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

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?

<ul>
<li>Pinterest has rallied 40% over the past 5 months on hopes that its new CEO Bill Ready will pivot the company from a pure advertising model to an ecommerce juggernaut.</li>
<li>Altering what consumers use online platforms for is exceedingly difficult and rarely succeeds: TripAdvisor, Yelp, Groupon, Stitchfix, eBay.</li>
<li>Ultimately, unless Pinterest convinces its users to more frequently utilize the platform, efforts to boost monetization will likely fall flat.</li>
</ul>


Pinterest has rallied 40% over the past 5 months on hopes that its new CEO Bill Ready will pivot the company from a pure advertising model to an ecommerce juggernaut.
Altering what consumers use online platforms for is exceedingly difficult and rarely succeeds: TripAdvisor, Yelp, Groupon, Stitchfix, eBay.
Ultimately, unless Pinterest convinces its users to more frequently utilize the platform, efforts to boost monetization will likely fall flat.


<ul>
<li>Blowout (in a bad way) opex and capex guidance triggered a puke in META. Metaverse spending slowdowns completely ignored by Zuck.</li>
<li>Underlying engagement trends are suprisingly solid, as is underlying revenue growth (which was 8% organic this quarter ex-FX, IDFA, and Reels).</li>
<li>The key question is...what is the LT capital intensity for META to retain its competitive advantage through AI - related spending.</li>
</ul>


Blowout (in a bad way) opex and capex guidance triggered a puke in META. Metaverse spending slowdowns completely ignored by Zuck.
Underlying engagement trends are suprisingly solid, as is underlying revenue growth (which was 8% organic this quarter ex-FX, IDFA, and Reels).
The key question is...what is the LT capital intensity for META to retain its competitive advantage through AI - related spending.


META Platforms 3Q22: You Got to Keep ‘em Separated

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 Capital Markets

<ul><li>Snap has undergone a massive correction off-late and there is not much in the form of recovery especially in the recent financial results.</li><li>Snap failed to meet revenue expectations as well as earnings expectations of Wall Street analysts.</li><li>Snap 3D Asset Manager has also been introduced which facilitates the process of AR Lens creation and manages the 3D product catalog of the businesses.</li></ul>

Snap has undergone a massive correction off-late and there is not much in the form of recovery especially in the recent financial results.Snap failed to meet revenue expectations as well as earnings expectations of Wall Street analysts.Snap 3D Asset Manager has also been introduced which facilitates the process of AR Lens creation and manages the 3D product catalog of the businesses.

Snap Inc: Snapchat Web & Other Developments

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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.

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>On the IPO front, things are starting to move with Leapmotor and Onewo, while CALB continues to have second thoughts.</li>
<li>The biggest placement this week was Doosan, but there was news of Tencent setting its sights on sizeable future placements via divestments.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, things are starting to move with Leapmotor and Onewo, while CALB continues to have second thoughts.
The biggest placement this week was Doosan, but there was news of Tencent setting its sights on sizeable future placements via divestments.


ECM Weekly (4th Sep 2022) - China ADRs, Tencent, Leapmotor, Onewo, Hongjiu Fruit, Doosan Ener

United States

Snap Inc. provides technology and social media services. The Company develops mobile camera application products and services that allow users to send and receive photos, drawings, text, and videos. Snap serves customers worldwide.

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Snap (SNAP US)

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

TMT Short Idea: Pinterest

Pinterest has been a sneaky strong TMT long for the past 6 months on hopes its new CEO Bill Ready will deliver the holy grail of ecommerce to the...

Aaron Gabin

META Platforms 3Q22: You Got to Keep ‘em Separated

We think the current trajectory for META is unsustainable. The company will lose talent soon if the stock doesn't start to work, which requires...

Aaron Gabin

Snap Inc: Snapchat Web & Other Developments

Snap has undergone a massive correction off-late and there is not much in the form of recovery especially in the recent financial results. Snap...

Baptista Research

ECM Weekly (4th Sep 2022) - China ADRs, Tencent, Leapmotor, Onewo, Hongjiu Fruit, Doosan Ener

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

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