The Insider Report: The Fed Accelerates the Uptrend – Domo (NASDAQ:DOMO), e.l.f. Magnificence (NYSE:ELF)

Market Overview

The Fed lower charges, and shares, which have been already in an uptrend as extensively famous right here, accelerated to new all-time highs. We proceed to see know-how resulting in the upside, which confirms the risk-on atmosphere. The Nasdaq led the rally increased final week, closing up 2.21%. The S&P 500 adopted, closing up 1.22%, whereas the Dow Jones Industrial Common rallied 1.05%. There are nonetheless robust alternatives coming from China, which is about to learn from greenback weak spot and decrease charges.

Shares I Like

Domo DOMO – 50% Return Potential

What’s Taking place

• Domo, Inc. (DOMO) is a number one cloud-based software program firm offering enterprise intelligence and knowledge visualization options, enabling organizations to handle and analyze knowledge successfully, providing traders publicity to the quickly rising enterprise analytics and digital transformation sector with a give attention to data-driven decision-making.
• The corporate’s most up-to-date quarterly report confirmed income of $79.72 million and earnings solely of $879 thousand.
• This valuation on DOMO is blended. Value-to-Gross sales is fairly excessive at 2.16 however E book Worth is destructive at -4.64.
• At a technical degree, DOMO is in search of to breakout from an ascending triangle sample, which factors to a continuation of the development.

Why It is Taking place

• Domo’s strategic partnerships with main cloud suppliers like Snowflake and AWS have been expanded lately, amplifying the platform’s knowledge integration capabilities. These alliances considerably improve Domo’s product ecosystem and create aggressive moats, enabling it to seize a bigger share of the rising enterprise knowledge analytics market. 
• The corporate was lately ranked #1 vendor in Dresner Advisory Companies’ 2025 Knowledge of Crowds Agentic AI Report, validating its management within the high-growth AI and analytics market. This recognition can increase model popularity and entice new enterprise shoppers prioritizing AI-powered insights, which bodes properly for long-term top-line progress and investor sentiment.
• Analysts stay optimistic with 4 purchase scores and no promote scores, underpinned by a worth goal vary averaging $18.50, implying an upside of roughly 18.7% from present ranges. Analyst optimism lends extra credibility to Domo’s progress story and might drive elevated institutional curiosity, each of which help a constructive inventory outlook.
• Regardless of a traditionally excessive ahead P/E ratio reflecting near-term profitability challenges, the corporate’s ongoing shift to constructive earnings, enhancing margins, and sturdy money flows sign an inflection level. Traders who purchase in now stand to learn from each elementary enhancements and a number of growth.
• The corporate’s Subscription Remaining Efficiency Obligations (RPO) climbed to $409.8 million as of July 31, 2025, reflecting a 19% year-over-year improve. This metric represents contracted future income and is a powerful indicator of sustained buyer dedication and income visibility past simply the present quarter.
• Domo reported a powerful second quarter of fiscal 2026 with whole income reaching $79.7 million, barely outpacing its prior quarter and displaying resilience amid market uncertainty. 
• Analyst Scores:
  • JMP Securities: Market Outperform
  • Cantor Fitzgerald: Chubby

My Motion Plan (50% Return Potential)

• I’m bullish on DOMO above $14.25-$14.00. My upside goal is $27.00-$28.00.

elf Magnificence ELF – 50% Return Potential

What’s Taking place

• e.l.f. Magnificence, Inc. (ELF) is a number one cosmetics firm providing reasonably priced, trend-driven make-up and skincare merchandise, offering traders publicity to the quickly rising magnificence and private care sector with a give attention to accessible, high-quality, and socially engaged branding.
• Within the final quarterly report, ELF confirmed income of $353.74 million and earnings of $51.33 million.
• Valuation could be very excessive. P/E is at 85.42, Value-to-Gross sales is at 6.24, and EV to EBITDA is at 39.09.
• From a technical perspective, ELF is breaking out from a large cup and deal with formation. I am on the lookout for bullish momentum to speed up drastically within the coming weeks.

