets, such as stocks and cryptocurrencies, were highly overvalued. 

Like in the past, assets can remain overvalued for a long time without suffering a harsh reversal. The past crashes happens after a major catalyst such as the collapse of the real estate market in 2009, the Covid pandemic in 2020, and the burst of the dot com bubble in 2000.

Zandi believes that the spark that may crash the stock market in 2025 will be the Federal Reserve and the impact on the bond market.

He expects the bond market to face a steep correction because of some of Donald Trump’s policies. Trump’s policies of mass deportations, tariffs, and big tax cuts will likely fuel inflation and push the Fed to hike interest rates. 

At the same time, concerns about developments in the bond market are growing. Some of the biggest buyers are no longer buying. China has continued to pare back its US bond holdings, while Japan has largely stopped buying. Besides, Japan can now earn some yields in the domestic market as the Bank of Japan hikes rates.

Therefore, the impact is that most of US bonds will be bought by the Federal Reserve and institutional investors. The latter might start to abandon their positions as soon as risks start to emerge. 

All this will lead to higher bond yields, drawing some stock investors as we saw in 2022 when the Fed was hiking rates. 

There are signs that this is already happening. The 10-year yield rose to 4.57%, the highest level since May this year. Similarly, the 30-year and five-year yields have risen to 4.76% and 4.4% even as the Fed slashed rates.

Jim Bianco, another popular analyst, has pointed to the iShares 20-Treasury ETF (ETF) performance, which has continued to see robust outflows. 

SPY ETF stock formed a rising wedge pattern

The other reason why the three ETFs will suffer a harsh reversal is that the S&P 500 index has formed a rising wedge chart pattern on the daily chart. This pattern is made up of two converging trendlines, which have been forming in the past few months. It has formed a break and retest chart pattern, a popular sign of continuation. 

Therefore, the stock will likely resume the downward trend in 2025. Besides, there are signs that the artificial intelligence tailwinds that have fueled the market are starting to fade. If this happens, the SPY ETF will drop initially to $565, its lowest point on November 4. 

A break below that level will point to more downside. A crash of the S&P 500 will likely lead to more downside of the other US indices like the Dow Jones and the S&P 500 index.

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US holiday retail sales 2024: what drove the unexpected surge?

Holiday retail sales in the United States in 2024 outpaced forecasts, with consumers flocking to last-minute online deals and convenient shopping options like curbside pickup and free delivery.

Despite inflationary pressures, total spending during the season from November 1 to December 24 grew by 3.8% over the previous year, surpassing the anticipated 3.2% increase.

US holiday retail sales 2024: online sales lead the way

According to Mastercard SpendingPulse, online sales surged 6.7% compared to 2023, significantly outpacing the 2.9% growth in in-store purchases.

Services like “buy online, pick up in-store” (BOPIS) and fast, free delivery played a critical role in driving e-commerce activity.

Salesforce data revealed that BOPIS orders doubled during the weekend before Christmas, making up nearly 40% of all online transactions.

Retailers like Walmart and Target capitalized on this trend, enhancing their digital platforms and advertising on TikTok and streaming services to engage tech-savvy shoppers.

Disciplined promotions, targeted strategies

Unlike previous years marked by deep discounts, retailers maintained a disciplined approach to promotions.

Companies like Walmart, Target, and Dollar General strategically reduced prices and increased advertising to remain competitive.

Target and Dollar Tree shares reflected these efforts, gaining nearly 3% during the peak shopping period.

Bernstein analysts noted that shoppers remained selective, focusing on needs-based purchases.

To entice cautious consumers, Walmart emphasized its rollback pricing, while Target intensified its promotional campaigns.

These strategies paid off, as the last five days of the holiday season accounted for 10% of all spending, highlighting a late surge in consumer activity.

US holiday retail sales 2024: popular categories

Laptops, TVs featuring new technology, and athleisure apparel were among the top-performing categories.

Jewelry and electronics also saw significant growth, with sales rising 4% and 3.7%, respectively, over 2023 levels, according to Mastercard.

Online sales of apparel grew 6.7%, far outpacing the 0.2% growth in physical stores.

Steve Sadove, senior adviser to Mastercard and former Saks CEO, told Reuters that consumer spending remained robust despite inflationary challenges.

“Promotions were controlled. Nothing was extra deep, and there were no panicked promotions. What we saw was real consumer strength,” Sadove was quoted as saying.

He credited low unemployment rates and higher wages for buffering personal finances during the holiday season.

