Category: Financial News


In this category, Latest Financial News visitors can find everything that Traders-Paradise finds it is related to the educational material existing here. As the name suggests it is news but ONLY related to Traders-Paradise’s tutorials, courses, guides about trading, and investing.

Here the readers can find posts and articles about recession and how to overcome it. Many trading or investing strategies are explained here. For example, why to use open interest strategy when investing, or growth stock investing strategy.
Here, our experts and journalist are taking examples from the real-life. it is usually breaking news, and use them to explain what is the best solution for traders and investors over a given time or related to the particular event.
Also in Latest Financial News readers can find an explanation of, for example, ratios useful to measure the particular market conditions.

Also, Traders-Paradise gives you some clues on how to react to changes in the markets, no matter if it is the stock market, the Forex market, or any other.
The main aim of the Latest Financial Market News is to connect the real events with the theory. Traders-Paradise uses real-life examples to explain the theoretical rules of investing and trading.
Also, when some breaking out news appear Traders-paradise will write about it but at the same time, the visitors will have a comprehensive analysis of what caused that event and how to overcome it.
Traders-Paradise hopes that this category will be very useful for its visitors and that they will find it helpful.

  • What to Expect From the Stock Market in 2020?

    What to Expect From the Stock Market in 2020?

    What to Expect From the Stock Market in 2020?
    Create portfolios that will work no matter what the next year is going to bring. The recession will come or not, but your investments have to be protected. 

    By Guy Avtalyon

    What to expect from the stock market in the year ahead? The stock market could correct itself during the early days of 2020. But, despite some dark predictions, the stock market may keep rising over the long run.
    This is the last day (at the moment of writing) of the year during which the market was so unpredictable. At least, it was surprising.
    For example, Uber’s IPO was followed by fanfare, and what happened? Great disappointment.
    But many other stocks hit their highest-ever highs and quickly dropped to the lowest lows. The only truth in the stock market is that there will always be shocks. 

    Okay, that year is behind us so let’s take a look at what to expect in the stock market for 2020.

    The stock market will rise more

    The stock market boomed in 2019. The S&P 500 recorded a gain of 29.2% in 2019. Some analysts already told us the market will be down in 2020 but, to be honest, they could be wrong. Since the stock market rose over 20% in 2019 it is more likely in 2020 to see even greater returns than it was in the previous year.

    What you have to do? the answer is simple. If you had good returns in 2019 and your investment portfolio was doing well, just stay with it. Why would you change the winners? 

    But…

    Nothing related to the stock market is for sure and forever. There is always something to worry about. It’s our money. If you hold cash and not invest in stocks or somewhere else, your money will go anyway. So, don’t be frightened, come back to the market, and invest smartly. The year ahead could be promising. Build your portfolio, mix the assets, and avoid emotions. Yes, the stock market could be more volatile in the next year could since 2019 was much less volatile than the prior year.

    Some unpleasant occasions may arise over the coming year. 

    Firstly, in January due to the January Effect. What is this? The January effect is an increase in stock prices during that month. But is a seasonal increase. Usually, In December,  the stock market records an increase in buying, and the stock price is dropping. In January, stock prices will increase as always. 

    In fact, the January effect is a theory and calendar-related effect. Some small caps could be affected more than any other. But according to history, it was a case until several years ago. Since then, markets seem to have adjusted for it.

    What to expect from the stock market 

    The stock market is pretty much unpredictable, we can only guess. Maybe the right question is what to expect from the investors. So far the majority showed spectacularly bad timing when it comes to stocks. They are selling and buying at the wrong time. Many of them are selling just before rallies or accumulate stocks when they have to sell. 

    If you believe that the market is increasing and that it is a predominant trend, adjust your portfolio for the ups and downs in 2020. But it is the same as always. Your actions will depend on what your expectations are toward the stock market in the next year. Maybe, you will invest more money when the markets are more volatile with the expectation that pullback is temporary, who knows?

    The value stocks will come back

    Yes, stocks are growth or value type. Growth stocks are so attractive and popular. Everyone is talking about them, they are in the headlines, media are paying a lot of attention to them and burn our brains too. The whole world is watching the stocks of Amazon, Facebook, Uber, and many others because the growth stocks are giving great returns, they are well-known companies, famous brands.

    On the other side, we have value stocks. They are mostly companies form the utility industry, or energy or something else less attractive. Such stocks don’t have spectacular prices, the companies are not fast-growing. 

    Yes, the growth stocks are performing better results in growing markets but the value stocks will always do better in down markets.

    To be told, the growth stocks are increasing their value year-to-year and some experts are expecting a reversal in 2020. So, growth stocks may change their prices and decrease.

    A diversified portfolio will be helpful as always. If you hold any of these great players just sell part of it if you follow the experts’ estimations. At least, your portfolio will be less volatile.

    What to expect from the stock market: The bear market is coming for sure

    This prediction was wrong for many prior years. But, maybe the next year may confirm market bears’ expectations. We have a bull market and it showed a great strength over the year. It was faced with a yield curve inverted, trade war, Brexit, the possibility of a recession. Well, to add more pain into your lives, the bull market has to end at some point. Some experts expect that 2020 is that time.

