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Axie Infinity price could surge 50% amid the network renaissance

Axie Infinity (AXS) and Smooth Love Potion (SLP) tokens have crawled back in the past few days as the ecosystem started to bounce back. The SLP coin was trading at $0.0035 on Friday, up by 65% from its lowest point this year. 

Similarly, the Axie Infinity coin was trading at $5.87, up by 50% from the year-to-date low. The two remain significantly lower than their year-to-date high.

Is Axie Infinity making a comeback?

There are increasing signs that the Axie Infinity ecosystem is bouncing back as gamers compete for Smooth Love Potion and AXS tokens.

Data on SimilarWeb shows that the number of visitors to the website jumped by 11% to 1.8 million in October this year. Most of these visits are coming from the Philippines, Colombia, United States, and Brazil. Also, most of the website traffic is direct, meaning that users are directly going to the site.

More data by DappRadar shows that the Unique Active Wallet (UAW) in the ecosystem has continued growing in the past few months. Total UAW rose by 0.95% in the last 24 hours to 103.23k. 

Axie Infinity’s transactions jumped by 12% to over 152k, while the volume and balance jumped to $2 million and $1.02 billion. 

The same trend has happened in the last 30 days. Total UAW jumped by 7.9% to over 161.28k, while the number of transactions and volume rose to 3.58 million and $60.4 million, respectively. NFT sales on the platform have also jumped sharply in the past few months.

These numbers are lower than Axie’s peak. However, they are a sign that the gaming network is doing well at a time when the industry is struggling.

A likely reason for more activity is that gamers want to accumulate as much AXS and SLP tokens in preparation of the next bull run. 

At the same the developers have worked to make the network more active. On Thursday, the developers launched the Wings of Nightmare, which gives users access to 2,700 AXS tokens, 6 ETH, and a Mystic Axie. 

To be involved, users need to ensure that their axie has 1 of the 24 base parts for the Nightmare evolution, gather the required evolution materials, and click evolve on the Axie app. After that, users select the instant evolution and challenge others. Data shows that there was 103 ETH volume worth over $400k on the app.axie network because of the Wings of Nightmare.

Axie Infinity price analysis

AXS chart by TradingView

The daily chart shows that the AXS token bottomed at $3.87, its lowest point in August to almost $6 today. The coin has jumped above the ascending trendline that connects the lowest swings since August. 

Axie Infinity token price has jumped above the key resistance level at $5.56, its highest point in September and October. It has moved above the 50-day and 100-day Exponential Moving Averages (EMA). 

The coin is also nearing the 23.6% Fibonacci Retracement level at $6.07. Meanwhile, the coin has moved above the weak, stop & reverse level at $5.8593. It has also formed a break and retest pattern, a popular continuation sign. 

Therefore, there is a likelihood that the AXS token will continue rising as buyers target the extreme overshoot level at $7.03, which is about 20% above the current level.

A break above that level signals to more upside, with the next point to watch being the 50% retracement point at $8.76. This price is about 50% above the current level. On the flip side, a drop below the key support at $5 will invalidate the bullish view.

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Zoom Video stock is in trouble, but a 130% rebound is possible

Zoom Video’s stock price has bounced back in the past few months as investors continue to see it as an undervalued company. After dropping to $55.12 in August, the stock has jumped by over 47% to $81.20, giving it a market cap of over $24 billion. ZM shares will be in focus next week as the company publishes its quarterly results.

Fallen angel facing substantial headwinds

Zoom Video has become one of the biggest fallen angels in corporate America. After doing great during the pandemic, the stock has tumbled by over 86%, erasing billions of value.

Its weakness has been because of three main reasons. First, people no longer work at home as they did during the pandemic, and many schools that embraced the technology have shifted to in-person engagements.

Second, the company has faced substantial competition, especially from Google, which owns Meet. Meet has become a highly popular platform because it is free for 60-minute meetings with 100 participants. Zoom has a similar pricing but the meetings are just 40 minutes. 

Google Meet’s premium version starts at $6 compared to Zoom’s $13. Most importantly, this package is part of more of Google’s solutions, including 2 TB of storage per user, custom email, and the Gemini app. 

Other top alternatives to Zoom Video are Microsoft Teams, Cisco Webex, Slack, BlueJeans, and RingCentral Video. This means that the video industry has become commoditized.

