Fundamental Analysis: PLTR - SNAP - MELI
These companies present high volatility, learn what is behind the strong swings they present, and how to use them in your favor.
Fundamental analysis is crucial for making informed investment decisions. It involves assessing a company's intrinsic value by analyzing its financial health, business model, and industry trends.
SPX Update
As a brief reference of the Weekly Compass published last Saturday, the market is showing signs of consolidation, remember the bullish weekly candles bouncing from bottoms, versus the latest one starting in a more mature stage of this bull leg. The indecision weekly candle in formation is not a surprise and it differ from previous price action events following a weekly rally.
Not a market to short: The central S/R level has not been breached for the major indexes, all SPX, NDX, DJI, and IWM. The exhaustion has to break those levels to consider a pullback, otherwise this is just a consolidation.
It’s worth noting that if the weekly candle closes as it is today, the script with the historic chart presented in the Weekly Compass would be playing out.
Just in case: Charts do not repeat themselves, historical charts work as references only.
Fundamental Analyses
The companies analyzed today have presented significant volatility, they are considered for different reasons:
Palantir Technologies: It was recently listed in the Standard & Poor’s index, and it is showing a parabolic rally that as of today is presenting signs of consolidation considering different timeframes, here is the weekly with a preliminary evening star candle and similar occurrences that brought back the price to the Bollinger range:
Snap Inc: This company can present significant reversals, each leg with two digits variations essentially erases the previous one, can you imagine how an account can grow only timing this stock?. This stock can be added to the GOOG and META analyses published after their earnings reports.
Access to META and GOOG fundamentals for new premium subscribers:
https://smartreversals.substack.com/p/monthly-charts-for-everyone-and-fundamental
MercadoLibre: This eCommerce player can be added to the set of interesting companies in this field studied las month: AMZN, SHOP, WMT, and TGT among others. The 40 weekly average has provided support to MELI in this bull market, and the stock presents reasonable moves if SNAP is too much of a roller coaster.
Access to the eCommerce edition for new premium subscribers:
https://smartreversals.substack.com/p/beyond-the-charts-a-comparative-fundamental
Here's why fundamental analysis is important and it’s becoming more relevant for the Wednesdays edition:
Long-Term Perspective: It helps identify companies with strong fundamentals and long-term growth potential.
Valuation: It allows you to determine whether a stock is overvalued or undervalued.
Risk Assessment: By understanding a company's financial health, you can assess its risk profile.
Identifying Opportunities: Fundamental analysis can help an investor to identify potential investment opportunities, such as undervalued stocks or companies with strong growth prospects.
Making Informed Decisions: It provides a comprehensive view of a company's performance and future prospects, enabling you to make informed investment decisions.
Last but not least, fundamentals change slowly, so these analysis can be visited for several weeks and months. Anyway I’ll be updating them when it is appropriate.
By combining fundamental analysis with technical analysis, investors can develop a robust investment strategy, let’s begin, and in this edition you will find educational content consolidated about the 4 stages of a market.
Palantir Technologies Inc. develops and implements advanced software platforms that function as centralized data operating systems. These platforms are engineered to ingest and analyze vast quantities of data from a wide range of unstructured sources, providing a unified view of critical information. Through the integration of machine learning and user/analyst interaction capabilities, the platforms empower users to derive deeper insights from their data.
Business Context: