A misinterpreted announcement by the HBAR Foundation suggested that Blackrock’s ICS US Treasury Fund was tokenized on the Hedera blockchain in partnership with Archax and Ownera, leading to a significant misunderstanding and a 96% increase in the HBAR token price within 24 hours. However, Blackrock had no direct involvement in the tokenization process, as clarified […]
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Rent the Runway Inc. on Wednesday said it expected breakeven free cash flow this year, following cost cuts and signs of a revival in shoppers’ enthusiasm.
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Litecoin (LTC) has shown a notable performance in the first quarter of the year, reaching over 30 million transactions by March 30. Last year, this feat was achieved around July when LTC traded at around $113.
The US Commodity Futures Trading Commission (CFTC) recently classified Litecoin as a commodity alongside Bitcoin and Ethereum. The designation and rumors of a Litecoin exchange-traded fund (ETF) sparked bullish sentiment. Analysts and investors have forecasted a strong performance for the token.
Litecoin surged 10% last week, seemingly fueled by the positive sentiment from its community. As a result, the token rose above $100 and tested its resistance above the $105 level.
Crypto analyst Rekt Capital confirmed that, as April 1st started, LTC officially broke the macro downtrend for the first time since April 2021.
Litecoin has Monthly Closed above the Downtrend
It is confirmed
The Macro Downtrend has been broken for the first time since April 2021
The Macro Downtrend is now officially over#LTC #Crypto #Litecoin pic.twitter.com/ktgOYKTarz
— Rekt Capital (@rektcapital) April 1, 2024
According to the analyst, after successfully retesting its multi-year macro downtrend and turning it into a new support level, the token had to stay above the $94 price range to confirm the end of the trend.
LTC closed the month above these levels. The token’s price soared past $110 for the second time this year. Nonetheless, the price didn’t hold for long, as it immediately faced a correction and dropped back to the $105-106 range.
After the correction, analyst The Cryptonomist suggested in an X post that if LTC’s price gets a “clean break” above this level, investors could “comfortably see” the price surge to $200.
Moreover, crypto investor Crypto Surf pointed out that Litecoin “managed to close at or slightly above the 200-week,” considering it a “not bad” performance. In the charts, Crypto Surf highlights key points from the token’s performance from 2017-2021 and 2021-2024.
$LTC did actually manage to close at or slightly above the 200 week MA 😅
Let’s see what these new quarter, month and week bring us⌛️
For now, we’re above the meme lines, so not bad. pic.twitter.com/GT3asJBQF2
— Surf (@_CryptoSurf) April 1, 2024
The $146 pre-halving top of Litecoin’s second halving event was surpassed approximately three months after breaking out of its 200-week moving average (MA). This breakout was followed by LTC’s all-time high (ATH) of $410 in 2021.
After Litecoin’s third halving event, LTC’s pre-halving top reached the $115 price range. This top was tested and almost matched today when the token traded at $112.
The charts suggest that, if history repeats itself, LTC’s price could be testing higher resistance levels and a new ATH in the coming months. However, market dynamics and external events could hinder the token’s potential targets.
After briefly reaching its highest price of the year, LTC faced a correction that shredded the gains registered over the weekend.
The token closed its March monthly candle above important metrics and has resisted above $100 during the past three days. Despite this, the price dipped below that important support zone. LTC has hovered around the $98-99 price range for the past hour.
This drop represents a 3.8% decrease from LTC’s price 24 hours ago and a 76.4% dip from its ATH. However, Litecoin’s LTC continues to register green numbers over longer timeframes.
LTC has increased 8.8% and 8.9% in the weekly and monthly timeframes. More notably, the token had a 19.9% biweekly surge.
Similarly, its daily trading volume has significantly surged by 186.5%, reaching $1.61 billion in the past 24 hours. LTC ranks as the 19th largest cryptocurrency by market capitalization, according to CoinMarketCap data. At the time of writing, Litecoin is trading at $99.13.
Litecoin is trading at $99.13 in the 3-day chart. Source: LTCUSDT on Tradingview.com
Featured Image from Unsplash.com, 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.
Krispy Kreme’s stock soared Tuesday, after the doughnut seller said its doughnuts will start becoming available at all of the fast-food giant’s U.S. restaurants.
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PDD’s stock powered higher Wednesday, after the China-based e-commerce company and parent of fast-fashion platform Temu reported fourth-quarter earnings that rose well above expectations, citing signs of improving consumer spending.
