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3 reasons the SCHD ETF stock surge could continue and potential risks

The Schwab US Dividend Equity ETF (SCHD) is having a good year, helped by the ongoing stock market rally. The highly popular dividend ETF surged to a record high of $29.37 this month, up by over 37% from its lowest level in 2023. 

This rally has mostly mirrored the performance of the broader stock market, which has seen the Dow Jones, S&P 500, and Nasdaq 100 indices surge to their all-time high. Here are the three reasons why the SCHD ETF rally will likely go on and the risks that lie ahead.

SCHD ETF is a bargain

The first reason why the SCHD fund could keep rising in the near term is that it is a big bargain compared to the broader market.

Data on its website shows that the fund has a price-to-earnings ratio of 18.42, a price-to-cash flow multiple of 10.2, and a price-to-book ratio of 3.15. 

In contrast, the S&P 500 index has a P/E ratio of 22, while the Nasdaq 100 index has a multiple of 27. These indices always trade at a premium because of their tech-heavy investments, including companies like NVIDIA and Microsoft. 

The SCHD, on the other hand, has no major tech exposure, with the biggest holdings in the fund being Bristol Myers Squibb, Blackrock, Cisco Systems, Home Depot, Chevron, and Texas Instruments. 

Therefore, the SCHD ETF will likely continue rising as it attempts to close the valuation gap with the S&P 500 index.

SCHD ETF constituents

Earnings are doing well

The SCHD ETF will also do well in the long term because of the ongoing earnings trends. Data by FacstSet shows that corporate earnings were strong in the third quarter. With 91% of all companies in the S&P 500 index having released their results, the blended earnings growth was 5.3%. If this will be the final figure, it will be the fifth consecutive quarter of earnings growth.

Notably, FactSet notes that the healthcare sector has had the biggest jump in earnings, which is a notable thing since it is the second-biggest sector in the fund. Financials, consumer staples, and industrials have also been strong performers this year. 

Therefore, this earnings growth will likely continue in the foreseeable future, which will support the SCHD and other ETFs.

Federal Reserve, tax cuts, and deregulation

The SCHD ETF could also do well because of the Federal Reserve, which has maintained a relatively dovish tone in the past few months. It has slashed interest rates by 0.75% this year, a trend that may continue in the coming months.

Historically, stocks do well when the Fed is cutting interest rates since it moves investors from other low-risk assets like money markets to equities. 

At the same time, the stock market will likely do well because of Trump’s policies of deregulation and tax cuts. On deregulation, chances are that his administration will be more open to mergers and acquisitions than during Biden’s term. 

These stocks could continue soaring, mirroring what happened during his first term before the COVID-19 pandemic ended the momentum. Trump also wants to cut taxes and simplify the tax code, meaning more earnings for companies.

Potential risks for the Schwab US Dividend ETF

There are several potential risks for the SCHD ETF. First, there is a risk of a sustained trade war if Trump follows through his threats on tariffs. He has pledged to impose tariffs on most imports, which he expects will fund his large tax cuts. As such, stocks may pull back since investors don’t love uncertainty.

Second, there is a risk that, as shown below, the SCHD has formed a rising wedge pattern, a popular bearish reversal sign. This pattern is made up of two converging trendlines. At the same time, the MACD indicator has formed a bearish divergence pattern, a popular bearish sign in the market. The Relative Strength Index (RSI) has also pointed downwards, a risky sign.

SCHD ETF stock

Third, there is a risk that the ETF, which has been in a strong bull run for a long time, will retreat as the rally takes a breather.

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US dollar index: DXY forms a rare pattern, pointing to more gains

The US dollar index (DXY) continued its strong rally as investors embraced a risk-off sentiment after Donald Trump won the US election. The DXY index, which weighs the greenback against a basket of currencies, rose to $106.7 also ahead of the upcoming US consumer price inflation data. It has jumped by 5.8% from its lowest level this year.

DXY index rises amid a risk off sentiment continues

The US dollar index continued its bull run as investors embraced a risk-off sentiment after Trump’s win. This rally happened as the currency rallied against all currencies in the index.

The euro plunged to 1.0600, its lowest level since April 22, while the British pound fell to 1.2750, which was much lower than the year-to-date high of 1.3422. Similarly, the greenback slumped against currencies like the Japanese yen, Swiss franc, and Swedish krona.