    So, what investors have to do is to hedge the risk and take some profit, of course. As the market motto advises “you will never go broke taking profits.” Maybe it is really time to take some profit from your investment. If you believe the downturn in the stock market will come for sure, be ready to reinvest big gains. What different could you do when the important selloff comes in 2020?

    Will the recession surely come?

    Recession is an element of any business. So, we can expect it to come at any time, sooner or later. It may happen in 2020 or 2021 or 2022, literally anytime. Many circumstances have an influence on it, we are witnesses of some, that’s true. 

    Investors shouldn’t adjust their portfolios based on guessing. However, it is smart to analyze your allocation. Maybe some stocks are out of balance. Let’s say you wanted to hold 50% in stocks but you noticed that suddenly you hold 70%. That would be a clear sign that is clever to exit some positions. Just adjust your portfolio with your risk tolerance and investment goals.

    We all know that the stock market forecasts are useless. No one can predict how the market will perform. But still, we click on them to see and compare them with our opinions. The reduction of difficulties is in the essence of human nature.
    However, investing in the stock market certainly includes difficulties and risks. Seeking out for expert opinions about what to expect from the stock market in 2020 can be the wrong way to lessen risks or uncertainty.
    Investors must do their own examination. If you think the crypto will go up, just buy some of them or parts of them, or if you think Uber is a great investment, just buy some shares of it. A small portion will be quite enough notwithstanding that experts are expecting a big increase.

    One is a-hundred-percent sure, you will make at least one mistake. Take it as certain. But that’s life and also, that’s investing, be prepared for that.
    Just do your best to secure your right calls overpass your wrong ones. 

    Happy New Year!

  • Alibaba Stock Could Deliver Strong Growth in 2020

    Alibaba Stock Could Deliver Strong Growth in 2020

    Alibaba Stock Could Deliver Strong Growth in 2020
    The economic environment is encouraging, the company is paying attention to its development, there is no reason to think that BABA isn’t able to deliver a strong growth next year.

    Alibaba stock could deliver strong growth in 2020 valuing the company’s fundamentals. This company has a big challenge to surpass eventual issues due to the trade war between the US and China. But it looks like a possibility of “phase one” trade agreement is just around the corner.
    Reversing tariffs on both sides, which will be included in phase one, should boost consumer demand in China. Boosting demand should increase the sympathy for BABA stock. 

    The company has recorded a 40% year-over-year revenue growth in the latest quarter. Also, the results for the past several quarters were good. In the cloud segment, it had 64% growth year-over-year.

    This put together, make Alibaba stock a strong buy for 2020. And here is why.

    The economic environment is encouraging for Alibaba stock

    The most difficulties of trade are behind two countries now, since phase one of the trade war deal is completed. The fact is that 2020 is an election year in the US and no one wants to upset the voters.

    On the other side, the fact is that China’s economy is slowing. Well, yes, but its GDP is increasing by 6% in the 3rd quarter. Moreover, retail sales jumped 8% in November, which is the sign that  Chinese citizens have increased consumers’ demand based on better personal financial status. 

    Moreover, Nike’s (not only Nike’s but also some other US-based companies) sales in China jumped 23% in the last quarter, so Chinese buyers like to spend money on high-end products. This is a good sign for Alibaba too.

    With the rollout of 5G mobile e-commerce could increase even faster which is also important for Alibaba. So, Alibaba stock could deliver strong growth in the year ahead.

    Alibaba improves algorithms to sell ads

    Alibaba earns by selling ads companies and apps. It has adjusted and improved algorithms that help companies sell to buyers. For example, it improved desktop paid-search ranking algorithms, mobile monetization app, and desktop search personalization.

    Alibaba’s New Retail business

    Alibaba points to its brick-and-mortar stores as a “new retail” business. It unites those stores with the company’s direct sales. Alibaba’s core commerce revenue grew by 40% per year to $14.2 billion last quarter. Due to the acquisition of NetEase’s Kaola e-commerce, Alibaba’s “other” of the total revenue increased by 125% to $2.5 billion.
    Also, Alibaba’s core commerce revenue only grew 29% annually which indicates that the company more dependent on the growth of its brick-and-mortar stores.

    Alibaba stock

    Since the first news of trade tariffs, more than a year ago, BABA had lower price growth of the stock. But its twelve-month revenue has increased by 70%, while earnings per share have increased by 135%, during the same period.
    Completion of a “phase one” trade deal should give an immediate boost to Alibaba stock and grow the investors’ opinion of the company. Alibaba could reach a $10 billion annual revenue by the end of next year. This would improve Alibaba’s stock.
    The company continues with a stable stock growth. Analysts foresee its revenue to rise 29% and earnings to rise 23% next year. That is the extraordinary growth rate.

    However, investors should be conscious that Alibaba’s main business is depending on lower-margin operations, to push its top-line growth. 

    Alibaba’s core wholesale commerce business is sustaining the record strong growth. Alibaba’s revenue growth has been superior in comparison with JD.com, its main rival in China. So, Alibaba stock could deliver strong growth in 2020. Keep an eye on this stock.

