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Donald Trump’s re-election as US President has quickly reignited debates over America’s foreign policy direction, particularly concerning the Ukraine conflict. 

In a recent discussion with the Ukrainian President, Trump has proposed an 800-mile buffer zone between Ukraine and Russia, enforced not by US troops but by European forces. 

This move aims to solidify the ceasefire while freezing Russia’s territorial gains and preventing Ukraine from joining NATO for 20 years.

The plan however, places the onus of peacekeeping directly on Europe, potentially altering US engagement in the region completely.

Over the past few days, Donald Trump has met with both the Ukrainian and Russian presidents.

These back-to-back meetings indicate that the new US President is serious about finding a resolution to this conflict.

European troops to police the zone?

Central to Trump’s proposal is the deployment of British and European troops to maintain a new 800-mile demilitarized zone between Ukraine and Russia.

This initiative not only aims to stabilize the region but also reflects Trump’s broader foreign policy objective to reduce America’s military expenditures and direct involvement overseas.

By shifting the peacekeeping burden to European allies, Trump argues that the US can better allocate its defense resources elsewhere. 

The plan occurs as the Biden administration makes a final push to fast-track $9 billion in military aid to Ukraine, a move meant to shore up Kyiv’s defenses before Trump takes office. 

Critics argue that Trump’s proposal could strain NATO unity and increase burdens on European nations, which are already grappling with domestic economic issues and rising defense costs.

They fear that increased military spending could be unsustainable for some European economies, potentially leading to deeper financial crises. 

Additionally, requiring European troops to police the zone introduces complexities regarding rules of engagement, logistics, and the potential for direct confrontation with Russian forces, complicating an already volatile security situation.

Zelenskyy’s stance

Ukrainian President Volodymyr Zelenskyy has publicly voiced his reservations about the feasibility of Trump’s rapid peace deal, particularly concerning the substantial concessions to Russia that it entails.

Zelenskyy has pointed to past failures, such as the 2014 ceasefire, which led to the loss of Crimea and escalated military conflicts.

This agreement not only failed to bring lasting peace but directly preceded the loss of Crimea and a subsequent escalation in military conflicts. 

Zelenskyy contends that a hastily arranged, unenforceable ceasefire under Trump’s current plan could lead to further erosion of Ukrainian sovereignty and territorial integrity.

He argues that any peace efforts must ensure Ukraine’s national integrity and align with its long-term strategic goals, including its aspirations to join NATO. 

The Ukrainian leader’s skepticism is rooted in concerns that conceding too much to Russia could set a dangerous precedent, emboldening further aggression not only in Ukraine but across Eastern Europe, thereby undermining the security architecture that has governed the post-Cold War era.

Elon Musk’s involvement

Further complicating the geopolitical narrative is Elon Musk’s unexpected participation in discussions. 

Musk, having campaigned vigorously for Trump and provided crucial satellite communications through Starlink to Ukraine, adds a layer of civilian influence rarely seen in diplomatic negotiations. 

At the same time however, reports suggest Musk has been in communication with Russian President Vladimir Putin. Together they have been discussing sensitive topics such as Starlink’s operations over Taiwan.

The overall situation has become more complex through Musk’s involvement with many now left wondering about the role of private individuals in public international conflicts.

Will the plan work?

The feasibility of Trump’s peace plan hinges on several complex factors. 

First, the demand that Europe take on more responsibility for maintaining peace comes at a difficult moment.

European defense spending is currently under intense scrutiny, and public opinion is sharply divided over increasing military engagements. 

Additionally, the success of the plan also depends on Russian cooperation.

Acceptance of the ceasefire and territorial agreements by Russia is crucial, as these issues have historically led to contention and escalation of conflict. 

For Ukraine, the stakes couldn’t be higher.

National integrity and future aspirations to join NATO are in jeopardy.

President Volodymyr Zelenskyy’s government faces the daunting task of navigating both internal pressures and a complex geopolitical landscape to secure an outcome that safeguards Ukraine’s sovereignty and aligns with its national interests.

As Trump prepares for discussions with Putin and European leaders, the international community watches closely. 

The outcome of these talks could redefine Eastern European security architecture, shift NATO’s strategic priorities, and alter the course of the US-Europe relations.

While the plan proposes a structured approach to resolving one of the most volatile conflicts of the past decade, its acceptance and implementation carry profound implications for all involved, offering a unique lens into the power dynamics and alliances that shape our world today.