Third, Zoom Video lacks ways to grow its business. Ideally, in the Software-as-a-Service (SaaS) industry, companies grow by adding more users and upselling them more products. For example, Salesforce started its business as a simple CRM service. Today, it sell sother solutions like business intelligence and AgentForce. 

For Zoom, creating more opportunities to upsell is difficult since its users are just interested in video calls. It is unclear whether its additional products like Docs and workspace reservations are seeing more traction.

Read more: Zoom (ZM)stock: pandemic darling faces a bleak future

Zoom Video earnings ahead

The next important catalyst for the Zoom Video stock price will be its earnings, which are scheduled on Monday next week.

Analysts expect the numbers to show that its revenue growth stalled in the third quarter. Precisely, revenue is expected to come in at $1.16 billion, a 2.4% increase from the same period last year. 

Zoom Video’s revenue for the fourth quarter is expected to come in at $1.17 billion, a 2.2% increase. For the year, its revenue is expected to be $4.65 billion followed by $4.79 billion next year. There is a likelihood that these results will be better than expected as the company has done in the past few quarters. 

For a company in Zoom’s situation, the focus should be on achieving strong profits, which would help to justify a premium valuation. There are signs that it is making more profits as its net profit jumped from $103 million in 2022 to $637 million in 2023. 

The most recent results showed that Zoom Video’s revenue rose to $1.16 billion in the second quarter, with enterprise revenue rising to $682 million. Its net income rose to $219 million, a figure that may continue growing in the coming months. 

A good thing about Zoom Video is that its stock is not all that expensive since it trades at a price-to-earnings ratio of 14, lower than the S&P 500 average of 21. The valuation multiple is also lower than the sector median of 24. It is also much lower than the five-year average of 80.

Analysts have a mild outlook on Zoom, with the average target being $77.7, lower than the current $81.20. The most bullish analyst is from Wedbush, who recently upgraded the stock from neutral to outperform. 

Zoom Video stock price analysis

ZM chart by TradingView

The weekly chart shows that the ZM share price has remained in a tight range in the past few months. It has remained between the key support and resistance levels at $56.9 and $76.9 since 2023.

The stock has continued to consolidate at the 50-week and 100-week Exponential Moving Averages (EMA). Also, it has remained below the 23.6% Fibonacci Retracement level, while the Average True Range (ATR) has continued falling. 

The Zoom Video share price has formed a triple-bottom pattern at $56.9. In most periods, this is one of the most bullish patterns. The Relative Strength Index (RSI) has moved above the overbought level. Also, the MACD indicator has moved above the zero line.

Therefore, while Zoom stock has some weak fundamentals, a contrarian case can be made. If this happens, the next point to watch will be the 23.6% Fibonacci Retracement point at $184, which is about 130% above the current level.

On the flip side, a drop below the key support at $75.9 will point to more downside, potentially to $45.

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Dow and S&P 500 rise; Nasdaq dips as Alphabet, NVIDIA fall and Snowflake jumps 30%

The Dow Jones Industrial Average surged 544 points (1.25%) on Thursday, while the S&P 500 gained 0.5%, buoyed by investor interest in cyclical stocks expected to thrive in a growing economy.

In contrast, the Nasdaq Composite dipped slightly as technology shares like Nvidia, which recently reported earnings, faced declines.

Banking giant Goldman Sachs, industrial leader Caterpillar, and retailer Home Depot emerged as key winners of the day.

The Russell 2000 Index, often seen as a gauge for small-cap companies and a potential beneficiary of economic growth, rose more than 1.8%.

Other technology, including Meta Platforms, Amazon, and Apple also dropped, further weighing on Nasdaq. 

Meanwhile, NVIDIA Corporation also fell on Thursday as investors were unimpressed that the company’s forecast was its slowest in seven quarters. 

The stock fell despite posting positive earnings figures. Shares were down 1.4% from the previous close. 

“Nvidia had a spectacular quarter … but it is overshadowed by expectations. Great expectations are built in the stock and have been running at the rate at which Nvidia has been running,” Art Hogan, chief market strategist at B Riley Wealth told Reuters. 

