Lumentum stock has continued rising and is now hovering at its all-time high, helped by the soaring demand for its products. It jumped to a high of $1,092, up by over 80% from its lowest level since July this year. This surge has driven its market capitalization to over $97 billion.

Lumentum stock is soaring amid rising demand

Lumentum is a top technology company that makes optics and photonic solutions, which are used to move data at high speed. Its products have become common in data centers in the United States and other countries. 

As a result, Nvidia has become a big investor in the company. It invested $2 billion in the company, which has now jumped by over 80% since then. 

Nvidia is now seeking to scale out its co-packaged optics (CPO). In a statement, GF Securities expects that Nvidia will ship 15,000 units in the fourth quarter, followed by 16,000 and 30,000 in early 2027 and mid-2027. It expects these shipments to reach 100,000 units next year.

These numbers will help to supercharge its revenue growth. The most recent results showed that its revenue jumped to $1 billion in the fourth quarter, with the components division having the biggest share. Its components made $649 million, while systems made $356 million.

The revenue growth has been accompanied by a surge in margins. Its gross margin jumped to 50.4% from 37.8% from a year earlier, and this growth may continue in the near term as demand continues rising. 

Analysts expect that its revenue growth has more room to go. The average estimate is that its first-quarter revenue rose by 134% to $1.25 billion, with the most optimistic forecast being $1.26 billion. Most importantly, the earnings-per-share is expected to jump from $1.1 to $4.21. These numbers make it one of the fastest-growing companies in the US.

Potential challenges facing LITE stock

There are two main potential challenges. The first one is if the data center industry slows, as this may impact its business. On the positive side, analysts believe that the industry has more room to grow, with Gartner analysts predicting that it will jump to over $3.64 trillion in 2027 from $2.67 trillion this year.

The other potential risk for the company is its high valuation. It has a forward, with a forward price-to-earnings ratio of 50, much higher than Nvidia’s 24 and Micron’s 8. Its multiple is also much higher than the S&P 500 Index’s 19.

Lumentum share price technical analysis

LITE stock chart | Source: TradingView

The daily chart shows that the LITE stock price has rebounded in the past few months. It soared from a low of $596 in July to the current $1,085. A closer look at the chart shows that it formed an inverted head-and-shoulders pattern, one of the most common bullish reversal patterns in technical analysis.

The stock has jumped above the 50-day and 100-day moving averages and the Supertrend indicator. Also, the Average Directional Index (ADX) has continued rising, a sign that the momentum is continuing. 

Therefore, the path of least resistance for the stock is higher, with the next key target to watch being at $1,200. A drop below the support level of $1,025 will invalidate the bullish outlook.

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SanDisk stock has remained under pressure in the past few days and is now sitting at a crucial support level. SNDK dropped to $1,720, a few points below the important resistance level of $1,893. It has formed a highly bullish ascending triangle pattern, pointing to more gains in the coming days or weeks. 

SanDisk stock has formed a highly bullish chart pattern

The daily chart shows that SNDK stock has rebounded in the past few months, rising from $993 in July to the current $1,720. A closer look shows that it has formed an ascending triangle pattern, which is made up of a horizontal resistance and an ascending trendline. It has now slipped to the lower side of this pattern. 

An ascending triangle is one of the most common bullish continuation signs in technical analysis. In most cases, a bullish breakout tends to be strong bullish breakout whenever it nears the confluence line. 

The stock has moved above the Supertrend indicator. It has also remained above the 50-day Exponential Moving Average (EMA), a sign that bulls are in control for now. Also, the Relative Strength Index (RSI) and the MACD have continued rising. 

Therefore, the path of least resistance is bullish, with the next target to watch being the psychological level of $2,000. A move above that level will point to more gains, potentially to $2,355, its highest point this year, which is about 37% above the current level. 

The bullish outlook will become invalid if the stock drops below the ascending trendline. Such a move will point to more downside, potentially to the support of $1,500.

