Moody’s Downgraded Credit Ratings For Several Banks

[CLICK HERE JOIN OUR LIVE TRADING & TRAINING SESSIONS]( Hello investor, Moody’s Downgraded Credit Ratings For Several Banks Trust in regional banks is on thin ice, and they cannot afford any further crisis in confidence. However, Moody’s downgraded the credit ratings on several regional banks, such as M&T Bank and Pinnacle Financial. Why? Moody’s cited deposit risk, a potential recession and struggling commercial real estate portfolios. Bigger banks were put on alert, as the credit rating agency placed Bank of N.Y. Mellon and State Street on review for a possible downgrade. - “It’s not optional to have good credit ratings, because they need faith,” said Jay Hatfield, CEO of Infrastructure Capital Advisors, of regional banks. “Any sort of reduction of faith in the regional banking system is really terrible for market sentiment.” Jay Hatfield, CEO of Infrastructure Capital Advisors (Photo: Bloomberg) Earnings season is winding down: 89% of S&P 500 companies already reported results, and about 4/5 of them beat expectations. However, the markets didn’t celebrate too much. Yesterday was the 5th negative day out of six sessions for both indexes, the S&P 500 and the Nasdaq. Cloud stocks fell yesterday after Datadog lowered its full-year guidance. The cloud-computing industry enjoyed a boom during the pandemic, when many companies were forced to move operations to the cloud. But now, some sectors are looking to save money on cloud infrastructure as the economy slows down. - “We saw usage growth for existing customers that was a bit lower than it had been in previous quarters,” Olivier Pomel, Datadog’s co-founder and CEO, said. “We continue to see customers larger spending customers scrutinize costs.” Datadog’s revenue exploded by nearly 83% year over year in the first quarter of 2022. But the company implies that it expects just 15% growth for the fourth quarter.  Want To Get In The Cloud Computing Boom? Buy This Stock Today’s Stock Pick: DigitalOcean Holdings Inc ([DOCN]() Cloud computing has been a game-changer for any type of business. It is so easy to forget what it was like without the cloud. In the past, you must save everything on a hard drive. There is a limit to the amount of memory it can hold. Plus, you must physically carry it around with you. If a business holds massive data, then we’re talking about an entire room of data center. Now? Everything is on the cloud. It makes things far cheaper for businesses to develop exciting products that don’t demand investments in a physical data center. Now, Amazon and Microsoft dominate the industry of cloud computing. Their technologies are remarkable, such as tools for machine learning and platform services, but it is often an overkill for small businesses. It basically requires a full-time IT team to maintain these things. That brings an opportunity for DigitalOcean to serve simplified cloud computing for small businesses. It doesn’t require specialized training to get it running. Just a few clicks. Plus, it is armed with round-the-clock support to all customers. Believe it or not, SMBs will spend more than $70 billion on cloud infrastructure and platform services, according to the International Data Corporation. This number is expected to grow at 26% annually to reach $195 billion by 2026! In other words, the market opportunity could more than double in just three years: (Source: DigitalOcean) Let’s talk money. Its revenue grew by 36% in the recent quarter. Seems like an incredible quarter, don’t you agree? It was a slight slowdown from what it saw during the pandemic boom. Management said the slowdown in revenue growth is simply due to the industry headwinds, rather than its business problems. Its momentum is nearly unstoppable. The company said more than 144k customers spent over $50 per month – a growth of 45% from the prior year. This demonstrates that DigitalOcean can be indispensable to its customers and capable of growing with a single customer over the time. Plus, the company showed incredible consistency in ARR growth since 2015: (Source: DigitalOcean) A good time to buy: DigitalOcean set a guidance of reaching $700 to $720 million in revenue and 21% to 22% free-cash-flow margin for FY2023. This would imply about 23% annual revenue growth. However, the stock plunged by 69% from its all-time high. Yes, it is more expensive to own cloud-computing stocks than a blue-chip stock. You get what you pay, though. Cloud-computing companies grow at a breathtaking pace while maintaining superior margins. [CLICK HERE JOIN OUR LIVE TRADING & TRAINING SESSIONS](       © All Rights Reserved, Trade Alliance If you no longer want to receive these messages, you may [click here]( to unsubscribe.