  • Cannabis Stocks Could Bounce in 2020

    Cannabis Stocks Could Bounce in 2020

    Cannabis Stocks Could Bounce in 2020
    Cannabis is now legal in many countries and their number will increase. Public support for cannabis legalization is undoubted. That all can provide cannabis stocks to jump in 2020.

    Even though the cannabis sector gets knocked down almost on a daily base, some pot cannabis stocks could bounce in 2020. Yes, Canadian sales missed expectations after the legalization of recreational use of cannabis and remained to stay limited globally.
    But the Canadian sector could have a great stimulus in 2020 with the Cannabis 2.0 rollout. Also, the retail store number increase is one of the trump cards. For example, Canopy Growth plans to open 40 retail stores a month during 2020 in Ontario. Great plan, indeed but will the government really open up the market to such a huge development?
    The stock market wasn’t good in 2019 for cannabis stocks, and investors have to look at the chances of beaten-down stocks. But we truly believe that some of the cannabis stocks could bounce in 2020.

    One of them is the Cronos Group (CRON)

    The Cronos Group missed out on revenue estimates for Q3. It was $1.3 million lower. The stock followed the company’s “success”, it also has dropped and hit the new lows.

    The important fact is the company still grew revenues gradually generated $29.4 million in revenues for the last nine months. Also, the company raised up the production but investors didn’t see the benefit from that. Actually, they were very disappointed by the fact that Cronos sold 8x the kilogram in September but at half the net revenue per gram. But the company ended the third quarter with $1.14 billion on the balance sheet while the company’s value was $0.7 billion. So, this cash flow is Cronos’ main advantage.

    It gives the company an opportunity to invest further while the majority of the rivals don’t have such a possibility. CRON has an optimistic Buy consensus rating from Wall Street. Moreover, the average analyst price target is $13.45 and the last closing price was at $7.14.

    Tilray (TLRY) Cannabis Stocks Could Bounce

    Tilray is one of the most popular cannabis companies in the world. The popularity came from an unusual event after its IPO. What happened? The crazy prices followed the IPO with the stock price over $300 shortly after IPO.
    Tilray was the first cannabis company in history to list directly on one of the major US exchanges at $17 per share. Only a few weeks later, the stock price hit the insane price of $300 per share. It was the hottest IPO in 2018. 

    But the year after…

    The average net selling price per gram dropped to $3.25 last Q3, the prior price was $6.21. A gross margin of 31%, the adjusted EBITDA loss of $23.5 million, and only $122 million in cash are weak results.
    But Tilray appears well-positioned in combination with the InBev JV which may be catalysts in 2020 and make these cannabis stocks could bounce.

    The 2020 revenue estimates are only at $316 million but the stock has picked analysts’ optimism. They forecast a possible upside of over 40% and the stock price at $29.57. There is hope for Tilray.

    OrganiGram (OGI)

    OrganiGram Holdings is down from the high above $8 in May it falls to $2.5 on December, 24 but it is 1.62% more than the previous close price.

    The day before, the company announced the first of its ‘Cannabis 2.0’ products have been released. Trailblazer Spark, Flicker, and Glow 510-thread Torch vape cartridges, filled with C0₂-extracted cannabis concentrate oil and botanical terpene. 

    Some unpleasant events occurred before this announcement.

    For the quarter ended in June, OrganiGram generated revenues of $24.8 million. Everyone was expecting a great year. Instead, shipments fail to $20.0 million, the company was faced with $3.7 million in provisions, and the company forecasts revenues of only $16.3 million. The EBITDA profits were shifting into the loss.

    Now, OrganiGram could raise more cash.

    That’s the reason why the stock has a ‘Strong Buy’ rating. Analysts are predicting an upside potential of 225% from the current price of $2.5.

    Bottom line 

    Why Traders Paradise is so sure that any cannabis stocks could bounce in 2020?

    First of all, cannabis sales will increase.
    Cannabis is now legal in more-than-ever countries and their number will increase. Some experts state that the cannabis industry has the potential to advance to $130 million per year soon. This isn’t likely to happen in  2020, but this number figure out how fast the industry is growing.

    Public support for cannabis legalization is undoubted. The public is more aware of the potential benefits of cannabis. Also, we can expect new strains of cannabis. Moreover, cannabis-infused products will become more broadly available, and some of these products will be produced by companies that are well-known in the drink industry. For example, Molson-Coors and Coca-Cola both are considering to produce drinks with CBD.

    Experts found that cannabis can have important benefits for people’s general health. For example, cannabis can potentially lower cancer risk. Moreover, cannabis is much safer than alcohol. Right?

    All this put together, the cannabis stock could easily bounce in the year ahead.

  • Chinese stocks that will benefit from phase one deal between the US and China

    Chinese stocks that will benefit from phase one deal between the US and China

    Chinese stocks that will benefit from phase one deal between the US and China
    Morgan Stanley believes that IT and Transportation stocks will benefit the most from any de-escalation of trade tensions.

    Morgan Stanley says there are some Chinese stocks that will benefit from phase one deal between the US and China.

    Almost half of them belong to the IT sector. This sector suffered in the trade war because the companies took place on tariff lists. Also, some of them are from the consumer sector.
    Morgan Stanley said in last week’s report: “These two sectors saw the biggest scale of valuation re-rating based on their previous reaction to de-escalation events.” 