SNDK stock chart | Source: TradingView

SanDisk has become a bargain

Companies in the memory space have become some of the cheapest despite their strong revenue and profitability growth. For example, Micron Technology has a forward price-to-earnings ratio of 8, much lower than the S&P 500 Index’s 19. 

This cheap valuation is notable because it is one of the fastest-growing companies in the US. In a report released last week, the company said that its revenue jumped to over $54 billion in the fiscal fourth quarter, while its gross margin rising to 86%.

The same is true with SanDisk, one of the top players in the memory industry. SanDisk has a forward PE ratio of 8, also lower than the technology sector average of 23. It is also much lower than other companies that are not growing as fast. 

These numbers explain why many analysts tracking the company have a bullish outlook. Rosenblatt has a target of $2,400, while Mizuho targets $1,875. Wedbush’s Matt Bryson has maintained a target of $2,000. JPMorgan targets $2,250, while Evercore has a target of $2,800. 

The cheap valuation is likely because investors remember the past boom-and-bust cycles in the memory space. For example, all companies in the space experienced a deep revenue dive in 2023 as the pandemic boom stalled.

SanDisk’s management knows this and has announced a strategy to prevent the cycle from repeating. It has entered into long-term contracts with some of the biggest companies in the industry, setting future floor and ceiling prices. 

The company is also expected to continue growing in the foreseeable future, with the annual revenue expected to jump by 141% to $48.9 billion. It is expected to make over $58 billion next year, and chances are that its real figures will be much higher.

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Scottish Mortgage share price has staged a strong breakout to a record high, supported by the ongoing recovery in its top portfolio companies. The stock has jumped to 1,645p, up about 40% this year and nearly 50% from its lowest point in 2026. It has also formed a cup-and-handle pattern, which points to further gains in the near term.

Scottish Mortgage stock jumps ahead of Anthropic IPO

SMT stock has done well in the past few months as investors focused on the upcoming Anthropic IPO. Anthropic accounts for 2.9% of its portfolio, a figure that may jump in the coming months when the company goes public. 

The company is expected to raise over $100 billion at a $2 trillion valuation, making it the biggest IPO on record after SpaceX. Historically, as we saw with SpaceX, companies initially jump after the IPO as investors rush to buy.

A key challenge, however, is that stocks tend to drop after the initial surge. Another one is that the company continues to burn substantial amounts of cash. Its S1 document showed that its loss jumped to over $42 billion last year. 

Anthropic has also made substantial spending commitments. It reached a $50 billion deal with Fluidstack, $45 billion with Nscale, $11.6 billion with Akamai, and a $1.25 billion a month with SpaceX. This spending means that the company may experience some substantial cash burn.

Top portfolio companies have jumped

Scottish Mortgage shares have performed well, supported by strong gains across the companies in its portfolio. SpaceX, its largest holding, jumped to $171, its highest level since June 22nd. The stock has surged 65% from its lowest point this year.

The rally may continue, as the analyst consensus price target is $218. Of the 37 analysts covering the stock, 30 have a buy rating, and 7 have a hold rating. The most optimistic target is $800.

Taiwan Semiconductor (TSMC) stock jumped to a record high of $485, up by over 30% from its lowest level in July this year. The company is benefiting from the ongoing AI boom that has led to a surge in revenue and profits. Its second-quarter revenue jumped by 33.7% to over $40.2 billion.

Nvidia, another top company in Scottish Mortgage’s portfolio, jumped to a record high of $240. It has soared by 27% from its lowest point in July, with its valuation nearing the crucial level of $6 trillion. Other top companies like MercadoLibre, ASML, and Shopify have all jumped.

Scottish Mortgage share price formed a cup-and-handle pattern

SMT stock chart | Source: TradingView

The weekly chart also explains why the stock has soared. A closer look shows that it formed a cup-and-handle pattern, which is made up of a cup-and-handle pattern, which often leads to a strong continuation. The upper side of this cup was at $1,533, its highest point in November 2021. 

