Nu Holdings stock price has done well this year, and could be on the cusp of a big breakout as it publishes its quarterly financial results. It has soared by 82% this year, beating the S&P 500 and Nasdaq 100 indices. This surge has brought its market cap to over $72 billion, making it the second-biggest company in Brazil.

Nu Holdings stock prepares for earnings

Nu Holdings is a Warren Buffett-backed fintech company that has disrupted the banking industry in Brazil and other Latin American countries. In terms of users and revenue growth, it has also become the biggest neo bank in the world.

Nu Holdings’ platform makes saving money, investing, borrowing, and paying their bills easier. Over time, its annual revenue has grown from $337 million in 2018 to over $6.4 billion in the last financial year. 

Most importantly, Nu Holdings has grown its business profitably, moving from a net loss of $364 million in 2022 to a net profit of $1.5 billion in the trailing twelve months. We believe that its profitability growth will continue in the coming years since it has a gross profit margin of almost 100%. 

The next important catalyst for the Nu stock price will be its earnings, which will come out this week. Analysts believe that its revenue will come in at $2.85 billion, 40% higher than in the same quarter in 2023. 

Its forward revenue guidance for Q4’24 will be $3.1 billion, a 28% YoY growth. As a result, for the year, the company’s revenue growth will be 40% to $11.25 billion. Nu Holdings will then make $14.4 billion next year. 

The company has a long record of doing better than what analysts expect. It has a record of over 90% since going public of beating these estimates. 

Nu Holdings’ profits are expected to keep doing well. Analysts expect that its earnings per share will be 11 cents, an increase from 7 cents in the same quarter a year earlier. For the year, the EPS will be 43 cents. 

Analysts have mixed Nu stock forecasts

Analysts have mixed opinions on the Nu Holdings stock price. Barclays analysts are overweight the company, while Susquehanna have a positive outlook. On the other hand, those at UBS and  JPMorgan downgraded the stock to neutral.

The main concern that these analysts have is that Nu Holdings’ growth may start to slow in the coming years. Most notably, there are concerns about its valuation, which is quite stretched. 

At $72 billion, Nu has a bigger market cap than Bank of New York Mellon and State Street, combined. Proponents, on the other hand, cite Nu’s growth trajectory and the fact that its business has a chance to gain substantial market share in the future. 

Its most recent results showed that Nu Holdings had over 104.5 million users, a 20% growth from the same period last year. Its revenue surged by 65% to $2.8 billion.

Most notably, all its business segments did well, led by lending and credit cards, which maintained low default rates. 

Therefore, while Nu is a highly overvalued company, it is justified by its low customer acquisition cost, which stands at $7. It is also growing its business and its margins.

Nu Holdings share price analysis

The daily chart shows that the NU stock price has been in a strong bullish trend in the past few years, and it recently rose to a record high of $16. By rising above that level, Nu invalidated the double-top pattern at $15.15, its highest level on September 18.

Nu Holdings has moved above all moving averages and the ascending trendline that connects the lowest swings since October 3.

Therefore, there are chances that the Nu share price will continue rising as bulls target the key resistance level at $20, which is about 32% from the current level.

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Applied Materials stock price has remained in a deep bear market as it dropped by almost 25% from its highest level this year. AMAT has also formed two extremely bearish patterns, pointing to a potential crash after its earnings next week.

Applied Materials stock forms bearish patterns

On the daily chart below, we see that the AMAT stock price has been in a strong bearish trend in the past few months.

Notably, the stock has formed a bearish flag chart pattern, a popular negative sign in the market. This pattern is characterized by a long vertical and a rectangle, and often leads to a bearish breakout.

The stock has also formed a death cross pattern, which happens after the 200-day and 50-day Exponential Moving Averages (EMA) cross each other. In most cases, this pattern usually leads to a significant drop over time.

