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Keep an eye on DraftKIngs (DKNG).

After pulling back from about $65 to support around $35.07, DKNG has become excessively oversold. All after a disappointing third quarter report, and news the company dropped its $22 billion bid for Entain, which would have given it a foothold in online international gambling.

In its third quarter, DKNG posted a quarterly loss of $1.35 a share on sales of $213 million. Analysts were looking for a loss of just 98 cents on sales of $236.9 million.

“Lower-than-expected sports betting hold primarily due to NFL game outcomes impacted revenue and EBITDA in the quarter,” said CEO Jason Robin, as quoted by Barron’s. “Strong customer acquisition performance in new state launches, particularly Arizona, drove additional promotional investment, which also impacted third quarter revenue.”

With a good deal of negativity now priced into the stock, the stock may be a buy, especially with insiders buying about $2.6 million worth of stock.

DKNG director and Vice Chairman Harry E. Sloan bought 50,000 shares for $2 million on November 16, noting that, “I am confident in DraftKings’ growth trajectory and leading position in the U.S. gaming market. I remain excited in the long-term opportunity DraftKings presents and [CEO] Jason [Robins] and his management team’s ability to deliver on their compelling vision for the company’s future.”

Director Steven J. Murray bought 10,000 shares for $366,600 on November 19, believing DKNG has “tremendous long-term growth potential,” as also quoted by Barron’s. Director Woody Levin also bought 7,000 shares for $260,000, viewing DKNG as an attractive opportunity.

Even better, there’s plenty of industry growth ahead.

Goldman Sachs, for example, believes the industry could grow 40% a year over the next decade. In addition, according to Grand View Research, the market could be worth up to $140.26 billion by 2028, expanding at a CAGR of 10.1% between 2021 and 2028.

With just weeks to go before 2022, one of the top questions has been where to invest for the New Year. While we can’t tell you with 100% certainty what will pop or drop, here are three of the top stocks you may want to seriously consider.

Riot Blockchain (RIOT)

Weakness in Bitcoin mining stock, Riot Blockchain (RIOT) may be an opportunity — especially with Bitcoin showing signs of bottoming out. Not only did Bitcoin catch support dating back to early October, but RSI, MACD, and Williams’ %R have become over-extended in oversold territory, as well. If BTC can push higher from here, mining stocks like RIOT could follow.

Helping, BTIG analyst Gregory Lewis just raised the firm’s price target on RIOT to $50 from $45.
Even better, Riot Blockchain continues to produce impressive numbers. In Q3 2021, the company increased total revenue by 2,532% to a record $64.8, as compared to $2.5 million year over year. It also increased mining revenue by 2,099% to $53.6 million, as compared to $2.4 million year over year.

Nio Inc. (NIO)

Citigroup analyst Jeff Chung says the stock can more than double to $87 a share. He notes recent weakness in NIO was related to the company selling 53.3 million ADRs. However, with the sale now over, the analyst sees multiple catalysts for upside.

One, November sales are expected to be solid.

“NIO delivered 3,667 vehicles in October 2021, representing a decrease of 27.5% year-over-year. The vehicle delivery in October was significantly impacted by reduction in production volume as a result of the restructuring and upgrades of manufacturing lines and the preparation of new products introduction from September 28 to October 15, as well as certain supply chain volatilities,” according to the company.

Two, global EV sales are set to accelerate with global leaders demanding that millions of EVs hit the roads over the next 10 years.

Roblox Corp. (RBLX)

While the metaverse isn’t mainstream just yet, it’s already having a big impact on stocks, like RBLX. That’s because Roblox already has a social metaverse, with a mission of building a human co-experience platform that enables billions of users to come together to play, learn, communicate, explore and expand their friendships, according to Roblox.

Even Morgan Stanley is bullish, raising its price target on RBLX to $150.

“RBLX’s 3Q results and analyst day highlighted its early leadership in the metaverse and continued innovation to capitalize on materially higher long-term monetization opportunity,” they noted, as reported by TipRanks. “While we had previously comped our target multiple to growing social platforms like SNAP/PINS, we believe a premium is appropriate given the advertising optionality on top of RBLX’s existing in-app purchase revenue streams.”