It then formed the handle section between June and July. It has now moved above the cup’s upper side, confirming the bullish breakout.

Scottish Mortgage has moved above all moving averages, while the Average Directional Index (ADX) has moved to 26, a sign that the trend is strengthening. Therefore, the stock will likely continue rising, potentially to $2,000 in the coming months. 

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PayPal stock has remained in a narrow range since September as investors wait for the next move after Stripe and Advent International decided to abandon its buyout. PYPL was trading at $54.41 on Monday, lower than the August high of $62.45. It has formed an island reversal pattern, pointing to a rebound as its third-quarter earnings report loom.

PayPal stock has wavered after Stripe and Advent abandoned

PYPL stock has moved sideways in the past few weeks as investors reacted to the decision by Stripe and Advent decided to abandon their takeover bid. According to Bloomberg, PayPal’s management saw the takeover bid as being highly inadequate. They believe that the company can achieve a better valuation if its turnaround measures work.

PayPal has then reacted to reports that other bidders may be interested in PayPal. Besides, it is one of the most popular companies in the fintech industry. It is also a highly undervalued company with a forward price-to-earnings ratio of 9.80, lower than the sector median of 11. It is also much lower than the five-year average of 16. 

A potential acquirer has several ways of boosting shareholder value. For example, PayPal can opt to spin off the highly valuable Venmo product into a separately traded company. It may also decide to sell its non-core assets and cut costs. 

PayPal’s growth has stalled over time

PayPal’s ongoing PayPal’s weakness is mostly because its growth has stalled following the surge that happened during the pandemic. 

Its most recent results showed that the number of PayPal accounts remained flat at 439 million, with the number of active accounts rising by just 1% to 228 million. PayPal’s number of payment transactions rose by 8%, while the number of transactions per active account rose by 3%.

Venmo’s transaction growth continued as it experienced the second consecutive quarter of mid-teens growth.

Analysts expect the company’s revenue growth to remain under pressure for a while. The average estimate among analysts is that its annual revenue will grow by 4.76% this year and 4.2% next year. Its earnings-per-share is also expected to remain under pressure. 

Most analysts have a neutral outlook for the company, with the average estimate being $56, a few points about where it is today. 34 analysts have a hold rating, while 9 and 4 have a buy and sell rating, respectively.

PYPL stock price technical analysis

PayPal stock chart | Source: TradingView

The daily chart shows that the PYPL stock has struggled in the past few months. It formed a big down-gap in February after releasing weak earnings. It also formed another down-gap in April and an up-gap in July after Stripe and Advent made their bid. 

The stock then made a big down-gap in August after the two companies walked away. A closer look shows that it has formed an island reversal pattern, which happens when an asset makes a gap and then consolidates. It has remained above the 100-day Exponential Moving Average (EMA).

Therefore, the stock will likely rebound ahead of its earnings. If this happens, it may rebound to the next key resistance at $62.45, its highest point in August.

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eToro Group stock price continued its strong sell-off this week, reaching its lowest level since February this year. It has slumped by 40% from its highest point this year, erasing millions of dollars in value. This sell-off may continue as the stock forms an inverted cup-and-handle pattern. 

eToro stock has slumped as growth reverses

ETOR stock has been in a strong sell-off this year, a trend that continued after it released its earnings report on August 10 this year. Its results showed that its revenue growth slowed because of the crypto winter.

The revenue rose by 9% in the second quarter to $229 million, driven by its equites trading business. Equities now account for 60% of its trading volume and is followed by commodities.

The results also showed that its number of customers rose to 4.28 million, up by 18% from the same period last year. This increase led to an increase in assets under administration, which rose to $19.2 billion from $17.5 billion in Q2’25. Total trades also jumped by over 60% during the quarter.

eToro’s revenue growth is expected to remain under pressure this year because of the recent crypto weakness. Yahoo Finance data estimates that the company’s third-quarter revenue is expected to drop by 5.3% to $203.1 million.

eToro’s earnings per share are also expected to drop from 53 cents in Q3’25 to $0.4 in the last quarter. For the year, analysts expects that its annual revenue is expected to come in at $918 million, up by 5.80% YoY. This revenue growth is expected to be lower than other companies, including Robinhood Markets, which is expected to grow by 17% this year. WeBull’s revenue is also expected to grow by over 40% this year. 

