It's striking how after months of cryptowinter and bearish sentiment on crypto market, related assets are back rising. Apart from crypto theirselves, NFTs are gaining attention as well, as after Sewer Pass launch, the market seems to have recovered. But NFT market is not the only thing which are worth discussing as Google (Alphabet) release their earnings shortly. We asked Serhii Zhdanov about his opinion about these issues.
FXMAG.COM: Is the NFT market reviving? Sewer Pass seems to have delivered a real impulse…
Serhii Zhdanov (EXMO): Yes, the NFT market has revived slightly since the launch of the Sewer Pass.
Over the past 30 days, Ethereum-based NFT trading volumes have grown by 45%, while the number of sellers has decreased by more than 26% year-to-date. Market participants have started showing an increasing interest in NFTs. Undoubtedly, the launch of new NFT projects, such as the Dookey Dash game, contributes to such growth. And while this game has its flaws, the hype around it cannot be denied.
Over the past year, we have observed one distinct trend: currently, it's not enough to simply launch a product. Developers need to persistently attract the interest of the public by implementing product upgrades and launching interesting activities. Yes, the Sewer Pass has given a slight boost to the NFT market. However, remember that the excitement around the game is also associated with the revival of the entire crypto market. If cryptocurrencies continue to grow, it is safe to say that NFTs will be back on track again.
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FXMAG.COM: Are you of the opinion that Alphabet can disappoint investors with its earnings?
Serhii Zhdanov: It is worth noting that Alphabet already “disappointed” investors throughout 2022.
25.10.2022: 1.06 1.26 $69.09 billion/$70.98 billion
26.07.2022: 1.21/1.27 $69.69 billion/$69.8 billion
26.04.2022: 1.23/25.74 $68.01 billion/$68.06 billion
For this reason, investors are unlikely to be "disappointed" with the company's earnings. Wall Street's forecast for its report is EPS 1.18 and revenue of $76.07 billion. Considering recent events, the company is unlikely to beat these numbers. Not so long ago, the U.S. Department of Justice and eight states sued Alphabet to break up its advertising technology business, as well as optimise business (cost reduction and layoffs). All these factors do not evoke investor optimism.
The entire tech sector was under pressure in 2022. However, there is a noticeable trend being observed: despite the fact that stock market reports are mixed, the reaction to them is turning more positive. Recent reports from Tesla, Microsoft and Netflix prove this right.
The upcoming FOMC Rate Decision, as well as Apple and Amazon reports, will also affect the price of Alphabet.
Between 30th January and 03rd February 2023, the volatility of the markets is expected to remain increased. Especially, if you take into account the local hype around risky assets. The upcoming FOMC Rate Decision, as well as Apple and Amazon reports, will also affect the price of Alphabet. It’s recommended that investors keep a close eye on the $100 level for GOOG or GOOGL, as this is where serious resistance is observed.