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With bitcoin climbing over 50% in the past month, the notable gold aficionado and economist Peter Schiff has thrown shade at the market’s recent rally. Schiff argues that this uptick in value is nothing but “speculative mania” and advises folks to funnel their risky investments into gold instead. Schiff Warns of Speculative Mania in Bitcoin, […]
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Cathie Wood is the chief investment officer at Ark Invest, an asset management company that runs thematic index funds focused on disruptive technologies like artificial intelligence. Wood and her team currently manage a $13.5 billion portfolio, 3.1% of which is invested in Zoom Video Communications (NASDAQ: ZM).
Ark published a valuation model for Zoom in 2022 that outlined three possible trajectories the stock could follow through 2026. The base-case scenario, or the most optimistic plausible trajectory, posited a per-share price of $1,500, which now implies about 2,170% from the current price of $66 per share in the next two years. The odds of that happening, I think, are virtually zero, but Zoom still warrants closer consideration.
Here’s what investors should know.
Zoom shares jumped on better-than-expected financial results in the fourth quarter, though growth continued to slow throughout fiscal 2024 (ended Jan. 31, 2024). Full-year revenue rose 3.1% to $4.5 billion, down from 7% growth one year ago and 55% two years ago. However, non-GAAP net income jumped 19% to $5.21 per diluted share due to disciplined expense management.
The investment thesis for Zoom centers on its ability to simplify communications. The company is best known as the market leader in videoconferencing software (Zoom Meetings), but its platform also includes phone system, contact center, and team chat applications. Businesses can often reduce cost and complexity by consolidating their communications tools through a single vendor.
Zoom also has monetization opportunities with adjacent artificial intelligence (AI) products. Specifically, its portfolio includes virtual agent technology that automates customer service interactions in Zoom Contact Center, and conversational intelligence software that analyzes interactions in Zoom Meetings and Zoom Phone to improve sales team productivity.
Currently, the company makes most of its money through Zoom Meetings. But Zoom Phone surpassed 10% of total revenue in the first quarter of fiscal 2024, and Zoom Contact Center will probably reach that milestone in the not-to-distant future given that licenses increased nearly threefold over the past year. Add-on AI solutions could also become a meaningful revenue stream as core communications products see greater adoption.
On that note, Zoom recently debuted generative AI software that can summarize conversations, draft messages, and answer questions on meeting content, among other functions. CFO Kelly Steckelberg, on the fourth-quarter earnings call, said, “Zoom AI Companion has grown tremendously in just five months, with over 510,000 accounts enabled.” The product is currently free, but Zoom could monetize it in the future.
In short, Zoom once again reported sluggish revenue growth in fiscal 2024, and management expects that trend to continue next year, as guidance implies 1.6% revenue growth in fiscal 2025. However, Zoom is well positioned to drive adoption of adjacent communications and AI products given its leadership position in videoconferencing software, so revenue growth could accelerate in the future, especially in a more favorable economic environment.
Ark Invest’s valuation model for Zoom builds on the idea that adoption of core communications software and adjacent AI products could push sales to $52 billion in 2026. Even if we apply that figure to fiscal year 2027, most of which will take place during calendar year 2026, that forecast implies annual revenue growth of 125%. That is beyond the realm of possibility.
Wall Street has a more dour outlook. Analysts expect Zoom to grow revenue at 3.9% annually over the next five years. That estimate aligns with the sluggish growth we’ve seen in recent quarters, but it also leaves room for upside depending on how successful the company is with newer products like Zoom Phone, Zoom Contact Center, and add-on AI software.
With that in mind, the stock currently trades at 4.5 times sales, near its all-time low of 4 times sales. That valuation is a bit pricey if Wall Street is correct in its expectations. But should revenue grow more quickly — say, 10% annually over the next five years — the current valuation would be a bargain in hindsight.
So, investors who think Zoom could meaningfully top the Wall Street consensus should consider buying a small position in this stock today, provided they understand that the odds of a 2,170% return by 2026 are essentially zero.
Should you invest $1,000 in Zoom Video Communications right now?
Before you buy stock in Zoom Video Communications, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Zoom Video Communications wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
*Stock Advisor returns as of March 8, 2024
Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zoom Video Communications. The Motley Fool has a disclosure policy.
1 Artificial Intelligence (AI) Stock to Buy Before It Soars 2,170%, According to Cathie Wood’s Ark Invest was originally published by The Motley Fool
Ark Invest’s Cathie Wood is a big believer in Bitcoin (CRYPTO: BTC). She launched Ark’s first spot price Bitcoin exchange-traded fund (ETF) in January once regulators gave their approval.