Why It is Taking place

• ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ The acquisition of Rhode for $800 million marks a strategic growth into the fast-growing skincare section with a premium model based by Hailey Bieber. This acquisition diversifies e.l.f.’s portfolio, enhances its worldwide progress prospects, and gives potential cross-selling synergies, all more likely to drive long-term shareholder worth and prudent inventory re-rating.
• e.l.f. Magnificence is actively diversifying its provide chain, decreasing China dependence from practically 100% to about 75%. This technique mitigates dangers associated to tariffs and geopolitical tensions, guaranteeing extra steady margins and provide continuity. Such operational resilience shall be considered favorably by traders cautious of world commerce disruptions.
• e.l.f. Magnificence is pioneering AI initiatives throughout social media advertising and marketing, IT help, and operations, positioning itself on the forefront of tech adoption in cosmetics retail. These AI improvements can drive value financial savings, enhanced shopper concentrating on, and personalised experiences, which might speed up income progress and margin growth.
• Regardless of a small income miss relative to forecasts, adjusted EBITDA elevated 12% to $87 million, highlighting robust working leverage and environment friendly expense administration. This margin growth in a difficult atmosphere indicators administration’s disciplined strategy, reassuring traders that profitability can enhance even with out booming top-line progress.
• The corporate’s Q1 web gross sales grew by 9% year-over-year to $354 million, pushed primarily by a sturdy 30% improve in worldwide gross sales and a 5% rise in U.S. gross sales.
• e.l.f. Magnificence delivered a powerful fiscal Q1 2026 earnings beat with an EPS of $0.89, exceeding consensus estimates of $0.84 by about 6%.
• Analyst Scores:
  • Raymond James: Sturdy Purchase
  • Morgan Stanley: Chubby

My Motion Plan (50% Return Potential)

• I’m bullish on ELF above $120.00-$122.00. My upside goal is $210.00-$220.00.

Rigetti Computing RGTI – 14% Return Potential

What’s Taking place

• Rigetti Computing, Inc. (RGTI) is a pioneering quantum computing firm growing superior quantum processors and software program, providing traders publicity to the quickly rising quantum know-how sector with a give attention to scalable, high-performance computing options.
• The corporate’s latest quarterly report confirmed income at $1.8 million and a lack of $16.84 million.
• Valuation in RGTI is up within the clouds. Value-to-Gross sales is at 604.95, and the E book Worth is simply 1.71.
• From a charting standpoint, RGTI broke out from a completely huge cup and deal with formation. The quantum story is not completed, people.

Why It is Taking place

• ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Rigetti secured a big $5.8 million, three-year contract from the U.S. Air Pressure Analysis Laboratory centered on advancing superconducting quantum networking know-how. This partnership not solely supplies regular authorities funding but in addition establishes Rigetti as a trusted companion in crucial nationwide safety know-how, seemingly rising credibility and opening doorways for future contracts that would drive long-term income progress.
• Rigetti’s progressive quantum processor, the Cepheus-1-36Q, options 36 qubits utilizing a multi-chiplet structure with 99.5% median two-qubit gate constancy. This cutting-edge know-how represents a leap ahead in qubit efficiency and scalability, positioning Rigetti as a pacesetter in superconducting quantum computing.
• Rigetti’s modular chiplet strategy to quantum computing structure, which interconnects a number of smaller chips fairly than counting on single massive chips, addresses key scalability challenges within the quantum business. This architectural innovation is more and more acknowledged as a extra viable path to large-scale quantum computer systems, enhancing Rigetti’s aggressive positioning in opposition to rivals who face limitations with single-chip expansions.
• The corporate strengthened its monetary place dramatically in 2025, finishing gross sales of $350 million in gross proceeds from widespread inventory choices and boosting its money and money equivalents to $571.6 million with no debt. 
• Regardless of income challenges with Q2 2025 income of $1.8 million declining 42% year-over-year because of the expiration of the Nationwide Quantum Initiative, Rigetti’s sequential quarterly income progress (+20%) signifies ear
• Analyst Scores:

My Motion Plan (14% Return Potential)

• I’m bullish on RGTI above $22.00-$23.00. My upside goal is $32.00-$33.00.

Market-Shifting Catalysts for the Week Forward

A Falling Charge Atmosphere is Right here – What’s Subsequent?

Right here we now have it – the Fed lower rates of interest 25-basis factors. Lengthy-term bond yields are dropping sooner than short-term yields, as I am going to clarify afterward on this report. However we’re seeing indicators of a refinance increase that would increase the financial system and carry shares to new highs.

However as I have been warning, the Fed is taking part in with inflationary fireplace. In some unspecified time in the future, it is going to make it is dreaded return, and that is when the Fed and even the Division of Treasury goes to be put in a pinch.

I am not ruling out yield curve management (YCC) coming to the USA in a few years. There actually will not be one other alternative, and if there’s any hope of managing (not sustaining) the federal debt, it is the one tangible resolution.

Sentiment Follows Value, Not the Different Means Round

The market’s latest worth motion is a wonderful reminder of how corrections can happen by time as an alternative of worth. And through this “time,” all kinds of causes to be bearish will come to the floor.