Some traders attributed the losses to slowing revenue growth from previous quarters or concerns that the chipmaker didn’t exceed the most optimistic guidance estimate, according to a CNBC report. 

Meanwhile, Bitcoin hit a new record high of $98,000 on Thursday as investors remained optimistic that President-elect Donald Trump’s administration would be beneficial for the crypto industry.

Alphabet stock falls

Shares of Alphabet fell as much as 6% on Thursday as antitrust concerns weighed on sentiments. 

Earlier this week, the US Justice Department had called for Google to divest its Chrome browser business.

This comes after a court in August ruled that Google has monopolized the search market with its Chrome browser. 

“To remedy these harms, the [Initial Proposed Final Judgment] requires Google to divest Chrome, which will permanently stop Google’s control of this critical search access point and allow rival search engines the ability to access the browser that for many users is a gateway to the internet,” the Justice Department said in its filing. 

At the time of writing, shares of Alphabet were down more than 6%. 

Snowflake share surges

Share of Snowflake popped 31% on Thursday and was on course for its best day ever. 

The optimism in the market was due to positive earnings results.

The data analytics software company beat Wall Street projections by posting 20 cents per share adjusted earnings on $942 million in revenue. 

LSEG had anticipated the company to post an adjusted earnings of 15 cents per share and $897 million in revenue. 

Snowflake said it expects product revenue for the 2025 fiscal year to reach $3.43 billion, up from a previous forecast calling for $3.36 billion. 

Weekly initial jobless claims fall below forecast

People filing for unemployment claims for the first time in the US came in at 213,000 for the week ended November 16. 

Claims had fallen from the preceding week’s figure of 219,000. The figure for the week ended November 16 also beat the expectations of Wall Street economists, who expected 220,000 new claims. 

The robust economic data showed that the labor market in the US remained resilient. 

Continuing claims for jobless insurance climbed to 1.908 million from 1.872 million last week and 25,000 more than the Street’s estimate of 1.883 million, according to a CNBC report. 

The resilient labor market in the US might make it more difficult for the US Federal Reserve to cut interest rates at its December policy meeting. 

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Disney’s Hulu and Fox Entertainment renew four-year streaming deal

Disney’s Hulu and Fox Entertainment have extended their partnership for another four years, ensuring Hulu remains the exclusive US streaming home for popular Fox shows like The Simpsons, Family Guy, The Masked Singer, and more.

The agreement, which also renews its marketing alliance established in January 2023, highlights the growing reliance on joint promotional efforts in today’s competitive streaming landscape.

This renewal further cements Hulu’s position as a leading platform for next-day streaming of Fox content, reinforcing the synergy between the two entertainment giants.

Hulu and Fox Entertainment deal details

The multi-year agreement includes in-season streaming rights for Fox’s primetime entertainment programming, ensuring shows like The Masked Singer, Bob’s Burgers, The Simpsons, and Next Level Chef are available on Hulu the day after their broadcast.

Upcoming fall dramas such as Rescue: HI-Surf and Murder in a Small Town will also follow this model, offering Hulu subscribers seamless access to Fox’s latest content.

Fox does not operate its subscription-based streaming platform, relying instead on Hulu to monetize its content within the subscription video-on-demand (SVOD) ecosystem.

This partnership positions Hulu as a critical player in Fox’s digital strategy, while Fox continues to operate Tubi, its free ad-supported streaming service.

Fox and Hulu marketing collaboration

As part of the agreement, the companies will extend their marketing alliance. This collaboration ensures joint branding across Fox-owned and external consumer platforms, aligning messaging for live and on-demand viewing.

Since its inception, the alliance has boosted viewer engagement and strengthened the visibility of Fox content on Hulu, benefiting both entities in a rapidly evolving media landscape.

Fox Entertainment’s CEO, Rob Wade, emphasized the success of their collaborative approach, describing it as a driver of mutual growth.

Hulu’s general manager, Lauren Tempest, highlighted the deal’s continued benefits, stating that the partnership has solidified Hulu’s reputation as a premier next-day streaming destination for Fox programming.

Disney Television Studios and Fox’s in-house productions in focus

The deal showcases the depth of content Fox brings to Hulu, including animated favorites like The Simpsons, Family Guy, Bob’s Burgers, and The Great North, all produced by Disney Television Studios.