With only 27 days between Thanksgiving and Christmas, five fewer than last year, retailers faced a condensed shopping season.

Many adjusted their strategies to attract shoppers, including increasing ad spend and emphasizing membership perks like quick delivery options.

Retail giants also leveraged lab-grown diamonds and innovative technology in products to appeal to value-driven consumers.

FedEx reported stronger-than-expected holiday delivery volumes, further reflecting the robust demand for online shopping.

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RGTI, QSI, QMCO, IONQ stocks are surging: time to short them?

Quantum computing stocks have gone parabolic this month as investors pile into this sector, comparing it to the artificial intelligence industry. 

Rigetti Computing (RGTI) stock has soared by over 542% in the last 30 days, while Quantum-Si (QSI) has surged by 65% in the same period.

Quantum Corporation (QMCO) stock price surged by 290%, while IONQ is up 60% in the last 30 days, as I predicted in 2023. 

The quantum computing hype has also hit companies with no business in the sector. For example. QuantumScape Corporation (QS) has soared by 20% just because of its name. Unlike the other companies, QS is in the electric vehicle industry, where it is building battery technologies. 

There are a few reasons to sell these quantum computing stocks as the surge gains momentum. 

Major themes often disappoint

The first major reason to sell quantum computing stocks like Rigetti Computing, Quantum Corporation, and IONQ is that major themes often don’t work out in the long term. This performance is mostly because the market is usually driven by fear and greed. 

Greed in quantum computing stocks has risen this year after analysts expressed hope that it could evolve into the next big thing. They also jumped after Google’s big quantum computing milestone earlier this month.

As such, investors who missed the fast-growing artificial intelligence industry have moved to quantum stocks. However, historically, companies often predicted to be big winners in key industries have not performed well. For example, most cannabis and electric vehicle stocks have plunged after their initial surge.

Read more: Here’s why the IONQ and Rigetti Computing stocks have surged

Wyckoff Method markdown is possible

The other reason to sell these quantum computing stocks is the traditional approach known as the Wyckoff Method.

Wyckoff is a theory that explains how financial assets perform over time. These assets move from accumulation, which is characterized by consolidation and is then followed by mark up, which is made up of higher demand than supply. These stocks are now in this markup phase.

They will then move to the distribution and mark-down phase, which is characterized by a steep sell-off. Therefore, there are rising odds that they will move to the markdown phase as investors start to take profits.

In line with the Wyckoff Method, the stocks will crash because of a concept known as mean reversion. This situation is where stocks and other assets drop and return to their mean levels after a strong surge. This means the reversion concept has recently worked well in the crypto industry.

Additionally, their stocks have become highly overbought as their Relative Strength Index (RSI) and Stochastic Oscillators have soared. Stocks often retreat when they become highly overbought.

Quantum computing stocks valuation and dilution concerns remain

Additionally, these quantum computing stocks will crash because their valuation metrics have become highly stretched in the past few months. 

IONQ has become a $9.6 billion company despite having just $37.5 million in revenues in the trailing twelve months. It had a $171 million loss in the same period.

Rigetti Computing’s market cap has risen to over $3.18 billion despite generating $11.9 million in revenues in the TTM. It had a net loss of over $61 million during that period.

Quantum Corporation is now a $217 million company with a net loss of over $62 million in the TTM.

Therefore, these companies will likely use the ongoing stock price surge to raise cash in the next few months. Selling shares is one of the most popular ways in which companies raise capital cheaply. Doing that usually dilutes existing shareholders, tanking the stock.

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LATAM crypto trends 2024: Brazil regulates stablecoins, Colombia ranks fifth in crypto adoption

In 2024, Latin America has shown surprising growth in the cryptocurrency sector. Colombia, for example, has risen to fifth place in the region of cryptocurrency adoption.

However, the region’s diverse legal frameworks have created “grey areas” in the regulation and operation of cryptocurrencies throughout Latin America.

This is the case of countries like El Salvador, Brazil, and Argentina which have been making advances to adjust their legal frame to the cryptocurrency adoption.

Brazil’s regulatory efforts in cryptocurrency

Brazil’s government has been working closely in 2024 with the central bank to address regulatory challenges related to cryptocurrency and meal vouchers.

With Gabriel Galipolo’s upcoming appointment in 2025 as central bank president, the government aims to unify its regulatory approach, which has been fragmented in the past.

Meanwhile, the stablecoin sector in Brazil is experiencing rapid growth and has begun to surpass Bitcoin in transaction volumes on local exchanges.