Now that we have damaged out to new all-time highs, and the market has come to time period with rates of interest falling, we’re beginning to see bullish sentiment rise to its highest degree in months. If something, this warns to not chase this rally.

Does this imply we’re mechanically going decrease? Quite the opposite. However we have to assume when it comes to risk-reward. No one is aware of what the market goes to do, and anybody that pretends like they do is somebody it’s best to keep away from. The development is up, however near-term, the gang has realized they have been improper and are actually panic shopping for into new all-time highs.

Sector & Trade Energy

The tape does not lie. We noticed new all-time highs final week throughout the board after the Fed lower charges, and as soon as once more, the standout sector was know-how (XLK). It is no shock to see shares so robust with the entire proper growth-oriented sectors outperforming.

In the meantime, the entire defensive sectors proceed to do poorly. Once we’re seeing healthcare (XLV), shopper staples (XLP), vitality (XLE), and utilities (XLU) all within the backside half of the sector rankings, you already know that the market is pricing in additional progress.

Now we must be serious about which sectors are more likely to do properly beneath a falling price atmosphere. It should maintain serving to tech, however we also needs to watching shopper discretionary (XLY) and actual property (XLRE) as properly.

Editor’s Word: It is Tech’s Market – We’re Simply Buying and selling It.

The place’s the “New Cash” Going? (Sector ETF: DBC/SPY) 

We’re in a falling rate of interest atmosphere now. The Federal Reserve is slicing, which signifies that cash is being printed. This “new cash” goes to need to discover a house someplace, and odds favor it going into shares.

However it’s not simply going to enter shares. With the Fed taking part in with inflationary fireplace, we now have to take a look at the commodity sector, as a result of that’s what drives inflationary pressures essentially the most. Because of this I am trying on the ratio between commodities (DBC) and the S&P 500 (SPY) this week.

It has been a fairly clear downtrend for the previous couple of years. In different phrases, commodities have underperformed as inflation has cooled. However we have to keep watch over this ratio, particularly if it clears the higher trendline of the channel. As a result of if it does, we might begin to see inflation turn out to be a really actual danger in 2026.

Are You Ready for an Period of Chinese language Tech Dominance? (Sector ETF: CQQQ/QQQ) 

I can’t stress sufficient the significance of this ratio. Individuals have been in love with the Nasdaq 100 (QQQ) right here in the USA for years. However let’s always remember that this can be a international market, and the most effective alternatives will not all the time be stateside.

The emergence of the Chinese language tech sector (CQQQ) as a severe contender within the AI arms race can’t be understated. And if we have a look at this ratio between CQQQ and QQQ, we’d be clever to not ignore the sector in any respect.

The rounding backside sample on this chart means enterprise. If it breaks above resistance, I would be rather more centered on what is going on on within the Chinese language tech sector than within the U.S. tech sector. Many shall be reluctant to pursue it, which can make it all of the stronger of a development.

What Charge Cuts Imply for Bonds (Sector ETF: BIL/TLT) 

It is beginning to occur. We’re seeing long-term bonds accelerating of their latest outperformance in opposition to short-term bonds, which is simply going to power the Fed to proceed slicing till inflation turns into an issue.

I am trying on the ratio right here between short-term Treasury Payments (BIL) and long-term Treasuries (TLT). I need to draw your consideration to the false-breakout from the triangle formation again in Could that additionally ended up being a lower-high.

This signaled that the tide might be turning and decrease rates of interest have been coming. If the development is about to show down, it is going to imply that TLT is shaping up for a superb commerce, not funding, over the following a number of months.

My Take:

I need to be clear and differentiate between a commerce and funding on the TLT facet of issues. The debt disaster in Washington is severe. We all know this already. However charges are coming down for the following yr or so, and usually, longer length outperforms in such an atmosphere.

However as soon as inflation rears its ugly head once more, TLT, or bonds with longer length, will get hammered essentially the most. I might then count on this ratio to start out climbing again to the upside, however till then, length is the commerce right here.

Cryptocurrency 

I need to shift gears a bit this week. In the event you’ve been following alongside on the Ethereum setup over the previous couple of months, you are in all probability fairly happy with the outcomes. However this week, I need to have a look at one other key DeFi coin – Solana.

The setup in Solana is unimaginable, and I simply do not see lots of people speaking about it. There’s a huge, lovely saucer formation current on the each day chart for Solana. The length of this sample implies {that a} main transfer is underway.

An in depth above 250-260 would signify a breakout from the formation. This sample is projecting a rally as much as the 480-500 space not less than. In the event you’re not getting ready for an altcoin season, try to be. The trail of least resistance is increased in Solana so long as it stays above 215-220.

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