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Dow Jones, S&P 500 rise on strong US manufacturing data; Gap jumps 15%, while Alphabet and NVIDIA slide

US equity benchmarks rose on Friday as investors’ sentiments were boosted by positive economic data from the world’s biggest economy. 

At the time of writing, the Dow Jones Industrial Average rose 0.8%, while the S&P 500 index gained 0.3%. The tech-heavy Nasdaq Composite inched up just 0.1%. 

All the benchmarks were headed for a more than 1% weekly gain this week.

This marked a change from last week when the major averages fell after a post-election rally. 

According to a report by CNBC, Friday’s moves in Wall Street were a continuation of a trend where investors shifted exposure to other economically sensitive corners of the market from major tech companies. 

Tech stocks struggled on Friday with both major companies, NVIDIA Corp and Alphabet slipping during the trading session. 

Meanwhile, Bitcoin neared the long-awaited $100,000 mark, while the Russel 2000 climbed 1%. The Russel 2000 index was on track to end the week with more than 4% gains. 

Sam Stovall, chief investment strategist at CFRA Research told CNBC:

Investors are rotating out of the previous high flyers of large-cap communication services and technology and into other cyclical sectors of consumer discretionary, industrials, and financials, as well as mid- and small-cap stocks. 

Purchasing managers index rise in November

Activity in both the manufacturing and services sectors in the US rose during November. 

The flash PMI reading for services moved up to 57.0, a two-point increase from October and the highest reading in 32 months. 

On the manufacturing side, the index nudged higher to 48.8, up slightly from October and the highest level in four months.

The manufacturing reading met the Dow Jones estimate while the services index was slightly better than the 55.0 forecast.

The indexes measure the percentage of companies reporting growth, so anything above 50 represents expansion.

Gap, and Ross retail stocks gain 

Shares of both retail stocks Gap and Ross rose on Friday after posting positive earnings results on Friday. 

Shares of Gap rose 15% after the company beat estimates on the top and bottom lines. The retail store also raised its full-year sales guidance. 

Meanwhile, shares of Ross gained 7% after the company posted adjusted earnings per share of $1.48. Analysts with LSEG projected earnings of $1.40 per share. 

Alphabet, NVIDIA drops

Shares of Alphabet dropped nearly 2% on Friday, extending steep losses from Thursday’s session. 

Shares dropped as the Department of Justice argued to a judge that the company was monopolizing online searches. 

Additionally, shares of NVIDIA Corporation also dropped more than 3% on Friday as investors remained unimpressed about the company’s revenue forecasts. 

The decline of both prominent shares in the US weighed on the tech-heavy Nasdaq. 

Meanwhile, Intuit lost 4.7% after the TurboTax parent projected second-quarter revenue and profit below Wall Street estimates on Thursday.

The post Dow Jones, S&P 500 rise on strong US manufacturing data; Gap jumps 15%, while Alphabet and NVIDIA slide appeared first on Invezz

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CrowdStrike stock forecast: will it hit its ATH after earnings?

CrowdStrike stock price has bounced back and almost doubled in the past few months as the impact of its outage fade. CRWD shares jumped to $360 on Friday, its highest level since July 24. It has soared by 77% from its August low and is slowly matching towards its all-time high.

CrowdStrike stock price analysis

The weekly chart shows that the CRWD share price bottomed at $200 a few months ago as its outage triggered a major crisis globally, with Delta Air Lines losing over $500 million. The sell-off intensified after the Japanese yen carry trade unwinding in August.

Recently, however, the stock has bounced back and joined other American companies that have soared to their all-time highs.

On the weekly chart, the CrowdStrike stock price has rallied and crossed the important resistance level at $298, its highest swing in 2021 and the previous all-time high. This was a notable level since it was the upper side of the cup and handle pattern, a popular continuation sign.

Its August low was the lower side of the handle section. The stock has now remained above the 50-week and 25-week Exponential Moving Averages (EMA), a sign that investors are bullish on it. 

Also, the Relative Strength Index (RSI) and the MACD indicators have all pointed upwards, which is a sign of renewed momentum. The RSI is yet to get to the overbought level, while the Average Directional Index (ADX) is pointing downwards.

Therefore, the CrowdStrike share price has the momentum to potentially rise to its all-time high of near $400. However, there is also a risk of a reversal since it has formed what looks like a rising wedge, a popular reversal sign. If this reversal works out, the stock may drop and retest the key support at $200. 