This crash is mostly because of what Trump promised during the campaign period and the implications. For example, Trump pledged to have the biggest deportation force on record, and has appointed senior officials who are committed to that.

If the strategy works out, it will be an inflationary event since many undocumented immigrants work in key sectors like agriculture and construction. If these workers are all gone, it means that there will be a labor shortage, leading to higher prices.

Trump also pledged to impose large tariffs on imports, especially from China. Such a move will have major implications since those tariffs will be passed to American consumers, leading to higher inflation.

At the same time, foreign countries will respond by imposing tariffs on American goods. China will likely put more barriers on US crops and even Boeing, one of the top sellers to the country. 

Meanwhile, Trump has sought to influence the Federal Reserve, a move that will be difficult since a president can only fire officials for cause. Also, the US has an established system of checks and balances that will prevent Trump from doing some things.

US inflation data ahead

The next important US dollar index news will be the upcoming consumer inflation data on Thursday. Economists expect these numbers to reveal that prices remained steady in October, with the headline CPI rising to 2.6%. 

The core CPI, which excludes the volatile food and energy prices, remained unchanged at 3.3%. If these numbers are accurate, then it means that the Federal Reserve may opt to maintain interest rates unchanged in the last meeting of the year.

These numbers will come a week after the Federal Reserve slashed interest rates by 0.25% and hinted that more were coming. Other global central banks like the European Central Bank and the Bank of England are also cutting rates.

The US inflation data will have a limited impact on the US dollar index because the Fed is now focusing on the labor market. Data showed that the economy created just 12,000 in October, while the unemployment rate rose to 4.1%.

US dollar index technical analysis

The daily chart shows that the US dollar index has been in a strong bull run after bottoming at $100.12 on September 26. It has formed a golden cross pattern as the 200-day and 50-day Weighted Moving Averages (WMA) cross each other. 

The Relative Strength Index (RSI) and the Stochastic Oscillator have all continued soaring, meaning that it has a bullish sentiment. It has also jumped above the 38.2% Fibonacci Retracement level.

Therefore, the DXY index will likely continue soaring as bulls target the 50% retracement at $107.15. This view will become invalid if the index drops below the key support level at $105.

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Bayer share price analysis: why is this DAX index stock falling apart?

Bayer share price crashed to its lowest level in over twenty years as concerns about its future continued. It plunged to a low of €20.54 on Tuesday, bringing the year-to-date losses to about 40%. Worse, it has dropped by over 80% from its highest level in 2015, costing investors billions of dollars, and making it one of the top laggards in the DAX index.

Bayer share price implodes after earnings

The main catalyst for the Bayer stock price is its weak financial results, which came out on Tuesday. In its report, the company said that its group sales dropped to €9.6 billion, while its earnings before interest, depreciation, and armotisation dropped by 25% during the quarter. 

The numbers showed that the volume of products sold fell by 1% after growing by 9.3% in the same period last year. This decline was partially offset by a 1,6% increase in prices, but then again affected by forex rates. Bayer’s sales in EMEA and Latin America retreated by 1.1% and by 13.8% during the quarter. 

The results also revealed that the company continued to make substantial losses. Its net loss stood at €4.18 billion, an improvement from the €4.5 billion it made last year. Most of these losses came from impairments associated with Monsanto.

Most of the weakness was in its agricultural business, which includes Monsanto, a company it acquired in 2018 for $63 billion. Today, the combined company has a market cap of €21.75 billion, much lower than what it spent to buy Monsanto.

The management attributed the weak performance to the trends in the agricultural sector where most prices have plunged. Wheat has dropped by 23% from its highest level this year and 60% from its 2021 highs. 

Similarly, corn price has plunged by 40% from its highest level in April 2022, while soybeans have fallen by 27% from the same period. In most cases, farmers spend less amount of money when prices of key commodities are falling. 

The weakness could continue in the coming months as Donald Trump is set to restart his trade war with China. The last time he implement huge tariffs on China, Beijing announced measures to block US crops from entering the country. Since then, China has increased the production of key crops substantially.

Bayer is facing many other challenges. In addition to the ongoing slowdown, the company said that US regulators will not approve soy seeds to be used with dicamba weedkiller by the next planting season as expected. Also, European regulators have pulled Movento, an insecticide because of climate issues.

Is the Bayer stock price a bargain?

To some extent, Bayer share price is a big bargain because of its strong market share in areas like crop science and health. Besides, this is a stock that was trading at €106.54 in April 2015 that has now moved to €20. 

The challenge, however, is that any time Bayer has made progress, bad things have happened. For example, the stock rose in 2023 after it unveiled a new executive who vowed to streamline its business.

There were also rumours that it wanted to spin off its consumer health and crop science businesses. These actions have not gone anywhere and its business has continued to deteriorate. Most recently, the stock bounced back after the company won a lawsuit about Roundup in the United States.

Bayer shares analysis

The daily chart shows that the Bayer stock price has been in a strong sell-off for a long time. Most recently, it formed a bearish flag pattern, a popular negative sign, which explains why it made a breakdown.

Bayer has remained below the 50-day and 100-day Exponential Moving Averages (EMA). Also, the PPO indicator and the Relative Strength Index (RSI) have all pointed downwards.  Therefore, the Bayer share price will likely continue falling as sellers target the key support at €15. 

Read more: Bayer shares fall 7% as US court reconsiders Monsanto PCB exposure case

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Tilray Brands stock analysis: very bad news for TLRY shares

Tilray Brands stock resumed the downward trend and crashed to its all-time low after suffering a major setback in the United States. TLRY shares plunged to a low of $1.36 on Monday, bringing the year-to-date losses to 36%. It has also retreated by over 50% from its highest level this year, bringing its valuation to $1.2 billion.

Republican sweep, American dreams deferred

Tilray Brands and other cannabis stocks suffered a harsh reversal after last week’s elections in the United States. 

Republicans swept three important areas: the presidency, the House of Representatives, and the Senate. Donald Trump even won the popular vote, the first time a Republican candidate has done that. 

At the same time, several state cannabis initiatives in Florida, North Dakota, and South Dakota failed to attract the majority.

This election means that the US may not have federal cannabis legislation any time soon. Besides, many Republican officials still believe in leaving the cannabis issue to individual states. 

The other notable thing is that the Trump administration may decide to do away with the cannabis reclassification process that started a few months ago. That move by the Department of Health and Human Services would reclassify it from Schedule 1 to Schedule 3. It is waiting for final approval by the Drug Enforcement Administration (DEA).

If the reclassification process works, then medical professionals will be granted approval to prescribe various cabbanis products. It would also lower some of the taxes that the industry continues to grapple with.

The Senate, under Chuck Schumer, has also been working on a cannabis banking bill that would make it easier for companies in the industry to access banking services. While cannabis is legal in most states, many large banks still don’t accept companies in the industry.

These developments are notable for Tilray Brands, a Canadian company that does not have a big presence in the country’s cannabis industry. In numerous statements, the management has reiterated that the company would enter the US when the regulatory environment improves. 

Tilray Brands diversification is going on

On the positive side, Tilray Brands is no longer just a cannabis company, which sets itself apart from other companies.

In the past few years, the company has worked to diversify its business by investing in wellness and alcoholic beverages. For example, last week, the company reported positive results from a study on oral cannabis extract for chemotherapy-induced emesis. 

The most recent results showed that Tilray Brands diversification strategies have started to pay off. Its revenue rose by 13% in the last quarter to $200 million.

Most of this revenue, about $68.1 million, came from distribution, followed by cannabis and beverage alcohol, which made over $61.2 million and $56 million, respectively. The company hopes that the alcohol business will become a crucial part of its business. 

Still, a key concern is that Tilray is investing in the alcoholic business, which has shown some substantial weakness in the past few years. Alcohol consumption among young people has dropped, which explains why most stocks have retreated. 

Tlray Brands is also narrowing its losses as it works towards breaking even in the next few years. Its net loss narrowed to $34 million from $55 million in the same period last year. After making a $1.4 billion loss in 2022, it narrowed to $222.4 million in the last financial year. 

Read more: Tilray Brands stock sits at a make-or-break price: now what?

Tilray Brands stock price analysis

TLRY chart by TradingView

The daily chart shows that the TLRY share price has been in a strong bearish trend in the past few months. It crashed below the key support level at $1.61, its lowest point in November last year and May this year. It was the lower side of the descending triangle chart pattern.