Analysts have mixed opinions on eToro stock. In a recent note, Cantor Fitzgerald reiterated its overweight rating, while Mizuho’s Dan Dolev maintained the outperform rating, even when lowering the target from $52 to $43. Canaccord Genuity’s Joseph Vafi also reiterated his buy rating.

One of the main reasons for this is its valuation, which shows that it has a forward price-to-earnings ratio of 10.3, much lower than the S&P 500 estimate of 19.1. Its forward PEG ratio of 0.59 is also lower than other companies.

eToro share price technical analysis

ETOR stock chart | Source: TradingView

The daily chart shows that the ETOR stock has retreated in the past few months. A closer look shows that it formed an inverted cup-and-handle pattern, which is made up of a horizontal support and a rounded top. It formed the handle section between August 8 and September 3. 

The stock has already moved below the lower side of the pattern and is now nearing the key support of $24.80, its lowest point in February. A drop below that level will point to more downside, potentially to $20. 

eToro also remains below the 50-day moving average, while the Average Directional Index (ADX) has jumped to 25.56, its highest level since August 26. A rising ADX is usually a sign that the downtrend is gaining momentum.

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Figma stock continued its ongoing reversal and is slowly hovering near its all-time low as concerns about AI disruption accelerated. After rebounding to $31.30 on August 27, FIG has dropped to $20.25. Despite these fears, Figma’s business has demonstrated strong growth, which may help to boost its stock.

Figma’s growth is continuing despite revenue growth

Figma is a top technology company that runs a collaborative platform that teams use to design, prototype, and hand off digital products like websites and applications. 

Its business has come under pressure as AI models advance because they can handle some of the tasks that it does. For example, platforms like Claude and ChatGPT can easily design and prototype products.

Still, there are positive signs that Figma’s business is doing well, with revenue soaring 48% to $370 million. This revenue was well above its guidance and what analysts were expecting. 

The surge came as paid customers grew and user adoption accelerated. It had 15,964 paid customers paying over $10,000 in ARR and 1,635 paying over $100k a year. 

Most notably, the revenue growth happened as the company revamped its business by introducing AI monetization. Over 80% of its customers with over $10,000 ARR were consuming these AI credits weekly. 

At the same time, the company launched Code Layers, which will help companies generate ideas and build products without leaving the platform. 

The management and analysts believe that Figma’s business will continue growing in the near term. Yahoo Finance data shows that the average estimate is that its third-quarter revenue will come in at $375.7 million, up by 37% on an annual basis. 

For the year, analysts believe that its revenue will jump by 40% to $1.47 billion, followed by $1.82 billion next year. Its earnings-per-share (EPS) is also expected to do relatively well, rising to 29 cents. Figma tends to be highly conservative, meaning that its real results will be much better. 

Analysts have a bullish outlook for the stock, with the average target being $43.92, up by 116% from the current level. Bank of America analysts see the stock rising to $33, while Citigroup boosted it from $35 to $37. 

Figma stock price technical analysis

FIG stock chart | Source: TradingView

Figma stock has been in a strong downward trend this month. It dropped from a high of $31.3 in August to the current $20. At its peak after the IPO, the stock surged to $142. It has already dropped below the 50-day Exponential Moving Average (EMA). 

Figma shares have remained below the Supertrend indicator, a sign that bears remain in control for now. Also, the Relative Strength Index (RSI) has continued falling and is nearing the oversold level of 30.

Therefore, the stock will likely remain under pressure in the near term. If this happens, it may drop to the key support level of $16.48, its lowest level in April and June this year. It will then bounce back as investors buy the dip.

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