Stablecoins are appealing to users seeking less volatility, positioning Brazil as a hub for B2B cross-border payments.

A 2024 report from Chainalysis reveals Latin America as the second-fastest-growing region for stablecoin usage, with a growth rate exceeding 42%.

Colombia ranked fifth in crypto usage in 2024

According to the recent Geography of Cryptocurrency Report 2024 by Chainalysis, the region has seen a remarkable 42.5% increase in cryptocurrency transactions year-over-year, solidifying its status as the second-fastest-growing market worldwide.

The report highlighted that approximately 700 million people in Latin America engaged in crypto transactions, totaling a staggering 415 billion Pesos from July 2023 to June 2024.

In comparison, Sub-Saharan Africa leads globally with a 45% rise in crypto activity.

Colombia ranks fifth in cryptocurrency adoption, with an impressive influx of $25 billion in crypto transactions during the specified period.

The country is also the sixth-fastest-growing in this sector, showcasing a notable 25% increase in the value of its crypto transactions, according to Chainalysis.

Binance wallet outpaced popular messaging apps

Binance’s digital wallet saw a meteoric rise in Venezuela in 2024, climbing to the 33rd spot on the list of the country’s most downloaded apps.

This achievement placed it just above Snapchat and just below WhatsApp, two of the most widely used messaging platforms in the nation.

The sudden surge in downloads highlighted the growing interest in cryptocurrencies as more Venezuelans turned to digital solutions for financial stability amid an ongoing economic crisis after the failed presidential elections.

With inflation soaring and the local currency, the bolívar, rapidly losing value, the Binance wallet has become an essential tool for protecting assets and conducting transactions in Bitcoin and other cryptocurrencies.

Crypto.com launched Visa card

Crypto.com made strides in Latin America in 2024 by launching its Visa card program, aiming to capitalize on the region’s increasing interest in cryptocurrencies.

According to the company’s statement, the card offers an array of rewards and benefits that position it as an appealing option for consumers looking to use cryptocurrencies in practical ways.

The Crypto.com Visa Card allows users to preload funds from both crypto wallets and fiat currency directly through the Crypto.com app, offering flexibility that appeals to both crypto enthusiasts and traditional users.

This multi-currency feature is crucial for individuals hesitant to integrate digital assets into conventional financial systems.

The card also offers seven distinct tiers and a range of perks, including up to 8% cash back on purchases.

The app simplifies the application process, ensuring quick and easy access to the Visa card for eligible users across the region.

Additionally, users can enjoy rebates on popular subscription services like Netflix and Spotify, adding tangible value to the card.

Crypto.com has eliminated annual or monthly fees on certain tiers, distinguishing its card from traditional credit cards that often impose such costs.

Cardano drives digital authentication in Argentina

The Cardano Foundation is collaborating with the Argentine government, including the Ministry of Labor, the National Technological University, and the Province of Entre Ríos, to enhance digital authentication strategies within social security and educational tracking systems.

As highlighted by Frederik Gregaard, CEO of the Cardano Foundation, this partnership sets a significant precedent for institutional blockchain adoption, potentially inspiring similar initiatives throughout Latin America.

The collaboration aims to implement several key initiatives, including the secure authentication of social security benefits for disabled workers and the validation of national labour union records.

Furthermore, it seeks to establish a technological hub in Entre Ríos, fostering an ecosystem that supports the development of businesses and innovations in Cardano and Aiken.

Additionally, the project will introduce a system to monitor student attendance and performance through digital identities, streamlining educational data management and improving fund allocation from development banks while enhancing the overall teaching and learning experience.

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What can we expect in 2025? Ipsos survey shows climate and the economy remain top concerns

The past few years have demonstrated how quickly events can evolve. While some remain unpredictable, others can be anticipated.

Ipsos recently conducted a survey involving over 23,700 participants from 33 countries, covering several topics such as technology, the environment, and global security.

The Statista report analyses the solid economic data and sentiments gathered in the Ipsos survey, shedding light on future expectations from various regions.

For example, the survey highlights that at least 79 percent of the respondents believe that prices will increase faster than incomes.

This data also shows a growing concern over inflationary pressures in several countries, particularly in volatile and diverse economies in regions such as Latin America.

Climate change’s economic ramifications raise concerns

According to the Statista report, the survey findings indicate a strong consensus among respondents about climate change, with 80 percent expecting further global warming in the year ahead.