Fox Alternative Entertainment, Fox’s unscripted studio, continues to supply hit series like The Masked Singer and Next Level Chef.

At the same time, Fox Entertainment Studios expands its portfolio with scripted offerings like Animal Control and the upcoming Going Dutch, starring Denis Leary.

Fox’s animation studio, Bento Box Entertainment, is also behind several upcoming projects, including Krapopolis by Dan Harmon, Grimsburg featuring Jon Hamm, and Universal Basic Guys by the Malamut Brothers.

These productions highlight the creative diversity driving the continued appeal of Fox content.

How does this deal affect the streaming market?

This renewed partnership underscores the shifting dynamics of the streaming industry, where alliances between traditional broadcasters and digital platforms are critical for success.

Fox’s decision to focus on Hulu as its SVOD partner reflects a strategic move to capitalize on Hulu’s extensive reach and established user base.

This agreement strengthens Hulu’s content offering for Disney, bolstering its competitiveness against rivals like Netflix and Amazon Prime.

As media companies face increasing pressure to balance profitability with content quality, collaborations like this demonstrate the importance of strategic partnerships in navigating the challenges of a crowded marketplace.

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Netflix stock set to rise as live event strategy gains momentum with Jake Paul vs Mike Tyson fight

Netflix is making waves in the streaming industry with its bold move into live event broadcasting, as demonstrated by the record-breaking viewership of the recent Jake Paul vs. Mike Tyson boxing match.

This innovative approach could be a major growth driver for the streaming giant, with analysts raising Netflix’s stock price target by 13% to $1,000.

As Netflix looks to expand its live programming portfolio, including major events like NFL games and a halftime show featuring Beyoncé, the company is positioning itself to dominate both the entertainment and advertising markets.

Record-breaking live event viewership

The much-anticipated boxing match between YouTuber Jake Paul and boxing icon Mike Tyson attracted a staggering 108 million live viewers, setting a new streaming record.

Despite some technical difficulties, the event reached 60 million households globally, proving Netflix’s ability to attract large live audiences.

Experts are hailing the event’s success as a key indicator of Netflix’s potential to become a major player in live event broadcasting, challenging traditional TV networks for dominance.

Analysts boost Netflix stock price target

Following the success of the fight, Bank of America analysts raised Netflix’s stock price target from $800 to $1,000, reflecting increased confidence in the company’s live-event strategy.

This adjustment represents a 13% upside from its current value of $888.

The popularity of the Jake Paul vs. Mike Tyson fight has also opened doors for premium advertising opportunities, as live programming attracts advertisers eager to target highly engaged viewers in real-time.

Experts believe that integrating live events into Netflix’s programming could significantly boost its revenue streams.

Live events set to drive advertising revenue

Netflix’s expansion into live events is not only about attracting viewers but also about bolstering its advertising capabilities. The live broadcasts offer prime ad inventory, providing brands with opportunities to reach large audiences in real time.

As Netflix continues to roll out high-profile events, the advertising potential will likely grow, transforming live event broadcasting into a major revenue generator.

With upcoming broadcasts, including two NFL games on Christmas Day and a halftime performance by Beyoncé, Netflix is poised to continue its success in this space.

Netflix’s live-event strategy goes beyond sports, with the company recently securing a 10-year partnership with WWE’s Raw, set to begin in early 2025.

This long-term deal is a significant step in Netflix’s broader strategy to diversify its content offerings while carefully managing costs.

While the rising price of sports media rights is a concern, experts see this move as part of Netflix’s push to appeal to a wider demographic, attracting new subscribers and advertisers in the process.

Netflix stock surge

Netflix’s stock has surged by 90% year-to-date, driven by strong earnings and positive guidance.

The company’s ability to innovate and stay ahead of the competition has helped push its stock to record highs.

As Netflix continues to grow its live programming portfolio, analysts believe this will further solidify its position in the streaming market.

With upcoming high-profile events, including NFL broadcasts and a Beyoncé halftime show, Netflix is primed to showcase its live-streaming capabilities and attract even more partnerships in the sports and entertainment sectors.

As Netflix refines its live event broadcasting strategy, its focus on premium content and global scalability positions the company to reshape the streaming landscape.

The success of these live broadcasts could further establish Netflix as a key player in both entertainment and advertising.

