IonQ  stock price has gone parabolic and is on track to have its best weekly performance on record after publishing strong results and inking a deal with ANSYS. The shares surged to $22.3 on Thursday, its highest level since November 2021. It has soared by over 245% from its lowest level this year, giving it a market cap of over $3.2 billion.

Quantum computing growth

IonQ is a top company in the quantum computing industry, where it manufactures computers that are available on Amazon Web Services (AWS), Microsoft Azure Quantum, and Google Cloud Marketplace.

The management believes that the quantum computing industry is the future of computing as the technology industry grows. It believes that the industry’s total addressable market will grow to $65 billion by 2030. Some of the top industries that will benefit are manufacturing, chemical modeling, and artificial intelligence. 

More data shows that quantum computing will create an economic value of $850 billion by 2040, including $170 billion for hardware and software providers.

The company believes that its trapped ion architecture will be the best approach to build quantum computers.

Read more: IonQ stock price: Upside if Michio Kaku’s forecast is correct

In a statement this week, the company said that it entered into a partnership with Ansys, a leading player in the computer-aided engineering market. Just earlier this year, Ansys was acquired by Synopsys to create a multi-billion dollar juggernaut. 

According to the statement, the partnership will make simulation accessible to quantum experts and non-experts. At the same time, IonQ will use Ansys’ multiphysics technology to design solutions for scalable quantum computers.

The other top companies using IonQ’s technology are Airbus, Oak Ridge, Hyundai, and Thompson Machinery.

The most recent results released this week showed that IonQ’s revenue rose to $12.4 million, a 102% increase from the same period last year. Its bookings grew to $63.5 billion, while its net loss moved to $52.5 billion.

A key highlight in the quarter was that it entered into a $54.5 million contract with the US Airforce Research Lab to develop and deploy quantum systems. It also reached a $9 million deal with Maryland University to provide quantum computing solutions.

Most importantly, IonQ boosted its full-year revenue guidance to between $38.5 million and $42.5 million. The bookings range for the year will be between $75 million and $95 million. 

Valuation concerns remain

A key concern for IonQ is that its valuation has become highly stretched. Besides, this is a loss-making company with an estimated annual revenue of $42.5 million that is being valued at over $3.5 billion. That valuation means that the company has a forward price-to-sales ratio of 82.35.

To some extent, this valuation is almost understandable because the company started shipping its products in 2022.

Its estimated revenue of $41.38 million is an 87% increase from what it made last year. Also, the company is expected to make $82.9 million in 2025, a 100% increase from what it will make this year.

Its high valuation will be justified if it continues showing strong growth in the coming years. As we have seen with NVIDIA, a company can remain overvalued for a long time if it continues delivering strong results.

A key challenge is that its losses will continue growing. Its loss per share this year will be 81 cents followed by 80 cents next year.

IonQ ended the last quarter with $382 million in cash and equivalents. Therefore, because of its loss-making trend, there is a likelihood that it will need to raise more cash either this year or in 2025.

Read more: IonQ stock price analysis: high-risk, high-reward investment

IonQ stock price analysis

IONQ chart by TradingView

The weekly chart shows that the IONQ share price has been in a strong bull run in the past few weeks. This rally accelerated after it published strong financial results this week.

The stock has flipped the important resistance level at $21.6, its highest swing on September 11. This was a notable level since it was also the upper side of the cup and handle pattern, a popular bullish sign in the market.

The 50-week and 25-week moving averages have formed a bullish crossover pattern. Also, oscillators like the Relative Strength Index (RSI) and the MACD have all pointed upwards. It is also approaching the 61.8% Fibonacci Retracement level.

Therefore, the stock will likely continue rising now that it has moved above the cup section. However, in the near term, it could consolidate or pull back as it forms the handle section. 

In the long term, there are odds that the stock will surge and retest the all-time high of $36, which is about 62% higher than the current level. This view will become invalid if the stock drops below the key support level at $15. 

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Live Nation (LYV) stock price continued its strong rally, reaching a record high of $127.50 as traders eyed its upcoming earnings. It jumped to a high of $127.50, up by 100% from its lowest level last year, giving it a market cap of almost $30 billion. 