This concern is particularly pronounced in Southeast Asia, where Indonesia (91 percent), the Philippines (89 percent), and Malaysia (88 percent) express the highest levels of anxiety.

These data highlight an urgent need for governments to tackle environmental challenges, especially since climate change can undermine economic stability, risking declines in agricultural productivity and increasing expenses for disaster preparedness.

Interestingly, while an important number of people anticipate rising temperatures and more severe weather events—72 percent of those surveyed noted the likelihood of experiencing climate-related incidents—there is skepticism about government responsiveness.

Only 52 percent expected their governments to set stricter carbon emissions targets, revealing a gap between public concern and political action.

However, optimism is present in China, where 84 percent believe their government is taking proactive measures.

This contrast serves as an important economic indicator: the potential effects of environmental policies on economic success.

Nations that do not adapt may endure long-term economic challenges, intensified by climate-related disasters, which could disrupt global supply chains.

Geopolitical conflicts and its economic toll

Ongoing geopolitical tensions remain a critical concern among people, with many respondents conveying pessimism regarding the resolution of existing conflicts.

Only 20 percent of individuals in the Middle East see an end to violence by 2025, while about 30 percent feel similarly about the situation in Ukraine.

This drop in optimistic projections compared to the previous year suggests diminishing hope, reinforcing the idea that extended conflicts could negatively impact both local and global economies.

The economic ramifications of war—such as the displacement of populations, damage to infrastructure, and trade disruptions—are significant concerns.

Areas caught in conflict often see a decline in foreign investment, rising unemployment rates, and stagnant GDP growth.

Gauging public sentiment on conflict resolution is crucial for forecasting future economic developments, particularly in regions that depend heavily on stability for trade and investment.

The transformative role of AI in the job market

As we embrace the digital economy, the emergence of artificial intelligence brings both challenges and opportunities.

Nearly two-thirds of those surveyed (around 66 percent) expect AI to result in job losses by 2025.

Nevertheless, a considerable portion—43 percent—also views AI as a potential source of new job opportunities.

This dual perspective underscores a transformative change in labor dynamics, predicting possible disruptions in the job market alongside fresh avenues for economic growth.

Increased reliance on AI could enhance productivity and economic efficiency, but it may also provoke social unrest as workers adjust to swift technological advancements.

One vital economic indicator for the upcoming year will be investment in reskilling initiatives and technology infrastructure to support a workforce increasingly impacted by automation.

Growth in virtual economies

The survey also demonstrated a rising acceptance of virtual environments, with 59 percent of respondents believing that many individuals will choose to live in these digital spaces by next year.

This trend carries significant implications for numerous sectors, including entertainment, education, and commerce, as virtual platforms create new markets and opportunities for economic development.

The move toward greater digital engagement raises concerns about cybersecurity and data privacy—issues that could impede the growth of the digital economy if not effectively managed.

Companies will need to devote resources to technologies that secure these environments while fostering innovation to attract users to virtual spaces.

Projections indicate that the virtual economy could experience substantial growth, contributing to overall economic advancement.

Strategic insights for achieving economic stability

Although the most common concerns among the population are about environmental change, the economy, and war, the possibility of a pandemic caused by a new virus has a 49 percent concern.

The Ipsos survey offers a clear glimpse into global economic expectations for the coming year.

From addressing climate change and geopolitical instability to embracing technological advances and the expansion of virtual economies, the insights gathered present both challenges and chances for growth.

Looking ahead, policymakers, businesses, and communities need to work together to navigate these evolving circumstances, placing priority on economic resilience and sustainability in their collective approach.

By understanding and responding to these data-driven insights, we can build a stronger economic foundation that ultimately benefits societies around the globe.

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Top five Nifty Smallcap gainers of 2024: what drove their surge?

The Nifty Smallcap 100 index, a benchmark for the small-cap segment of the NSE in India, has delivered an impressive 23.7% year-to-date as of December 24.

This highlights the robust investor interest in small-cap stocks that constitute approximately 5% of the free-float market capitalization of the NSE as of September 30, 2024.

With financial services constituting 26.6% of the index, followed by capital goods making up 15.21% of the index, the benchmark also represents the performance of the small-cap segment in these key sectors.

For the six months ending September 2024, the total traded value of all Nifty Smallcap 100 index constituents accounted for approximately 11% of the total traded value of all stocks on the NSE.

Invezz takes a look at the top five gainers of the index in 2024, and what drove the optimism for the stocks:

Kaynes Technologies

Kaynes Technologies emerged as the star performer, delivering a remarkable 171.63% YTD return.