The stock has also remained below the 50-day and 100-day Exponential Moving Averages (EMA). It has also formed a head and shoulders pattern. Therefore, the Tilray Brands stock price will likely remain under pressure in the near term. If this happens, the next point to watch will be at $1.2.

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JPMorgan’s JEPI ETF is a SWAN fund; here is a better alternative

The JPMorgan Premium ETF (JEPI) is one of the top Sleep Well at Night (SWAN) funds on Wall Street. In just a few years, it has grown to become the biggest active ETF globally with over $37 billion in assets under management.

JEPI has also been a strong performer over time, generating total returns of 76% since its inception. It provides regular income, thanks to its monthly distributions of about 7%, and also exposure to some of the top American companies. 

JEPI ETF is a SWAN fund

The JPMorgan Equity Premium ETF generates returns by investing in 133 companies in the S&P 500 index. These stocks are selected carefully by portfolio managers with over 60 years of combined experience in the equities market.

Trane Technologies, a company that manufactures heating, ventilation, and air conditioners is the biggest part of the fund. It is followed by companies like NVIDIA, Progressive, ServiceNow, Amazon, Mastercard, Meta Platforms, and Honeywell.

Most of JEPI’s constituents are in the information technology sector, followed by financials, healthcare, and industrials. Therefore, the ETF makes money when these stocks are doing well. 

At the same time, it generates returns using the options market, where it writes call options on the S&P 500 index. A call option gives a user a right but not the obligation to buy an asset at a certain price commonly known as the strike price. 

By selling these options, the JEPI ETF is able to generate substantial returns, known as premiums, which it distributes to its holders each month. Its dividends also include the payouts made by companies in its portfolio.

Therefore, the JEPI ETF typically does well when the stock market is in an uptrend. However, because the options trade has a strike price, it means that gains could be limited if the S&P 500 index does well as it has done in the past few weeks.

Read more: JEPI, JEPQ, and JPIE ETF scorecard for 2024 so far

Vanguard S&P 500 ETF (VOO) is a better alternative

While the JEPI ETF has done well over time, we believe that the basic VOO ETF is a better alternative for several reasons. 

First, VOO is one of the cheapest funds in Wall Street with an expense ratio of 0.03%, which is much lower than JEPI’s 0.35%. This simply means that a $10,000 investment in VOO will cost just $3 annually to manage. A similar investment in JEPI will cost about $35. Sure, these are not big numbers, but why pay more? 

Ideally, it would make sense to pay more if the JEPI ETF generates stronger returns than JEPI. However, historical data show that, while the VOO ETF has a dividend yield of just 1.2%, it has a long track record of beating JEPI. 

JEPI ETF has had total returns of 15.78% this year, while the VOO has returned 26.7%. Similarly, in the last three years, JEPI’s total returns have been 26.8% compared to VOO’s 33.50%. Therefore, given the choice of these two funds, I would go for one that has a long track record of performance.

Third, VOO is the best SWAN ETFs in my view because of its long track record. It tracks the S&P 500 index, a fund that has been in business since 1957. While the S&P 500 index dips when there are major events like the COVID-19 pandemic and the dot com bubble, it always bounces back.

Therefore, VOO – together with funds tracking the NASDAQ 100 index – are better investments in the long term. Its strong performance helps to offset JEPI’s high dividend yield and monthly distributions.

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Vantard surpasses Popcat and Brett with innovative memecoin tracking and low market cap

Meme coins have taken the Solana blockchain by storm, with investors pouring into these high-risk, high-reward digital assets.

The popularity of coins like Popcat and Brett has sparked interest in new projects like Vantard, which aims to simplify meme coin investing by offering a managed portfolio of promising tokens.

By tracking a carefully selected index of Solana’s top-performing meme coins, Vantard distinguishes itself as a more strategic option, providing potential for significant gains with reduced research effort.

This article explores how Vantard stands out against competitors like Popcat and Brett, highlighting data points that may interest meme coin investors.

Why Vantard’s low market cap offers unique growth potential

One of Vantard’s standout advantages is its low market cap, currently just $818,790.93, compared to Popcat’s $1.2 billion and Brett’s $800 million valuations.