Live Nation is a growing company

Live Nation is a near monopoly company that is growing at a rate as demand for its services continue. Its annual revenue crashed from $11.5 billion in 2019 to $1.8 billion in 2020 because of the pandemic.

Since then, the revenue jumped and peaked at over $22.7 billion in 2023, a trend that analysts expect to continue in the coming years. 

For starters, Live Nation is a giant company in the entertainment industry, where it offers venues and booking solutions. It is used by over 765 million people who use its venues to attend events like concerns and tours.

The company also owns Ticketmaster, a platform that sells millions of tickets globally. It acquired this firm in  a $2.5 billion deal a few years ago. This acquisition explains why it is one of the most hated company in the United States, and why some politicians believe that the deal should be undone.

Its business is divided into several divisions, including Live Nation Concerts, Venue Nation, Ticketmaster, and Live Nation Sponsorship.

One of the things that Warren Buffett recommends when selecting an investment is a company’s moat. Live Nation has one of the biggest moats in the US, which explains why it always trades at a premium, as I will explain below.

LYV earnings ahead

The next important catalyst for Live Nation stock will be its earnings, which will come out on Monday.

The most recent results showed that Live Nation’s business continued doing well in the last quarter. Revenue rose by 7% to $6 billion, while its operating income surged by 21% to $466 million. 

This growth happened after the number of fans who visited its events jumped to over 39 million. Also concert profits jumoped to a record high during the quarter as the number of tickets sold rose to 183 million.

Analysts believe that Live Nation’s revenue will come in at $7.7 billion, an 11% increase from the same period last year. Its guidance for the fourth quarter is expected to be $5.5 billion, a sequential decline because the second and third quarter are the busiest periods.

Analysts also expect that its forward guidance will show that its revenue rose to $23.6 billion followed by $26.65 billion in 2025.

A key concern about the Live Nation stock is its valuation, which is quite high. Data shows that the company has a forward price-to-earnings ratio of 99, much higher than the S&P 500 average of 21. 

For a near monopoly, such a big valuation gap is often understood. The company will likely continue to do well as long as its strong revenue growth continues. 

That explains why analysts are bullish on the stock, with 10 of the 12 tracking the company having a bullish outlook. The average outlook for the Live Nation stock is $125.60, slightly higher than the current level.

Live Nation stock price analysis

LYV chart by TradingView

The weekly chart shows that the LYV share price has been in a strong bull run in the past few months. It has remained above the 50-week and 200-week moving averages, which made a golden cross in January this year. 

Most notably, the stock has formed a cup and handle pattern, and is now sitting at its upper part. 

Therefore, Live Nation shares will likely continue rising as bulls target the next important resistance point at $150. This view will become invalid if the stock falls below $115.

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On November 8, 2024, Citi analysts upgraded Bank of America (NYSE: BAC) from Neutral to Buy, setting a new price target of $54, up from $46.

This revision, prompted by expectations of a favorable regulatory and interest rate environment, points to a potential upside of 20% from BAC’s current trading price.

Analyst Keith Horowitz cited the widening valuation gap between BAC and industry leader JPMorgan (JPM), seeing room for convergence.

Bank of America’s implied cost of equity (COE) currently stands at 10.2%, notably higher than JPM’s 8.7%, creating an attractive risk/reward profile for BAC investors, especially if the implied COE shifts lower.

Horowitz anticipates BAC’s net interest margin (NIM) could improve to 2.14% by 2026, buoyed by fixed-rate assets and maturities in swaps, which will support earnings growth.

Deregulation prospects under Trump’s second term

The broader banking sector, including BAC, has gained traction following Donald Trump’s reelection as US President.

Analysts expect that Trump’s administration will ease regulatory burdens, benefiting banks like Bank of America through potentially lighter capital requirements.

Additionally, higher bond yields and rising interest rates could bolster BAC’s performance, particularly in its commercial lending and wealth management divisions.

In this context, financial institutions could see growth acceleration, given the anticipated support for M&A activities and deregulation, especially in the financial and energy sectors.

A note from UBS highlighted that reduced regulatory oversight would enhance banks’ operational flexibility, positioning them to outperform in the upcoming years.