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Zoom Video stock is in trouble, but a 130% rebound is possible

Zoom Video’s stock price has bounced back in the past few months as investors continue to see it as an undervalued company. After dropping to $55.12 in August, the stock has jumped by over 47% to $81.20, giving it a market cap of over $24 billion. ZM shares will be in focus next week as the company publishes its quarterly results.

Fallen angel facing substantial headwinds

Zoom Video has become one of the biggest fallen angels in corporate America. After doing great during the pandemic, the stock has tumbled by over 86%, erasing billions of value.

Its weakness has been because of three main reasons. First, people no longer work at home as they did during the pandemic, and many schools that embraced the technology have shifted to in-person engagements.

Second, the company has faced substantial competition, especially from Google, which owns Meet. Meet has become a highly popular platform because it is free for 60-minute meetings with 100 participants. Zoom has a similar pricing but the meetings are just 40 minutes. 

Google Meet’s premium version starts at $6 compared to Zoom’s $13. Most importantly, this package is part of more of Google’s solutions, including 2 TB of storage per user, custom email, and the Gemini app. 

Other top alternatives to Zoom Video are Microsoft Teams, Cisco Webex, Slack, BlueJeans, and RingCentral Video. This means that the video industry has become commoditized.

Third, Zoom Video lacks ways to grow its business. Ideally, in the Software-as-a-Service (SaaS) industry, companies grow by adding more users and upselling them more products. For example, Salesforce started its business as a simple CRM service. Today, it sell sother solutions like business intelligence and AgentForce. 

For Zoom, creating more opportunities to upsell is difficult since its users are just interested in video calls. It is unclear whether its additional products like Docs and workspace reservations are seeing more traction.

Read more: Zoom (ZM)stock: pandemic darling faces a bleak future

Zoom Video earnings ahead

The next important catalyst for the Zoom Video stock price will be its earnings, which are scheduled on Monday next week.

Analysts expect the numbers to show that its revenue growth stalled in the third quarter. Precisely, revenue is expected to come in at $1.16 billion, a 2.4% increase from the same period last year. 

Zoom Video’s revenue for the fourth quarter is expected to come in at $1.17 billion, a 2.2% increase. For the year, its revenue is expected to be $4.65 billion followed by $4.79 billion next year. There is a likelihood that these results will be better than expected as the company has done in the past few quarters. 

For a company in Zoom’s situation, the focus should be on achieving strong profits, which would help to justify a premium valuation. There are signs that it is making more profits as its net profit jumped from $103 million in 2022 to $637 million in 2023. 

The most recent results showed that Zoom Video’s revenue rose to $1.16 billion in the second quarter, with enterprise revenue rising to $682 million. Its net income rose to $219 million, a figure that may continue growing in the coming months. 

A good thing about Zoom Video is that its stock is not all that expensive since it trades at a price-to-earnings ratio of 14, lower than the S&P 500 average of 21. The valuation multiple is also lower than the sector median of 24. It is also much lower than the five-year average of 80.

Analysts have a mild outlook on Zoom, with the average target being $77.7, lower than the current $81.20. The most bullish analyst is from Wedbush, who recently upgraded the stock from neutral to outperform. 

Zoom Video stock price analysis

ZM chart by TradingView

The weekly chart shows that the ZM share price has remained in a tight range in the past few months. It has remained between the key support and resistance levels at $56.9 and $76.9 since 2023.

The stock has continued to consolidate at the 50-week and 100-week Exponential Moving Averages (EMA). Also, it has remained below the 23.6% Fibonacci Retracement level, while the Average True Range (ATR) has continued falling. 

The Zoom Video share price has formed a triple-bottom pattern at $56.9. In most periods, this is one of the most bullish patterns. The Relative Strength Index (RSI) has moved above the overbought level. Also, the MACD indicator has moved above the zero line.

Therefore, while Zoom stock has some weak fundamentals, a contrarian case can be made. If this happens, the next point to watch will be the 23.6% Fibonacci Retracement point at $184, which is about 130% above the current level.

On the flip side, a drop below the key support at $75.9 will point to more downside, potentially to $45.

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Snowflake stock jumps 33% on Thursday, analysts see more upside potential

Snowflake Inc (NYSE: SNOW) rallied more than 30% this morning on the back of a solid third quarter and raised guidance for the full year.