Read more: Should you buy CrowdStrike stock under $275? Analysts predict major upside

CRWD earnings ahead

The next important catalyst for the CrowdStrike share price will be its earnings scheduled on Tuesday, November 26. 

These numbers will provide more color on the company’s growth as signs show that the cybersecurity industry is cooling. It is also now competing with Wiz, one of the fastest-growing companies in the world.

The most recent results showed that the company’s revenue jumped by 32% in the second quarter to $963 million. This growth happened as the number of companies using its products remained at an elevated level despite the outage. Its subscription revenue rose to $918 million, while the annual recurring revenue (ARR) rose by 32% to $3.86 billion. 

Analysts expect that CrowdStrike’s revenue will show that its business continued to do well in the third quarter. Revenue is expected to come in at $983 million, a 25% increase from the $786 million it made in the same period last year. 

For the year, analysts expect that its annual revenues will be $3.9 billion followed by $4.7 billion in the coming financial year. If these numbers are correct, they will signal that the company is still experiencing double-digit growth rates. 

The main concern for CrowdStrike and other companies in the cybersecurity industry is its hefty valuation, which stands at over $87 billion. These are huge numbers for a company whose revenue will likely hit $10 billion by 2030 if the current growth trajectory continues. 

That would signal a forward price-to-sales ratio of 8.7, which is higher than most companies. The concerns get more when you consider its earnings. In this case, it has a forward P/E ratio of 96, higher than the sector median of 24. In contrast, Nvidia, a more profitable company that has faster growth metrics, has a multiple of 49.

For a SaaS company, the best approach to value it is to look at its rule of 40, which looks at its growth and margins. It has a forward revenue growth of 28 and a net income margin of 4.8, giving it a value of almost 33, meaning that it is a highly overvalued company. 

The fact that CrowdStrike is overvalued is not a sign that you should sell it. Instead, the stock may continue doing well as long as it demonstrates strong revenue and profitable growth. 

The post CrowdStrike stock forecast: will it hit its ATH after earnings? appeared first on Invezz

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Red alert as the Dell stock price forms a risky pattern ahead of earnings

Dell stock price has bounced back in the past few weeks as investors wait for the upcoming earnings, which will provide more color about its business. After bottoming at $86.95 in August, it has rebounded by almost 60% to trade at $138.85, giving it a market cap of over $87 billion.

Dell earnings ahead

Dell Technologies is a top American technology company best known for its laptop and desktop computers. Data shows that it has the third-largest market share in the PC industry after Lenovo and HP. 

The company has also expanded its business to other solutions, which it classifies as Infrastructure Solutions Group (ISG). This division includes products like servers, storage, and virtualization software. 

As a result, Dell has become an important part of the artificial intelligence industry, where it provides products to companies like Microsoft, Amazon, and Google that operate large data centers globally. Dell competes with firms like Super Micro Computer and HP Enterprise. 

A small part of Dell’s business is in finance, where it provides finances to some of its biggest customers. 

Dell stock price has done well in the past few years, helped by the growth of key areas like artificial intelligence and machine learning. 

The PC industry has also bounced back after going through major headwinds a few years ago. Also, the company has sold its VMware business to Broadcom for over $60 billion. It has jumped by 432% in the past five years, beating its closest rivals like HP and Cisco. 

The next key catalyst for the Dell stock price will be its earnings, which are scheduled to happen on Tuesday next week. These will be important numbers because they will provide more color about the state of its business. 

Just this week, NVIDIA said that its AI business continued firing on all cylinders as its revenue jumped to over $37 billion. Palantir, another top name in the AI industry continued doing well during the quarter.

Analysts anticipate the results to show that Dell’s business continued doing well last quarter. Precisely, they expect its revenues to come in at $24.7 billion, a 11% increase from what it made last year. 

Analysts expect that its fourth-quarter revenue will be $25.53 billion an increase of 14.3%, leading to an annual figure of over $97.5 billion. The company will then cross the $100 billion revenue in 2025.

Dell has a long record of beating estimates

There are chances that Dell’s results will be better than expected because it has a long record of doing well. 

The most recent financial results showed that Dell’s revenue rose by 9% to $25 billion in its fiscal second quarter. Its operating income rose to $1.3 billion. 