AMAT shares have moved below the 23.6% Fibonacci Retracement point. Therefore, there is a likelihood that the stock will have a strong bearish breakout in the coming days. If this happens, the stock could drop to the 50% retracement point at $162.90, which is about 15% below the current level. A crash below that level will bring the 61.8% retracement at $140 into view.

This view will become invalid if the stock moves above the key resistance point at $200. If this happens, the stock will rise to the upper side of the flag pattern at $220. Most importantly, a move above $220 could open the possibility of it jumping to the year-to-date high of $255. 

AMAT earning ahead

This next important catalyst for the Applied Materials stock price will be its earnings, which are scheduled on November 14.

Analysts believe that the company’s revenue will come in at $6.95 billion, a 3.4% increase from the previous quarter. The firm is also expected to provide a bullish forecast for the fourth-quarter, with the revenue coming in at $7.22 billion.

AMAT’s annual revenue will be $27.12 billion, a 2.3% higher than what it made in 2023. Its business will then bounce back to $30 billion in 2025. 

The most recent results showed that Applied Materials revenue came in at $6.78 billion, a 5% from the same period in 2023. Its operating margin jumped to 28.7%.

Most of its revenues will come from the foundry and logic business followed by DRAM and flash memory.

For starters, Applied Materials is a top semiconductor company that makes some of the most important solutions in the industry. Its solutions are used by some of the biggest companies in the industry like Intel, Samsung, Taiwan Semiconductor, and SK Hynix. 

Its business is being boosted by the ongoing growth of industries like artificial intelligence and Internet of Things (IoT). 

Analysts believe that the AMAT stock is fairly undervalued. It has a forward price-to-earnings ratio of 22.52, lower than the median estimate of 25.3. This undervaluation is mostly because Applied Material’s business is not growing as it used to before. 

Read more: Applied Materials stock: Key AMAT levels to watch

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Shopify stock price had a strong week, rising by over 11%, as investors cheered the recent Donald Trump election and the ongoing earning season. SHOP jumped to a high of $87.12, its highest point since February this year. It has jumped by over 255% from its lowest point since 2022.

Shopify stock has soared after the last earnings

Shopify is one of the most technology infrastructure company in the world since it helps to power millions of websites globally. 

With its technology, one can build a complex website within a few minutes. Most importantly, it has a substantial market share in a highly competitive industry. Some of its most notable competitors are firms like Amazon, Wix, WooCommerce, and BigCommerce.

Shopify’s business has been growing in the past few years as its revenue jumped from $1.5 billion in 2019 to over $7.76 billion in the trailing twelve months (TTM). 

This growth has happened because of the stable number of companies on its platform and its ability to upsell them. For example, in addition to transaction revenue, Shopify sells other solutions to customers like logistics, marketing, and point of sale.

Shopify’s solutions are so strong such that it has attracted some high-profile customers on its platform like Spanx, Glossier, Kylie, Heinz, and Rebecca Minkoff. Some of its most recent additions wre firms like Away, Grove, QVC, and Barners & Noble.

The challenge for Shopify is how to continue adding more large companies since most of them gave existing providers.

The most recent financial results showed that its revenue jumped by 21% in the second quarter to $2 billion as the number of unique online shoppers on its platform growing to $675 million.

This revenue growth happened as the gross merchandise volume rose by 22% to $67.2 billion. The Merchant Solutions revenue rose by 19% to $1.5 billion, while subscriptions jumped to $563 million.

Read more: Shopify stock price forecast: Morgan Stanley sees a 20% upside

SHOP earnings ahead

The next important catalyst for the Shopify stock price will be its upcoming earnings, which will provide more information about its growth.

According to Yahoo Finance, analysts believe that Shopify’s revenue rose to $2.93 billion in the third quarter. The highest estimate is $3.01 billion, while the lower estimate was $2.9 billion. 

For the year, analysts believe that its revenue will be $12 billion, a 24% increase from 2023. It will then be followed by $14.48 billion in 2025.