Earlier this year, Wood raised her price target from $1 million to $1.5 million by 2027 — which would represent a whopping 2,139% jump from Bitcoin’s recent price of about $67,000. Wood expects that explosive growth to be driven by three tailwinds: the approvals of Bitcoin ETFs, institutional purchases of those ETFs, and the expected halving next month, which will cut the rewards for mining Bitcoin in half.
We should take those estimates with a grain of salt, since Wood has a habit of making wildly bullish predictions and not necessarily delivering; her flagship Ark Innovation ETF, for example, has only risen 13% over the past five years as the S&P 500 rallied 88%. That said, we should still consider whether Wood’s bullish thesis makes sense and if Bitcoin is worth buying.
The bulls believe Bitcoin will eventually join gold, silver, and other precious metals as a hedge against long-term inflation. Like the gold bugs, Bitcoin’s bulls believe that fiat currencies are destined to depreciate, and the trend will drive more governments, businesses, and investors to adopt the cryptocurrency. Up until this January, most of those people invested in Bitcoin in three ways: through direct purchases on a crypto exchange like Coinbase, through a trust like Grayscale Bitcoin Trust, and through ETFs that were pinned to Bitcoin futures.
But all three methods had drawbacks. Crypto exchanges were disconnected from the public stock exchanges, prone to sudden disruptions and outages, and frequently targeted by regulators. The collapse of FTX and the recent criminal charges against Binance also rattled investors’ confidence in stand-alone cryptocurrency exchanges.
Crypto trusts were more secure and could be actively traded on the stock market, but they charged high fees. Bitcoin future ETFs also charged high fees, but they often failed to keep pace with the cryptocurrency’s actual spot prices. The Securities and Exchange Commission’s approvals in January of the first 11 spot price Bitcoin ETFs resolved those issues; the ETFs charge low fees, are directly tied to Bitcoin’s spot price, and can be easily traded on the open market.
Wood believes those new ETFs will drive institutional investors to buy more Bitcoin. Back in December 2021, Wood predicted that if institutional investors allocated an average of 5% of their portfolios to Bitcoin, it would boost its near-term price by about $500,000. Wood reiterated that bullish view earlier this month and said that institutional buyers would drive Bitcoin’s price to $1.5 million as it’s recognized as a new asset class.
Meanwhile, Bitcoin will undergo its next halving in April. That process, which occurs every four years, cuts in half the reward for miners like Marathon Digital to mint new Bitcoin — but it might help boost Bitcoin’s price as market demand outstrips its slowing supply growth.
At the same time, persistent inflation and escalating geopolitical conflicts could drive more countries to adopt Bitcoin as a mainstream currency. That trend could accelerate Bitcoin’s transformation into a reliable, safe asset like gold and silver.
Cathie Wood isn’t alone in her bullish view for Bitcoin’s future. The British bank Standard Chartered says its price will hit $100,000 by the end of 2024, while the financial services giant Fidelity predicts its price will reach $100 million by 2035 and $1 billion by 2038. It’s impossible to say if those predictions will come true, but the approvals of the first spot Bitcoin ETFs could set a floor under its volatile price.
So instead of wondering if Bitcoin will deliver a 2,000% gain in just three years, investors should simply ask themselves if they believe the bullish argument. If Bitcoin sounds like a promising investment, then it might be smart to accumulate some Bitcoin or shares of a low-fee spot price ETF as a long-term growth play.
Should you invest $1,000 in Bitcoin right now?
Before you buy stock in Bitcoin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
*Stock Advisor returns as of March 8, 2024
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The Motley Fool recommends Standard Chartered Plc. The Motley Fool has a disclosure policy.
1 Top Cryptocurrency to Buy Before It Soars 2,139%, According to Cathie Wood was originally published by The Motley Fool
A significant bitcoin “mega whale” moved 3,000 vintage bitcoins from 2010 as BTC peaked at $69,210. JPMorgan predicted a post-halving drop in bitcoin’s price to $42,000, citing current euphoria levels. Meanwhile, bitcoin cash experienced a 40% surge in anticipation of its halving event and a major 2024 upgrade. Additionally, rumors circulated about a Qatari billionaire’s […]
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According to the latest figures, Microstrategy’s investment in bitcoin has doubled, showing a 116% increase after the cryptocurrency’s value experienced a significant rise this past week. The company, specializing in business intelligence, has acquired a total of 193,000 bitcoins at an expenditure of $6.122 billion, with the current market value of their holdings soaring to […]
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