    These 29 stocks have significant exposure to U.S. revenues, according to this investment bank.

    The so-called phase one trade deal, the US President and President of China, was made several days ago. It is a kind of initial agreement but nevertheless, it caused some optimism. Anyway, it is progress in this situation. The US President said in his tweet on Saturday that the US and China would  “very shortly” confirm the deal.

    Morgan Stanley wrote: “We believe IT/Internet-related and Transportation stocks will benefit the most from any de-escalation of trade tensions.” The airlines’ stocks or in general, transportation  stocks, is going to benefit from, as bank wrote, from “strengthened CNY/USD” and “improved global trade outlook.”

    What are the Chines stocks that will benefit?

    First on the list could be AAC Technologies, with 58% publicity exposure. It supplies Apple. Further, Lenovo. This laptop producer has 31% exposure to the US revenues. Also, Samsonite could benefit. 

    As much as Alpha Group, Goodbaby International, Nexteer Automotive Group, Ningbo Joyson Electronic,  Regina Miracle International, Zhongji Innolight, Sunwoda Electronic, WuXi AppTec, Crystal International Group, SMIC, Bestway Global Holding, Jiangsu Changjiang Electronics Tech, Cosco Shipping, Jiangsu Yangnong Chemical, Lens Technology, Shandong Nanshan Aluminium, GoerTek, WuXi Biologics Cayman, GigaDevice Semiconductor Beijing,  Luxshare Precision Industry, Shenzhen Sunway Communication, Universal Scientific, FIT Hon Teng, or Legends Holdings are also Chinese stocks that will benefit.

    All of them are publicly listed on Chinese exchanges.

    Morgan Stanley warned that the final outlook for the sector depends on the talks’ “dynamics” among the U.S. and China, including the signing of a deal.
    The bank said that both countries have been so close to signing a deal several times in the past 18 months but it didn’t happen.

    Some US stocks could benefit too

    Intel, the largest producer of semiconductor products in the world. Also, Harsco, a service, and engineered products corporation. Diodes Incorporated, a leading producer and supplier of discrete and analog semiconductor products could benefit from the deal between the US and China, for example.

    Unexpectedly, on Dec 11, China made new offers to the US to end the trade deadlock. China proposed to reduce tariffs on U.S. vehicles from 40% to 15%.

    It seems that both sides are looking to end this trade war. For example, President Trump has offered to mediate in the case of Huawei’s executive whose arrest had increased trade tensions.

    More about China’s economy

    China’s economy began this decade in growth and it looks like it will end with the slowdown, the worst seen since 1990.

    Well, policymakers have the chance to avoid a crisis and they know how to do that. The question is, do they want. For investors, it is a buying opportunity after Chinese stocks dropped to record lows in comparison to world peers.

    The main topic for China for the next 10 years is it going to fix these problems more quickly and dynamic way. The other choice is to have them forever.
    It is surprising how they maintain the pace of growth with the state sector involved. The progress away from a state-controlled economy to a more private-sector is lacking.
    Further, China has very little or low motivation to allow complete fluidity of capital flows into and out of the country.

    Michael Pettis, a finance professor at Peking University recently commented on Bloomberg:

    “China was unlikely to experience a financial crisis and a sharp depreciation of the currency. I think the market didn’t understand that these are mainly balance sheet events, and as long as China’s financial system was closed and its regulators powerful, Beijing could easily extend and restructure liabilities so as to prevent a crisis.”

    Bottom line

    Supplies, Technology,  and Industrial are Chinese stocks that will benefit the most from ending a trade war. So, pay close attention to the stocks from those sectors and make your investment choice.

  • The Bitcoin price may rise towards $8,000 next week?

    The Bitcoin price may rise towards $8,000 next week?

    The Bitcoin price may rise towards $8,000 next week
    Bitcoin rose above $7.402 and market cap moved upward by +0.89% to $137.68 billion

    The Bitcoin price may rise further since it has continued being above the level of $7,000. That is important not from psychological only. Over the weekend, it traded between the $7.100 and $7.200 and by now has grown to reach a bit over $7.402 according to the Coindesk and at the moment of writing,

    The weekend began with cryptocurrencies retracing, but it ended with a rally. Bitcoin (+4.5%), Bitcoin Cash (+4.14%), Ethereum (3.7%), and Litecoin(+4.73%) were the best among the top ten cryptos.

    That caused crypto analysts to be hopeful about the short-term price action of Bitcoin. One of them suggests a price range to which Bitcoin may rise this week.

    @CryptoMichNL wrote:

    “Currently at potential local resistance. Wouldn’t be surprised with the continuation of ranging for the coming days, before we make another push to $7,800-8,000 resistances later next week.”

    Today ( December 23) followed by another tweet:

    Last week, the famous investor and BTC bull Tim Draper had stood by his previous forecast about Bitcoin popping $250,000 by the end of 2022 or by early 2023.

    And CNBC’s crypto expert Brian Kelly said that technically this price action is possible and described how it could befall.

