Shares of Fisker Inc. dropped nearly 40% in the extended session Wednesday after a report said the embattled EV maker is exploring a bankruptcy filing.
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Snowflake Inc.’s stock was tumbling more than 20% in Wednesday’s extended session after the company underwhelmed with its outlook and announced that its chief executive has left that post.
For the fiscal first quarter, Snowflake
SNOW,
models $745 million to $750 million in product revenue, whereas analysts tracked by FactSet had been calling for $759 million.
Looking at the full fiscal year, Snowflake is calling for $3.25 billion in product revenue, whereas analysts had been modeling $3.43 billion.
The company generated a fiscal fourth-quarter net loss of $169.9 million, or 51 cents a share, compared with a loss of $207.2 million, or 64 cents a share, in the year-before period.
On an adjusted basis, Snowflake earned 35 cents a share, whereas it earned 14 cents a share a year before. Analysts surveyed by FactSet were modeling 18 cents in adjusted earnings per share.
Snowflake’s revenue rose to $774 million from $589 million a year prior, while analysts had been looking for $760 million. The company generated $738 million in product revenue, whereas the FactSet consensus was for $716 million.
“We are successfully campaigning the largest enterprises globally, as more companies and institutions make Snowflake’s Data Cloud the platform of their AI and data strategy,” Chairman Frank Slootman said in a release.
Snowflake announced separately that Slootman has stepped down from the CEO post “effective immediately.” Sridhar Ramaswamy, previously the company’s senior vice president of AI, is taking on the position.
The company had $5.2 billion in remaining performance obligations, up 41% from a year before. Snowflake also called out that 461 customers were doing more than $1 million of trailing-12-month product revenue.
Bitcoin has dropped over 20% from its three-year high reached shortly after the U.S. Securities and Exchange Commission (SEC) approved the first spot Bitcoin exchange-traded funds (ETFs) in January. Analysts cite a combination of profit-taking after the long-awaited event and broader market uncertainty as reasons for the correction.
Bitcoin Retreats Post-ETF Approval Surge
The price surge in anticipation of the ETF approval saw Bitcoin reach nearly $49,000 on January 11th. However, since the green light for the ETFs, the cryptocurrency has retreated steadily, trading at around $39,500 at the time of writing.
According to some analysts, they have seen a classic “sell the news” scenario unfold. Investors had largely priced in the ETF approval for months, and once it actually happened, some took the opportunity to lock in profits, they added.
While nearly $4 billion has flowed into the new spot ETFs, a significant portion, analysts note, came from existing funds like Grayscale which transitioned into an ETF, suggesting less net new investment than what the headline numbers might imply. Additionally, the ongoing liquidation of assets from bankrupt crypto exchange FTX has added downward pressure on prices.
Bitcoin slightly above the $40K level today. Chart: TradingView.com
Yuya Hasegawa, crypto market analyst at Japanese bitcoin exchange Bitbank, said:
“It seems that the seemingly large amount of daily outflows from GBTC is affecting the market in a psychological way.”
The downturn extends beyond Bitcoin, with other major cryptocurrencies also experiencing losses. Ether, the world’s second-largest cryptocurrency, is down nearly 4%, while Solana and other altcoins have seen similar declines. The price dips have also impacted crypto-related stocks, with Coinbase shares falling around 4% in pre-market trading.
Top 10 cryptos drenched in red today. Source: Coingecko
Despite the recent price correction, analysts remain divided on the near-term outlook for Bitcoin. Some believe the pullback may be nearing its end, with support levels around $36,000 likely to hold. Others believe further downside is possible before a sustained rebound.
BTC price action in the last week. Source: Coingecko
Bitcoin: Volatility Persists, Long-Term Outlook Strong
Bitcoin has experienced significant corrections after major news events in the past. However, the long-term fundamentals remain strong, and many believe Bitcoin is still on track for a new all-time high in 2024.
The recent market volatility highlights the risks involved in investing in Bitcoin and other cryptocurrencies. While the potential for high returns exists, investors should be aware of the significant price swings and uncertain regulatory landscape before entering the market.