The electronic manufacturing service (EMS) provider gained from sectoral tailwinds like the Production-Linked Incentive Scheme and the global “China +1” strategy.

The company’s Q2 FY25 revenue surged 48.46% YoY to Rs 572 crore, with margins at 14.4%.

Its semiconductor facility in Gujarat, backed by a Rs 3,300 crore investment, is expected to drive revenue to Rs 4,000 crore by 2029-30, ensuring long-term growth potential.

Aegis Logistics

Aegis Logistics saw a 127.5% rise in its share price in 2024.

Specializing in logistics services for oil, gas, and petrochemicals, the company reported Q2FY25 revenue of ₹1,750.42 crore, a 41.75% YoY increase.

Aegis also announced a ₹4000 crore IPO plan for its subsidiary, Aegis Vopak Terminals Ltd in what has collectively positioned the company as a key player in India’s tank terminal operations, driving investor optimism.

IFCI

IFCI Limited, a public-sector NBFC, saw its share price increase by 109.55% year-to-date.

The company reported mixed financial results in Q2FY25, with revenue growing 7.47% YoY to ₹586.91 crore while profit declined 12.73% YoY to ₹82.62 crore.

However, sequential financial growth and board approval for the merger of group entities kept its market sentiment boosted.

Blue Star

The air-conditioning giant Blue Star surged 108.88% in 2024, led by consistent revenue growth exceeding 20% YoY over four consecutive quarters.

With Q2FY25 revenue hitting ₹2,276 crore and a growing order book worth ₹6,598.20 crore, the company’s robust fundamentals made the stock performance stand out in 2024.

CDSL

CDSL, India’s largest depository in terms of number of demat accounts opened, gained 99.41% YTD, benefiting from increased domestic investor participation and a shift towards market-based instruments.

In Q2FY25, the company’s net profit grew 48.8% YoY to ₹162 crore, with operational revenue rising 55.5% YoY to ₹322.3 crore.

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These 2 Chinese stocks are must-own for 2025

Pella Funds chief investment officer Jordan Cvetanovski expects select names in China to do well next year even if the country does not make good on its promise of more fiscal stimulus in 2025.

The investment firm has taken its exposure to China to well over 10% in recent months.

Two stocks that it particularly recommends owning heading into the new year are Midea Group and the Shanghai headquartered AIA Group.

Let’s explore why Pella Funds likes these two Chinese stocks for 2025.

Midea Group Co Ltd (SHE: 000333)

Midea is an electrical appliance manufacturer based out of Foshan, China.

But the company has been actively integrating advanced technologies, including robotics, automation, and artificial intelligence, into its operations.

Midea’s focus on digital transformation and intelligent solutions positions it to benefit from rapid growth in AI that Statista forecasts will be a $1.0 trillion market over the next ten years.

In November, Midea reported better-than-expected earnings for the third quarter as revenue popped 9.5% on a year-over-year basis. So, the financials support Pella Funds’ investment thesis as well.

Midea stock has already rallied a whopping 40% this year but Jordan Cvetanovski is convinced that it’s still trading at an attractive valuation.

His optimism is broadly shares among Wall Street analysts as evidenced in their consensus “buy” rating on Midea Group at writing.

Finally, Midea shares currently pay a dividend yield of 3.93% that makes it all the more attractive to own for the long term.

AIA Group Ltd (HKG: 1299)

Another name that Pella Funds owns and is bullish on for the coming year is life insurer AIA Group.

Jordan Cvetanovski sees the Hong Kong headquartered firm as one of the “best quality companies within the region.”

AIA stock has lost about 25% over the past two months, which has created a solid opportunity for investors to own a quality name at a deep discount, he added.

Pella Funds owns AIA Group as it has executed well year in year out. If shares of this life insurer were listed in the United States, they would have been trading at a much higher multiple at writing, according to Jordan Cvetanovski.  

In late October, AIA Group said solid demand for its products drove record value of new business in its third financial quarter.

At the time, CEO Lee Yuan Siong told investors:

Our continued focus on executing our strategic priorities has further enhanced AIA’s competitive advantages, supporting double-digit VONB growth from both our agency and partnership distribution channels.

Much like Midea stock, AIA also pays a healthy dividend yield of 2.88% at writing that makes them worth owning for 2025.

The post These 2 Chinese stocks are must-own for 2025 appeared first on Invezz

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