Advanced Micro Devices (AMD)

As we noted at the end of 2020, “After breaking above double top, AMD could be headed to $100 a share. Not only is the company still chipping away at competitor market share, its CEO remains bullish. In fact, CEO Lisa Su said she expects to see more growth in the PC market and a better than expected first quarter in 2021.”

At the moment, AMD is up to $155 and could see $200 in the New Year, as it continues to strip market share from major competitors. Other analysts are just as bullish. Wells Fargo recently raised its price target on AMD to $180 from $145. Wedbush raised its from $140 to $165. Susquehanna raised its target from $145 to $175.

President Biden may be risking an oil price war.

Just days after President Biden announced the release of 50 million barrels of oil from the U.S. strategic reserve (which is about two days of extra supply), the Saudis and Russians may pause any efforts to increase oil production in retaliation.

Here’s what we know.

OPEC+ nations were planning to increase oil supply by 400,000 per day, through 2022. That would boost supply by less than 1%, which is less than what President Biden was hoping for. To help, Biden will now release 50 million barrels of oil from the Strategic Reserve over the next few months. Unfortunately, 50 million barrels is maybe 2.5 days’ worth of supply.

To help even more, the UK, China, India, and Japan will release oil from their reserves, too.

Unfortunately, this could all backfire, sending oil prices even higher.

That’s because the Saudis and Russians may now cut supply in relation for this move.

“This raises the specter of a disruptive standoff that pits major producers led by OPEC+ against big consumers, led by the U.S.,” the Eurasia Group said, as quoted by Yahoo Finance. “Countervailing moves by each side are likely to lead to increased volatility, producing seesawing oil prices and added uncertainty.”

We’ll learn more next week when OPEC+ nations meet to either boost supply by 400,000 per day, or not. If they make no changes, great. If they lower output numbers, we could see higher highs in oil prices. Here’s hoping for the best.

Should oil prices run from here, energy ETFs could push higher, including:

SPDR Energy Select Sector ETF (XLE)

When we first highlighted the XLE, it traded at $52.70. It’s now up to $57.78, and could be headed to $65, near-term unless oil prices back off from highs.

The XLE ETF provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries, as noted by State Street SPDR. Not only does an ETF allow for diversification, you can buy it for less.

Invesco DB Oil Fund (DBO)

DBO traded at $13.85 when we first mentioned it. It’s now up to $14.50, and could push higher with oil prices. This ETF seeks to track changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return plus the interest income from the Fund’s holdings of primarily US Treasury securities and money market income less the Fund’s expenses. It trades WTI crude futures.

iShares Global Energy ETF (IXC)

IXC was at $27. It’s now up to $28.72 and pushing higher. The iShares Global Energy ETF seeks to track the investment results of an index composed of global equities in the energy sector. Trading at $27, some of its top holdings include Exxon Mobil, Chevron Corporation, BP PLC, Total SA, and EOG Resources.

The pullback in Bitcoin may be an attractive opportunity.

For one, there’s still a good deal of institutional and retail interest.

In fact, according to CoinTelegraph, “Crypto investment products, which include exchange-traded funds (ETFs), saw weekly inflows totaling $154 million for the week ending Nov. 20, according to CoinShares‘ latest fund flows report. Like in previous weeks, Bitcoin investment products attracted most of the inflows at $114.4 million.”

Two, Bitcoin is technically oversold on RSI, MACD, and Williams’ %R.

Not only did Bitcoin catch support dating back to early October, but RSI, MACD, and Williams’ %R have become over-extended in oversold territory. If you also pull up a two-year chart of Bitcoin, you can see that when these three indicators align in oversold or overbought territory, the digital currency tends to pivot shortly after.

That’s also good news for mining stocks, such as Marathon Digital (MARA), which dipped to double bottom support at its 50-day moving average. With MARA, Williams’ %R has been a great indicator to watch for excessively oversold conditions. In fact, if you pull up a one-year chart of MARA with just W%R, you can see just how accurate W%R is in calling the bottom.