    Brian Kelly said:

    “It sounds bizarre but it wouldn’t be out of the realm of what Bitcoin has done in the past.”

    Kelly showed a chart of Bitcoin price movements since 2013 and pointed out that since then Bitcoin price has been moving within a rising channel. The top of that channel, Kelly says, is right about $200,000 – $250,000.

    As for the fundamentals that could lead to this price leap, Brian Kelly calculated that by late 2022 or early 2023, Bitcoin could take half of the market share from all the world’s gold and by that time the market cap of Bitcoin should be almost $4,5 trillion.

     

    If that arises, Kelly said, Tim Draper’s prediction “isn’t too far out of whack.”

    The Bitcoin market cap moved upward by +0.89% to $137.68 billion and trading volume is at $27.23 billion.

    Bitcoin dominance increased lightly and is now 68.65%.

    Bitcoin has broken the sideways movement after the bullish impulse that made last December 18. The price moved up from $7,150 to exceed the $7,650 value but fall again to $7.402.

    This $500 movement was the confirmation of the trend reversal that was expecting. Will the move proceed until it touches the upper descending trendline at $7,800? We’ll see.

  • Roche Got European Commission’s Approval For Kadcyla

    Roche Got European Commission’s Approval For Kadcyla

    Roche Got European Commission's Approval For Kadcyla
    Kadcyla is medicine for the adjuvant treatment of people with HER2-positive early breast cancer with the residual invasive disease after neoadjuvant treatment.
    Roche stock price rose for more than 21% over the past 12 months

    Roche on December 19 has announced that the European Commission has approved Kadcyla for the after-surgical treatment of patients with HER2-positive early phase breast cancer. Kadcyla is a single agent for treatment HER2-positive patients metastatic breast or lymph nodes cancer. 

    According to Levi Garraway, Roche’s Chief Medical Officer and Head of Global Product Development, this approval of Kadcyla from the European Commission “will allow many more women with HER2-positive early breast cancer to be given a transformative treatment that may cut the risk of their disease returning or progressing.”

    The purpose of neoadjuvant treatment is to make tumors smaller thus enhances surgical results. Adjuvant treatment helps to eliminate any residual cancer cells and reduce the risk of cancer returning. Patients who have the remaining disease after neoadjuvant treatment have a worse prognosis and this drug should help them to improve the chances of longer and normal life.

    The good results of treatment with Kadcyla are well-known in the US where women are already been treated with this drug. The US Food and Drug Administration approved this treatment on May 4 this year. Kadcyla is approved in 27 countries for the treatment of early breast cancer phase. It is recommended by the St. Gallen International Breast Cancer Conference, the NCCN and the AGO.

    Learn more about breast cancer

    Roche stock

    Roche stock price (SIX: RO, ROG; OTCQX: RHHBY) has risen more than 21% over the past 12 months. During that time, Roche Holding AG got two approvals of new treatments for breast cancer. Kadcyla and Perjeta, both came from the large oncology drugs portfolio at Roche’s Genentech group.

    Roche stock price chart

    So, Roche Holding AG’s stock price is higher than it was 12 months ago, with a return of about 6.4% in the same period. Moreover, it looks like it can hold up for the long-term. For investors, it may seem like very good news. But, the long-term returns were 17% over the three years. It wasn’t too much.

    And Roche Holding had a Total Shareholder Return (TSR) of 25% for the last year. That beat its share price return. This is mainly a result of its dividend payments! 

    Roche Holding has paid shareholders with a TSR of 25% in the past twelve months. The dividend is included. As we can see the TSR for one year is better than for 3 years, which means that the Roche stock is running better in the more recent period.

    The share price momentum continues strong, and it might be worth paying attention to this stock. At the time of writing (December 20), the price of Roche (RHHB) stock is $39.38 and data shows that the asset price is in an uptrend for the past 12 months with a further rising trend. That may drive the price up to $46 or $47 in the next 12 months. 

    The current consensus among analysts is to buy stock in Roche Holding AG.

    About the company

    Roche is a pharmaceutical and diagnostics company, the largest biotech company in the world. This combination under the roof of one company made it the leader in personalized healthcare.
    Its products are aimed at oncology, infectious diseases, immunology, ophthalmology and diseases of the CNS. Roche is famous for in-vitro diagnostics and tissue-based cancer diagnostics. Also, it is a leader in diabetes treatments.

    The company is founded in 1896. Since then, more than thirty drugs developed by Roche are in the World Health Organization Model Lists of Essential Medicines.
    By the Dow Jones Sustainability Indices (DJSI), Roche is for 11 years one of the most sustainable companies in the pharmaceutical industry.

    Its headquarters is in Basel, Switzerland. Last year, Roche invested around $11.2 billion in R&D and posted sales of almost $58 billion. In the US, Genentech is a wholly-owned member of the Roche Group. Also, Roche is the majority shareholder in Chugai Pharmaceutical, Japan.

  • Shopify The Fast-Growing Large-Cap Stock

    Shopify The Fast-Growing Large-Cap Stock

    Shopify Is The Fast-Growing Stock
    Shopify Inc shares have more than tripled in the past year. On Wednesday, Shopify shares were up by an extra 3.4% above $400.