BofA Q3 earnings highlights

Bank of America reported solid Q3 results, outpacing analyst estimates with an EPS of $0.81, compared to expectations of $0.78, while revenues reached $25.3 billion, a 1% year-over-year increase.

The bank saw robust contributions from its Global Markets and Global Wealth and Investment Management segments.

Notably, the Global Markets division achieved a 12% year-over-year increase in sales and trading revenue, generating $4.9 billion.

BAC’s net interest income remained stable at $14.1 billion, a slight uptick from Q2’s $13.9 billion, though it reflected a 3% decrease from the same period last year due to higher deposit costs.

Despite an increase in provisions for credit losses to $1.54 billion, BAC’s performance in high-margin areas kept its earnings momentum steady.

Regulatory scrutiny adds minor challenges

Bank of America disclosed ongoing discussions with regulators regarding its anti-money laundering (AML) and sanctions compliance programs.

The Consumer Financial Protection Bureau (CFPB) also launched an inquiry into BAC’s Zelle transaction processing practices, signaling potential enforcement actions.

While these regulatory challenges may require enhanced oversight and compliance costs, BAC does not expect material financial impacts.

BAC’s fundamental business model remains robust, supported by consistent revenue from consumer banking, wealth management, and corporate lending, even amidst regulatory reviews.

BofA stock valuation

Bank of America currently trades at a price-to-book (P/B) ratio of 1.18x, higher than its three-year average of 1.13x and above its long-term average of 1.04x.

JPMorgan, by comparison, has a higher return on tangible common equity (ROTCE) and a P/B ratio of around 1.33x, reflecting its dominant position in the sector.

Given BAC’s relatively modest book value growth of 30% over the past five years, investors are pricing in the bank’s steady, if not rapid, value accumulation.

Current valuations suggest that, although BAC has growth potential, its price may already reflect much of the expected regulatory and interest rate-related benefits.

Preferred shares offer an attractive yield

For those looking at yield opportunities, BAC’s Series GG preferred shares offer a dividend yield of approximately 6%, although the risk of call limits potential price appreciation beyond the $25 threshold.

Despite the higher yields on these preferreds, investors should consider the near-term call risk and the more stable yet slightly lower yield offered by BAC’s Series L preferred.

With a CET1 ratio of 11.8%, BAC’s capital position remains strong, underlining the safety of these preferred dividends in the foreseeable future.

Bank of America has shown resilience amid shifts in regulatory expectations, market interest rates, and earnings performance.

However, a potential contraction in net interest income due to federal fund rate cuts could temper future earnings.

Now, let’s turn our attention to the technical indicators to gauge whether BAC can sustain its upward momentum.

BAC stock: strong bullish momentum in place

Bank of America’s stock has seen a strong bull run since November 2023 that has taken the stock from $25 levels to nearly $45, where it trades now. This bull run got further intensified recently following the Bank’s Q3 earnings release.

Source: TradingView

Taking this strong upward momentum into account, investors who have a bullish outlook can initiate long positions at current levels or wait for a retracement closer to $42 levels.

In either case, they can place a trailing stop loss at the stock’s 100-day moving average and ride this upward trend for as long as it sustains.

Traders who are bearish on the stock must refrain from shorting it at current levels. A short position must only be considered if the stock falls below its recent swing low at $41.11.

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Solana price staged a strong recovery, surging for five consecutive days, and crossing the important resistance point at $200 for the first time since April 1. It has surged by over 82% from its lowest point in August, a trend that could continue.

Solana tokens surge

Solana price soared as data showed that most tokens in its ecosystem continued their bullish momentum. 

Drift Protocol, a leading perpetual exchange in the network, surged by over 127%, reaching a record high. This surge brought its total market cap to over $485 million. Analyst cited news that the network was offering 75% discount on Solana perpetual futures. 

Helium Mobile (MOBILE) was the other top-performing Solana token, which surged by over 33%. Marinade Finance and Orca tokens jumped by double digits as well.

This rally happened as the volume in Solana DEX networks jumped by over 11% to over $14.2 billion, crossing Ethereum’s $13 billion. The most active Solana DEX networks were Raydium, Orca, Phoenix, and Lifinity. 