Most of its revenue growth was in its infrastructure solutions segment whose revenues jumped by 12% to $24.1 billion. Its client solutions revenue fell by 4% to $12.4 billion as PC weakness persisted. 

Dell has also worked hard to improve its balance sheet. It used part of its VMware proceeds to pay down its debt, which has now reduced from over $28 billion in 2021 to $14.8 billion. Paying back its debt helps it to increase its shareholder returns over time. 

Dell is also fairly valued since it trades at a price-to-earnings ratio of 17, lower than the sector median of 24. Its forward EV-to-EBITDA of 10 is lower than the industry median of 14.

Dell stock price analysis

Dell chart by TradingView

The daily chart shows that the Dell share price has been in a slow bullish trend in the past few weeks. It has risen from $87.16 in August to $140. It has moved above the 50-day and 100-day Exponential Moving Averages (EMA).

However, the stock has formed a rising wedge pattern, which is a popular bearish sign in the market. This pattern often breaks down when the two lines near their confluence level. 

The MACD and the Relative Strength Index (RSI) have formed a bearish divergence chart pattern. Therefore, there is a likelihood that the stock will have a bearish breakdown in the coming weeks. If this happens, the next point to watch will be at $120. However, a break above the key resistance level at $150 will invalidate the bearish view.

The post Red alert as the Dell stock price forms a risky pattern ahead of earnings appeared first on Invezz

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TJX sees opportunity in Trump’s tariff chaos as rivals brace for price hikes: here’s why

President-elect Donald Trump’s sweeping tariff proposals have triggered widespread concerns among businesses and economists.

Trump has suggested imposing a 20% tariff on all US imports and steeper duties of up to 60% on goods from China and other key trading partners.

Retailers like Walmart and Lowe’s have already signaled that they may need to raise prices if these tariffs are enacted.

However, TJX—the parent company of TJ Maxx, Marshalls, and HomeGoods—sees an opportunity amid the disruption.

TJX’s unique business model

Unlike most competitors that depend heavily on overseas production, TJX relies on a unique business model that involves acquiring excess inventory from designer brands.

Much of this merchandise is sourced after it has already been imported, meaning tariffs have typically been paid by the original importer.

This “opportunistic buying” strategy allows TJX to sell items at discounts ranging from 20% to 60% below standard retail prices.

CEO Ernie Herrman believes Trump’s tariffs will only enhance the company’s ability to scoop up discounted goods.

“Manufacturers could bring in goods early,” Herrman noted during an earnings call on Wednesday. “That could create even more availability of goods at advantageous prices for us.”

Lessons from 2019 tariffs

TJX’s confidence stems from experience.

When the Trump administration raised tariffs to 25% on $200 billion worth of Chinese goods in 2019, TJX leveraged the ensuing market disruption to secure bargains.

Herrman described that period as a significant “buying opportunity” for the company.

The National Retail Federation forecasts similar dynamics this year, predicting a 13.6% increase in imports this November compared to last year and a 6.1% rise in December.

Retailers are racing to import goods ahead of potential tariff enforcement, creating conditions that TJX can exploit.

Competitors face an uphill battle

The outlook for TJX contrasts sharply with that of its rivals.

Companies like Steve Madden are accelerating plans to relocate production out of China, while Walmart and Lowe’s anticipate unavoidable price hikes.

“Our model is everyday low prices. But there probably will be cases where prices will go up for consumers,” Walmart finance chief John David Rainey told CNBC.

Although TJX acknowledges that some price increases may occur, analysts believe its pricing will remain competitive.

Neil Saunders, a GlobalData Retail analyst told CNN, “Even if prices rise due to tariffs, TJX will still be relatively cheaper than mainstream retailers.”

By capitalizing on supply chain disruptions and leveraging its unique sourcing strategy, TJX aims to reinforce its reputation as a leader in the discount retail space.

As competitors grapple with rising costs, TJX’s ability to adapt positions it well for growth, even in a challenging economic environment.

The post TJX sees opportunity in Trump’s tariff chaos as rivals brace for price hikes: here’s why appeared first on Invezz

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Avalanche price analysis: here’s why AVAX could surge 458%

Avalanche price continued its strong rally as the crypto fear and greed index remained in the extreme greed zone. The AVAX token jumped to a high of $45, its highest level since April 12 and 158% above its lowest level in August. 