Still, Kash Rangan – a Goldman Sachs analyst is convinced you haven’t missed the boat in SNOW as it’s poised for continued gains ahead.

Rang sees Snowflake stock as competitively positioned to “capitalize on a generational shift of data and analytics to the cloud.”

Shares of the California-based company do not currently pay a dividend.

Snowflake stock could hit $220 next year

Goldman Sachs maintained its “buy” rating on Snowflake stock on Thursday. Its $220 price target indicates potential for another 30% upside from here.

Kash Rangan expects SNOW to sustainably grow revenue at an accelerated rate on the back of “strong secular tailwinds including cloud adoption, big data, AI/ML, and secure data sharing.”

Shares of the cloud company are soaring today also because it announced plans to team up with the Amazon-backed AI startup Anthropic.

The multi-year strategic partnership will deliver Claude models to customers in Snowflake Cortex AI.

Additionally, Sridhar Ramaswamy – the chief executive of Snowflake Inc. expressed confidence in the company’s ability to grow its business with the federal government on the earnings call.

Snowflake stock is on course to record its best day ever on Thursday.

SNOW is an AI play

Snowflake raised its product revenue guidance for the full year today to $3.43 billion which suggests about a 29% year-on-year increase.

Analysts, in comparison, had called for $3.36 billion instead.

The company’s upbeat guidance made JPMorgan raise its price objective on SNOW as well.

The investment firm dubbed Snowflake stock an exceptional name among software companies due to “the combination of alignment to secular trends like data growth and digital transformation, very rapid revenue growth at scale, and a solid, efficient business model” in its research note on Thursday.

Note that Snowflake offers you exposure to the artificial intelligence market that Statista forecasts will grow at a compound annualized rate of more than 28% through the end of 2030.

Snowflake’s loss widened in Q3

On the downside, Snowflake reported $324 million of net loss for its third financial quarter which translates to 98 cents a share.

A year ago, the data storage firm had lost 65 cents per share only.

Analysts had also called for a narrower 97 cents a share loss for its Q3. So, the possibility of a moderate pullback in Snowflake stock once the post-earnings frenzy subsides can’t be entirely ruled out.

But the prospects of this company should deliver some confidence to investors in buying any dip that may materialize in the coming weeks.

Note that our market analyst Ritesh A. had recommended buying Snowflake shares ahead of the earnings release.  

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From riches to ruin: Bill Hwang’s 18-year sentence for Archegos disaster

Sung Kook “Bill” Hwang, once a prominent figure in the financial world, received an 18-year prison sentence on Wednesday for his role in the spectacular collapse of Archegos Capital Management.

The implosion sent shockwaves through Wall Street, leaving major banks reeling from over $10 billion in losses.

US District Judge Alvin Hellerstein in Manhattan delivered the sentence after a jury found Hwang guilty on 10 criminal charges in July, including wire fraud, securities fraud, and market manipulation.

A financial calamity of unprecedented scale

Judge Hellerstein underscored the gravity of Hwang’s actions, stating, “The amount of losses that were caused by your conduct are larger than any other losses I have dealt with.”

Prosecutor Andrew Thomas echoed this sentiment during the sentencing hearing, describing the Archegos collapse as “a national calamity.”

The prosecution had sought a 21-year prison term for Hwang—an unusually lengthy sentence for a white-collar crime—along with $12.35 billion in forfeiture and restitution to victims.

A decision on these financial penalties is expected to be reached on Thursday.

Comparing Hwang’s case to the FTX debacle

Before handing down the sentence, Judge Hellerstein drew a parallel between Hwang’s case and that of Sam Bankman-Fried, the disgraced founder of the FTX cryptocurrency exchange.

Bankman-Fried received a 25-year sentence in March for stealing $8 billion from FTX users.

Hwang’s lawyer, Dani James, argued that the two cases were fundamentally different, stating, “Mr. Bankman-Fried was literally stealing from his customers. I don’t think that’s what’s happened here.”

Hwang’s plea for leniency and the prosecution’s counterarguments

Hwang’s legal team had requested no prison time, forfeiture, or restitution, arguing for his release on bail pending appeal.