Marathon Revenue Up 76% Year over Year

Even better, MARA is growing well.

In its most recent quarter, the company said it increased total revenue to $51.7 million, a 76% increase from $29.3 million in the second quarter of 2021 and a 6,091% increase year-over-year from $835,000 in the third quarter of 2020. It also produced 1,252 self-mined bitcoins in the third quarter of 2021, a 91% increase from 654 bitcoins in the second quarter of 2021; as of September 30, 2021, produced 2,098 self-mined bitcoins in 2021.

Analysts at B. Riley like the MARA stock, too. Just days ago, analyst Lucas Pipes raised the firm’s price target to $92 from $87, with a buy rating.

Weakness in BTC and MARA may be a great buy opportunity.

One of the best strategies is to invest in the top Dogs of the Dow.

While 2020 wasn’t a great year for the Dogs, most other years have done very well. 

In 2019, the Dogs were up 20%.  In 2018, they were up about 1%, but still beat the Dow, which fell close to 6%.  In 2017, the dogs were up 19%.  In 2016, they were up 16%.  In 2015, they were up 2.6%.  In 2014, they were up about 11%.

Better, all of the Dogs pay dividends.

As for the 2021 Dogs of the Dow, most are doing well so far.  Since January 2021:

• Chevon (CVX) with a yield of 6.05% — ran from $82 to $114
• IBM (IBM) with a yield of 5.23% – fell from $120 to $117
• Dow (DOW) with a yield of 5.11% – ran from $54 to $59
• Walgreens (WBA) with a yield of 4.72% – ran from $40 to $47.60
• Verizon (VZ) with a yield of 4.27% — fell slightly from $57 to $52
• 3M (MMM) with a yield of 3.37% – ran from $168 to $181
• Cisco (CSCO) with a yield of 3.23% — ran from $44 to $55
• Merck (MRK) with a yield of 3.24% — ran from $75 to $82
• Coca-Cola (KO) with a yield of 3.07% — ran from $52 to $56
• JP Morgan (JPM) with a yield of 2.89% — ran from $123 to $166

That’s an 80% win rate for the Dogs so far this year.

Remember, all you have to do is invest an equal amount in each Dog at the end of the year. Then, during the following year, collect dividends and hopeful gains from each stock, cash out by year end, and then repeat the process.

You may even be able to buy call options on each to potentially profit, too.

While we’re not sure of the 2022 list just yet, we’ll let you know as soon as we know.

The post One of the Best Year-End Market Strategies to Consider appeared first on Morningology.

Biotech is still one of the most exciting sectors to invest in.

By 2025, the global biotech market could be worth up to $720 billion, according to Global Market Insights.

Two, the sector is still one of the safest, most recession-proof investments around. Three, an aging population is demanding more treatments in an effort to live longer lives. At the moment, there are 65 million people over the age of 70 in the United States. As this number continues to grow, we’ll see a need for more medication and treatment options.

There’s also incredible new innovation in genetics and technology, creating new life-saving and life enhancing opportunities. And three, big pharmaceutical companies are buying hot biotech companies to keep their pipelines full to avoid revenue shortfalls created by patent expirations.

Moderna (MRNA)

With the coronavirus still making the rounds, and US FDA approval for its booster shots, Moderna could race higher. At the moment, it’s just beginning to pivot higher from strong support at $225. We’d like to see an eventual bearish gap refill around $332, near-term, and potential test of $450 again, longer-term.

In addition, Piper Jaffray analyst Edward Tenthoff now has a $348 price target on MRNA after the US FDA news. “Moderna’s booster can be given following any primary approved Covid vaccination, which is important as Moderna could gain share from Pfizer (PFE) in the booster market, Tenthoff tells investors in a research note,” as noted by TheFly.com.

