market capitalization

“During a gold rush, sell shovels” One of the select few firms whose ability to capture the value of AI is already clear as day is GPU manufacturer Nvidia. As the leading supplier of the computing required to train AI models (for example, those by OpenAI), Nvidia has achieved conspicuous revenue growth in the past year, mainly driven by the eagerness of companies to acquire GPUs so as not to fall between the cracks of the AI rage. In late May, Nvidia said it expects revenue of $11bn in the second quarter of 2023, far surpassing the average analyst forecast of $7.18bn. This AI hoarding has sent Nvidia past the $1tn valuation mark, alongside only five other firms, quadrupling its stock price since its 1-year low in October 2022. The $750bn expansion to Nvidia’s $250bn market capitalisation less than 12 months ago is a clear reminder that AI is a speculative market, by which the imagination of investors has persuaded them that something truly great lies ahead. The story of Nvidia points to the adage that “during a gold rush, sell shovels”. This suggests that it’s more profitable to provide the required infrastructure to those pursuing a booming trend than to pursue the craze itself. In the crypto rush of 2021, Coinbase profited heavily by selling picks and shovels by facilitating crypto trading, similar to Nvidia now. In due time, the crypto bubble burst, shortening Coinbase’s revenue markedly and bringing an up to 90% drop in its stock price in a single year. Time will tell whether Nvidia is in an everlasting gold rush or will follow Coinbase’s “the higher you climb, the harder you fall” tale.      

The company reported preliminary results for Q3'23 on 31 October • Q3'23 revenue was PLN 359.0 m (+40% y/y). EBIT amounted to PLN 7.6m (vs. PLN 3.0m a year ago), while net income (before minority income) was PLN 5.9m (vs. PLN 1.8m in Q3'22). • Gross margin on sales remained under pressure (3.2% in Q3'23 vs. 3.5% a year ago and 3.5% in 1H'23). At the same time, gross profit on sales itself is higher y/y thanks to significantly higher revenues (the company booked much more than we expected). • EBIT increased by 157% y/y. In addition to the higher gross result on sales, we assume that there must have been a positive result on the balance of other operating activities to show such a high dynamics (the company did not provide details in the release, we estimate that it could be ca. PLN +3m). As a result, net profit is also significantly higher y/y. • Backlog currently stands at PLN 2,048m. • The company will present its consolidated report on 15 November 2023.    

When fantastic falls short...  By Ipek Ozkardeskaya, Senior Analyst | Swissquote Bank   The minutes from the Federal Reserve's (Fed) latest monetary policy meeting showed that the Fed members agreed to 'proceed carefully' with their future rate decisions. Carefully doesn't mean that the Fed is done tightening, it means that it will 'proceed carefully' in the light of the economic data and the market conditions to decide whether it should hike, pause, or cut the interest rates. Note that 'most' members 'continued to see upside risks to inflation'.   Alas, the cautious tone in Fed minutes went completely unheard as the latest CPI data acted as a shield against the Fed hawks. As such, the market reaction to the Fed minutes was muted. The US 2-year yield remained little changed near the 4.90% level, the 10-year yield rebounded past 4.40%, and is still around 60bp lower than the October levels. The S&P500, which is now trading in the overbought market, retreated 0.20% and Nasdaq 100 fell 0.60% from an almost 2-year high, as investors didn't want to do much before seeing the Nvidia's results.   When fantastic falls short...  Nvidia's Q3 results were strong. The company exceeded the $16bn revenue forecast by $2bn. They earned more than $18bn, made more than $4 profit per share and said that they will be earning around $20bn this quarter. But the latter forecast couldn't meet the top forecast ($21bn) and the share price fell in the afterhours trading, though by less than 2%; investors couldn't decide whether they should buy the fact that the company exceeded the sky-high expectations, or they should sell the reality that the chip sales to China will slow this quarter and that would weigh on revenue – although Nvidia stated that the 'decline will be more than offset by strong growth in other regions' and that they are working to comply with regulations to sell to China, anyway.   Taking a step back: Nvidia is growing, it is growing fast, it has potential to grow further, but the valuation of the company is also sky-high, its price got multiplied by almost five since October 2022. Its PE ratio stands around 120 versus a PE ratio of around 25 in average for S&P500 companies. And its market capitalization is more than $1 trillion more than Intel's, which used to be the world's biggest chipmaker. In summary, the company is growing but that strong growth is already priced in and out. Therefore, we will probably not see a big profit taking post-earnings, we will likely see correction and consolidation instead below the $500 psychological hurdle.   And with that – the Nvidia earnings – out of the way, the S&P500 and Nasdaq futures are slightly in the negative at the time of writing. The market will likely digest the Fed minutes and the Nvidia results in a calm mood before the Thanksgiving holiday.   