The post Trump’s peace plan: can it reset Ukraine’s future? appeared first on Invezz

Donald Trump’s re-election as US President has quickly reignited debates over America’s foreign policy direction, particularly concerning the Ukraine conflict. 

In a recent discussion with the Ukrainian President, Trump has proposed an 800-mile buffer zone between Ukraine and Russia, enforced not by US troops but by European forces. 

This move aims to solidify the ceasefire while freezing Russia’s territorial gains and preventing Ukraine from joining NATO for 20 years.

The plan however, places the onus of peacekeeping directly on Europe, potentially altering US engagement in the region completely.

Over the past few days, Donald Trump has met with both the Ukrainian and Russian presidents.

These back-to-back meetings indicate that the new US President is serious about finding a resolution to this conflict.

European troops to police the zone?

Central to Trump’s proposal is the deployment of British and European troops to maintain a new 800-mile demilitarized zone between Ukraine and Russia.

This initiative not only aims to stabilize the region but also reflects Trump’s broader foreign policy objective to reduce America’s military expenditures and direct involvement overseas.

By shifting the peacekeeping burden to European allies, Trump argues that the US can better allocate its defense resources elsewhere. 

The plan occurs as the Biden administration makes a final push to fast-track $9 billion in military aid to Ukraine, a move meant to shore up Kyiv’s defenses before Trump takes office. 

Critics argue that Trump’s proposal could strain NATO unity and increase burdens on European nations, which are already grappling with domestic economic issues and rising defense costs.

They fear that increased military spending could be unsustainable for some European economies, potentially leading to deeper financial crises. 

Additionally, requiring European troops to police the zone introduces complexities regarding rules of engagement, logistics, and the potential for direct confrontation with Russian forces, complicating an already volatile security situation.

Zelenskyy’s stance

Ukrainian President Volodymyr Zelenskyy has publicly voiced his reservations about the feasibility of Trump’s rapid peace deal, particularly concerning the substantial concessions to Russia that it entails.

Zelenskyy has pointed to past failures, such as the 2014 ceasefire, which led to the loss of Crimea and escalated military conflicts.

This agreement not only failed to bring lasting peace but directly preceded the loss of Crimea and a subsequent escalation in military conflicts. 

Zelenskyy contends that a hastily arranged, unenforceable ceasefire under Trump’s current plan could lead to further erosion of Ukrainian sovereignty and territorial integrity.

He argues that any peace efforts must ensure Ukraine’s national integrity and align with its long-term strategic goals, including its aspirations to join NATO. 

The Ukrainian leader’s skepticism is rooted in concerns that conceding too much to Russia could set a dangerous precedent, emboldening further aggression not only in Ukraine but across Eastern Europe, thereby undermining the security architecture that has governed the post-Cold War era.

Elon Musk’s involvement

Further complicating the geopolitical narrative is Elon Musk’s unexpected participation in discussions. 

Musk, having campaigned vigorously for Trump and provided crucial satellite communications through Starlink to Ukraine, adds a layer of civilian influence rarely seen in diplomatic negotiations. 

At the same time however, reports suggest Musk has been in communication with Russian President Vladimir Putin. Together they have been discussing sensitive topics such as Starlink’s operations over Taiwan.

The overall situation has become more complex through Musk’s involvement with many now left wondering about the role of private individuals in public international conflicts.

Will the plan work?

The feasibility of Trump’s peace plan hinges on several complex factors. 

First, the demand that Europe take on more responsibility for maintaining peace comes at a difficult moment.

European defense spending is currently under intense scrutiny, and public opinion is sharply divided over increasing military engagements. 

Additionally, the success of the plan also depends on Russian cooperation.

Acceptance of the ceasefire and territorial agreements by Russia is crucial, as these issues have historically led to contention and escalation of conflict. 

For Ukraine, the stakes couldn’t be higher.

National integrity and future aspirations to join NATO are in jeopardy.

President Volodymyr Zelenskyy’s government faces the daunting task of navigating both internal pressures and a complex geopolitical landscape to secure an outcome that safeguards Ukraine’s sovereignty and aligns with its national interests.

As Trump prepares for discussions with Putin and European leaders, the international community watches closely. 

The outcome of these talks could redefine Eastern European security architecture, shift NATO’s strategic priorities, and alter the course of the US-Europe relations.

While the plan proposes a structured approach to resolving one of the most volatile conflicts of the past decade, its acceptance and implementation carry profound implications for all involved, offering a unique lens into the power dynamics and alliances that shape our world today.

The post Trump’s peace plan: can it reset Ukraine’s future? appeared first on Invezz

US equity benchmarks rose slightly on Friday as investors assessed the Federal Reserve’s interest rate cut on Thursday. 