This lower starting point presents significant growth potential, giving investors a greater chance of achieving higher returns.

Vantard’s index-style structure also sets it apart by offering exposure to a diverse portfolio of Solana’s top meme coins, which mitigates some of the volatility often seen in individual meme coins.

The presale for Vantard, priced at $0.00013, is attracting attention from investors keen to enter early, as the platform plans to increase the price to $0.00014 in the next funding stage.

With the potential for major upside, Vantard’s market fit aligns well with the investor appetite for high-reward opportunities in the memecoin space.

Popcat’s volatile price movements reveal market saturation

Popcat has proven its popularity among Solana meme coins, reaching an all-time high in October 2024.

However, recent trends indicate a slowdown, with the price correcting by 5% as early investors have begun cashing out.

In the past week, Popcat has fluctuated between $1.20 and $1.60, currently trading around $1.44 with an RSI of 51.71, signalling potential price consolidation.

This volatility highlights a critical risk for new investors, as Popcat may be nearing a saturation point in market interest.

Source: CoinMarketCap

Vantard, in contrast, sidesteps such high-stakes volatility by distributing exposure across a variety of promising coins.

This approach provides investors with a steadier performance outlook, as individual price swings are balanced out within the portfolio.

Brett’s fan base and price plateau raise concerns

Brett, inspired by meme culture and drawing fans of the “Pepe the Frog” character, initially showed strong growth, peaking at $0.19 in June 2024.

At the time of writing, Brett has settled at around $0.0029 and appears to be struggling to surpass previous highs, even amid recent growth.

Source: CoinMarketCap

While Brett has gained traction with a loyal following, its market cap of $800 million suggests that major price surges may be limited compared to smaller-cap coins.

The strength of Vantard lies in its ability to adapt its portfolio to market trends, including meme coins with the potential for both short-term gains and long-term growth.

Investors benefit from access to promising projects before they reach critical mass, often securing positions before significant price appreciation.

Vantard’s curated index approach reduces investment risks

The inherent volatility of meme coins is a double-edged sword, as it can lead to both significant gains and heavy losses.

Vantard’s curated index of memecoins offers investors a novel solution by spreading risk across multiple assets.

Unlike Popcat or Brett, which rely on single-asset performance, Vantard’s index model brings a more stable growth opportunity, as underperforming coins are balanced by those experiencing gains.

Vantard’s diversified portfolio and low barrier to entry make it a favourable option for investors who want exposure to meme coins without the extensive research and timing often required for individual assets like Popcat and Brett.

With meme coin prices fluctuating significantly, investors are increasingly looking for managed solutions like Vantard that do the research and rebalancing on their behalf.

This approach caters to both seasoned investors and those new to meme coins, providing structured exposure to a notoriously high-risk sector.

Vantard’s low market cap and index-style investment make it an attractive option, offering the prospect of parabolic gains without requiring a deep understanding of each token’s performance.

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Apple’s new AI wall tablet aims to centralise Siri, home control and video calls

A Bloomberg report reveals Apple Inc. is preparing to redefine the smart home market with an advanced wall-mounted display that acts as a central control hub.

This new product, expected to launch in early 2024, will feature a 6-inch screen and advanced Apple Intelligence, enhancing the HomeKit ecosystem and enabling a smoother interaction with smart home devices.

Designed as a compact but powerful hub, it can manage household appliances, conduct FaceTime video calls, and control apps through Siri voice commands.

As the tech giant steps up its smart home ambitions, it aims to close the gap with rivals like Amazon’s Echo and Google’s Nest products.

Apple’s smart home display integrates with HomeKit and AI technology

In a move to bolster its presence in the smart home sector, Apple’s new device leverages HomeKit’s infrastructure to provide seamless control over third-party accessories such as thermostats, lights, locks, and security cameras.

The device will serve as a central control panel, connecting with hundreds of HomeKit-enabled accessories and offering direct access to Apple’s cloud-based iCloud services for security footage.

Siri will play a central role, enabling voice-controlled functions powered by Apple Intelligence, which will roll out advanced AI features like image generation and OpenAI’s ChatGPT by December.

Product design

Apple’s smart home display, code-named “J490,” comes with a roughly 6-inch screen resembling a square iPad, with a built-in camera, rechargeable battery, and speakers.