    Shopify (NYSE:SHOP) is the fast-growing tech stock.
    If you are looking for growth stocks this particular stock is outstanding. Five years ago Shopify went public and provided to many investors a real wealth. But it is not the end. This stock is likely to give more. 

    Shopify’s rise has been truly beautiful to investors. This commerce platform went public in May 2015 and today its shares are up unbelievable 1,400%.
    Its annual GMV rose from $3.8 billion in 2014 to more than $41 billion in 2018, and grew 50%, to $225.0 million this year, driven by the growth of Gross Merchandise Volume. Its revenue rose from $105 million to above $1 billion.
    The great thing with Shopify is that the number of merchants that use Shopify’s tool will continue to grow. The reason is clear, e-commerce is growing and will more and more.

    Shopify is a leading global commerce company that offers easy for entrepreneurs to begin a business at just $9 per month.

    Why Shopify is better than Amazon?

    As a difference to Amazon, Shopify gives retailers to have own brands on the packaging, so their customers can recognize them. This is a great advantage for merchants and provides Shopify with a fast increase share in the industry. You have to admit that it is better than “powerful” Amazon. Shopify may easily become a master of the game. Don’t underestimate this feature  – a new fulfillment network.

    Shopify prepares and sends its retailers’ products over the U.S. It uses ML technology to optimize its catalog and minimize transportation costs. It is extremely helpful to small businesses but the benefit is on Shopify’s side too. Its management values that small businesses represent a $70 billion opportunity. And Shopify just started to enter that field. 

    By helping smaller retailers to grow their businesses, Shopify could become a more large company.

     

    Third-quarter financial report

    On October 29, Shopify Inc issued Q3 2019 Financial Results.

    – Total revenue in the third quarter was $390.6 million, a 45% increase from the equal quarter in 2018.
    – Subscription Solutions revenue grew 37% to $165.6 million. This increase was made by growth in Monthly Recurring Revenue1 (“MRR”) and to an increase in the number of merchants joining the platform.
    – Merchant Solution’s revenue grew 50%, to $225.0 million
    – MRR as of September 30, 2019, was $50.7 million, up 34%. Shopify Plus gave $13.5 million, or 27%, of MRR compared with 24% of September 30, 2018.

    – GMV for the third quarter was $14.8 billion, which is an increase of $4.8 billion, or 48%, over the third quarter of 2018. Gross Payments Volume3 rose to $6.2 billion
    – Gross profit dollars grew 45%, to $216.7 million
    – Operating loss for the third quarter of 2019 was $35.7 million, or 9% of revenue
    – Net loss for the third quarter of 2019 was $72.8 million, or $0.64 per share, compared with $23.2 million, or $0.22 per share, for the third quarter of 2018.
    – Adjusted net loss for the third quarter of 2019 was $33.6 million, or $0.29 per share.
    – Shopify had $2.67 billion in cash, cash equivalents, and marketable securities. The increase reflects $688.0 million of net proceeds from Shopify’s offering of Class A subordinate voting shares in the third quarter of 2019.

     

    Shopify’s stock price

    Shopify’s stock isn’t cheap, currently, it is $396.94. But it is the essence of growth stocks, they are expensive. But profit comes from mighty global trends that are driving its growth.

    Shopify Is The Fast-Growing Stock

    Shopify’s current market capitalization is $45 billion. If you invest today in this company you will have fairly big gains in the future.
    Shopify has had a great year. It surpassed the number of 1,000,000 customers, launched a new fulfillment network, and increased its outlook for annual revenue. Yes, the stock is up 165% this year.

     

    The bright future for Shopify

    Shopify is forecasted to grow revenue at 44% in 2019 to $1.55 billion. That is 7.5 times its revenue in a period of 4 – 5 years. Its extraordinary growth put the company in a third-place (measuring a share of e-commerce sales over the last year) just after Amazon and eBay. Traders Paradise thinks that it will be the second place very soon, and will be ranked in front of eBay.

    The company is spending its profits very smart to improve the platform and on acquisitions which provides new growth. Shopify invested $1 billion to implement a fulfillment network that is more merchants-friendly than Amazon’s. The company is investing in its operations and don’t expect to be profitable soon. This e-commerce platform holds $2.7 billion in cash and securities, so it has enough space to fund its businesses.

    We can see that even when some company becomes giant, it has a lot of space to grow more.

    If you already bought this stock, hold it since the new increase is very possible. If you still didn’t invest, it’s time.

  • Nike Q2 2020 Earnings Report Is Expected To Show Great Result

    Nike Q2 2020 Earnings Report Is Expected To Show Great Result

    Nike Q2 2020 Earnings Preview
    During Q2 reporting everyone will look at Nike’s direct-to-consumer business. The company’s revenue is expected to be $10.08 billion and EPS $0.58 

    Nike is prepared to report Q2 earnings on Thursday, December 19. It will be interesting to see will the famous sportswear producer sustain success which made over this year and what is the new plan. Nike (NYSE:NKE) shares have risen 34.2% this year, exceeding the S&P 500’s 27.5% rise. 

    Nike stock chart

    So, a lot depends on its Q2 2020. Will the gains continue? It looks like a lot of things depend on the company’s digital and direct-to-consumer efforts.

