December 6th, 2021 | 10:34 CET
Square, CoinAnalyst, SAP - Indices fall and bitcoin crashes
Table of contents:
Square becomes Block
Jack Dorsey left his job as Twitter chief at the end of November to focus on Square in the future. Shortly after that, it was announced that Square would operate under the name Block in the future. The renaming is scheduled to take place on December 10. The Company became known with card readers for smartphones and tablets by using the audio port of the devices and accessing it through software. Thus, the Company became a payment service that has expanded very quickly.
The creator Dorsey is known to be a fan of cryptocurrencies and also invested in Bitcoin and co. The focus in the future should be more on cryptocurrencies, blockchain and the metaverse. Square will remain a brand for payment processing. With the app "Cash App," you can already trade Bitcoin and shares today and send money to anyone who also has the app. Developing a hardware wallet to store cryptocurrencies is just another part of the crypto division. The Company is also developing tbDEX, a blockchain designed to simplify transactions between traditional money and cryptocurrencies.
The stock has been trending downward since its quarterly results, which met expectations in terms of earnings per share, but the group fell short of expected revenue. After several disputes with major investors, they should now be satisfied that Dorsey will only focus on one major project in the future. However, the stock is also suffering from the general market conditions of the last two weeks. On December 3, a critical support level was breached. A test of USD 151.10 is thus possible. Currently, the stock is trading at USD 181.31.
CoinAnalyst - Continuous positive news
CoinAnalyst was listed on the Canadian CSE via reverse IPO but originally is from Germany. The Company specializes in providing investors with information related to the digital asset markets. This area is currently lightly regulated, and it is not easy to keep track of. CoinAnalyst uses technology from Cogia AG to use artificial intelligence (AI) to evaluate over 300 sources of information that are constantly being expanded. Through AI-powered Big Data analysis, customers are provided with the latest news, current prices and sentiment analysis for their investments. Of course, users can also use the data to optimize their research.
The Company currently has four products. Insights help better understand the trends in the crypto world, as described above. On November 24, the "Crypto Market Letter" launched worldwide. Since its launch in Germany in April 2020, the simulated portfolio has gained 1,100%. In addition, a special coin is presented every month that promises a lot of potential. The solutions "Socializer Engagement" and "Socializer Messenger" allow coin experts and influencers to share their views with their community via social media or messenger. In addition, there is also Copy Trading, which is currently only offered in Germany. It allows investors to profit from the trading experts and the AI-supported trading strategy.
In the future, the Company is planning an academy where beginners can learn from crypto experts. An app is also expected to be launched in early 2022. The NFT market, which is particularly interesting for artists of all kinds, is also to be expanded further. With iVest+, a trading platform for cryptocurrencies, a reseller for CoinAnalyst's data could be won. The new partner gains access via an API. All the good news has not yet been able to help the share get off the ground. It is currently trading at EUR 0.132 in Frankfurt. Anyone who believes in the success of cryptocurrencies should take a closer look at the Company.
SAP - Cloud business grows
SAP has made a name for itself worldwide as a provider of business software. The Company has long been accused of sleeping through the trend towards the cloud. One reason for this may be that the Company itself does not really trust the security of blockchain technology. If quantum computers become available, blockchains could lose their immutability. That would pose a significant security risk. Nonetheless, the group is now trying to move its customers to the cloud.
According to an article in Handelsblatt, SAP's executive board wants to fully attack the cloud sector and sees the stock as undervalued. He points to the large number of customers in the traditional business and the high margin of around 30%. The figures for the third quarter already show that the focus on the cloud business is bearing fruit. Cloud revenues increased by 20%. The full-year forecast has also been raised. Cloud revenues are expected to rise to between EUR 9.4 billion and EUR 9.6 billion, up from around EUR 8.1 billion in the previous year.
The share, which was severely punished after disastrous figures last year, has formed an upward trend. Since early November, the share has been sold and has reached an important support level. If the EUR 112.78 mark holds on a closing price basis, we see a double bottom. The annual high of EUR 129.74 serves as the next resistance. A breakout above EUR 117.14 would be the first bullish signal.
Exciting weeks lie ahead for all three companies. If the market catches itself again, all three companies are attractive long-term. Square wants to expand its blockchain and crypto business further. CoinAnalyst serves a market niche, albeit still in a niche market. SAP is slowly managing to grow its cloud business, which is advantageous for the future.
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