With options for silver and black finishes, the device is designed for both desktop and wall-mounted use, allowing flexibility in room placement.

A dedicated operating system, called “Pebble,” powers the device, offering a customisable home screen with widget capabilities to display weather updates, stock tickers, or preferred home control panels.

Competing with Amazon and Google’s smart displays

Positioned to challenge the Amazon Echo Show and Google Nest Hub Max, Apple’s smart home display differentiates itself with its high integration of AI and Apple Intelligence.

This device supports Apple’s existing ecosystem with features like FaceTime, iCloud, and Siri, intending to offer a more intuitive and secure smart home experience.

Apple plans to price the initial model competitively, targeting a mid-range cost to align with existing competitors.

Future models may feature advanced capabilities, including a robotic limb for screen mobility, which could elevate its price to around $1,000, positioning it as a premium home assistant device.

Features

Security and privacy are critical aspects of Apple’s smart home approach.

Users can monitor live feeds from HomeKit-compatible security cameras, including doorbells, through the display.

This also serves as an intercom, enabling easy communication across rooms in a multi-display setup.

Apple’s plans to explore an array of potential accessories, including indoor security cameras, could further enhance the product’s utility as a home safety solution, emphasising the company’s commitment to privacy and secure data handling.

One of the key innovations Apple is introducing is the device’s proximity sensor, allowing the screen to adjust its interface based on the user’s distance.

When a person approaches, the screen transitions to display detailed control options, while moving farther away triggers simplified visuals such as temperature readings.

The device integrates with Siri for hands-free control, with users expected to interact primarily through voice commands, turning it into an effortless command centre for managing various smart home functions.

Apple’s roadmap

The new smart display represents Apple’s ambition to integrate deeply into home automation.

With plans to potentially develop smart home accessories, Apple could expand its HomeKit ecosystem with proprietary security cameras and monitoring tools designed for privacy-conscious users.

Although these products are not part of the immediate release, Apple’s strategic roadmap reveals a long-term vision of becoming a comprehensive provider within the smart home sector, backed by AI capabilities and Apple’s hardware and software innovations.

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On Holding stock is doing well; but does ONON have more upside?

On Holding stock price is hovering near its highest level on record as the company’s growth trajectory gains momentum. ONON shares surged to an all-time high of $53.97 on Monday and then pulled back to $52.6.

It has jumped by over 95% this year, making it one of the best-performing companies in the industry. Notably, it is beating companies like Nike, Adidas, and Lululemon, which are all struggling this year. 

On Holding stock soars after earnings

On Holding is a fast-growing company in the sports clothing industry, where it manufactures shoes and apparel. It is backed by Roger Federer and has become a global sensation, which has pushed its market cap to over $16 billion. This valuation makes it almost five times bigger than Under Armour, a company that was once seen as the biggest competitor to Nike.

On Holding stock moved sideways after the company published strong financial results that demonstrated its growth trajectory was continuing. 

Its net sales jumped by 32.3% in the third quarter and reached CHF 635 million. Most of this growth was mostly because of its direct-to-consumer business, which expanded by almost 50% during the quarter. 

At the same time, ON continued to focus on profitability as its gross margin jumped to 60.3%, helped by its DTC business and its focus on full pricing. This is unlike other companies that have achieved substantial momentum because of its discounts. It sees the gross margin rising to 60.5% this year, a figure that will be higher than Lululemon’s 58.4% and Nike’s 44.9%. 

Most importantly, the company is seeing more demand for its products, which explains why the management raised its forward guidance. It sees its net sales rising to CHF 2.29 billion or $2.4 billion this year. Its EBITDA margin will be between 16% and 16.5%. 

Is ONON overvalued?

A key concern among investors is that On Holding is a highly overvalued company since its valuation is almost half that of Lululemon Athletica.

On Holding also has stretched valuation metrics. It has a forward price-to-sales ratio of 6.47, higher than the industry median of 1.0. Also, its forward P/E ratio of 68 is much higher than the sector median of 18.

Proponents believe that the company’s valuation can be justified because of its strong growth and the fact that it has broken even. Its net profit margin of 7.6% will likely grow and beat Nike’s and Lululemon’s 10.6% and 16%. 

