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HypeIndex Stocks Review as the S&P 500 Hovers Near Record High

Writer's picture: Chris Chris

Updated: Oct 9, 2024

The stock market has been relatively volatile in the past two weeks as investors reacted to the Federal Reserve decision and the ongoing geopolitical issues in the Middle East.


The Federal Reserve decided to slash interest rates by 0.50% in its September meeting and pointed to more cuts. However, the Fed may opt for gradual easing after the US published strong jobs numbers and as the crisis in the Middle East continues.


The data showed that the economy created over 250k jobs in September while the unemployment rate improved to 4.1%. 


There is a likelihood that inflation will hold steady for a while now that crude oil price has bounced back as a war in the Middle East loom. 

Qualcomm | QCOM


Qualcomm stock
Qualcomm stock

Background

Qualcomm is a leading semiconductor company that manufactures chips for some of the biggest companies in the industry like Apple and Samsung. Recently, it has started making AI-focused computer chips that are being used by companies like Microsoft and HP. 


The company is also growing its business in other industries like the Internet of things (IoT) and the automobile sector. Qualcomm has a market cap of over $180 billion and annual revenues of $37 billion.


Summary


Qualcomm’s hype jumped two weeks ago when rumors spread that it had made a bid to acquire Intel, the troubled semiconductor pioneer. The two companies are yet to confirm about the deal, but analysts believe that it would not be approved by regulators because of their sizes. 


Intel has also done well after rumors said that Apollo Global Management was considering making a big $5 billion investment in the company. As such, Qualcomm stock has remained in a tight range as investors wait for more information about its Intel bid and the upcoming earnings scheduled for November 6. 


  • Review date: 25rd September

  • Hype change: 70%

  • Price change: 0.67%

  • Sentiment: POSITIVE


PayPal | PYPL


PayPal stock
PayPal stock

Background

PayPal is a top fintech company that provides services to both consumers and businesses. Its primary business is the wallet, which lets users save and spend their money.


Its business also include solutions like Braintree, where it processes payments to other companies. This business competes with the likes of Adyen, Stripe, and Square, and has been one of its top challenges lately because of its competition.

Summary


PayPal stock has faced major challenges in the last few years as it dropped from over $300 in 2021 to below $50 last year. This decline happened as the company published weak results and lost millions of users. 


The stock has bounced back lately as signs emerged that the turnaround was working. It has risen by over 40% from its lowest point this year and is hovering at its highest point since February 2023. Also, it has formed a golden cross pattern pointing to more gains ahead. Its earnings on October 29 will be the next catalyst.


  • Review date: 26th September

  • Hype change: 97%

  • Price change: 1.28%

  • Sentiment: POSITIVE


Moody’s | MCO


Moody's stock
Moody's stock

Background


Moody’s is a leading company that operates as an oligopoly in the credit ratings industry, where it competes with Fitch and S&P Global. It makes money by providing ratings on key countries and governments. Additionally, it provides other solutions like research, insights, and data. 

Summary


Moody’s a company that Warren Buffett has invested in for years, has done well in the past few years, with its stock doubling from its lowest level in 2023. 


It has done well as its annual revenue has grown gradually, helping it continue paying dividends and reducing its share count. It has reduced its outstanding shares from over 190 million in 2018 to 182 million. 


Analysts are optimistic that Moody’s will continue doing well now that interest rates have started coming down. The impact is that many countries and governments will turn to the debt market, raising the need for credit ratings. 


  • Review date: 27rd September

  • Hype change: 114%

  • Price change: -2.74%

  • Sentiment: POSITIVE


MercadoLibre | MELI


MercadoLibre stock
MercadoLibre stock

Background

MercadoLibre is a top e-commerce  and fintech with operations in most South American countries like Brazil, Argentina, and Colombia. It makes most of its money through transaction costs. 


Its other revenue sources are in its fintech business, where it processes payment transactions for millions of customers and provides loans to users. Its asset under management have risen from $3.5 billion in 2023 to $6.6 billion.

Summary


MELI has been one of the best-performing companies in the last decade as it jumped by over 1,500%, bringing its market cap to over $100 billion.


The company’s annual revenue has jumped from over $2.2 billion in 2019 to over $17 billion in the trailing twelve months as it continued to gain market share. It has also become a highly profitable company with a large moat in its ecosystem. For one, it is the only e-commerce company with a strong logistics presence in the region.


  • Review date: 27rd September

  • Hype change: 73%

  • Price change: -7.48%

  • Sentiment: POSITIVE


Alibaba | BABA


Alibaba stock
Alibaba stock

Background

Alibaba is one of the biggest companies in China, and it has a market cap of over $274 billion. It is a top company involved in industries like e-commerce, retail, fintech, cloud computing, and entertainment. 


BABA has been a highly embattled company in the past few years because of the stringent regulations from Beijing’s authorities. It has also gone through substantial competition from the likes of PDD and JD. 


As a result, Alibaba’s stock dropped from a record high of $307 in 2020 to $56 in October 2022 as its growth slowed. 


Summary


Alibaba’s stock has staged a strong recovery in the past few weeks. It has risen by over 76% from its lowest point this year and is hovering at its highest swing since January 2023.


The company has done well for three main reasons. First, Chinese regulators have largely stopped investigating it, meaning that the management will now focus on its growth.


Second, Alibaba stock has recovered because of the massive stimulus package announced by Beijing. Analysts expect that the company will see more demand as spending bounces back.


Further, Alibaba is often seen as a highly undervalued company with a price-to-earnings ratio of less than 20. This valuation has made it an attractive company to value investors. 


  • Review date: 19th September

  • Hype change: 120%

  • Price change: 25%

  • Sentiment: POSITIVE


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HypeIndex is an AI platform that detects Hype in stocks and cryptos before it moves the market, providing reliable early detection for profitable investment opportunities.

The algorithm for our proprietary HypeIndex score is based on sentiment analysis, data science and machine learning.



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