Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/gitlab-inc" target="_blank" data-smartkarma-citation="entities:34460:1" rel="noopener">GitLab (GTLB US)</a> , one of the key competitors of GitHub (Microsoft), filed for an IPO and sold ~8.4 million Class A shares today for $77.00 per share, implying a market cap of ~$13 billion at above the expected price range of $66.00-$69.00 per share on a fully diluted basis (including options and RSUs). Selling stockholders also sold additional ~1.98 million Class A shares. GitLab shares are expected to begin trading on Nasdaq Global Market under the trading symbol “GTLB”. Goldman Sachs, J.P. Morgan and Bank of America are lead underwriters on the IPO.

GitLab (GTLB US) , one of the key competitors of GitHub (Microsoft), filed for an IPO and sold ~8.4 million Class A shares today for $77.00 per share, implying a market cap of ~$13 billion at above the expected price range of $66.00-$69.00 per share on a fully diluted basis (including options and RSUs). Selling stockholders also sold additional ~1.98 million Class A shares. GitLab shares are expected to begin trading on Nasdaq Global Market under the trading symbol “GTLB”. Goldman Sachs, J.P. Morgan and Bank of America are lead underwriters on the IPO.   

GitLab IPO: Is $10 Billion+ Stock Valuation Too High?

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.

Equity Bottom-Up

In between earnings seasons, we are trying to catch up on the flurry of TMT IPOs over the past few months that have caught our eye. Why Digital Ocean? We're pretty big Amazon bulls cause of AWS, so when we heard there was this mini-AWS that the developer community swears by, had 30%+ EBITDA margins, was accelerating growth by growing dollar retention rates and ARPUs...we had to learn more. Strikes us at the type of business that could be a 5 to 10-bagger over the next year or two. <div class="content-highlight">Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.</div>

In between earnings seasons, we are trying to catch up on the flurry of TMT IPOs over the past few months that have caught our eye. Why Digital Ocean? We're pretty big Amazon bulls cause of AWS, so when we heard there was this mini-AWS that the developer community swears by, had 30%+ EBITDA margins, was accelerating growth by growing dollar retention rates and ARPUs...we had to learn more. Strikes us at the type of business that could be a 5 to 10-bagger over the next year or two. Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.

Podcast On the Business of Semiconductors, The Circuit

The Circuit

Podcast On the Business of Semiconductors

A Podcast On the Business of Semiconductors. With Jay Goldberg and Ben Bajarin

Thematic (Sector/Industry)

<ul><li>Lots of inquiries and discussions about the semiconductor market this week, stock market movements relatively flat</li><li>Nvidia up 11%, AMD up 7%, Microsoft up 4% last week</li><li>Market experiencing a dialing back of hype, some names still overvalued, but overall growth dynamics in semiconductors still intact</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Lots of inquiries and discussions about the semiconductor market this week, stock market movements relatively flatNvidia up 11%, AMD up 7%, Microsoft up 4% last weekMarket experiencing a dialing back of hype, some names still overvalued, but overall growth dynamics in semiconductors still intactThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Episode 79: Not Your Grandfathers Data Center

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/berkshire-hathaway-inc-cl-b" target="_blank" data-smartkarma-citation="entities:8635:1" rel="noopener">Berkshire Hathaway Inc Cl B (BRK/B US)</a> held over 5% of <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple (AAPL US)</a>. Nearly half of that was sold in the June quarter to take the holding to 2.63%. </li>
<li>Berkshire's selling should result in an increase in <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple (AAPL US)</a>'s free float in the <a href="https://www.smartkarma.com/entities/s-p-500-index" target="_blank" data-smartkarma-citation="entities:22886:1" rel="noopener">S&amp;P 500 INDEX (SPX INDEX)</a> and other related indices.</li>
<li>There will also be large buying in <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple (AAPL US)</a> from the <a href="https://www.smartkarma.com/entities/technology-select-sector-spdr" target="_blank" data-smartkarma-citation="entities:27543:1" rel="noopener">Technology Select Sector SPDR (XLK US)</a> ETF if the proposals in the market consultation are implemented.</li>
</ul>



Berkshire Hathaway Inc Cl B (BRK/B US) held over 5% of Apple (AAPL US). Nearly half of that was sold in the June quarter to take the holding to 2.63%. 
Berkshire's selling should result in an increase in Apple (AAPL US)'s free float in the S&amp;P 500 INDEX (SPX INDEX) and other related indices.
There will also be large buying in Apple (AAPL US) from the Technology Select Sector SPDR (XLK US) ETF if the proposals in the market consultation are implemented.


Apple Inc (AAPL US): $43bn Passive Buying Driven by Berkshire Selling & Market Consultation

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

<ul>
<li>From C1Q24 results we concluded that media platforms with large, untapped and preferably contextual traffic tend to benefit the most from Generative AI (GAI). C2Q24 largely trended the same line;</li>
<li>But Google is experimenting with inserting ads above or below the AI Overview Box. We hold reservation on the result but Baidu can likely copy;</li>
<li>New growth emerged in AI Agent with API calls on Microsoft Azure, Google, Linked-In and Snap showing accelerated sequential growth. AI agent is likely the next hot spot in GAI.</li>
</ul>


From C1Q24 results we concluded that media platforms with large, untapped and preferably contextual traffic tend to benefit the most from Generative AI (GAI). C2Q24 largely trended the same line;
But Google is experimenting with inserting ads above or below the AI Overview Box. We hold reservation on the result but Baidu can likely copy;
New growth emerged in AI Agent with API calls on Microsoft Azure, Google, Linked-In and Snap showing accelerated sequential growth. AI agent is likely the next hot spot in GAI.


A Few Signs Beyond Advertising Optimization In GAI Commercialization

United States

Microsoft Corporation operates as a software company. The Company offers applications, extra cloud storage, and advanced security solutions. Microsoft serves customers worldwide.

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Microsoft Corp (MSFT US)

GitLab IPO: Is $10 Billion+ Stock Valuation Too High?

Money-losing unicorn GitLab has sky-high IPO valuation of $12B+ and we believe GitLab shares have ~16% downside potential to IPO price of $77 per...

Andrei Zakharov

Recent IPO Insights: Digital Ocean

Why Digital Ocean? When we heard there was this mini-AWS that the developer community swears by, had 30%+ EBITDA margins, was accelerating net...

Aaron Gabin

Episode 79: Not Your Grandfathers Data Center

Conversations focused on the performance of semiconductor stocks, including Nvidia up 11%, AMD up 7%, and Microsoft up 4%, with questions arising...

The Circuit

Apple Inc (AAPL US): $43bn Passive Buying Driven by Berkshire Selling & Market Consultation

Berkshire selling increases Apple's float. Market consultation for the Select Sector indices increases Apple's weight in the XLK ETF. Together,...

Brian Freitas

A Few Signs Beyond Advertising Optimization In GAI Commercialization

C2Q24 Generative AI (GAI) showed increased uptake from US Internet companies. AI agent activities are on the rise, particularly in mid-sized...

Blue Lotus Research Institute

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