The US Fed cut interest rates by 25 basis points on Thursday, and Chair Jerome Powell hinted at further easing of monetary policies in the coming months.

At the time of writing, the Dow Jones Industrial Average surged over 300 points at its session peak, surpassing the 44,000 mark for the first time.

It was recently up by 250 points.

The S&P 500 gained 0.4%, with both indices reaching intraday record highs. Meanwhile, the tech-focused Nasdaq Composite lagged, slipping 0.1%.

All three benchmarks were, however, on course for strong weekly gains, driven by the post-election rally after Donald Trump’s win in the 2024 US presidential election on Wednesday. 

According to a CNBC report, both Dow Jones and S&P 500 were on track for their best week since November 2023. 

“Equities are eager to price in Trump’s domestic growth policies (via small-caps) and hopes for easier regulation relative to the Biden administration,” CNBC quoted Barclays strategist Venu Krishna in a report. 

Whether these moves are sustainable remains to be seen; momentum is extending lofty gains as ‘winners keep winning’, and the sharp post-Election Day moves have pushed major gauges near (or into, in the case of [Russell 2000]) technically overbought territory.

Meanwhile, oil prices slumped more than 2% on Friday as risks to supply subsided. 

Hurricane Rafael was expected to move westwards over the US Gulf of Mexico, alleviating concerns of disruptions in supply from the region. 

Oil prices were also under pressure as a Trump presidency is likely to see more drilling for oil and gas on federal US lands, which could increase production from the world’s largest producer. 

ARK Innovation ETF surges

Cathie Woods’s ARK Innovation ETF surged 11.6% this week, and was on course for its best week since November last year. 

Notable leaders in the fund this week include Coinbase, Palantir and Robinhood, which are believed to benefit from loose regulations under a Trump administration, CNBC reported. 

At the time of writing, the ETF was 0.6% up through Thursday’s close. 

NVIDIA officially joins Dow 

On Friday, chip giant NVIDIA Corporation joined the Dow Jones Industrial Average. 

Last week, it was announced that NVIDIA and Sherwin Williams would officially join the 30-stock equity benchmark. 

Both stocks replace Intel and chemical company Dow Inc. 

However, shares of NVIDIA Corporation were down more than 1% on Friday at the time of writing. The stock has gained over 220% over the last one year. 

Semiconductor, media stocks weigh on Nasdaq

Chip stocks, including NVIDIA, were underperforming on Friday, which weighed on the Nasdaq Composite. 

The VanEck Semiconductor ETF dipped 0.8%, while Arm Holdings fell 3% on Friday. 

Media stocks, including Paramount Global, were down 4% after the company posted weak earnings for the third quarter. 

Rival Warner Bros. Discovery also fell 4% on Friday’s session, while advertising stock The Trade Desk tanked 9%. 

The Trade Desk fell despite posting positive earnings for the  third quarter. 

Tesla hits $1 trillion market cap

Shares of Elon Musk’s Tesla jumped 6% on Friday as the stock continued its post-election rally. 

Friday’s gains took Tesla’s market cap past $1 trillion for the first time. 

The company’s stock rose more than 27% this week after Trump secured his second presidency in the US. Musk’s close ties with Trump were seen as positive for the business. 

Tesla’s CEO Musk was one of the prominent figures backing Trump for his second term as president of the US. 

China announces stimulus package

China on Friday announced a stimulus package of $1.4 trillion to help tackle local government debts. 

The week-long meeting of the National People’s Congress was concluded on Friday as the political body announced measures to boost local government’s growth. 

Meanwhile, the University of Michigan’s consumer sentiment gauge came in at 73 in November in the US. The index rose to its highest level since April. 

The reading was also better than expectations of 71 and was higher from 70.5 clocked in October. 

The post Dow and S&P 500 extend gains after Fed rate cut; Tesla hits $1T, chip stocks slip appeared first on Invezz

Dogecoin and Dogelon Mars prices remained in a strong bullish trend as Bitcoin surged to a record high. DOGE, the biggest meme coin in the industry, jumped to a high of $0.3050, its highest level since October 2021. It has soared by over 375% from its lowest level in 2023, bringing its market cap to over $42 billion.

Similarly, the Dogelon Mars (ELON) token soared to a high of $0.000000235, its highest level since April 2024.

Trump win and Elon Musk net worth surges

DOGE and ELON prices continued their strong bull run after last week’s election in the United States in which Donald Trump won by a large margin.