Shopify’s earnings will likely be better than what analysts expect since its guidance is usually highly conservative. 

The company’s profits are expected to continue growing. Analysts see its earnings per share rising to 37 cents, while its annual EPS will be $1.53.

A key concern for Shopify has been its valuation. It has a forward P/E ratio of 78.92, higher than the sector median of 25. It is also higher than the S&P 500 average of 21.

Its premium valuation is mostly because the company has a long record of growth, and the fact that it has the potential for higher margins. Its gross margin stands at 51%, while its EBIT and net income margins stood at 12% and 16%, respectively.

Shopify stock price analysis

The daily chart shows that the SHOP share price has done well in the past few months and is approaching the key resistance point at $91.5, its highest swing on February 9.

The stock has formed a golden cross pattern, one of the most bullish patterns in the market. It has also moved to the strong pivot reverse part of the Murrey Math Lines pattern. The stock has also formed an inverse head and shoulders pattern.

Also, the Relative Strength Index (RSI) and the MACD indicators have pointed upwards. Therefore, a cross above the key resistance level at $91.5, will point to more gains, potentially to the extreme overshoot point at $112.5, which is 32% higher than the current level.

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Chegg stock price has imploded as it became one of the biggest victims of the artificial intelligence craze. CHGG shares have crashed by over 80% this year and by almost 100% from its all-time high of $115. Its market cap has crashed from $115 in 2020 to $116 million today.

Chegg stock and AI

Chegg is a highly popular edtech company that helps millions of people learn in the United States. It leverages the experience and expertise of educators and new technologies like artificial intelligence to make learning easier.

Chegg offers its services through subscriptions, which is made up of Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, and Busuu. 

The company, however, has become a big victim of the growing AI industry because of the advanced capabilities of models by firms like ChatGPT, Claude, and Gemini. As a result, its subscriptions dropped by 6% to about 8.1 million.

With ChatGPT and Claude, one can learn the most complex subjects like mathematics, software engineering, and even medicine.

The most recent financial results showed that the revenue dropped by 10% in the last quarter to over $163.1 million. 

Subscriptions revenue dropped by 11% to $146 million, while its gross profit margin fell to 72%. Most notably, the company showed that its business has moved from a high-profitable one to a loss-making one.

After making a profit of $266 million in 2022, its figure dropped to $6.6 million in 2023. It then moved to a net loss of over $626 million in the trailing twelve months. 

CHGG earnings ahead

The next key catalyst for the Chegg stock price will be its earnings scheduled on Tuesday. In its last financial results, the company’s revenue is expected to come in between $133 million and $135 million. 

Its subscription revenue is expected to be between $116 million and $118 million, while its gross margin will be between 67% and 68%. Analysts, on the other hand, expect that its revenue will be $134 million. For the year, analysts see the revenue falling by 11.7% to $632 million, followed by another 6.7% in 2025 to $589 million.

The company’s growth is expected to remain under pressure because of artificial intelligence’s momentum. As a result, the management has worked to turn around its business by using several approaches. 

Most importantly, it has worked to boost its artificial intelligence strategies, by leveraging its vast amount of data. It has also promoted its business to be at the intersection of AI and the real-world, because of its expert teachers.

At the same time, Chegg has worked to boost its efficiency by slashing about 23% of its global workforce. These measures are expected to save it between $40 million and $50 million in the next financial year. 

Chegg is also seeking to become a major player in the international market, which is largely untapped. 

Chegg share price analysis

Analysts believe that the CHGG stock price has more upside after it crashed hard in the past few years. The average stock estimate is $2.96, which is about 75% above the current level.

On the daily chart, we see that the Chegg share price has remained below the 100-day and 50-day moving averages.

At the same time, the Relative Strength Index (RSI) and the MACD indicators have pointed upward, forming a bullish divergence sign. 

