In today’s briefing:
- Rally Continues Following Breaks in USD & 10-Yr Yield; Buy Ideas in Energy & Consumer Discretionary
- Palantir Inc: Major Drivers
- #40 The Contagion Vectors of the FTX debacle
- Sporting Crypto – Nov 14th: Leading Sports Crypto Sponsor FTX File for Bankruptcy
- Block Inc (formerly Square Inc): Continuing Bullish Approach Towards Crypto
- Datadog Inc: The Cloudcraft Acquisition & Other Drivers
- Oracle Corporation (ORCL US): TSS < 10 - Target Tactical 4.0% to 5.5% Decline
- Crypto Liquidity in a Post-Alameda World
- Hyatt Hotels Corporation: The Find Platform & Other Drivers
- Walt Disney Company: Merchandise Marketing Through Disney+ & Other Drivers
Rally Continues Following Breaks in USD & 10-Yr Yield; Buy Ideas in Energy & Consumer Discretionary
- Our Russell 2000 (IWM) and S&P 500 targets for this rally have been the 200-day MAs, coinciding with YTD downtrends.
- The Russell already hit this target while the S&P is closing in, less than 1% away.
- Still, the vast majority of signals point to further upside ahead for the market indexes, and a possible end to the bear market.
Palantir Inc: Major Drivers
- Palantir delivered a mixed set of results in the last quarter.
- Its $478 million in revenue surpassed Wall Street expectations but the company missed out on the earnings expectations of analysts.
- U.S. commercial business expanded for the ninth consecutive quarter, up 53% yearly.
#40 The Contagion Vectors of the FTX debacle
- Time flies in crypto. If you swap “years” for “hours” in this quote from Marvin, the Paranoid Android from The Hitchhiker’s Guide to the Galaxy, you get a glimpse of what crypto has been like in recent weeks.
- “The first ten million years were the worst,” said Marvin, “and the second ten million years, they were the worst too. The third ten million years I didn’t enjoy at all. After that, I went into a bit of a decline.”
- In the last few weeks, FTX has exploded, and somehow it keeps exploding.
Sporting Crypto – Nov 14th: Leading Sports Crypto Sponsor FTX File for Bankruptcy
- FTX blowing up has been seen by many as the most shocking thing to happen in crypto.
- I’ve spoken to people who have been in the space for longer than me (5 years) and there’s consensus that this really is the craziest thing that has happened – in an industry that is already labelled as the ‘digital wild west’.
- But how did FTX, a crypto exchange making 8 figures in trading fees *per day* and a modestly sized team blow up?
Block Inc (formerly Square Inc): Continuing Bullish Approach Towards Crypto
- Block delivered a decent set of results with an all-around beat and good profitability during the last quarter.
- Its BNPL platform produced $150 million in gross profit in the third quarter, distributed between Square and Cash App.
- Inflows per active user have been improving in the third quarter compared to the first and second quarters and stable year over year.
Datadog Inc: The Cloudcraft Acquisition & Other Drivers
- Like most technology stocks, Datadog has also taken a massive beating in terms of its share price but its financial performance has been good.
- The company reported strong results for the third quarter and managed an all-around beat.
- Since customers continue to manage their companies with greater cost consciousness, the company observed current customer usage growth at similar levels as Q2.
Oracle Corporation (ORCL US): TSS < 10 - Target Tactical 4.0% to 5.5% Decline
- Oracle Corporation (ORCL US) has rallied 30% in October/November 2022.
- A new 2 month high of 79.53 was produced on Monday 14 November amid extreme bearish ST momentum failure.
- Our TSS methodology triggered a Trend Sustainability Score (TSS) < 10 at the high and justifies a further 4.0% to 5.5% decline in the coming 1-2 weeks.
Crypto Liquidity in a Post-Alameda World
- The FTX saga keeps entering new levels of strange.
- On Friday, both FTX and FTX US filed for bankruptcy, along with 134 related entities, highlighting just how tangled the exchange’s corporate web had become.
- Just a few hours later, the exchange suffered what now appears to be a massive hack, with more than $600mn siphoned from both FTX and FTX US wallets, instantly triggering rumors of an inside job.
Hyatt Hotels Corporation: The Find Platform & Other Drivers
- Hyatt delivered a strong performance in the quarter and managed to surpass Wall Street expectations in terms of revenues as well as earnings.
- With outstanding bookings for upcoming periods during the quarter, group room revenue also saw growth during the third quarter.
- Besides, they launched The Find platform, a new experiences platform, for members of its World of Hyatt loyalty program.
Walt Disney Company: Merchandise Marketing Through Disney+ & Other Drivers
- Disney had highly disappointing quarter and failed to meet the market expectations in terms of revenues as well as earnings.
- The quarter saw the company reaching the highest point in DTC operating losses to date which is why operating margins were significantly below analyst expectations.
- This quarter was strong for products, experiences, and parks that continue to deliver good results despite Hurricane Lan.
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