He won 312 electoral college seats and received over 74 million votes, beating Kamala Harris. It was the first time in over two decades that a Republican has done that. 

Most importantly, Republicans won the Senate, and are on track to win the House of Representatives, where they need just four seats. 

Therefore, investors believe that the new administration will be highly bullish for cryptocurrencies. That explains why Bitcoin has surged to a record high of over $81,000, while the fear and greed index has moved to 74.

At the same time, the election has been good for Elon Musk, who is credited for promoting Dogecoin and inspiring the meme coin industry that is now valued at almost $100 billion.

Data by Bloomberg shows that Musk’s net worth has now surged to over $314 billion, a trend that may continue in the coming days. As such, traders believe that Musk may decide to invest some more money into meme coins like DOGE and SHIB.

The other reason why the DOGE and ELON prices have surged is that the Federal Reserve has started to unwind its interest rates. It slashed rates by 0.25% on Thursday and hinted that more cuts were on the way.

Dogecoin price prediction

DOGE chart by TradingView

The weekly chart shows that the DOGE token price has been in a strong bullish trend in the past few months. 

It shows that the Dogecoin token price has formed a golden cross pattern as the 200-week and 50-week Exponential Moving Averages (EMA) have crossed each other. 

The token has soared to the 61.8% Fibonacci Retracement level and the Ichimoku cloud indicator. Also, the cup and handle section has formed. In most periods, this is one of the most popular bullish signs in the market.

The Relative Strength Index (RSI) and the Stochastic Oscillator have moved above the overbought level. That is a sign that the coin has more upside since it is gaining more strength. 

Therefore, the Dogecoin price will continue jumping as bulls target the key resistance point to watch will be the 50% retracement point at $0.3715, which is about 26% above the current level. 

This view will be invalidated if the token drops below the key support at $0.2310. If this happens, the token could drop to the 78.6% retracement level at $0.1600. Analysts believe that the DOGE price could surge to $5 in the coming months.

Dogelon Mars price forecast

ELON chart by TradingView

The daily chart shows that the ELON token bottomed at $0.0000001173, where it failed to move below since August 24.

Dogelon Mars token has moved above the 50-day and 200-day Exponential Moving Averages (EMA). It has jumped above the important resistance level at $0.00000020, its highest swing on July 2023. 

The Relative Strength Index and the Stochastic Oscillator have moved to the overbought level, pointing to more gains. Therefore, the token will likely continue soaring as bulls target the key resistance point at $0.00000035, which is about 50% above the current level.

This view will become invalid if the Dogelon Mars price drops below the key support at $0.00000020.

The post Dogecoin, Dogelon Mars predictions: what next for DOGE, ELON? appeared first on Invezz

Copper prices rose slightly on Monday after last week’s steep losses on a strong dollar after Donald Trump’s victory in the 2024 US presidential election. 

The dollar surged on Wednesday after Trump’s victory, which weighed on prices of most commodities. 

A stronger dollar makes commodities priced in the greenback more expensive for overseas buyers. 

Meanwhile, Chile’s state-run Codelco increased copper production by 5.2% on a year-on-year basis in September. This further pressurised prices in the copper market on Friday. 

However, prices were slightly higher in Monday’s session as investors resorted to lower-level buying.

But, prices remained lower compared with their recent highs even as China unveiled a stimulus package on Friday, which underwhelmed the metals market.

Additionally, copper production rose in September, which added to the bearish sentiment in the market.

At the time of writing, the three-month copper contract on the London Metal Exchange was $9,458.50 per ton, up 0.2% from the previous close. 

China trade tensions

As Trump is set to take office at the White House, renewed concerns over trade relations with China resurfaced. 

Trump is likely to increase tariffs on all imported goods from China, which is likely to affect its exports to the US. 

China is one of the top exporters of base metals and the largest consumer as well. 

Barbara Lambrecht, commodity analyst at Commerzbank AG, said in a report:

Finally, there are concerns that a US President Trump could slow the transformation of the US energy sector, which would also dampen demand for copper. 

The fact that Trump is likely to slow down the decarbonisation process by rolling back several climate regulations passed under President Joe Biden could further dampen demand for copper. 

Codelco’s production rises

According to data from Chile’s copper commission Cochilco, Codelco increased production by 5.2% on a year-on-year basis to 123,100 tons in September. 

Production at Escondida, the world’s largest copper mine, dropped 5.4% to 101,500 tons. But, Collahuasi, another top mine, produced 51,400 tons of copper, up 14% from last year. 