Fate Therapeutics (FATE)

Fate Therapeutics just reported that, “The interim Phase 1 data from our FT516 and FT596 programs in relapsed / refractory lymphoma demonstrate that our off-the-shelf, iPSC-derived NK cell product candidates have the potential to deliver substantial therapeutic benefit for patients along with a differentiated safety profile that supports outpatient treatment. We look forward to sharing additional clinical data from both of these programs at the American Society of Hematology Annual Meeting in December,” said Scott Wolchko, President and Chief Executive Officer of Fate Therapeutics.

“We also continue to be pleased with the clinical advancement of our multiplexed-engineered, iPSC-derived NK cell pipeline, where we have now successfully treated the first patients with FT516 in disease-specific expansion cohorts for lymphoma and with FT538 in combination with daratumumab for multiple myeloma. Additionally, we have successfully completed GMP manufacture and release of FT576, our multi-antigen targeted CAR BCMA product candidate for multiple myeloma, and have initiated enrollment in our Phase 1 study.”

Ultragenyx Pharmaceutical (RARE)

“In the third quarter we executed on key commercial and clinical milestones, including the resumption of the GTX-102 study for the treatment of Angelman syndrome and the initiation of our seamless Phase 1/2/3 study of UX701 for the treatment of Wilson disease. Looking ahead, we are preparing to initiate four additional studies across multiple modalities, including two Phase 3 gene therapies, a Phase 2/3 anti-sclerostin monoclonal antibody, and a Phase 1/2 leveraging our first mRNA program,” said Emil D. Kakkis, M.D., Ph.D., CEO and President of Ultragenyx. “The breadth of our clinical programs with the strength of our balance sheet put us in position to deliver disease-modifying therapies across a spectrum of rare diseases.”

The post Beaten Down Biotech Stocks that Could Rally in 2022 appeared first on Morningology.

Shares of Apple (AAPL) just spiked by nearly $4 just now.

All after a report suggesting a self-driving electric vehicle launch by 2025.

In fact, according to Bloomberg, Apple wants to design a car without a steering wheel or even pedals. “The Apple car chip is the most advanced component that Apple has developed internally and is made up primarily of neural processors that can handle the artificial intelligence needed for autonomous driving. The chip’s capabilities mean it will run hot and likely require the development of a sophisticated cooling system,” reports Bloomberg.

If true, it could expose Apple to a potential multi-trillion-dollar autonomous market.

In fact, according to General Motors in 2020, as noted by CNBC, “The global autonomous vehicle industry is an $8 trillion market opportunity.”

Better not only would it be a sizable catalyst for Apple, but perhaps even component stocks.

Lidar stocks, like Velodyne Lidar (VLDR) and Luminar Technologies (LAZR), for example, could push higher on the news. After all, lidar is reportedly essential for self-driving cars because they allow computers to take a 3D image of the world around them, and can calculate how far away objects may be and if those objects are moving.

Stay tuned for more on this developing story.

The post This May be an $8 Trillion Opportunity for Apple appeared first on Morningology.

Shorts are attacking Cassava Sciences (SAVA) again.

Not long ago, a firm called into question the quality and integrity of SAVA’s Alzheimer’s test results, and asked the US FDA to halt the SAVA trials until there’s further investigation, the stock plummeted from $146 to $40.

Weeks later, a review by the Journal of Neuroscience showed no evidence of data manipulation with the company’s drug candidate.

“The Journal of Neuroscience follows COPE [Committee on Publication Ethics] guidelines and takes any claims of misconduct very seriously. In response to allegations of data manipulation in the Journal requested raw data, including images of original, uncropped Western blots. The Journal determined that there was one duplicated panel in Figure 8 and a Corrigendum was requested and will be printed. No evidence of data manipulation was found for Western blot data,” as noted in a SAVA press release.

Following that news, SAVA soared.

Today, SAVA is plummeting – again – by more than $15 a share.

This time, shareholder firm Labaton Sucharow claims the “scientific experiments backing Cassava’s drug, simufilam, are impossible and the biomarker discrepancies ‘are so extreme they suggest lab errors or manipulation.’ Further, the firm claims the results of clinical studies suggest Cassava cherry-picked its patients.”

This is now the second time that law firm caused the SAVA stock to fall.