Notably, Solana’s jump happened even as most meme coins in its ecosystem struggled. Dogwifhat rose by just 1% in the last 24 hours, while Popcat, Bonk, Cat in a dogs world, and Goatseus Maximus dropped by as much as 7%. The total market cap of all Solana meme coins retreated to $12.9 billion.

Solana has some of the best fundamental metrics in the cryptocurrency industry, something that analysts attribute to its low transaction costs and fast transaction speeds.

Analysts are bullish on SOL price

Crypto analysts are bullish on Solana, which they believe will continue doing well in the long term. 

From a macro level, the token will benefit from Donald Trump’s victory. In his campaign, Trump committed to implement some of the best crypto policies to ensure that the industry growth continues. 

Besides, Trump has a skin in the game since he owns a crypto portfolio worth over $6 million. He is also implementing a token sale for the World Liberty Financial, which he hopes will become the biggest alternative to AAVE and JustLend. 

At the same time, the Federal Reserve is cutting interest rates, a move that will make high-risk assets like Solana valuable. 

In an X post, a trader known as Elja, wh has over 600k followers, noted that the Solana price would likely have a strong bullish breakout in the coming months. 

Solana price could surge to $500

SOL chart by TradingView

The daily chart shows that the SOL price has been in a strong bull run in the past few days. It made a golden cross in November last year and has constantly remained above the 50-day and 200-day moving averages. 

Solana has also moved above the first support of the Andrew’s pitchfork tool. Most importantly, it has jumped above the key resistance level at $193, its highest swing on June 29.

Oscillators are also highly bullish as the Relative Strength Index (RSI) and the MACD indicators have pointed upwards. Therefore, the token will likely continue soaring in the coming months.

I believe that the coin could surge by 150% and reach the important resistance point at $500 as some analysts predict.

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The USD/JPY exchange rate rose to a multi-week high of 154.68 this week as investors moved to the US dollar following Donald Trump’s election. It then pulled back slightly to 152.63 after the Federal Reserve delivered its interest rate cut.

Donald Trump election

The main catalyst for the USD/JPY exchange rate was Donald Trump’s election, which analysts believe will be highly consequential for the US and other countries.

Trump won by a landslide, winning 301 electoral college votes compared to Harris’ 226. Most importantly, he also won the popular vote by over 74 million compared to Harris’ 70.3 million. 

His election will have a major impact on the US economy, especially if he wins the House of Representatives. He has pledged to deliver massive tax cuts, mostly to companies, and end most of the regulations.

Trump has also pledged to levy tariffs on most imports, especially those from China. As a result, there is a likelihood that these tariffs will lead to more inflation and push the Fed to embrace a fairly hawkish tone. 

Federal Reserve cut

The other important catalyst for the USD/JPY pair was the Federal Reserve interest decision. In it, the bank decided to cut interest rates by 0.25%, the second consecutive cut. Before that, the bank slashed rates by 0.50%.

Jerome Powell maintained that the Fed would continue watching the incoming data to determine whether to cut or hold rates steady. The next data to watch out for will be the upcoming US inflation numbers scheduled for Wednesday next week.

Analysts believe that the headline Consumer Price Index (CPI) dropped from 2.4% in September to 2.2% in October as it neared the Fed’s target of 2.0%. Core inflation, which excludes the volatile food and energy prices, is expected to come in at 3.0%, down from almost 5% earlier this year.

There will be no major economic data from Japan. The key one to watch will be minutes of last meeting in which the bank maintained interest rates steady. Analysts expect that the BoJ will hold interest rates steady in the coming meetings.

The USD/JPY pair reacts to actions by the Fed and the BoJ because of the carry trade opportunity. A carry trade is when investors borrow from a low-interest rate country and invest in a high rate country. With the Fed cutting, the spread between the two countries has narrowed, invalidating the carry trade.

USD/JPY nears a golden cross

The daily chart shows that the USD/JPY exchange rate has been in a strong bull run in the past few months, rising from 140 to 154. Most notably, the pair is about to form a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) near their crossover. In most cases, this is one of the most bullish signs in the market. 

Oscillators like the Relative Strength Index (RSI) and the MACD have all pointed upwards. Therefore, there are rising odds that the pair will have a bullish breakout as bulls target the year-to-date high of $161.96, which is about 6% above the current level.

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