Codelco has been struggling to lift its output in 2024 after registering a 25-year-low in 2023, largely due to a number of accidents and management missteps, Reuters said in a report.

In July, Codelco had said that copper production targets would be difficult to achieve in 2024. But, the company’s Chairman Maximo Pacheco said production would pick up in the second half of the year. 

Pacheco said that October was the company’s best month so far and it was able to exceed its target, according to Reuters. 

China announces stimulus package

On Friday, China’s National People’s Congress concluded its week-long meeting with a press conference where it announced a package worth $1.4 trillion to alleviate local government debt issues. 

The meetings were pushed to this week from October, allowing policymakers to be more agile with the major catalysts from the US election and Thursday’s Federal Reserve’s meeting. 

Analysts at ING Group said:

The initial market response appears to be negative; one potential impact of a Trump victory on China was its potential impact on the stimulus response, and markets may have been hoping for a larger-than-expected stimulus. 

The post Copper slightly up post last week’s losses; China stimulus underwhelms appeared first on Invezz

The International Consolidated Airline (IAG) share price has gone parabolic and is cruising after the company published strong financial results on Friday. It climbed by over 7% last week, reaching a high of 235p, its highest level since March 2020. It has jumped by over 158% from its lowest level in 2022.

Could the IAG share price hit 450p?

IAG stock price has done well in the past few months, helped by the recovery of the civil aviation industry. 

There are signs that the bullish trend will continue in the coming months. On the weekly chart, we see that the stock has formed an inverse head and shoulders chart pattern, a popular bullish sign in the market.

The stock has also formed a golden cross pattern as the 200-week and 50-week Exponential Moving Averages (EMA) have made a bullish crossover. 

Additionally, IAG share price has moved above the 38.2% Fibonacci Retracement level, a sign that the bullish momentum is continuing. 

The Average Directional Index (ADX) has moved to 29, a sign that the bullish trend is gaining momentum. Additionally, the Relative Strength Index (RSI) has jumped to the overbought level of 74, which is another sign that the trend is continuing. 

Therefore, the IAG stock price will likely continue rising as bulls target the 50% Fibonacci Retracement point at 225p. A break above that level will point to another increase to the 61.8% retracement level at 310p. While more gains are possible, we believe that it will take more time to get to the 2020 high of 450p. 

The bullish outlook for the stock will become invalid if the IAG share price drops below the psychological level at 200p.

IAG chart by TradingView

Read more: IAG share price is about to form a very rare bullish pattern

International Consolidated Airline earnings

The most recent catalyst for the IAG share price was its financial results, which came out on Friday. 

In its report, the company said that its revenue jumped by 7.9% in the third quarter, reaching €9.3 billion. Its nine-month revenue surged to €24 billion, while its operating profit soared to €3.3 billion. 

As a result, its quarterly and nine-month profit after tax jumped to €1.4 billion and €2.3 billion, respectively. These results were better than expected and came at a time when the aviation industry is going through major headwinds. 

One of the top headwinds has been the falling airfare prices as competition heats up and as growth momentum fades. There are signs that the revenge travel craze that happened a few years ago has started to fade. 

IAG also has boosted its balance sheet. While its borrowings have remained steady at €16 billion, its cash and interest-bearing deposits rose from €6.8 billion to €9.8 billion.  

This improvement has helped the company to boost its share buybacks and dividends. It announced a €350 million share buyback, which it hopes it will increase the earnings per share. 

IAG’s business has done well because of its diversified business model. In addition to British Airways, IAG also owns other well-known brands like LEVEL, Aer Lingus, Iberia, and Vueling. 

LEVEL, which mostly connects customers between Spain and the United States, had most of the growth in the first nine months of the year. Iberia grew by 15.5%, while British Airways grew by 4.6%.

Most notably, IAG is still a highly undervalued company. It has a forward price-to-earnings ratio of 6, which is much higher than other airlines. For example, Delta Air Lines has a forward multiple of 10.16, while United Airlines and American Airlines have multiples of 9.40 and 19.7, respectively. 

This cheap valuation is happening even as the forward revenue growth remains substantially strong. It has a forward revenue growth metric of 12.90%, while Delta, United, and American have metrics that are less than 8%.

Therefore, there is a likelihood that the IAG share price will continue rising as it seeks to bridge the gap with its American peers.

The post Odds of IAG share price rising by 90% to 450p are rising appeared first on Invezz

Zeta Global stock price has done well this year, making it one of the best-performing companies in Wall Street. It has risen in the last four consecutive days and is hovering near the key resistance level at $36. This means that the Zeta share price has surged by over 755% from its lowest swing since 2022, giving it a market cap of over $8.4 billion.