From here, hopefully this will all blow over again, as we near a second Phase 3 study from SAVA to evaluate safety and efficacy of its drug over 52 weeks, with 750 patients.

Just wait for all of the chaos to fade if you’re thinking about jumping in. Let’s also wait to see if SAVA can hold strong support dating back to April 2021. If it fails to hold, there’s no support until the SAVA stock reaches $31.50.

The post Crisis in Cassava Sciences May be Opportunity appeared first on Morningology.

Get ready for the metaverse.

Or, a virtual reality world where users can interact with each other. Essentially, it’s virtual and augmented reality, social media, and gaming combined.

Unfortunately, it’s not up and running just yet.

But when it is, we could be looking at a multi-trillion-dollar market opportunity, says Epic Games’ CEO Tim Sweeney. Even analysts at Bloomberg Intelligence say the market could be worth $800 billion by 2024. Better, investors are already flocking to the stocks that could benefit most, including Microsoft, Apple, Tencent Holdings, Nvidia, Meta Platforms, and Unity Software to name a few.

Even Roblox (RBLX) is running on the potential of the metaverse.

All because RBLX is the closest thing to a metaverse, with a “mission of building a human co-experience platform that enables billions of users to come together to play, learn, communicate, explore and expand their friendships,” according to its site.

In addition, Morgan Stanley analyst Brian Nowak reiterated an overweight rating on the stock with a price target of $88. He believes RBLX has an early lead with the metaverse with “continued innovation to capitalize on materially higher long-term monetization,” as quoted by Investing.com.

Plus, there’s plenty of growth at Roblox.

Q3 revenue came in at $509.3 million, 102% higher than year-earlier numbers. Bookings jumped 28% year-over-year to $637.8 million, daily active users increased 31% and the number of hours of user engagement jumped 28% to 11.2 billion.

“Engagement is our north star. We’re very pleased that during the third quarter, people of all ages from across the globe chose to spend over 11 billion hours on Roblox,” said David Baszucki, CEO of Roblox. “We are happy to report that the developer community earned over $130 million in the quarter and is on pace to earn well over $500 million this year. As we finish 2021 and head into 2022, we will continue to invest in innovative technology to enable our developer community to do what they do best – build and create.”

In short, pay close attention. RBLX could be a standout winner in 2022.

The post One of the Top Metaverse Stocks to Consider appeared first on Morningology.

Affirm (AFRM) may be incredibly oversold.

But momentum shows no signs of slowing.

Since we highlighted the AFFRM stock around $63 in August, we’ve watched it soar to $152. From here, it could see $200 by year end.

All thanks to partnerships with companies, like Amazon and Target. In fact, Affirm just expanded its relationship with Amazon. “Affirm will be a financing option for all eligible purchases of $50 or more on Amazon.com and the Amazon mobile app. The company said Affirm will be the only third-party, non-credit-card buy now, pay later option for U.S. Amazon customers,” says Barron’s.

Even better, according to the company:

“Seven in 10 Americans say they typically go over budget during the holidays, according to new research from the first Affirm Consumer Spend Report, Affirm look at what consumers are up to—and where they’re headed next. With many Americans eager to make this year’s holiday season memorable, this year is no different. Affirm discovered nearly half (48%) plan to spend more money this year because they couldn’t celebrate like they normally would last year.”

Earnings have been just as explosive.

For the quarter, revenue soared 55% higher to $269.4 million. That was well ahead of the company’s own guidance range of $240 million to $250 million. Gross merchandise value was $2.7 billion, which also beat a guidance range of $2.42 billion to $2.52 billion.

In addition, according to Barron’s, “The company lifted its revenue forecast for the June 2022 fiscal year to between $1.225 billion and $1.25 billion, up from a previous range of $1.16 billion to $1.19 billion. Affirm now sees full-year GMV of between $13.13 billion and $13.38 billion, up from a previous target range of $12.45 billion to $12.75 billion.”

Again, AFRM could see $200 before long.

The post This is Why Affirm Holdings Could Rally to $200 appeared first on Morningology.