As the post-ETF aftermath unfolds, the cryptocurrency market finds itself submerged in a sea of red. The volatility underscores the sensitivity of digital assets to market sentiment and regulatory developments.
Featured image from Shutterstock
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Bitcoin appeared to have been securely floating above support just earlier, but today, the picture has changed as the price has suddenly crashed to $42,500.
Bitcoin Has Crashed More Than 6% During Past 24 Hours
Bitcoin had kicked off 2024 with some sharp bullish momentum as the market had been looking toward the potential ETF approvals with hopeful eyes. The asset had only been at the $45,000 level not seen since April 2022 for just a couple of days before the price suddenly crashed.
The chart below shows how cryptocurrency has performed during the past few days.
Looks like the coin's price has plummeted during the last 24 hours | Source: BTCUSD on TradingView
During this plunge, Bitcoin had briefly hit a low under $41,500, but the cryptocurrency has since seen a bit of a rebound as its price is now trading around the $42,500 level.
As is usually the case, the rest of the sector has also plunged alongside the original digital asset, with most coins registering drawdowns of even greater degrees.
Just before this crash, Bitcoin had been floating above a critical support line and appeared set to continue its recent bullish momentum.
Bitcoin Had Broken Above An Ascending Triangle Pattern With Recent Rally
In a post on X before the crash, analyst Ali had discussed where the Bitcoin price might be heading after its break above the $45,000 level based on technical analysis data. Below is the chart that the analyst shared in the post.
The pattern that had formed in the 4-hour price of the cryptocurrency | Source: @ali_charts on X
In the graph, Ali highlighted an Ascending Triangle pattern that Bitcoin appeared to have successfully broken out of with the price surge. An “Ascending Triangle” refers to a continuation pattern of two trendlines forming a triangular shape.
One of the trendlines is a horizontal level made by connecting highs in the asset, while the other is a diagonal line that joins together higher lows. The pattern is “ascending” in its name as the overall consolidation between these two trendlines narrows towards the upside.
Generally, when the price retests the horizontal level, it could likely feel some resistance and form a local top. If the resistance is broken through, it could be a sign that the asset would now display some continued upward momentum.
Similarly, the diagonal line is usually a point of support for the asset, and sustained breaks below could be to watch out for, as they can signal that a bearish trend is taking over.
From the chart, it’s visible that Bitcoin had gained some distance over the triangle above earlier and had appeared to be finding support at the 0.786 Fibonacci ratio, which is situated at around $44,900 for the asset.
Ali had noted that if sustained buying would continue at this support, Bitcoin might be able to push towards the $49,000 level. But as it has turned out, the market had other plans for the cryptocurrency, as its price has plunged far below this support level.
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
LUNC, the resilient token emerging from the tumultuous aftermath of Terra’s downfall, witnessed a notable 14% downturn, mirroring a substantial legal setback delivered by a U.S. District Court.
This judicial decision favored the Securities and Exchange Commission (SEC) in their legal pursuit against Terraform Labs, the entity steering the Terra blockchain, injecting uncertainty into the fate of the beleaguered cryptocurrency.
Harking back to the SEC’s assertions in February, the once-mighty stablecoin, LUNA, now lies at the heart of the controversy that unfolded in May 2022. The SEC contends that LUNA transcended the classification of a digital dollar, deeming it a security.
Additional Pain For LUNC
Crucially, Terraform Labs allegedly neglected to register it as such. The gravity of the situation intensifies as Do Kwon, co-founder of Terraform Labs, faces accusations of orchestrating the sale of these unregistered securities, placing additional strain on the future trajectory of LUNC.
Judge Jed Rakoff’s definitive ruling echoes a harsh reality – both LUNA and MIR, another token within the Terra ecosystem, are recognized as securities. This legal stance paves the way for potential further action by the SEC against Terraform Labs, casting a shadow over LUNC’s future.