Zeta Global stock could jump 25%

Zeta, a leading player in the marketing industry, will be in focus on Monday as it publishes its financial results. 

On the daily chart, the stock has remained above the 50-day and 100-day Exponential Moving Averages (EMA), meaning that bulls are now in control. 

Zeta Global has also flipped the important resistance level at $34, its highest level on October 9. By moving above that price, Zeta has invalidated the double-top pattern that has been forming. In most periods, this is one of the most popular bearish signs in the market. 

Zeta shares have also moved to the weak, stop & reverse point of the Murrey Math Lines. Also, the Relative Strength Index (RSI) and the MACD indicators have all pointed upwards. 

Therefore, there is a likelihood that the Zeta stock will continue rising as bulls target the next key resistance level at $45, which is the extreme overshoot of the Murrey Math Lines. If this happens, the stock will need to rise by about 25% from the current level. 

This bullish forecast will become invalid if the shares drop below the neckline of the double-top pattern at $26. A drop below that level will raise the possibility of the stock falling to the 100-day moving average at $25.23. 

Zeta earnings ahead

For starters, Zeta Global is a marketing technology company that provides various services to companies and agencies. 

The Zeta Marketing Platform helps companies to drive outcome in their marketing strategies, helping them to acquire and grow relationships. 

It has a big market share in some key industries, including e-mail, where companies use its solution to send and analyze marketing emails. 

The company recently acquired LiveIntent, another popular marketing company in a $250 million deal. LiveIntent is an email marketing company used by popular companies like Zoosk, Samuel Hubbard, Groupon, and General Mills. 

Zeta Global’s business has been in a gradual growth in the past few years as its revenue jumped from $306 million in 2019 to over $822 million in the trailing twelve months (TTM). 

This growth happened as more companies moved to its platform and the prices of its offerings jumped. It has over 460 customers who depend on its services and pay over $100,000 annually. 

Zeta’s growth has also been driven by its embrace of artificial intelligence technology, which firms are using to handle their marketing.

The most recent financial results showed that Zeta Global’s revenues rose by 33% to over $228 million as the number of scaled customers jumped to 460. Its super-scaled customers who spend about $479,000 rose by 22% year-on-year.

However, the company still reported a big net loss, which it blamed for its stock-based compensation of $52 million.

Analysts expect the Zeta earnings, which will come out on Monday, to show that its revenue jumped by 33.60% in Q3 to over $252 million. This revenue will be followed by $268 million in the fourth quarter. As a result, its annual revenue will grow by about 30% to $942 million and $1.12 billion in the following year.

Read more: Zeta Global stock has suffered a harsh reversal: buy the dip?

Valuation concerns remain

Most marketing companies have done well in the past few months. For example, the Trade Desk stock price jumped sharply after the company announced its quarterly results last week. Similarly, the AppLoving share price surged by over 40% after its earnings.

The challenge for Zeta, however, is that its valuation numbers are fairly stretched. With the Zeta Global stock price surging by 303% this year, its market cap has jumped to over $8.4 billion. 

These numbers mean that the Zeta Global stock price has a forward price-to-earnings ratio of 62.92, which is higher than the sector median of $25.5. The trailing twelve months (TTM) P/E ratio of 74.4 is also higher than the median of 25.

These numbers are also substantially higher than those of NVIDIA, the biggest company in the world. This is notable because Nvidia is growing at a faster pace and has higher margins.

Zeta has a gross margin of 60.34% and a net income margin of minus 17.7%. On the other hand, NVDIA has margins of 75.9% and 55%, respectively. It is also having triple-digit growth numbers. 

Still, as we saw with AppLovin last week, an overvalued stock can still surge if it publishes strong financial results. In the long term, however, the stock will likely pull back on profit taking.

The post Could Zeta Global stock price surge 25% after earnings? appeared first on Invezz

Rolls-Royce share price has pulled back in the past few days after the company published its financial results. After peaking at 592p on November 6, the stock has pulled back to 553p, giving it a market cap of over $61 billion. 

Rolls-Royce share price dropped after earnings

Rolls-Royce Holdings, the biggest industrial giant in the UK, published strong financial results as demand remains steady. These numbers also showed that Tufan Erginbilgic, the Chief Executive Officer (CEO), strategy was working.

The company’s trading statement said its results would align with the previous guidance. It expects its operating profit to be between £2.1 billion and £2.3 billion and its free cash flow to be between £2.1 billion and £2.2 billion.