On Holding is expected to make $3.3 billion in 2025. If it achieves that margin, it means that its net income will be over $528 million. That would give it a forward P/E ratio of 30, which is reasonable for a company that is seeing substantial growth.

The average On Holding stock price forecast is $52.88, a few points above the current level. 19 of 24 analysts tracking the company was bullish. 4 of them have a hold, while 1 has a sell rating. Some of the most notable bullish analysts are Telsey Advisory, UBS, Truist, Piper Sandler, and TD Cowen.

On Holding stock price analysis

ONON chart by TradingView

The daily chart shows that the ONON share price peaked at $53.97 on Tuesday. It has remained above the 50-day and 100-day Exponential Moving Averages (EMA).

The stock has also formed a rising wedge pattern, a popular bearish sign in the market. Most notably, it has formed a hanging man pattern, a crucial bearish candle. Also, the stock has formed a double-top pattern. 

Therefore, there is a likelihood that the stock will retreat in the coming weeks. If this happens, it could drop to the next key support at $46.35, its lowest swing on November 1. A move above the key resistance at $54 will point to more gains ahead.

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SoftBank first to receive Nvidia’s latest Blackwell AI chips for Japanese supercomputer

In a landmark move for artificial intelligence and computing in Japan, SoftBank’s telecoms unit is set to receive Nvidia’s latest Blackwell chip design for its supercomputers.

This collaboration, unveiled at an AI event in Tokyo, comes as SoftBank Corp. aims to expand its footprint in the AI-driven tech landscape.

Nvidia’s new Grace Blackwell chip will power SoftBank’s supercomputer and further AI projects, marking a critical step for both companies as they leverage this partnership to drive innovation.

For SoftBank CEO Masayoshi Son, the decision aligns with his strategic vision to capitalise on the AI wave, following his investments in chip startup Graphcore and a stake in OpenAI.

SoftBank’s AI push

SoftBank’s CEO Masayoshi Son has long been known for his keen interest in forward-looking tech investments, but the company’s new focus on AI marks a calculated pivot.

In recent years, SoftBank has ramped up efforts to gain a foothold in the AI sector, diversifying beyond traditional telecommunications into high-tech domains.

Son’s recent investments include a stake in OpenAI and the acquisition of chip startup Graphcore, steps he hopes will future-proof the company amidst a rapidly evolving tech ecosystem.

This AI-centric strategy follows a period of retrenchment for the conglomerate, as SoftBank weathered losses from investments like WeWork and faced regulatory obstacles, such as its failed attempt to sell chip designer Arm to Nvidia.

Blackwell design to support high-performance computing needs in Japan

Nvidia’s Blackwell chip design, which will be deployed by SoftBank’s telecoms unit, is specially designed for high-performance computing, making it ideal for supercomputing and AI workloads.

With AI applications driving demand for more powerful processors, Nvidia’s chips have become essential in areas such as machine learning, data processing, and cloud-based AI services.

The partnership with SoftBank underscores Nvidia’s continued dominance in the high-performance chip market, as the company has evolved from primarily producing gaming graphics chips to becoming a key player in AI and cloud computing.

This move highlights how Japan’s tech ecosystem is being reshaped to support AI infrastructure at scale.

Son’s relationship with Nvidia

Masayoshi Son’s interest in Nvidia goes beyond business transactions; it reflects a long-standing partnership and shared vision for the future of AI.

During the Tokyo event, Nvidia’s CEO Jensen Huang recalled an interesting moment when Son offered to lend him the funds to buy Nvidia, recognising the company’s potential before the market caught on.

Although Huang did not accept Son’s offer, the anecdote demonstrates the billionaire’s foresight in identifying high-potential tech investments. Son’s familiarity with Nvidia also led him to build a significant stake in the company, although he later sold down his holdings.

Despite past regulatory setbacks in attempting to sell Arm to Nvidia, Son’s alignment with Nvidia remains robust as the two companies now collaborate to meet the rising demand for AI computing solutions.

Nvidia’s global influence

Nvidia has come a long way since its early days as a gaming chip designer.

Today, Nvidia is the world’s most valuable chipmaker, with its products widely recognised as the gold standard for AI applications.

The company’s dominance is largely driven by its expertise in producing high-performance chips that power the next generation of AI applications.