Source: Santiment
The abrupt shift in market sentiment is evident as LUNC’s Weighted Sentiment, a metric gauging market optimism, plummeted to -0.510 post-ruling. This stark transformation from bullish to bearish suggests a loss of investor confidence in the short-term prospects of the token.
Social Dominance, reflecting the attention given to LUNC, experienced a surge on December 29th, correlating with the court ruling. However, this heightened interest quickly dissipated, indicating that the initial impact was ephemeral, and traders may have swiftly incorporated the negative developments into their decision-making.
LUNCUSD currently trading at $0.000142 territory. Chart: TradingView.com
LUNC Price Analysis: Overall Downtrend With Potential For Reversal
- The chart (below) confirms a downward trend over the past seven days, mirroring the bearish sentiment post-court ruling.
- However, technical indicators suggest a potential for reversal:
- RSI: Dipping towards the oversold zone, implying a possible price rebound.
- Negative Divergence: Hints at an upcoming uptrend, though the legal uncertainty adds complexity.
- EMAs: The recent 20 EMA crossover above the 50 EMA offers a bullish signal, albeit weak.
LUNC seven-day price chart. Source: Coingecko
Impact Of Court Ruling:
- The sharp drop on December 29th coincides with the ruling, highlighting its significant impact.
- Continued bearish momentum suggests ongoing concerns about the legal and regulatory landscape.
Support And Resistance Levels:
- Support: The $0.00013 area has acted as a barrier, holding price from further decline. Maintaining this level is crucial for bullish momentum.
- Resistance: Breaking above the $0.00015 level could signal a stronger uptrend, but overcoming psychological resistance may be challenging.
Volume And Historical Trends:
- Low volume indicates investor indecision, possibly due to the legal uncertainty.
- Comparing to historical trends:
- Previous support and resistance levels offer limited guidance due to the recent crash.
- Past volatility patterns might not be reliable given the unique legal context.
Overall:
The technical indicators present a potential for LUNC reversal, but the court ruling casts a shadow of uncertainty. Closely monitor key support and resistance levels, watch for changes in volume, and remain cautious due to the volatile market conditions.
Featured image from Shutterstock
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Amid the current bearish sentiment around the cryptocurrency market, the popular Ethereum-based meme coin Shiba Inu has taken a positive step by partnering with internet domain company D3 Global.
Significance Of Shiba Inu’s Partnership With D3 Global
The team revealed its partnership with the internet domain name company in its latest version of the SHIB magazine. The latest magazine is now the seventh version that has been released since it was introduced.
D3 Global is a domain company that focuses on bridging the gaps between the web2 and web3 ecosystem which is overseen by Fred Hsu and Shayan Rostam.
Rostam asserted that partnering with Shiba Inu will allow the introduction of unique, memorable, and affordable domain names to users. Additionally, it will make use of Web3 utility on the internet’s base layer to streamline their digital identities.
The latest partnership is a part of Shiba Inu’s broader endeavor toward a decentralized identification project. Shiba Inu is seeking to establish a decentralized internet top-level domain (TLD) name for its users.
The collaboration aims to safeguard the “.shib” TLD name. A TLD is the last element of a web address that appears after the dot such as “.com,” “.org,” or “.net.”
The TLD will enable SHIB users to register their .shib names which may be resolved through the global Domain Name System (DNS). It will also allow its users to have a digital identity compatible with Web2 and Web3 applications.
The “.shib” domain seeks to offer seamless compatibility with both the traditional Web3 technologies and the modern internet’s Domain Name System (DNS). This is unlike the current web3 names which are incompatible natively with essential internet technologies like email and web browsers.
With this initiative, SHIB users may have more functionality and be able to utilize their domain with regular web browsers. Additionally, it could also improve their blockchain transactions and digital identity.
Process Of Acquiring A New TLD
Being a major player in the internet domain industry, D3 is an expert in the administration and use of top-level domains. Their specialty is maneuvering through the difficult procedure of obtaining and configuring new TLDs.
The procedure of getting a TLD is not that simple or quick. It needs to be approved by ICANN, which is the result of a difficult and extensive application procedure.