Avalanche price has strong technicals

The daily chart shows that the AVAX token price is being supported by strong technicals, which could help to push it substantially higher in the near term. AVAX token has formed a golden cross chart pattern as the 50-day and 200-day moving averages have crossed each other. 

Avalanche remains about 43% above the 50-day moving average. It has also jumped above the Ichimoku cloud indicator and formed an inverse head and shoulders pattern, a popular reversal sign in the market. 

AVAX price has also jumped above the crucial resistance at $37.62, its highest swing on November 12 this year. It has jumped above the Ichimoku cloud indicator. 

Meanwhile, the popular Market Value to Realized Value (MVRV) indicator has jumped to 3.2 and is pointing upwards. Other oscillators like the Relative Strength Index (RSI) and the MACD indicators have also risen, which is a sign that the coin is gaining momentum. 

While it is still too early to predict, there are signs that the Avalanche crypto price is forming a cup-and-handle pattern whose upper sign is at $65. This pattern is characterized by a rounded bottom. 

To predict the potential target for this pattern, traders measure the distance between the lower and the upper side of the cup and extrapolate it from the upper side. In this case, that distance is about 268%. 

If we measure a 268% above the upper side, we can estimate that the coin will rise to $240, which is about 458% above the current level. The bullish view will become invalid if the Avalanche price drops below $30. 

Meanwhile, crypto analysts are bullish on the AVAX price. For example, in an X post, Satoshi Flipper, who has over 270k followers, identified his next target at $120, citing a falling wedge pattern on the weekly chart. Another analyst cited the fact that AVAX has moved above the Ichimoku cloud indicator on the weekly chart. He expects that the coin will rise to $200.

AVAX price has solid fundamentals

One of the top bullish cases for Avalanche is that it is often seen as an alternative to Solana, a coin that has surged hard this year. Solana has soared to over $250, and analysts expect more gains from it as it closes in on Ethereum. As such, with Avalanche trading at $43, some investors believe that it is a better bet. 

Additionally, there are signs that the Avalanche ecosystem is doing well. For example, its DEX volume in the past seven days jumped to almost $2 billion, making it the sixth biggest chain in the industry. Its DEX networks have cumulatively handled transactions worth $174 billion.

Avalanche just needs a vibrant meme coin ecosystem to catch up on Solana as most of the volume in the latter’s platform is on meme coins. 

Meanwhile, Avalanche’s futures interest has jumped to a record high of over $534 million, a trend that may continue to accelerate in the near term. Open interest is an important number that looks at the volume of trades in the futures market. It is often seen as a good indicator of an asset’s demand.

Most importantly, there are chances that Avalanche will be a top candidate for a potential spot ETF in the Donald Trump administration. Most analysts anticipate the administration will be more friendly to mainstream crypto projects. 

The post Avalanche price analysis: here’s why AVAX could surge 458% appeared first on Invezz

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Chainlink price prediction as LINK forms a rare bullish pattern

Chainlink price has formed a rare bullish pattern, pointing to more gains in the coming weeks. LINK token jumped to $17 on Saturday, its third consecutive day of gains as the crypto fear and greed index remained in the extreme greed zone. It has jumped by 108% from its lowest level this year.

Chainlink price forms a rare bullish pattern

The daily chart shows that the LINK price has formed a rare golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. This is one of the most bullish patterns in the market in most periods.

The last time that Chainlink formed this cross was in October last year when it was trading at $8.30. It then jumped by over 170% and reached a high of $22.88, its highest level this year. Therefore, there is a likelihood that the coin will continue its strong bull run, and potentially hit its YTD high, which is about 35% above the current level. 

LINK price has other positive catalysts that could push it higher in the near term. First, momentum indicators like the Relative Strength Index (RSI) and the MACD are all pointing upwards, which is a sign of strong momentum. 

Also, the coin has jumped above the 38.2% Fibonacci Retracement level and is now near the extreme overshoot point of the Murrey Math Lines tool. It also remains above the Ichimoku cloud indicator. 

Therefore, there is a likelihood that the LINK price will continue rising as bulls target the psychological point at $20, which coincides with the highest level in May this year. A break above that level will point to more gains, potentially to the year-to-date high of near $23.

Conversely, a drop below the weak stop & reverse point at $15 will invalidate the bullish view. Such a drop will raise the chance of Chainlink falling to $10.

LINK price chart

LINK price has fundamental catalysts

Chainlink price has some fundamental catalysts that could push its price higher in the coming days. First, data shows that there is a strong demand for the coin in the spot and future markets. According to CoinGlass, the futures open interest has jumped to over $340 million, its highest level since April this year. 

