Solana Nears 'Death Cross'

Today is Tuesday, February 1, 2022.

New to this newsletter? Sign up here.

Solana Nears 'Death Cross'

The price of cryptocurrency Solana has dropped over 37% in January 2022 and it is close to hitting a really bad selling level.

Background: 2021 was a great year for Solana, as the cryptocurrency increased by 10,000%. But 2022 has not been so kind to Solana.

Big Picture: While most cryptos have had a bad start to 2022, Solana appears to have suffered the biggest drop so far, according to an analysis from CoinDesk released Monday.

Challenges: There were numerous glitches with Solana in January, including at least six outages of more than eight hours each. These disruptions are frustrating traders.

Death Cross: Solana could reach its first “death cross” this week, according to CoinTelegraph. A “death cross” is a technical pattern that indicates an investment downturn, which usually refers to the 50-day moving average falling below the 200-day moving average.

Final Thoughts: There are some glimmers of hope for Solana. Phantom, a Solana wallet, raised $109 million on Monday, proof that Solana can turn things around for traders.

Notables

Notable Earnings Today: Alphabet (Nasdaq: GOOGL), PayPal (Nasdaq: PYPL), Exxon Mobil (NYSE: XOM), Advanced Micro Devices (Nasdaq: AMD), United Parcel Service (NYSE: UPS), General Motors (NYSE: GM), Starbucks (Nasdaq: SBUX), Enterprise Products Partners (NYSE: EPD), Gilead Sciences (Nasdaq: GILD), Electronic Arts (Nasdaq: EA), PulteGroup (NYSE: PHM), ArcBest (Nasdaq: ARCB), Sirius XM Holdings (Nasdaq: SIRI), Match Group (Nasdaq: MTCH), MicroStrategy (Nasdq: MSTR), M.D.C. Holdings (NYSE: MDC), Manpower Group (NYSE: MAN), Lennox International (NYSE:LII), Stanley Black & Decker (NYSE: SWK), Amcor (NYSE: AMCR), Ashland Global Holdings (NYSE: ASH), Catalent (NYSE: CTLT), Chubb (NYSE: CB), Encompass Health (NYSE: EHC), Franklin Resources (NYSE: BEN), Genworth Financial (NYSE: GNW), Helmerich & Payne (NYSE: HP), Imperial Oil (NYSEAMERICAN: IMO), Liberty Media (Nasdaq: LSXMA), Nomura Holdings (NYSE: NMR), Pitney Bowes (NYSE: PBI), Scotts Miracle-Gro (NYSE: SMG), SunCoke Energy (NYSE: SXC), Super Micro Computer (Nasdaq: SMCI), UBS Group (NYSE: UBS), Unum Group (NYSE: UNM), DLH Holdings (Nasdaq: DLHC).

Notable IPOs Today: NOVONIX Limited American Depository Shares (Nasdaq: NVX), Forbion European Acquisition Corp. Class A Ordinary Shares (Nasdaq: FRBN), Sizzle Acquisition Corp. Common stock (Nasdaq: SZZL), Alset Capital Acquisition Corp. Unit (Nasdaq: ACAXU), Murphy Canyon Acquisition Corp. Unit (Nasdaq: MURFU), Maris-Tech Ltd. Ordinary Shares (Nasdaq: MTEK), Modular Medical, Inc. Common Stock (Nasdaq: MODD).

Notable Equity Crowdfunding Campaigns Ending Today: Commongrounds Cooperative (MainVest).

Notable Economic Events Today: Manufacturing PMI (9:45 a.m. ET), ISM manufacturing index (10:00 a.m. ET), JOLTs job openings (10:00 a.m. ET), API weekly crude oil stock (4:30 p.m. ET).

NXP’s “Material Weakness” Hits Stock

Shares of NXP (Nasdaq: NXPI) fell 1.19% in after-hours trading on Monday after the semiconductor manufacturer posted its quarterly earnings.

Financials: NXP reported earnings per share of $2.24 and revenue of $3.04 billion. Both were better than expected.

The Problems: The company said in its earnings that it will report an “expected material weakness” in its annual audit associated with “ineffective information technology general controls in the areas of user access, change-management and information technology (IT) operations over certain IT systems that support the company’s financial reporting processes.”

Final Thoughts: NXP also announced that it has increased its dividend by 50% and it has approved a new $2 billion buyback plan, which is good for investors.

Legacy Giants Break Into Streaming

With streaming becoming more mainstream, several legacy media companies are trying to grow their streaming platforms.

Magical: Shares of Disney (NYSE: DIS), are down 16% in the past year, but keep an eye on its streaming platform Disney+. The company is spending $33 billion on content in 2022, which could help Disney+ gain more subscribers.

Going for Gold: Comcast (Nasdaq: CMCSA) recently said that its streaming platform Peacock lost $1.7 billion last year. That news hurts, but Peacock hopes that its special coverage of the 2022 Winter Olympics will boost subscribers.

Final Thoughts: Finally, keep an eye on Apple (Nasdaq: APPLE). The company is also trying to boost revenue from its Apple TV+ platform.

Trends to Watch

Rough Month: Nasdaq narrowly misses worst January ever as Wall Street gains (Reuters)

Getting Worse: Peloton internal docs show it slashed 2022 sales goals for apparel unit after segment revenue more than doubled last year (CNBC)

Charter Deal: Anchorage Closes in on FDIC Crypto Custodian Deal, Documents Show (CoinDesk)

Famous Last Wordle: The New York Times Buys Wordle (The New York Times)

The End: Zuckerberg’s dream of launching a cryptocurrency is officially over (The Verge)

Thank you for reading!

Forward to a friend and tell them to sign up here.

Want more investing tips? Listen to the podcast.

Questions or comments? Hit reply to reach out.