Related Reading: Shiba Inu Faces Make Or A Point As Analyst Identifies Critical Trading Pattern
In addition, the community must be involved and supportive of the initiative. This is because ICANN takes the public interest and possible effects of a new TLD into account.
Despite the notable partnership, the SHIB token is still down by over 2% in the past 24 hours, trading at $0.000010. Its market capitalization is down by over 2%, while its trading volume is down by over 30%, according to CoinMarketCap.
So far, the lead developer of Shiba Inu, Shytoshi Kusama has expressed the team’s pleasure in the collaboration. “We are extremely proud to once again trailblaze decentralization in world history,” Kusama stated.
Featured image from iStock, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Chilean lithium giant Sociedad Quimica y Minera de Chile (SQM -8.00%), or SQM, released lower-than-expected third-quarter revenue and earnings on Wednesday night. The main culprits for the disappointing results were significantly lower average sales prices in the company’s lithium and fertilizer businesses.
SQM’s report doesn’t bode well for its stock’s performance on Thursday. That said, the stock’s price movement will also be influenced by the information management shares on Thursday’s earnings call and the overall performance of the market.
SQM is widely viewed as the world’s second-largest lithium producer, behind North Carolina-based Albemarle. Demand for the silvery-white metal has surged in recent years, driven by the rapid adoption of electric vehicles (EVs), which are powered by lithium-ion batteries. However, after soaring to all-time highs last year, lithium prices have significantly retreated.
SQM’s key numbers
Metric | Q3 2022 | Q3 2023 | Change |
---|---|---|---|
Revenue | $2.96 billion | $1.84 billion | (38%) |
Net income | $1.10 billion | $479.4 million | (56%) |
Earnings per share (EPS) | $3.85 | $1.68 | (56%) |
Data source: SQM.
Wall Street was looking for EPS of $2.11 on revenue of $1.9 billion, so the company fell short of both expectations.
Gross margin (gross profit divided by revenue) was 40.9%, down from 55.2% in the year-ago period.
The company ended the quarter with $1.19 billion in cash and cash equivalents and $2.48 billion in long-term debt.
Revenue by business
Segment | Q3 2023 Revenue | Change YOY |
---|---|---|
Lithium and derivatives | $1.28 billion | (45%) |
Specialty plant nutrition (SPN) | $222 million | (24%) |
Iodine and derivatives | $213 million | (1%) |
Potassium chloride and potassium sulfate | $75.2 million | 25% |
Industrial chemicals | $43.4 million | 4% |
Other | $9.1 million | (14%) |
Total | $1.84 billion | (38%) |
Data source: SQM. YOY = year over year.
In the earnings release, CEO Ricardo Ramos summed up the quarter by saying, “results were impacted by significantly lower average sales prices in lithium and fertilizer business lines, partially offset by higher sales volumes, when compared to the same period last year, and higher iodine sales prices.”
In Q3, the lithium segment’s sales volume increased 4% from the year-ago period to over 43,300 metric tons (MT) of lithium carbonate equivalent (LCE), a quarterly record. However, this small volume gain was more than offset by a much lower average realized price, which dropped 47% year over year.
For context, in the second quarter, the lithium segment’s revenue declined 21% year over year to $1.46 billion. The segment’s sales volume jumped 26% from the year-ago period, but this volume gain was more than offset by the average realized price falling 37% year over year.
For more context, in Q3, lithium goliath Albemarle’s energy storage segment (which includes all lithium used for EV batteries and other energy storage end uses) grew 20% year over year to $1.7 billion.
SQM’s specialty plant nutrition business also had a poor quarter, with revenue declining 24% year over year. Pricing was the culprit here, too. The segment’s volume was up 8%, but this gain was more than offset by a significantly lower average realized price.
Looking ahead
SQM doesn’t provide quarterly or annual guidance. That said, Ramos commented on management’s broad outlook for lithium demand and prices:
We continue to see strong fundamentals behind long-term lithium demand growth, supported by strong EV sales volumes and decarbonization targets across the globe. However, the excess of inventory accumulated across battery and lithium chemical supply chains, particularly in Asia, as well as additional lithium supply, have put pressure on lithium market prices and could continue to have a negative impact on lithium prices in the short term.
The company’s shorter-term outlook is brighter for its specialty plant nutrition business. It said in the earnings release that it believes pricing could have hit a bottom and that the market could rebound in 2024.
Beth McKenna has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
By Amina Niasse
(Reuters) -The interest rate on the most common type of U.S. residential mortgage plunged last week by the most in nearly 16 months on the back of a rally in the Treasury market that drove down the benchmark yields used to set home loan costs.
The Mortgage Bankers Association (MBA) on Wednesday said the average contract rate on a 30-year fixed-rate mortgage dropped in the week ended Nov. 3 by a quarter percentage point to 7.61%, the lowest in about a month. It was the largest weekly drop since late July 2022.
The second weekly decline further pulled home-purchasing borrowing costs down from two-decade highs near 8% reached in October when yields on the 10-year Treasury note, the benchmark for U.S. home loan rates, had been charging higher.
That months-long updraft in yields saw a sharp reversal last week after the U.S. Treasury said upcoming debt issuance would be somewhat less than previously expected and the Federal Reserve left its key overnight policy rate on hold for a second straight meeting.
“Last week’s decrease in rates was driven by the U.S. Treasury’s issuance update, the Fed striking a dovish tone in the November FOMC (Federal Open Market Committee) statement, and data indicating a slower job market,” said Joel Kan, the MBA’s vice president and deputy chief economist.
The MBA’s mortgage market composite index, measuring the volume of mortgage applications for both home purchases and refinancings of existing loans, rose 2.5% from the week prior to 165.9.
Purchase applications rose 3% on the week, but they remain 20% below this time a year ago. That indicates prospective buyers are still waiting on the sidelines despite the dip in rates, said Kan. Sellers locked into lower mortgage rates continue to hold their homes, keeping a lid on inventory in the housing market.
(Reporting By Dan Burns and Amina Niasse; Editing by Chizu Nomiyama and Andrea Ricci)
Data shows the cryptocurrency longs have taken a beating today because of the plunge towards $34,000 that Bitcoin has observed.
Cryptocurrency Futures Market Has Seen Liquidations Totaling $137 Million Today
According to data from CoinGlass, a large amount of liquidations have taken place in the cryptocurrency futures market during the past day. “Liquidation” here refers to a forced closure of a futures contract being done by the derivative contract with which said position is open.
A contract is liquidated when it amasses losses equal to a certain percentage of the margin (that is, the initial collateral that the holder had put forth when opening the contract).
As it’s easy for traders’ bets to fail during volatile periods, it’s not surprising that the volatility from the past day has induced liquidations throughout the market. The below table shows the data for the liquidations that have occurred in the sector during the last day.
Looks like the sector has registered a significant amount of liquidations in the past 24 hours | Source: CoinGlass
As you can see, the cryptocurrency futures market has seen liquidations amounting to about $137 million in the past day. Out of these, around $113 million of the contracts were long positions.
This means that more than 82% of the liquidation flush in this period has involved the long holders. This is consistent with the price action, as most of the liquidations have been triggered by a plunge in the Bitcoin price from above $35,400 to the $34,000 mark.
Such large liquidation events are popularly called “squeezes.” Since the squeeze from the last 24 hours has seen the longs on the losing side, the event was a “long squeeze.”
As the below table displays, Bitcoin-related contracts have unsurprisingly contributed the most towards this latest squeeze.
The distribution of the liquidations by symbol | Source: CoinGlass
Bitcoin saw $40 million in futures liquidations, while Ethereum registered almost half of those at $21 million. Out of the altcoins, Solana (SOL) observed the highest liquidations.
SOL has seen a bit of an explosion recently, so it’s not unexpected that it has attracted a large amount of speculators towards it. As a natural consequence of this higher interest in the cryptocurrency, its liquidations have been more than the other altcoins.