The civil aviation business, its core segment, drives its performance. According to its statement, flying hours rose by 18% YoY to 102% of pre-pandemic levels. It hopes that its full-year house will be between 100% and 110% of the 2019 hours.

These hours are highly important for Rolls-Royce, a company that makes most of its money in long-term service contracts. Erginbilgic is also hoping that its engine margins will continue growing in the coming months. 

The rebound of the civil aviation industry has pushed more airlines to make large orders. For example, Cathay Pacific made an order of 60 Trent 7000 engines, while EL AL Airlines ordered several Trent 1000 engines. These orders may continue as the backlog by manufacturers like Airbus and Boeing jump.

The other divisions of Rolls-Royce Holdings will also continue doing well. Its defense business is thriving, helped by the rising need for more defense spending in the US and other countries. This spending will likely continue rising as Trump threatens allies to boost their spending.

Rolls-Royce Holdings is also seeing strong growth in its power business, helped by demand from companies running data centers. It also has substantial backlogs from governments and other companies. 

Rolls-Royce share price retreat mirrors that of GE Aviation whose stock moved into a correction, falling by over 12% from its highest level this year.

Read more: Here’s why the Rolls-Royce share price could surge to 600p soon

RR valuation concerns

A key concern among Rolls-Royce shareholders is that the company has been its valuation since the stock has jumped by over 1,500% from its lowest level in 2023. 

This surge has brought its market cap to over $61 billion, a substantial figure for a company that is in recovery mode.

Data by SeekingAlpha shows that Rolls-Royce Holdings has a forward price-to-earnings ratio of 37, much higher than the manufacturing sector median of 24.5. The ratio is also higher than the S&P 500 sector median of 21. 

This valuation is mostly because of the key industry growth, its turnaround measures, and the fact that it has not had major issues in the past few years. 

As part of its turnaround, Rolls-Royce has slashed jobs, and recently, it sold its Naval Propulsors & Handling business to Fairbanks Morse Defense. It has also sold its Direct Air Capture assets and its lower-power-range engines. Also, it closed its electrical advanced air mobility business.

All these measures have also helped the company receive credit rating upgrades from all the three credit rating agencies.

Rolls-Royce share price analysis

RR chart by TradingView

The weekly chart shows that the RR stock price has been in a strong bull run in the past few years. As a result, it has remained above the 50-week and 25-week Exponential Moving Averages (EMA). It has also remained about 30% above the 50 moving average. 

However, there are signs that the stock is losing momentum. It has formed a shooting star pattern, which is made up of a small body and a long upper shadow. 

The stock has also formed a bearish divergence pattern as the Relative Strength Index (RSI) and the MACD indicators have pointed downwards. It has also formed a rising wedge pattern.

Therefore, the stock will likely have a bearish breakout as sellers target the key support at 500p or the 50 EMA at 426p.

The post Could the Rolls-Royce share price suffer a harsh reversal soon? appeared first on Invezz

Virgin Galactic stock price has collapsed by over 87% this year, a trend that could keep getting worse in the coming months. SPCE shares have plunged by over 90% from its all-time high, erasing billions of dollars in value. It was trading at $6.22, giving it a market cap of over $179 million.

Virgin Galactic stock is crashing

The SPCE share price has remained under pressure in the past few weeks. It dropped to a low of $6.2 on Friday, retesting the ascending trendline that connects the lowest swing since August 7.

This sell-off accelerated after the company published its financial results and announced a new at the market (ATM) offering. 

As expected, the company made little revenue of just $402,000 because it has paused most of its tourist trips as it builds its bigger crafts. 

On the daily chart, the stock has formed an ascending channel shown in orange. It then dropped to the lower side of the lower side of this channel.

It has also moved below the 50-day and 100-day moving averages, while the Relative Strength Index (RSI) and the MACD indicator have pointed downwards. Therefore, there are signs that the stock will soon have a strong bearish breakout, with the next point to watch being the year-to-date low of $5.17.

The bearish view will become invalidated if the stock rises above $8, the upper side of the narrow ascending channel. If this happens, it will raise the possibility that the Virgin Galactic stock will rise to $10.

SPCE chart by TradingView

SPCE faces major challenges ahead

Virgin Galactic, a company started by Richard Branson, has been hemorrhaging cash for decades as it seeks to become the biggest player in space tourism. 

Its combined net loss in the last five years stood at over $2.2 billion. This loss-making trend will likely continue in the next few years until the company starts ramping up its flights. 