Open interest is a number that looks at the volume of unfilled orders in the futures market. A higher figure is often a sign that there is strong demand. The same is happening in the spot market where its 24-hour volume jumped to over $1.3 billion.

Second, Chainlink has one of the most important roles in the blockchain industry, where it offers oracle services to developers. An oracle’s goal is to move off-chain data to the on-chain. In its case, it is used by some of the biggest players in the blockchain industry, giving it a total value secured of over $34 billion. Chronicle, the second-biggest player in the industry, has a TVS of $9.4 billion.

Third, there are rising odds that the Trump administration will approve a spot LINK ETF if there is an application. Besides, Chainlink is widely used in the industry and has even been selected to provide oracles by World Liberty Financial. 

Additionally, Chainlink has a big role in the fast-growing industry tokenization industry because of its Cross-Chain Interoperability Protocol (CCIP). CCIP is used to verify data from across various chains like Ethereum, Solana, Base, and Cardano. 

LINK price is also jumping because of the ongoing DeFi renaissance that has led to a sharp increase in the amount of money in the industry. Data shows that the TVL in the sector has jumped to almost $100 billion. 

The post Chainlink price prediction as LINK forms a rare bullish pattern appeared first on Invezz

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Solana price prediction: here’s why SOL token will hit $8,000

Solana price is firing on all cylinders, and technicals suggest that the rally is just beginning. It has jumped for three consecutive days and reached its all-time high of $260. It has soared by more than 3,000% from its lowest level in 2023. 

Solana price could jump to $8,000

The weekly chart shows that the price of Solana has been in a remarkable comeback after bottoming at $7.65 in 2023 as the FTX crisis was continuing. With the crisis now behind us, there are chances that the coin is about to stage one of the top rallies in the crypto industries. 

That’s because it has been forming a cup and handle pattern, which is a popular sign of a bullish continuation. This pattern is known like that because it has a close resemblance to a cup, which has a rounded bottom and a handle. 

In this case, the upper side is $260, which is about 3,000% above the lowest level in 2023. To do a good SOL price forecast, you need to measure the 3,000% distance from $260. If this happens, it means that the coin will surge to $8,000.

The challenge with the C&H pattern is that it usually takes a lot of time. For example, it has taken three years for the SOL price to complete the cup section of the pattern. 

At the same time, the coin has remained above the 50-week and 200-week moving averages, a sign that bulls are in control. Solana’s oscillators like the Relative Strength Index (RSI) and the Stochastic have continued rising in the past few months. 

Additionally, Solana has moved above the ultimate resistance of the Murrey Math Lines, meaning that it has two more levels to climb: overshoot at $281 and extreme overshoot at $312. The upper side of this pattern is about 21% above the current level. 

The bullish SOL price forecast will become invalidated if the coin drops below the weak, stop & reverse point at $218. 

SOL price has numerous fundamentals

Solana’s rally is being supported by its strong fundamentals. First, the futures open interest for the coin has jumped to a record high of $6 billion, a remarkable thing for an asset whose interest was below $600 million in 2023. This futures open interest is a sign that investors and traders in the futures market have strong demand.

Read more: Solana price rally: can bulls push SOL past $350 after crossing $241?

Second, the Solana ecosystem is booming as the meme coin ecosystem hits a market cap of over $20 billion. The biggest coins in this network are Bonk, Dogwifhat, Popcat, and Peanut the Squirrel. This valuation means that Solana accounts for 18% of the meme coin industry. 

Third, this meme coin growth has translated to a spectacular volume in the DEX ecosystem. Data shows that Solana’s DEX network handled volume worth $5.67 billion in the past 24 hours, higher than what Ethereum and Base processed in the same period combined. 

The volume this month was $102 billion, more than double what Ethereum has processed. This is remarkable because Ethereum had the biggest market share in the sector a few months ago, helped by Uniswap.

The same trend is happening in the perpetual futures market, where Solana has become second only to Hyperliquid. Its networks handled volume of $2 billion in the past seven days, higher than $1.26 billion that Ethereum processed. 

Additionally, there are rising odds that companies will file for a Solana ETF, which Gary Gensler has rejected. Under the Trump administration, there is a likelihood that these funds will be applied even with staking features, leading to more inflows.

