Are MicroAlgo (USA Stocks:MLGO) investors shifting to MariaDB (USA Stocks:MRDB)?
 | By Raphi Shpitalnik | Macroaxis Story |
Out of sight, out of mind—a saying that seems to capture the current sentiment around MicroAlgo (MLGO) as investors shift their gaze towards MariaDB (MRDB). With MicroAlgo's quarterly earnings growth plummeting by 90% and a concerning profit margin of 35% loss, the company seems to be losing its appeal. Despite having a healthy cash reserve of $47.4M, the negative return on assets at 0.11 and a hefty earnings share loss of 188.97 paint a challenging picture. Meanwhile, MariaDB's ability to generate buzz with its promising developments has captivated market attention, leaving MicroAlgo struggling to maintain its footing. Investors might find themselves reevaluating their portfolios as they weigh the potential upside of MariaDB against the possible downside risks associated with holding MicroAlgo shares. With growing enthusiasm around the software sector, MicroAlgo and MariaDB Plc seem to be on divergent paths. Let's delve into what sets these two companies apart competitively.
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Reviewed by Ellen Johnson
With MicroAlgo's free cash flow showing a loss of 6.4M and a negative return on equity of 0.41, investors might consider reallocating their portfolios as MariaDB gains traction. Despite a market capitalization of 159M, the high standard deviation of 79.73 suggests significant volatility, which could be a red flag for risk-averse investors.
Main Points
By examining the technical and fundamental indicators of MicroAlgo and MariaDB, you can assess how market fluctuations impact their stock prices. This analysis can help determine if combining these stocks in a portfolio might reduce market risk. Additionally, you might consider a pair trading strategy by taking a long position in MariaDB and a short position in MicroAlgo. For further insights, explore our [pair correlation module](#) for detailed information. Let's dive into the specifics. The asset utilization ratio measures the revenue generated per dollar of assets. MicroAlgo boasts a ratio of 141.29%, indicating it earns $1.41 for every dollar of assets. This high ratio reflects the company's efficient use of its assets in daily operations.Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as MicroAlgo or MariaDB is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
Correlation Between MicroAlgo and MariaDB Plc
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding MicroAlgo together with similar or unrelated positions with a negative correlation. For example, you can also add MariaDB Plc to your portfolio. If MariaDB Plc is not perfectly correlated to MicroAlgo it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When MicroAlgo, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both MicroAlgo and MariaDB Plc in your portfolio? Please note if you are using this as a pair-trade strategy between MicroAlgo and MariaDB Plc, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check pair correlation details between MLGO and MRDB for more information.MicroAlgo Gross Profit
MicroAlgo Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing MicroAlgo previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show MicroAlgo Gross Profit growth over the last 10 years. Please check MicroAlgo's gross profit and other fundamental indicators for more details.
What is driving MicroAlgo Investor Appetite?
In the stock market, momentum can be a powerful force. MicroAlgo (MLGO) seems to be losing its grip on investor interest, especially as MariaDB (MRDB) gains traction. With a high beta of 2.24, MicroAlgo's stock is more volatile than the market, which might be contributing to investor hesitation. Despite having a market capitalization of $158.97 million, the company's negative earnings per share of 188.97 and a profit margin of 0.35 losses are concerning. As MariaDB captures more attention, MicroAlgo may need to address these financial challenges to regain investor confidence.
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