Last week’s results showed some improvements in its operations, thanks to its cost-cutting measures. Its operating loss narrowed to $81.7 million from the $114 million it made in the same period last year. 

Virgin Galactic slashed its research and development costs moved from $44.8 million to $23 million, while its selling, general and administrative (SG&A) costs fell to $33 million. 

While SPCE ended the quarter with over $750 million in cash and short-term investments, it also announced a $300 million at the market offering.

It hopes to use these funds to accelerate the development of its spaceflight fleet. It will also use these funds to fund its day-to-day expenditures. 

An ATM offering usually leads to more dilution of its existing shareholders. Data shows that the total outstanding shares jumped to over 28.86 million, up from 9.8 million in 2020.

We believe that Virgin Galactic will ultimately need more cash before it starts its commercial flights in 2026. 

Also, raising these funds will not be easy since the company’s market cap has dropped to $179 million and Richard Branson has ruled out extending more funds to the company. As such, as we have warned before, there are elevated risk that it will go bankrupt as Virgin Orbit did in 2023.

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Rolls-Royce share price has pulled back in the past few days after the company published its financial results. After peaking at 592p on November 6, the stock has pulled back to 553p, giving it a market cap of over $61 billion. 

Rolls-Royce share price dropped after earnings

Rolls-Royce Holdings, the biggest industrial giant in the UK, published strong financial results as demand remains steady. These numbers also showed that Tufan Erginbilgic, the Chief Executive Officer (CEO), strategy was working.

The company’s trading statement said its results would align with the previous guidance. It expects its operating profit to be between £2.1 billion and £2.3 billion and its free cash flow to be between £2.1 billion and £2.2 billion.

The civil aviation business, its core segment, drives its performance. According to its statement, flying hours rose by 18% YoY to 102% of pre-pandemic levels. It hopes that its full-year house will be between 100% and 110% of the 2019 hours.

These hours are highly important for Rolls-Royce, a company that makes most of its money in long-term service contracts. Erginbilgic is also hoping that its engine margins will continue growing in the coming months. 

The rebound of the civil aviation industry has pushed more airlines to make large orders. For example, Cathay Pacific made an order of 60 Trent 7000 engines, while EL AL Airlines ordered several Trent 1000 engines. These orders may continue as the backlog by manufacturers like Airbus and Boeing jump.

The other divisions of Rolls-Royce Holdings will also continue doing well. Its defense business is thriving, helped by the rising need for more defense spending in the US and other countries. This spending will likely continue rising as Trump threatens allies to boost their spending.

Rolls-Royce Holdings is also seeing strong growth in its power business, helped by demand from companies running data centers. It also has substantial backlogs from governments and other companies. 

Rolls-Royce share price retreat mirrors that of GE Aviation whose stock moved into a correction, falling by over 12% from its highest level this year.

Read more: Here’s why the Rolls-Royce share price could surge to 600p soon

RR valuation concerns

A key concern among Rolls-Royce shareholders is that the company has been its valuation since the stock has jumped by over 1,500% from its lowest level in 2023. 

This surge has brought its market cap to over $61 billion, a substantial figure for a company that is in recovery mode.

Data by SeekingAlpha shows that Rolls-Royce Holdings has a forward price-to-earnings ratio of 37, much higher than the manufacturing sector median of 24.5. The ratio is also higher than the S&P 500 sector median of 21. 

This valuation is mostly because of the key industry growth, its turnaround measures, and the fact that it has not had major issues in the past few years. 

As part of its turnaround, Rolls-Royce has slashed jobs, and recently, it sold its Naval Propulsors & Handling business to Fairbanks Morse Defense. It has also sold its Direct Air Capture assets and its lower-power-range engines. Also, it closed its electrical advanced air mobility business.

All these measures have also helped the company receive credit rating upgrades from all the three credit rating agencies.

Rolls-Royce share price analysis

RR chart by TradingView

The weekly chart shows that the RR stock price has been in a strong bull run in the past few years. As a result, it has remained above the 50-week and 25-week Exponential Moving Averages (EMA). It has also remained about 30% above the 50 moving average. 

However, there are signs that the stock is losing momentum. It has formed a shooting star pattern, which is made up of a small body and a long upper shadow. 

The stock has also formed a bearish divergence pattern as the Relative Strength Index (RSI) and the MACD indicators have pointed downwards. It has also formed a rising wedge pattern.

Therefore, the stock will likely have a bearish breakout as sellers target the key support at 500p or the 50 EMA at 426p.

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