    Nike continued to fund its Direct strategy, the rollout of its apps to other countries and its partnerships with e-commerce platforms. For example, Tmall and WeChat Chain’s services. Nike dealt more acquisitions, such as NFL star Russell Wilson’s TraceMe startup. This startup has one important feature, a built-in sports-prediction service.

    Nike revenue

    The revenue is expected to be $10.08 billion and EPS $0.58.
    Nike shares have risen in 2019, despite the overall trade and economic slowdown. The company’s performance this year indicates the management is doing right. The stock rally will have a great test tomorrow after Nike issues its fiscal 2020 Q2 earnings.
    During this year there was no reason to believe that the company is doing something wrong. 

     

    Nike’s growth strategy showed good results

    The leading Nike’s efforts is “Triple Double Strategy.” The goal is to double its resources on its digital features; more and faster innovation and product creation, and increasing one-to-one connections.

    Nike has established a powerful track record of delivering on its strategy. Nike has beaten quarterly earnings estimations more than 90% for the past 11 years. And the company made it at the same time when Amazon got a major portion of customer spending. Moreover, this famous brand became more powerful, by spreading sportswear out of gyms to the street. 

    The result was that Nike grabbed a larger market share from its main EU rival, Adidas. Also, its presence on the home market is larger too and with increasing sales. The same result comes from the markets of Asia.

    For example, in Nike’s Q1 earnings report, the company released that sales in China rose by 27%. It is an impressive result because this success came during the trade war, and having such a good result in this communist country means that Nike, as an American brand, was doing well.

     

    The break out with Amazon 

    Recently, Nike ended the relationship with Amazon that lasted the past two years. This break appeared as part of a continuing effort to improve digital selling. 

    The first change at a stock price after the announcement showed how right they were. The stock increased by more than 7%. 

    Nike’s idea of digital selling is more idea of creating a personalized experience for customers. Some media reported that Nike spent about $1 billion on this strategy. The company’s digital loyalty program, NikePlus has more than 170 million subscribers and it is still growing. Thanks to app customers can find the perfect shoes for their feet because this app has a fantastic feature – it scans the foot in a few seconds. Of course, the app has other features too, from reserving some products to the mentioned one.

     

    Nike and Michael Jordan

    Nike is the official uniform supplier of the NFL and the NBA. Its Micheal Jordan brand is still going strong, fans all over the world like the latest Jordan shoe model. That’s why it made more than $3 billion in revenue for fiscal 2019, which is more than 7%  in comparison to last year.

    Bottom line

    Nike’s stock price might seem as expensive. Its gain for this year and  P/E ratio at 37, may cause such thinking.

    The current share price of $99.65 and the stock is traded at $100.10 at the pre-market. The point is that the stock price is very close to the analysts’ estimation of $103.60 so some investors may think there is a small space for the rise. But, it is expected Nike to report great data on digital and direct-to-consumer sales. The natural movement in shares will be to bounce higher.

    Nike’s stock could easily hit $150.00 or even $160 in the next 12 months. So, NKE is considered to be a good long-term investment.

     

  • Shares of Tesla Hopped On Monday

    Shares of Tesla Hopped On Monday

    Shares of Tesla Hopped On Monday
    Investors are expecting that a draft bill for an updated EVs tax credit could become law.

    UPDATE 18/12: Tesla stock closed up 3.74% yesterday and was priced $393.15. It was a new all-time high. Over the past 6 months, TSLA rose by almost 74%, making it up 11% in the last five days alone and up 60% over the last 3 months.
    TSLA is on pace for its best quarter.
    Last time, the stock was near these levels last year after the “funding secured” failure of last year.

    What’s behind this bullishness?

    Bloomberg reported Wednesday that the company is planing cutting the price of Tesla’s China-built Model 3 sedans by 20% or even more. The next few weeks will be interesting.
    Take a look at the new chart.

    Shares of Tesla (NASDAQ: TSLA) hopped on Monday, approaching their all-time high and were up 6.45%.
    The stock jumped on the investors’ belief that House Democrats are going to vote on a bill that would renew the federal tax credit for purchasers of EVs. The news triggered the stock price.

    Shares of Tesla Hopped On Monday

     

    General Motors Company (GM) shares marked the rise in price after a sharp decline in November. The stock price rose by 1.29% Monday.

    The new draft energy tax package supported by Congressman Mike Thompson would increase the limits on the federal tax credit for EVs.

    The current tax credit is not available to buyers when a producer has sold 200,000 EVs in the U.S. That number was reached by both Tesla and General Motors. 

    The updated credit would begin to phase out after the producers reach 600,000 EV in sales. Moreover, the tax credit deductible would be decreased from $7,500 to $7,000. This would provide this benefit to more EV buyers.

    The bill is called the Growing Renewable Energy and Efficiency Now (GREEN) Act. It is expected to increase demand for Tesla and General Motors EVs. But nothing is officially finished yet. The investors should wait for it. But it looks that they are pretty much assured that the renewed tax bill will become the reality.

    A tax-credit extension was asked by Tesla

    Many of the companies and groups that had earlier lobbied on similar acts of extending the credit, all settled on the “Driving America Forward Act” as their prime goal.

