Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

<ul>
<li>Amazon's share price has fallen 25% since April of last year, sparking a fear of missing out.</li>
<li>The pressure for cost-cutting measures will likely increase as profitability and free cash flow remain elusive, according to Amazon.</li>
<li>Amazon has seen a 25% drop in its share price in January.</li>
</ul>


Amazon's share price has fallen 25% since April of last year, sparking a fear of missing out.
The pressure for cost-cutting measures will likely increase as profitability and free cash flow remain elusive, according to Amazon.
Amazon has seen a 25% drop in its share price in January.


Amazon: Recent Quarter Is A Reminder That Red Flags Should Not Be Ignored

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

<ul>
<li>AWS revenue grew 20% YoY to $21.3B, about $400M or ~2% below consensus…and a 700bp deceleration.</li>
<li>AWS margins of 24% were down 200bps QoQ / 600bps YoY as continued optimization of customer contracts continues to weigh on margins.</li>
<li>Amazon advertising continues to dramatically outpace all other online platforms, highlighting the moat of first party data at the point of purchase, unimpacted by Apple.</li>
</ul>


AWS revenue grew 20% YoY to $21.3B, about $400M or ~2% below consensus…and a 700bp deceleration.
AWS margins of 24% were down 200bps QoQ / 600bps YoY as continued optimization of customer contracts continues to weigh on margins.
Amazon advertising continues to dramatically outpace all other online platforms, highlighting the moat of first party data at the point of purchase, unimpacted by Apple.


Meta Platforms (Facebook) / Equity Bottom-Up

<ul>
<li>Meta lowered 2023 expense guide by $5B (or 5%)  to $89bn-$95bn and capex guide by $4B (or 11%) to $30bn-$33bn</li>
<li>Metaverse spending continues, META lost $4.3B on $700M in revenue this quarter and losses are expected to accelerate in 2023. </li>
<li>Zuck said the word efficiency 18x and AI 15x...Evidently, these are his priorities!</li>
</ul>


Meta lowered 2023 expense guide by $5B (or 5%)  to $89bn-$95bn and capex guide by $4B (or 11%) to $30bn-$33bn
Metaverse spending continues, META lost $4.3B on $700M in revenue this quarter and losses are expected to accelerate in 2023. 
Zuck said the word efficiency 18x and AI 15x...Evidently, these are his priorities!


Meta Platforms 4Q22: Zuckerberg Got Religion?

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Alibaba Group Holding  / Equity Capital Markets

<ul>
<li>In this note, we will take a look at the performance of bookrunners for ASEAN placements from 2019-2022.</li>
<li>The following dataset includes all ASEAN placements above US$100m for the period of Calendar Years 2019-2022, which amounted to a total of <strong>54 deals</strong>.</li>
<li>The deals you see in this note are based on our historical placements tracker. Feel free to drop us a message for additional information on any of these placements.</li>
</ul>


In this note, we will take a look at the performance of bookrunners for ASEAN placements from 2019-2022.
The following dataset includes all ASEAN placements above US$100m for the period of Calendar Years 2019-2022, which amounted to a total of 54 deals.
The deals you see in this note are based on our historical placements tracker. Feel free to drop us a message for additional information on any of these placements.


Aequitas ASEAN Placements Bookrunner Performance (2019-2022)

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul><li>Despite the tough macroeconomic backdrop, digital advertising spend will continue to rise in 2023, largely driven by programmatic spend.</li><li>Connected TV (CTV) continues to surge and is expected to be the fastest-growing channel in 2023, growing at nearly 15% Y/Y, according to the Interactive Advertising Bureau (IAB).</li><li>Social media advertising spend will decrease in 2023, according to eMarketer’s ad spending forecast, with a reduction of $16.21 billion due largely to a rising focus on privacy and transparency.</li></ul>

Despite the tough macroeconomic backdrop, digital advertising spend will continue to rise in 2023, largely driven by programmatic spend.Connected TV (CTV) continues to surge and is expected to be the fastest-growing channel in 2023, growing at nearly 15% Y/Y, according to the Interactive Advertising Bureau (IAB).Social media advertising spend will decrease in 2023, according to eMarketer’s ad spending forecast, with a reduction of $16.21 billion due largely to a rising focus on privacy and transparency.

United States

Amazon.com, Inc. is an online retailer that offers a wide range of products. The Company's products include books, music, videotapes, computers, electronics, home and garden, and numerous other products.  Amazon offers personalized shopping services, Web-based credit card payment, and direct shipping to customers.

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Amazon.com Inc (AMZN US)

Amazon: Recent Quarter Is A Reminder That Red Flags Should Not Be Ignored

The pressure for cost-cutting measures will likely increase as profitability and free cash flow remain elusive, according to Amazon. Amazon has...

Vladimir Dimitrov, CFA

Amazon 4Q22: When Does AWS Trough?

Amazon continues to be a frustrating long...just when retail margins show promise, AWS decelerates and margins drop. We think the latter is...

Aaron Gabin

Meta Platforms 4Q22: Zuckerberg Got Religion?

Meta is getting credited today with a "phase change" in operating cadence, with a newfound emphasis on efficiency and profitability. Great! But we...

Aaron Gabin

Aequitas ASEAN Placements Bookrunner Performance (2019-2022)

In this note, we will take a look at the performance of bookrunners for ASEAN placements from 2019-2022, which includes all ASEAN placements above...

Ethan Aw

WTR Tech Talks: Adtech 101

Despite the tough macroeconomic backdrop, digital advertising spend will continue to rise in 2023, largely driven by programmatic spend.

Water Tower Research

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