The post Solana price prediction: here’s why SOL token will hit $8,000 appeared first on Invezz

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Sui Network partners with Franklin Templeton to drive Web3 and DeFi adoption

In a strategic move, Sui Network, a fast-growing layer 1 blockchain known for its innovative use of the Move programming language, has partnered with Franklin Templeton Digital Assets, a global leader in asset management with over $1.5 trillion in assets under management.

This collaboration is set to accelerate the growth of the Web3 ecosystem, drawing increased institutional interest and support for the Sui blockchain.

Partnership to boost web3 development

The partnership between Sui and Franklin Templeton Digital Assets aims to enhance the adoption and development of decentralized applications (dApps) on the Sui blockchain.

Franklin Templeton has been involved in blockchain since 2018, operating node validators and developing blockchain investment strategies.

Their extensive experience and expertise in the space position them as a key player in helping Sui developers build and scale products on the blockchain.

As part of the partnership, Franklin Templeton will focus on enabling Web3 developers to leverage the advanced capabilities of the Sui blockchain.

This includes support for promising decentralized finance (DeFi) projects such as DeepBook, a decentralized order book for DeFi trading; Karrier One, a decentralized mobile network; and Ika, a tool for secure cross-chain interactions.

These projects illustrate the potential of the Sui blockchain to revolutionize industries ranging from finance to telecommunications.

Institutional investor interest in Sui Network

The Sui Network’s strategic partnership with Franklin Templeton also comes at a time when institutional investors are showing increasing interest in blockchain technology and decentralized finance.

Major players in the investment world, such as VanEck and Grayscale Investments, have already expressed strong support for the Sui ecosystem, providing a solid foundation for further growth.

The network has seen remarkable growth, with its total value locked (TVL) increasing from below $50 million to approximately $1.64 billion over the past year.

This surge in TVL highlights the growing trust and adoption of the Sui blockchain, particularly within the DeFi space. Additionally, the introduction of stablecoins like USDC and FDUSD further has enhanced liquidity, driving drives mainstream adoption of digital assets.

Grayscale Investments has also introduced the Grayscale Sui Trust, offering institutional investors exposure to the Sui network.

As of the latest report, the Sui Trust has amassed over $6 million in assets under management. This is a strong indicator of the increasing interest in Sui, which is now seen as one of the top-tier blockchain projects attracting both retail and institutional investors.

Sui token price on a strong bullish trend

The SUI token, the native token of Sui network, has been one of the standout performers in the cryptocurrency market over the last few months. SUI has surged by more than 350% since early September.

This rise in price is a clear indication that the market is bullish on the potential of Sui and its growing ecosystem.

The SUI price is currently hovering around $3.49, and it is entering the price discovery phase of the macro bull market.

However, the Relative Strength Index (RSI) recently surged above the 70% mark resulting in a retracement amidst the strong bullish momentum.

Source: TradingView

Therefore, while Sui is expected to continue its upward trajectory, particularly with the backing of institutional investors like Franklin Templeton Digital Assets, investors should be wary of the continuation of the current pullback.

The post Sui Network partners with Franklin Templeton to drive Web3 and DeFi adoption appeared first on Invezz

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Stellar Lumens price surges on United Nations and World Bank endorsements

Stellar Lumens (XLM) has been on an impressive upward trajectory recently, drawing attention for its rapid price surge.

With high-profile collaborations and endorsements from the United Nations and the World Bank, XLM is positioned as a key player in the future of global finance.

The surge in Stellar Lumens price: a 106% jump in a week

Stellar Lumens has been experiencing an extraordinary rally in recent weeks, with the price of XLM surging by 106% in just seven days and a massive 188% increase over the past two weeks.

At the time of writing, XLM was trading at $0.2932, marking a high point not seen for some time. This price movement has significantly outpaced Bitcoin’s performance over the same period, with the flagship cryptocurrency rising just 6.7% in the past week and 26% in the last fortnight.

This rapid growth has been largely driven by increasing optimism surrounding Stellar’s role in the evolving global financial system. Notably, high-profile collaborations have fueled XLM’s price momentum.

A key factor behind this surge is the recent partnership with MasterCard, a major global payments player, which has sparked a wave of investor interest.

Additionally, Stellar’s endorsement by the United Nations as part of its vision for a new global financial system has been a catalyst for the cryptocurrency’s explosive rise.