    The current tax credit, first passed in 2008 and revised in 2009, increased buyers’ interest in EVs and also urge the production.

    But it looks like the industry demands a new portion of the support.

    Tesla hit the 200,000 in sales, and without a new tax-credit bill, it is hard for the electric vehicle maker to grow further. Earlier this year Tesla’s sales have dropped since its per-vehicle credit decreased to $3,750. The tax credit was lowered to $1,875 in July again.

    Shares of Tesla are rising

    Tesla stock is rising, up more than $23, or 6.5%, in Monday trading. That’s a new 52-week high. But why shares are rising nobody knows for sure.

    The new U.S. federal EV tax credits law seems to be the only reason for investors’ optimism.

    Tesla is a heavily-shorted stock. The investors borrow shares and trade them, speculating on price drops. That could create more stock volatility. 

    Closing at Monday’s prices was the highest close since August 7, 2018. On that date, shares were closed at $379.57. Moreover, shares are increased by more than 110% from their 52-week lows of $178.97 on June 3, 2019. It has been an extraordinary run.

    Shares of Tesla are up about 14% per year but Tesla stock is up nearly 57% over the last three months.

  • Oracle Corp Announced Q2 Earnings For 2020

    Oracle Corp Announced Q2 Earnings For 2020

    Oracle Corp Came Out With Q2 Earnings For 2020
    Oracle is one of ten companies with the greatest cash in the US.
    Since its 2016 fiscal year, the company spent more than $75 billion on buyback shares

    Oracle Corp. issued a sales outlook for the current quarter. As we can see, it was exactly what analysts estimate. The company plans to increase its revenue by 1% to 3% in the fiscal third quarter which is in line with Wall Street estimation of a 2.3% rise. This software company outperformed expected earnings for its fiscal second quarter. Oracle reported a revenue rise of 0.4%. That is the 6th quarter in a row that the company had revenue growth under 5% in comparison to last year.
    During the conference call on Thursday, December 12, the company’s  Chief Executive Safra Catz said that revenue is expected to grow from 1% to 3%, but the problem was currency fluctuations.
    The stock price declined 3% in extended trading (after the release of the results) and traded at $56.47.

    Oracle Corp Announced Q2 Earnings For 2020

    The company previously reported sales increased less than 1% to $9.61, which is less than analysts’ projections of $9.65 billion. But the stock has increased by 25% this year while the S&P 500 SPX, has increased by 27%.
    This Oracle’s report was the first after Mark Hurd, the company’s top sales executive, died in October. Safra Catz stayed as sole CEO since Hurd was one of two chief executives.
    Oracle made some progress in cloud computing and storage, but it is still a leader in the field of enterprise database software. Oracle’s trump card is a new Autonomous Database that runs without human administrators. But the strong competition comes from Amazon.com Inc’s enterprise solutions. 

    The truth is that Oracle had unsteady sales growth in the past five years. Earlier, in September this year, Catz promised to investors that revenue would quicken in this fiscal year and next. Also, the earnings per share is supposed to grow by a double-digit percentage. The company announced in the same month a new AI-driven operating system and partnerships with Box Inc. and VMware Inc.
    But, cloud license sales declined 7.5% to $1.13 billion in the period, which means the company is getting fewer new deals. 

    The Oracle (ORCL) stock

    In the current quarter, Oracle Corp. predicted earnings of 95 to 97 cents per share. Analysts estimated 96 cents per share. 

    The analysts’ median target is $57.00 which will be a 0.94% increase from the current price of $56.47. A high estimate is $66.00 and a low estimate of $35.00. This stock has a strong HOLD recommendation.

    Traders Paradise app can help you to define your exit strategy for ORCL. Try and find the best strategy for your trade.

    The company’s ABOUT

    Oracle Corp is headquartered in Redwood City, CA. The company is a hardware and software behemoth, specialized in business software products. Oracle started in 1977 as Software Development Laboratories. 

    This software giant has a lot of borrowing and spending. The company has spent about $75 billion to buy back stock since its 2016 fiscal year. Also, it spent $41 billion in the last five quarters. That’s a lot of money for the company with $19 billion in free cash flow. The buying back shares has pushed the company into a net debt of $35.7 billion in cash.

    According to FactSet Research, Oracle is among ten companies with the greatest cash in the US. But its net cash is negative $17 billion. Since 2016, it is about $32 billion declines and the company took a lot of cheap debt to finance buying back shares. That’s probably the reason why the stock rose by only 35%.

    More problems for Oracle Corp.

    Maybe the biggest problem for Oracle is its hesitation to react to the increase of cloud computing. Oracle’s main rivals Salesforce, Workday, Amazon, and Microsoft, are taking market share from Oracle.

    The dynamic buybacks may arise from the fact that co-founder Larry Ellison himself owns 35% of Oracle’s shares, according to a statement filed in September with the SEC. Also, the reason could be some M&A activity. All companies would like to have more cash and less debt, that’s not in question. Microsoft,  Apple, or Berkshire Hathaway, have over $100 billion of cash, for example.
    Oracle has $35.70B.