The cryptocurrency market is well-known for its volatility, meaning that prices can experience substantial fluctuations in a short period. Given the significant unpredictability and inherent risks associated with the cryptocurrency market, insider advice can provide invaluable assistance to investors. Additionally, individuals who possess insider information may have access to early information regarding upcoming developments, partnerships, or regulatory changes that could impact the market. Individuals who have inside information often enjoy the benefit of having access to secret knowledge, industry expertise, and analytical tools. These resources are valuable in understanding market trends, essential project details, and potential investment opportunities. Utilizing their evaluations and recommendations can help investors navigate the complex and volatile world of cryptocurrency more effectively. This article explores the techniques insiders use to evaluate the market and the strategies they use to predict the next big cryptocurrency coin.  How Insiders Evaluate The Next Big Cryptocurrency Experts who have inside information use the following factors to identify which cryptocurrencies are likely to be profitable and have long-term growth. This method of analyzing the basics provides a detailed framework for assessing the true value and future potential of a cryptocurrency project. It's also helpful for determining the investment worth of the next big hitting cryptocurrency coin.   Technological Innovation  Analysts and investors, who have access to privileged information, will evaluate a cryptocurrency project based on its innovation and technical capabilities. They will examine its scalability, security features, and effectiveness in solving real-world issues. A crypto coin that uses advanced technology and groundbreaking solutions is expected to gain traction that might explode resulting in sustained success in the long run. Let’s say you are assessing a new cryptocurrency project for the Sponge V2 meme coin, for example. For instance, you would examine whether Sponge V2 brings in innovative technology, such as a distinct consensus mechanism or enhanced privacy features, that effectively resolves an issue that other cryptocurrencies have not addressed.  In the case of the Sponge V2 meme coin, it provides faster transaction speeds since it operates on the Polygon Blockchain network, which could attract individuals looking for faster payment alternatives. Team Expertise and Execution The skills and accomplishments of the development team can have a substantial impact on the success of a project. Insiders who are well-versed in the project's intricacies typically assess the team members' expertise, background, and previous achievements. A team that is both experienced and competent excels in overcoming challenges, materializing the project's vision, and delivering on its commitments.   Use Case and Utility Case and utility refers to evaluating the practicality and market value of the cryptocurrency project by studying its application in real-world scenarios. Experts assess whether the project addresses a genuine issue or fulfills a specific purpose and determine if it offers unique attributes or benefits compared to existing alternatives. A cryptocurrency that possesses a unique purpose and adds tangible value is expected to attract users and attain wider acceptance. Using the Sponge V2 as a prime example, the case and utility for this digital currency intends to improve the way the community interacts and participates. It distinguishes itself from other cryptocurrencies by prioritizing meme culture and community-led initiatives.   Market Demand and Performance Insiders will analyze the level of demand in the market and assess the project's performance metrics in order to determine its likelihood of success. These factors include: Market capitalization which represents the collective worth of all coins that are currently in circulation.  The trading volume which is the level of activity in trading.  Real-world adoption that refers to the practical usage of cryptocurrencies for transactions or other objectives. Pro tip: A cryptocurrency with high demand and positive performance indicators typically stands a better chance of achieving success in the market.   Trends and Predictions A market analysis based on the trends and predictions is conducted in the field to gain insight into the future direction of cryptocurrency projects. The assessment involves determining whether the project aligns with emerging trends in the cryptocurrency industry and its potential for sustained expansion. Right now, crypto experts are indicating that Sponge V2 meme coin holds promise for substantial success. The reason behind this is the rising enthusiasm for decentralized finance applications, and if Sponge V2 establishes itself as a prominent participant in this field, it could gain advantages from this expanding trend.  Additionally, analysts also forecast that the value of Sponge V2 meme coin will grow owing to its solid foundational principles and the dynamics of the market. All of these factors collectively contribute to the optimistic perspective regarding this particular cryptocurrency. 6 Effective Insider Strategies  Here are 7 pro tips to help you analyse the market and gain insight into the next big crypto coin: 1. Check the Total Supply and Circulation The value and potential growth of a cryptocurrency depend on its total supply and the amount currently being used. When the total supply is low and there is a reasonable circulation, it can result in scarcity. This scarcity can boost demand and cause the price to rise. If there is a high total supply and a large portion is already circulating, it may indicate less scarcity and affect the cryptocurrency's price movement. 2. Monitor the Price and Volume Monitoring the price and quantity of transactions provides valuable insights into market sentiment and investor involvement. When trading volume significantly increases and prices rise, it can indicate growing enthusiasm and a potential upward market trend. On the other hand, decreased trading volume or stable prices may suggest declining interest or a lack of buying pressure. 3. Pay Attention to Bitcoin Halving The Bitcoin halving event, happening in April 2024, reduces the rate at which new Bitcoins are created by half. Historically, Bitcoin halving has been associated with bull markets and significant price increases due to decreased supply and increased scarcity. By carefully reviewing the timing and impact of Bitcoin halvings, you can acquire valuable information about potential market trends and the beginning of a new phase of price escalation. 1. Regularly Review Market Analysis and Expert Insights In order to accurately predict the next prominent cryptocurrency, it is vital to conduct thorough research and analyze market trends. Gathering knowledge from experienced individuals and using strategies based on data is vital. Understanding the dynamics of the market, upcoming events, and technological advancements can assist investors in identifying promising opportunities and assessing the possible risks associated with various cryptocurrency ventures. 2. Follow Community and Social Media Closely Monitoring discussions on social media sites and online communities can provide valuable insights into future trends and potential investment opportunities. Engaging in conversations with the crypto community helps investors stay informed about emerging digital currencies, project developments, and market sentiment, allowing them to identify promising projects before they gain popularity among the general public. 3. Avoid Frequent Token Unlocks Projects that regularly release tokens, thereby making a significant number of tokens accessible for buying on the market, can diminish the cryptocurrency's worth and hinder its price. It is crucial for investors to be cautious when engaging with projects that have an excessive number of token unlocks, as this may significantly impact the cryptocurrency's long-term potential for growth. Conclusion Being able to predict the next major cryptocurrency coins requires a combination of informed analysis and a keen understanding of the market. Those who are knowledgeable in this area use various strategies to identify promising opportunities. However, it is important to understand the risks associated with investing in digital currencies and conduct thorough research before making any investment decisions.