The Blackwell chip, developed specifically for demanding workloads, is a testament to Nvidia’s ability to stay ahead of the curve.

SoftBank’s adoption of the Blackwell design for its telecoms supercomputer underscores the rising importance of Nvidia’s products beyond the gaming sector, extending into telecommunications and AI infrastructure.

SoftBank’s AI future

SoftBank’s AI strategy is shaping the company’s future, and its partnership with Nvidia serves as a key milestone in that journey.

As AI applications become more embedded across industries, SoftBank aims to lead Japan’s AI revolution, not only by developing advanced AI infrastructure but also by exploring new partnerships and technologies that can drive the next wave of innovation.

The new supercomputer project, supported by Nvidia’s Blackwell chips, symbolises a broader ambition to integrate AI capabilities across SoftBank’s operations.

As the global competition for AI dominance intensifies, SoftBank’s strategic investments in AI and related technologies are set to keep it at the forefront of technological advancement.

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Italy’s revised crypto tax rate drops from 42% to 28% in policy shift

Prime Minister Giorgia Meloni’s coalition is rethinking its stance on crypto taxation, with proposals to amend a recent tax hike plan to better support Italy’s growing digital asset sector.

Initially introduced in October’s budget, the proposal aimed to raise Italy’s crypto tax from the current 26% to 42%, hoping to significantly bolster public revenue.

Crypto industry leaders expressed concern, warning that such a steep increase could negatively impact Italy’s competitiveness, especially as the European Union’s Markets in Crypto-Assets (MiCA) regulation framework is set to launch later this year.

Current tax rate sparks debate over Italy’s crypto future

Italy’s current 26% tax on crypto transactions has been tolerable for local investors, but the proposed jump to 42% has led to strong objections within the industry.

Analysts believe such a high tax rate could deter both domestic and international investments, potentially pushing investors toward more crypto-friendly countries within the EU.

The MiCA framework, soon to be implemented across Europe, is designed to establish common rules and potentially attract more crypto businesses to the region.

In light of this, Italy’s proposed tax increase appears increasingly misaligned with EU trends, prompting coalition members to reconsider the rate.

Proposals by The League and Forza Italia suggest a balanced approach

Two coalition partners, The League and Forza Italia, have proposed alternative tax structures aimed at balancing revenue goals with industry growth.

The League, a junior partner in Meloni’s coalition, has suggested capping the crypto tax rate at 28%, a reduction from the initially planned 42%.

This approach seeks to increase tax revenues while supporting a competitive environment for crypto investors.

Meanwhile, Forza Italia has recommended a more investor-friendly amendment, suggesting that gains below €2,000 should remain untaxed.

This proposal could encourage local participation in the digital asset sector, particularly among smaller investors who may otherwise avoid the market due to high tax burdens.

Both proposals reflect an attempt to address industry concerns and foster a thriving crypto market in Italy.

Should Italy implement these amendments, its digital asset market could see increased participation and growth, especially if smaller investors face lower tax obligations.

A tax rate capped at 28% may attract foreign investors, positioning Italy as a more competitive option within the EU crypto landscape.

Lowering the tax rate could also align Italy’s regulatory approach with that of other European countries, promoting harmonisation as the MiCA framework takes effect.

Italy’s response to EU’s MiCA regulations

The impending EU MiCA regulations, which aim to standardise crypto rules across Europe, place Italy in a unique position to adapt its tax policies in line with EU trends.

Italy’s proposed tax amendments could potentially establish the country as a leading crypto hub within Europe, particularly if the nation successfully balances the need for revenue with industry growth.

Italy’s coalition appears committed to fostering a favourable environment for digital assets, in part to keep pace with other European countries that are revising their own crypto policies.

As Italy’s government deliberates over the proposed tax adjustments, the digital asset sector awaits clear direction on its future tax obligations.

If the amendments succeed, Italy may avoid deterring investors who might otherwise consider alternative jurisdictions within the EU.

By creating a tax structure that encourages crypto investment, Italy could position itself as a competitive player in the European crypto market, even as the EU’s MiCA regulations begin to take shape.

This alignment with EU goals and the support for local crypto growth could ensure that Italy remains a vital part of Europe’s digital asset ecosystem.

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