They emphasized his low risk of reoffending and the positive impact of his philanthropic endeavors through the Grace and Mercy Foundation.

James asserted, “The notion that he would commit a crime in the future, it’s just not so.”

However, the prosecution’s push for a substantial sentence reflects the devastating financial consequences of Hwang’s actions.

From Tiger Asia to Archegos: a history of financial maneuvering

Hwang’s career began under the mentorship of hedge-fund legend Julian Robertson.

After his previous hedge fund, Tiger Asia Management, pleaded guilty to wire fraud in an insider trading case in 2012, Hwang established Archegos as a family office in 2013.

Prosecutors alleged that Hwang deceived banks about Archegos’s portfolio to secure excessive loans, which he then used to make highly concentrated bets on media and technology stocks.

The implosion: margin calls and a $100 billion wipeout

Although Archegos managed $36 billion, Hwang’s leveraged positions exposed him to a staggering $160 billion in stock market risk.

When the prices of his favored stocks began to decline, he was unable to meet margin calls.

Banks, scrambling to mitigate their losses, began unloading the stocks backing Hwang’s total return swaps, leading to a market value wipeout of more than $100 billion.

Credit Suisse suffered a $5.5 billion loss, and Nomura Holdings also incurred significant losses.

Credit Suisse is now a part of UBS.

Awaiting the final chapter

While Hwang expressed remorse and a desire to make amends in his statement to the court, the judge’s decision on forfeiture and restitution will determine the full extent of the financial consequences he faces.

Hwang’s lawyers have stated that his net worth has dwindled to “at most” $55.3 million.

His co-defendant, former Archegos CFO Patrick Halligan, who was also convicted at trial, awaits sentencing scheduled for January 27.

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Why is Target losing to Walmart, and will it ever catch up?

Target Corp. (NYSE: TGT) is likely to face significant challenges in regaining the market share it has lost in recent quarters, according to retail industry veteran Jan Kniffen.

Despite lowering prices and launching an early holiday sale last month to drive traffic, the big-box retailer still fell well short of analysts’ expectations for its fiscal third-quarter results.

Target’s stock plummeted more than 20%, hitting a year-to-date low of $121 this morning, largely due to the company lowering its full-year guidance, which dampened hopes for a quick recovery.

Why is the US consumer choosing Walmart over Target?

Target was once known for its exceptional in-store experience.

But Walmart Inc (NYSE: WMT) has invested rather aggressively to play catch up in recent years. In fact, it now “looks just as good” as a Target store, Jan Kniffen told CNBC on Wednesday.   

Plus, the stuff is “cheaper and the selection is better”. That’s why WMT is finding success in stealing the $100,000+ household customer from Target, he added.

Walmart attributed much of the strength in its recently reported quarter to that segment.

A more than 5.0% year-on-year increase in Walmart’s comparable-store sales suggests “somebody gave up a lot of market share – and it looks to me like part of that is coming out of Target,” as per Jan Kniffen.

Smaller footprint in grocery is a disadvantage for Target

Walmart has a huge advantage over Target as it drives 60% of its business from grocery.

That’s what Americans are prioritizing in terms of spending right now.

A full grocery shopping experience also means “you go [to a Walmart] every week”.

That’s a “real disadvantage” for Target since it makes a customer that much more likely to get the other stuff from Walmart as well instead of driving again to a nearby Target, Kniffen argued on “Squawk Box” today.

Additionally, WMT has made significant investments in technology to drive customers to their stores.

Kniffen dubbed Walmart the best retailer in the world as it’s “adopting AI faster than any other retailer and that’s making their distribution system more efficient” as well.

Should you buy the dip in Target stock?

While Target stock is a bit more attractive following today’s sell-off, “they’re still having a very tough time,” according to Jan Kniffen.

On the other hand, Walmart is recording solid results quarter after quarter and is growing “twice as fast” in e-commerce as Target.

Plus, it has advertising to supercharge its gross margin and overall growth rate in 2025.

All in all, the industry mogul dubbed WMT a tough competitor to beat as it has “the most money, the lowest cost of capital, and is doing everything that Amazon does.”

The retailer’s ambition to “be just like Amazon” only with 5,000 stores as well may just be reason enough to pick it over TGT, Kniffen concluded.  

