Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Shopify Inc. has reported a strong performance for the third quarter of 2024, showcasing significant growth and expansion across several facets of its business.</li><li>The company's gross merchandise volume (GMV) grew 24% for the quarter, marking the fifth consecutive quarter of GMV growth over 20%.</li><li>This growth was attributed to increased same-store sales among existing merchants, growth in new merchants, and international expansion, particularly in Europe.</li></ul>

Shopify Inc. has reported a strong performance for the third quarter of 2024, showcasing significant growth and expansion across several facets of its business.The company's gross merchandise volume (GMV) grew 24% for the quarter, marking the fifth consecutive quarter of GMV growth over 20%.This growth was attributed to increased same-store sales among existing merchants, growth in new merchants, and international expansion, particularly in Europe.

Shopify Inc.: How Is The Management Executing Integration with Emerging Sales Channels! - Major Drivers

<ul><li>Shopify's Second Quarter 2024 Conference Call offers a detailed insight into the company's performance and future directions, signifying another strong quarter underpinned by significant growth and strategic advancements.</li><li>Shopify has shown robust growth in its Q2 2024 results, driven by a 25% increase in revenue (excluding logistics) and a notable improvement in gross profit which has surpassed revenue growth.</li><li>The company reported important structural changes, particularly the unification of its platforms, emphasizing ease and efficiency for merchants expanding internationally or offline.</li></ul>

Shopify's Second Quarter 2024 Conference Call offers a detailed insight into the company's performance and future directions, signifying another strong quarter underpinned by significant growth and strategic advancements.Shopify has shown robust growth in its Q2 2024 results, driven by a 25% increase in revenue (excluding logistics) and a notable improvement in gross profit which has surpassed revenue growth.The company reported important structural changes, particularly the unification of its platforms, emphasizing ease and efficiency for merchants expanding internationally or offline.

Shopify Inc.: Will The Acquisition of Checkout Blocks Further Push Their Growth? - Major Drivers

<ul><li>Shopify reported strong performance for the first quarter of 2024.</li><li>The company saw the addition of millions of merchants globally to their platform, with revenues growing over 25% for four consecutive quarters.</li><li>This was primarily driven by the fact that it had rolled out over 400 new features and updates in just two years, demonstrating leadership in innovation.</li></ul>

Shopify reported strong performance for the first quarter of 2024.The company saw the addition of millions of merchants globally to their platform, with revenues growing over 25% for four consecutive quarters.This was primarily driven by the fact that it had rolled out over 400 new features and updates in just two years, demonstrating leadership in innovation.

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>The FRTIB benchmark switch from the EAFE Index to the ACWI IMI ex-USA ex-China ex-Hong Kong Index will result in a round trip trade of around US$56bn.</li>
<li>The changes for the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-inde" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300</a>, <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shang" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI 500</a>, <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">STAR50</a>, <a href="https://www.smartkarma.com/entities/shanghai-stock-exchange-sse-50-a-share-index" target="_blank" data-smartkarma-citation="entities:31073:1" rel="noopener">SSE50</a> and a bunch of other mainland China indices will be announced after market close on Friday.</li>
<li>Relatively quiet week for ETF flows with no major creations or redemptions during the week.</li>
</ul>


The FRTIB benchmark switch from the EAFE Index to the ACWI IMI ex-USA ex-China ex-Hong Kong Index will result in a round trip trade of around US$56bn.
The changes for the CSI 300, CSI 500, STAR50, SSE50 and a bunch of other mainland China indices will be announced after market close on Friday.
Relatively quiet week for ETF flows with no major creations or redemptions during the week.


Index Rebalance & ETF Flow Recap: FRTIB, Japan, CSI300, CSI500, STAR50, WuXi XDC, Asahi

Japan Specialist

Mark Chadwick

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shopify-inc-de74469e-4678-489b-9b50-a80a5790c5ef" target="_blank" data-smartkarma-citation="entities:25906:1" rel="noopener">Shopify Inc (SHOP US)</a> 's share price declined by -15% in after hours trade on weaker-than-expected US E-commerce trends</li>
<li>
<a href="https://www.smartkarma.com/entities/mercari-inc" target="_blank" data-smartkarma-citation="entities:27149:1" rel="noopener">Mercari Inc (4385 JP)</a> 's US business is highly correlated with its US peer, as is its stock price</li>
<li>A normalisation of e-commerce trends could also impact its much larger Japanese GMV as consumers shift spending patterns back to normal </li>
</ul>



Shopify Inc (SHOP US) 's share price declined by -15% in after hours trade on weaker-than-expected US E-commerce trends

Mercari Inc (4385 JP) 's US business is highly correlated with its US peer, as is its stock price
A normalisation of e-commerce trends could also impact its much larger Japanese GMV as consumers shift spending patterns back to normal 


Mercari (4385) | We Were Wrong…its Worse

Canada

Shopify Inc. provides a cloud-based commerce platform. The Company offers a platform for merchants to create an omni-channel experience that helps showcase the merchant's brand. Shopify serves customers in Canada.

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Shopify (SHOP CN)

Shopify Inc.: How Is The Management Executing Integration with Emerging Sales Channels! - Major Drivers

Shopify Inc. has reported a strong performance for the third quarter of 2024, showcasing significant growth and expansion across several facets of...

Baptista Research

Shopify Inc.: Will The Acquisition of Checkout Blocks Further Push Their Growth? - Major Drivers

Shopify's Second Quarter 2024 Conference Call offers a detailed insight into the company's performance and future directions, signifying another...

Baptista Research

Shopify Inc.: E-Commerce Analytics

Shopify reported strong performance for the first quarter of 2024. The company saw the addition of millions of merchants globally to their...

Baptista Research

Index Rebalance & ETF Flow Recap: FRTIB, Japan, CSI300, CSI500, STAR50, WuXi XDC, Asahi

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

Mercari (4385) | We Were Wrong…its Worse

We are Bearish on Mercari as we think GMV in the US will see a sharp pullback as early as the current quarter (4Q: April-June), with higher-than...

Mark Chadwick

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