Endorsements from the World Bank and the United Nations

The backing of both the United Nations and the World Bank is a powerful endorsement for Stellar Lumens in the context of its growing role in the financial ecosystem.

The World Bank’s recognition of XLM as part of a transformative two-tier monetary system positions it as a critical asset in facilitating global financial inclusion. This two-tier system, as discussed by financial analysts, envisions XRP (Ripple) handling institutional liquidity for cross-border payments, while XLM focuses on enabling peer-to-peer remittances.

The World Bank has lauded XLM for its low-cost and efficient transaction model, particularly beneficial for users without access to traditional banking services.

The United Nations’ endorsement of Stellar and Ripple further supports the narrative of blockchain technology as a cornerstone of a tokenized economy.

Stellar’s focus on retail-level remittances and the ability to facilitate peer-to-peer transactions in emerging markets, particularly in South America, makes it an attractive solution for global financial inclusion.

The UN’s support signals a broader push toward a digital, decentralized financial system, with XLM playing a key role in its implementation.

Technical indicators point to a potential correction:

Despite the bullish outlook for Stellar Lumens, caution is advised for potential investors. While XLM has demonstrated impressive gains, technical indicators suggest the cryptocurrency may soon face a sharp correction.

The Relative Strength Index (RSI) has spiked to 87.47, indicating that the asset is overbought and may soon experience a price pullback.

Additionally, the Stochastic Oscillator is nearing 100, a level that often precedes a price decline.

The surge in price has also pushed XLM 142% above its 50-week and 200-week Exponential Moving Averages (EMAs), a clear sign that mean reversion could occur. This suggests that XLM may fall back toward these averages before continuing its upward trend.

Source: TradingView

Furthermore, many technical analysts anticipate a potential retest of the $0.1624 support level, which could trigger a temporary reversal before the price resumes its upward movement.

While the long-term outlook for XLM remains strong, investors should be cautious of the technical signals that suggest a short-term correction is on the horizon.

The post Stellar Lumens price surges on United Nations and World Bank endorsements appeared first on Invezz

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Top 3 reasons why I’m buying Reddit stock on recent weakness

Reddit Inc (NYSE: RDDT) opened about 8.0% down on Friday after Tencent Holdings unloaded about $88.5 million shares of the forum social network.

The weakness may also be related to a report that Advance Magazine Publishers is considering trimming its position on Reddit as well.

Still, there are three solid reasons to consider loading up on Reddit stock on the recent sell-off. Let’s take a look at each of them individually.

Reddit stock price is backed by solid financials

Reddit has already turned a quarterly profit even though it hasn’t even been a year since it went public.

More importantly, the forum social network is attracting users at an unparalleled rate. Its daily active users went up another 47% on a year-over-year basis to 97.2 million in Q3.

That’s significant since more users will likely drive more advertisers to the platform – and more advertisers will continue to drive the company’s bottom line over the coming quarters.

Reddit topped Street estimates for all metrics in its latest report. Profit, revenue, daily active users, average revenue per user, you name it – this company surpassed all of them in Q3.

That speaks volumes about the state of business and what the future may hold for Reddit stock.

RDDT could benefit from AI tailwinds

Reddit stock is trading at a significant premium at writing but it may continue to justify it as RDDT is uniquely positioned to benefit from the AI frenzy.

On top of stealing ad spend from X (formerly Twitter), it’s selling data to big tech names and helping them train their large language models.

Reddit already has a deal in place with Google and OpenAI – and will likely secure similar deals with others as users continue to register on its online platform over the next few quarters.

Note that Statista estimates the artificial intelligence market to grow at a compound annualized rate of over 28% through the end of this decade which confirms AI as a meaningful potential tailwind for RDDT.

Reddit stock does not, however, pay a dividend.

Reddit is catering to an international audience

Reddit is also tapping on artificial intelligence to translate the wealth of data on its forum social network from English to a whole bunch of other languages.

That exposes it to an international audience and positions it to become a significantly bigger platform over the next five years. Steve Huffman – the company’s chief executive told investors in the earnings press release last month:

Reddit continues to be one of the most visited and trusted sites in the world with opportunities available to us that aren’t available to most companies.

Wall Street currently has a consensus “overweight” rating on Reddit stock, suggesting they continue to see further upside despite its massive year-to-date run.  

The post Top 3 reasons why I’m buying Reddit stock on recent weakness appeared first on Invezz

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