Mass liquidation events like today’s aren’t exactly a rare occurrence in the cryptocurrency sector, due to extreme amounts of leverage being easily accessible and the volatility that most of the coins witness on the regular.
It would appear that today’s liquidation squeeze has been unable to put off speculators, as the Bitcoin open interest (a measure of the total amount of contracts open on the futures market) is still at high values.
The indicator's value has seen a surge during the past couple of weeks | Source: CoinGlass
As such, it’s possible that Bitcoin will see more volatility in the near future and with it, another liquidation squeeze.
Bitcoin Price
Following its drop of more than 3%, Bitcoin is now trading around the $34,200 level.
BTC has registered some decline in the last two days | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CoinGlass.com
(Bloomberg) — Zillow Group Inc. and other real estate stocks plunged after a Missouri jury struck a fresh blow against the battered industry, finding that the National Association of Realtors colluded to maintain high brokerage commissions.
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The jury awarded nearly $1.8 billion in damages in the case, one of several recent lawsuits concerning how real estate agents are paid. The Justice Department is also scrutinizing the commission-sharing system, which typically puts home sellers on the hook for a 5% to 6% cut of the sale price, split between their agent and the representative for the buyer.
Read more: US Realtors’ Lucrative Fee System Faces Mounting Antitrust Risk
In a worst-case scenario for the industry, the federal government could seek to ban sharing commissions, which would upend how real estate agents have done business for decades. That would be especially bad news at a moment when the US real estate is largely frozen, with mortgage rates approaching 8% and existing home sales nearing lows not seen since the foreclosure crisis.
The verdict Tuesday doesn’t directly affect the Justice Department’s stance, but the lawsuit, known as “Sitzer/Burnett,” revolves around the same set of issues. The DOJ also recently injected itself into a Massachusetts case related to the traditional commissions system, signaling that the watchdog is paying attention, according to analysts at Stephens Inc.
Stocks Drop
Shares of Zillow fell 6.9% Tuesday, the biggest decline since June 2022. While the company doesn’t rely on commission income directly, its core business is selling marketing services to buyers’ agents. The stock has dropped more than 80% from its peak in February 2021, when it was riding the pandemic housing boom.
Brokerage shares also sank Tuesday, with Compass Inc. falling 6.2% and Redfin Corp. dropping 5.7%.
None of those companies were named in the lawsuit, which was filed in Kansas City, Missouri, against the Realtors association, Keller Williams and Berkshire Hathaway’s HomeServices of America.
Two other brokerages, Re/Max and Anywhere Real Estate Inc., settled with plaintiffs earlier this year, agreeing to pay $55 million and $83.5 million, respectively, and to no longer require agents to belong to NAR.
In separate statements, HomeServices and NAR said they intend to appeal, while Keller Williams said that it would also consider that option.
“Today’s decision means that buyers will face even more obstacles in an already challenging real estate market and sellers will have a harder time realizing the value of their homes,” HomeServices said. “It could also force homebuyers to forgo professional help during what is likely the most complex and consequential financial transaction they’ll make in their lifetime.”
In addition the Missouri case, plaintiffs in Illinois, where a trial is expected to start early next year, are seeking as much as $40 billion in another private class-action lawsuit against the NAR.
System Challenge
Taken together, the cases are a challenge to a commission system that is largely unique to the US and seen as more expensive for consumers than in countries such as Australia and the UK. Still, the bigger threat to the industry would be a case brought by the Justice Department to dismantle the commission-sharing structure altogether.
The DOJ started investigating the real estate industry under the Trump administration, and NAR agreed to measures, including increased price transparency, to settle the case. Biden officials in 2021 pulled out of that agreement, saying they wanted the ability to pursue future antitrust claims against the group.
A federal judge in January said the DOJ is still bound by that settlement. The department is appealing that decision, as the Biden administration expands antitrust scrutiny outside traditional areas.
“While most industry followers are tuned into the class action suits, we think that potential DOJ involvement, at some stage, could create a whole new set of challenges,” analysts at Stephens said.
(Updates with industry context throughout.)
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