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Adani stocks plummet, bond offering pulled as Gautam Adani faces US bribery allegations: what’s next?

Adani Group stocks experienced a sharp and widespread selloff on Thursday after US prosecutors announced bribery and fraud charges against Gautam Adani and seven associates.

The charges, unveiled late Wednesday, allege that Adani and his executives engaged in a multibillion-dollar scheme involving bribery to secure solar energy contracts in India.

Adani Energy Solutions bore the brunt of the market reaction, with shares plummeting 20%.

Adani Green Energy followed closely, dropping 18%. Adani Total Gas and Adani Power fell by 13-14%, while flagship companies such as Adani Enterprises, Ambuja Cements, ACC, and Adani Ports were locked in at their 10% lower circuit limits.

Other subsidiaries, including NDTV (-11%), Adani Wilmar (-8%), and Sanghi Industries (-6%), also faced significant losses, reflecting the ripple effect across the conglomerate.

Adani Green bond offering scrapped amid fallout

Amid the legal and market turbulence, Adani Green Energy cancelled plans of a $600 million bond issuance scheduled for Thursday.

Adani Green Energy’s dollar bonds issued in March dropped a record 15 cents, hitting a low of 80 cents, as per Bloomberg data.

Bonds from other Adani Group entities also saw significant declines, with some falling to as low as 74 cents—their steepest drop since the 2023 Hindenburg Research report.

“While Adani has demonstrated resilience in handling previous allegations, including those from Hindenburg, this incident highlights the ongoing risks tied to emerging markets, particularly regarding governance, transparency, and regulatory oversight,” said Mohit Mirpuri, a fund manager at Singapore-based SGMC Capital Pte in a Bloomberg report.

Bribery allegations against Adani and nephew explained

The indictment filed by the US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) outlines serious accusations against Adani, his nephew Sagar Adani, and other executives.

They are charged with conspiring to defraud US investors and global financial institutions through false representations.

According to the indictment, the group paid $265 million in bribes to Indian officials to secure state solar energy contracts.

The prosecutors claim these contracts were projected to generate $2 billion in profits over 20 years.

Some participants in the scheme allegedly referred to Gautam Adani by code names such as “Numero uno” and “the big man.”

The bribes were reportedly concealed from lenders and investors to secure over $3 billion in loans and bonds for Adani Green Energy.

The charges fall under the Foreign Corrupt Practices Act (FCPA), which targets corruption and bribery in international business dealings.

Deputy Assistant Attorney General Lisa H. Miller called the allegations a “massive fraud,” stating, “This indictment alleges schemes to pay over $250 million in bribes, lie to investors and banks to raise billions of dollars, and obstruct justice.”

A second major blow for Adani Group

This development marks another significant setback for Gautam Adani, whose business empire has been under fire since the January 2023 Hindenburg Research report accused the group of financial misconduct.

That report led to a staggering $150 billion loss in market capitalization across Adani’s companies.

Gautam Adani, ranked by Forbes as the 22nd richest person globally with a net worth of $69.8 billion, now faces not only financial challenges but also potential legal consequences.

Reports indicate that arrest warrants have been issued for Gautam Adani and his nephew Sagar Adani, compounding the group’s troubles.

What’s next for Adani Group?

The allegations have cast a long shadow over Adani Group’s global operations and its access to international capital markets.

It could also intensify foreign fund withdrawals, which have already reached record levels since October.

“Foreign investor sentiment could be affected if the investigation escalates,” Manish Bhargava, CEO of Straits Investment Management told Bloomberg, adding that the case heightens reputational risks for the group.

The charges came on the heels of Adani announcing a fresh investment in green energy and congratulating US President-elect Donald Trump on his election victory.

Trump, known for his pro-energy deregulation stance, has pledged to simplify rules for energy companies, including those operating in renewable sectors.

As the case progresses, its trajectory will likely depend on the incoming Trump administration.

Breon Peace, the Brooklyn US attorney appointed under Biden, is expected to step down.

“It’s unusual for charges like this to emerge during a transition of power,” said Gary Dugan, CEO of Global CIO Office. “The hope is that Donald Trump dismisses it once in office.”

The Adani Group has not yet issued a statement in response to the charges, but analysts predict extended volatility for its stocks and bonds as the legal process unfolds.

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