The #1 Catalyst for This Week’s Trading

Join TradeAlgo's Free Live Trading Session ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, The #1 Catalyst for This Week’s Trading The eyes will be on Nvidia’s earnings after the bell today. Nvidia is one of the biggest faces of the AI Supercycle, and Wall Street is waiting to see if its massive valuation is justified. The AI chipmaker is expected to post a good quarter, but the biggest question will be its demand forecast for the rest of the year. - “In our view, this is the market event to watch this week,” said Anthony Saglimbene at Ameriprise. “While one company doesn’t usually make or break a market, the growing influence of Nvidia on the overall bullish stock narrative, key tech companies, and broader indexes warrants close attention.” The stock is perhaps one of the highest-valued in the market, so the company needs to report strong results to make its valuation look not too high. - “With technology now trading at close to 30x forward estimates, that seems to be a ceiling for the tech sector. Makes it pretty hard for additional PE multiple expansion,” said Sam Stovall, chief investment strategist at CFRA Research. - “What investors have to wait on is for earnings to come in better-than-anticipated so that the 2024 and 2025 estimates end up being improved.” Sam Stovall, chief investment strategist at CFRA Research (Photo: Bloomberg) Cybersecurity company Palo Alto Networks nosedived by 13% in extended trading yesterday after lowering its full-year guidance for revenue and billings. The company beat on the top and bottom lines, but Wall Street punished it for a poor outlook. Palo Alto Networks expects its full-year total billings to be between $10.1 billion and $10.2 billion versus the previous guidance of $10.7 billion and $10.8 billion. Notably, its full-year billings growth rate plunged from between 10% to 11% to previous guidance of 16% to 17%. Could it be a sign of slowing demand in the tech sector? We will see with Nvidia’s guidance to see if Big Tech is slowing their AI spending rate. - “Any signs that the AI boom may be slowing could lead to a big bearish reversal in the stock, so traders are justifiably on tenterhooks ahead of the release,” said Matthew Weller at Forex.com and City Index. One thing for sure – investors expect big moves after Nvidia’s earnings result. Prices for short-term calls and puts implied a 10.6% move in the shares on Thursday (a day after the earnings report). A move up at this size would push the company to its new all-time high or lose all the gains in February. (Source: Bloomberg) This Company Just Hit An Inflection Point, And You Need To Get In Right Now Today’s Stock Pick: Xometry Inc ([XMTR]( Jeff Bezos, the founder of Amazon.com, emphasized the power of the flywheel that drove the company’s phenomenal growth. How it works is simple. - When it attracts more sellers on the platform, it offers more options for a consumer to buy from. Naturally, it would attract more consumers to the platform. - Seeing that there are plenty of consumers using Amazon.com, more suppliers want to join and offer their products there. - It leads to more choices on the platform, thus attracting more consumers. And so on. Xometry (today’s stock pick) is leveraging the same flywheel for manufacturers and Fortune 1000 companies. “Manufacturing on Demand”: It is the platform that allows a company to upload a 3D model and instantly receive a prototype without going through the red tape. In fact, you could do it on Xometry’s homepage. All you have to do is to drag and drop your 3D model file: (Source: Xometry) Imagine if your prototype was successful, you can quickly scale up the production on the platform. Big data: What’s more, the company’s data scientists employ the latest neural net-based machine learning techniques to train its pricing and sourcing algorithms. So, a company could get an instant quote without talking to anybody on the phone. And these quotes will be offered to its network of manufacturing suppliers. Do you see how the flywheel work here? Because Xometry brings jobs to manufacturing suppliers, more suppliers may feel compelled to join the platform. With more options, more companies want to use Xometry due to the wide-ranging options. Good enough, highly-respected engineering companies use Xometry to order prototypes and scale up productions. These include BMW, GE, NASA, and Dell: Huge market: Xometry plays in a massive, over $2 trillion market. The global manufacturing industry is worth about $35 trillion, so it has a huge growth roadmap for many years to come. Its verticals include aerospace, medical, government, automotive, and so on: (Source: Xometry) Companies love the platform: What’s the best metric to measure how much companies love a product/service? Always follow the money. Talk is cheap, while money talks. Companies often increase spending on the platform after the first-time use. For example, an aerospace and defense company increased its spending by 172% CAGR! Let me emphasize this – we are talking about CAGR, which would mean annual growth in spending. A government agency boosted its spending by 415% CAGR since 2017. (Source: Xometry) Xometry Workcenter: The coolest thing about its platform is that suppliers view it as a one-stop shop to manage their orders. It could view the job board to bid on companies’ jobs. Instead of handling orders in various places, they could handle cash flow in the Workcenter – including their non-Xometry customers. Once again, this is the flywheel at work. The company makes it insanely easy for suppliers to do business, so it could attract more suppliers to its platform. Sure enough, its active sellers grew by 47% CAGR between FY’19 and FY’22: (Source: Xometry) Growing revenue: More importantly, it can start enjoying operational leverage. Because its platform can handle “unlimited” customers, any extra volume doesn’t always mean its costs have to rise as well. Sure enough, its gross margin has increased over the year despite the breathtaking growth in revenue: (Source: Xometry) Bottom line: Xometry has impressive technology that makes life easier for companies and suppliers, and its platform creates a powerful competitive moat through the flywheel effect. This could be a grand slam pick, and it’s worthy of an addition to your portfolio. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](