Therefore, there is a likelihood that the stock will bounce back in the coming days as investors buy the dip. If this happens, the key point to watch will be about $3.

On the flip side, a drop below the year-to-date low of $1.50 will point to more downside and invalidate the bullish view.

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Monday.com stock price has staged a strong recovery and surged to its highest level since November 2021 ahead of its quarterly earnings this week. MNDY surged to a high of $325 on Friday, up by over 335% from its lowest level in 2022.

Monday.com stock surges ahead of earnings

Monday, a popular company in the Software-as-Service (SaaS) industry has done well as investors brace for its earnings scheduled for Nov. 10.

These earnings are expected to show that its trajectory continued in the last quarter as demand for its solutions jumped.

Precisely, analysts expect the numbers to reveal that its revenue jumped by 30% in the last quarter to $246 million. 

The company is also expected to issue a strong guidance, with its fourth-quarter revenues expected to be $260 million, a 28.7% increase from the same period last year.

If these results are accurate, it means that Monday’s annual revenue will be $960 million, a 31% increase from last year. It will then make $1.2 billion in the next financial year.

Most notably, Monday.com has become a profitable company, with its annual earnings per share expected to be $2.85, up from $1.85 in the same period last year. 

Fortunately, MNDY has a long track record of doing better than estimates. For example, its last earnings per share was 63 cents, up by 38 cents from what analysts were expecting.

MNDY’s business has been growing

For starters, Monday.com is a top company that is widely used by some of the biggest companies globally. Some of its top customers are firms like Wix, Universal Music Group, Coca-Cola, Adobe, Hulu, and Unilever.

Its solution is used in project management and customer relations management. As such, this is a highly competitive market, where it competes with companies like Atlassian, Asana, ClickUp, SmartSheet, and Notion.

One of the benefits of this business is that it has recurring revenues, low churn among big customers, and large opportunities to upsell its clients. Most importantly, it has a high chance of growing its profit margin since it has a gross margin of 91%. 

Its annual revenue has been in a strong growth trajectory in the past few years as its revenue jumped from over $78.1 million in 2019 to over $844 million in the trailing twelve months (TTM).

This growth happened as the number of high-valued customers jumped. Firms spending over $50,000 a year rose to over 2,713, a continuing trend. Total customers rose to 225k in the second quarter, up from 90k in 2019.

The most recent financial results showed that Monday.com’s business was growing as its revenue jumped by 34% to $236 million. 

A key concern for Monday.com is that its business is relatively overvalued, considering that it faces substantial pressures growing its business. It has a forward non-GAAP price-to-earnings ratio of 113, higher than the sector median of 25. 

A company like Monday.com is best valued using the rule-of-40 metric since it has started being profitable recently. The rule of 40 metric is calculated by adding its growth and profit margins. 

In Monday’s case, it has a forward revenue growth figure of 33% and a net income margin of 4.88%, giving it a rule of 4o metric of 37.88. This means that the company is fairly overvalued for now. Indeed, the average Monday.com stock forecast by analysts is $315.96, higher than the current $355.

Read more: Baird begins coverage of Monday.com with $250 target and neutral rating: Is it worth investing??

Monday.com share price analysis

The weekly chart shows that the MNDY share price has been in a strong growth in the past few years. It has surged and moved above the 61.8% Fibonacci Retracement level.

The stock has also moved above the upper side of the ascending channel shown in orange. Also, it has remained above the 50-week and 200-week Exponential Moving Averages (EMA). 

The Relative Strength Index (RSI) and the MACD indicators have continued tising, showing that it has a strong momentum.

Therefore, the stock may drop and retest the upper side of the channel at $300 after earnings, pointing to a 7.5% drop from the current level.

In the long term, however, the Monday.com stock price could jump to an all-time high at $450, which about 40% above the current level. This view will be confirmed if the stock moves above the key resistance level at $370, the 78.6% Fibonacci Retracement point.

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