Category

United States

Nov 19
0

Daily Brief United States: Bumble, Ralph Lauren, Tapestry Inc, Tyson Foods Inc Cl A, Walmart and more

By | Daily Briefs, United States

In today’s briefing:

  • Bumble Inc.: Blind Dating Offering & Other Drivers
  • Ralph Lauren: Collaboration With Fortnite & Other Developments
  • Tapestry Inc: Major Drivers
  • Tyson Foods: Major Drivers
  • Walmart Inc: The Walmart Creator Platform & Other Drivers

Bumble Inc.: Blind Dating Offering & Other Drivers

By Baptista Research

  • Bumble delivered a mixed set of third-quarter results as it failed to meet market expectations on the revenue front but managed an earnings beat.
  • The company produced a decent top-line growth of 17% year over year in Q3, driven by 28% growth for the Bumble App.
  • The revenue growth would have been 10 points higher and Bumble App revenue growth would have been 5 points higher after adjusting for forex and the situation in Ukraine.

Ralph Lauren: Collaboration With Fortnite & Other Developments

By Baptista Research

  • Ralph Lauren’s previous quarter results were strong and the company managed an all-around beat.
  • Their top-line continued to increase in the previous quarter, with revenues rising 13% in constant currency and 5% on a reported basis.
  • The success for this quarter was once again aided by good constant currency growth across all 3 regions.

Tapestry Inc: Major Drivers

By Baptista Research

  • Despite the challenging environment, Tapestry’s first quarter results were strong and the company’s performance exceeded market expectations in terms of revenues as well as earnings.
  • This result highlights the company’s transformation into a customer-centric and data-driven organization, which have helped it effectively navigate the challenging climate.
  • Their direct-to-consumer operations grew again in this quarter thanks to the strong management focus on building omnichannel experiences.

Tyson Foods: Major Drivers

By Baptista Research

  • Tyson Foods’ stock has been on a downward trajectory for a while and the recent results did not help the situation.
  • Consumer demand for protein is largely stable in this difficult macroeconomic context with record-high inflation.
  • Volume performance increased in the fourth quarter because of their investments in brands and merchandising, which raised portfolio market share.

Walmart Inc: The Walmart Creator Platform & Other Drivers

By Baptista Research

  • Walmart’s stock has climbed to a new high after the company delivered strong results and surpassed Wall Street expectations in terms of revenues as well as earnings.
  • In Q3, strong sales were achieved in each of its segments and its U.S. comparable sales increased sequentially by 8.2% thanks to higher average ticket sizes and more transactions.
  • Walmart International experienced strong constant currency sales growth of 13.3%, driven primarily by Flipkart and Walmex, while Sam’s Club USA posted double-digit comps growth of 10.3%, excluding fuel and tobacco, for the 11th consecutive quarter.

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Nov 18
0

Daily Brief United States: S&P 500, Dollar Index, Binance Coin, Adeia, Capri Holdings, Electronic Arts, Lear Corp, Match Group Inc, Qorvo Inc, Roku and more

By | Daily Briefs, United States

In today’s briefing:

  • Buy This Give Back
  • Defending the Gold Premium
  • The Winners and Losers in a Post-FTX World
  • ADEA: Free Cash Flow & Valuation
  • Capri Holdings: Major Drivers
  • Electronic Arts Inc: New Windows Application & Other Developments
  • Lear Corporation: New Sustainability Solutions Addition & Other Developments
  • Match Group: Major Drivers
  • Qorvo Inc: Major Drivers
  • Roku Inc: Expansion Of Free Streaming In Mexico & Other Drivers

Buy This Give Back

By Thomas Schroeder

  • US equities give back post PPI is a buying opportunity within our Q4 bull framework. The conviction trade is to sell USD upticks with lower yields in store into December.
  • Sell the USD into Dec which supports turn around plays in Asia. DXY 103 is our bull support to stage a fresh rise. How will yields respond?
  • SPX 3,850 buy support with 4,100/200 the Q4 target to top build ahead of a fresh Q1 bear cycle. Summer bounce similarities.

Defending the Gold Premium

By Kaiko

  • When you look around the world for a big, liquid, globally accepted safe haven, there is only one, and that is gold, which continues to reassert its status as the asset of last resort.
  • Pre-1970, in the days of the gold standard, gold formally enjoyed this role.
  • Today, after a 50-year break, the free market is putting gold back onto the pedestal where it belongs. 

The Winners and Losers in a Post-FTX World

By Kaiko

  • The aftershocks of the FTX fraud continue to ripple through crypto, with entities such as Genesis Trading and the FTX-owned exchange Liquid halting withdrawals over the last couple of days.
  • It’s likely that it will take months or years to determine who the real winners and losers of the biggest scandal in crypto history will be, but there are some interesting market dynamics to be aware of in the immediate aftermath of the collapse of FTX.
  • Using Kaiko’s CeFi and DeFi data, we have identified some important trends that give an indication as to who may stand to win and lose in the future.

ADEA: Free Cash Flow & Valuation

By Hamed Khorsand

  • ADEA reported third quarter results that still included the financial results of its products business prior to the spin-off. ADEA generates revenue from IP licenses, creating a steady revenue stream
  • ADEA expanding its base of licensees over the next year should set a pathway to ADEA reaching baseline revenue of $500 million a year from $375 million currently
  • ADEA applying free cash flow to reducing its debt balance should yield a higher valuation for the stock price

Capri Holdings: Major Drivers

By Baptista Research

  • Capri Holdings delivered quite a strong result which happened to be an all-around beat.
  • With the three pillars, Greca, Virtus, and La Medusa making significant progress, the goal of the company is to position Versace as the prominent luxury leather house.
  • Capri also expanded its core lines that incorporate iconic house codes for broadening the reach of Versace.

Electronic Arts Inc: New Windows Application & Other Developments

By Baptista Research

  • EA’s stock trajectory has remained sideways even after a disappointing quarterly result where the company failed to meet Wall Street expectations in terms of revenues as well as earnings.
  • Its EA Sports portfolio and its multiplatform live services businesses have helped the company thrive in a tough phase.
  • During the quarter, EA launched Premier Sports Games and delivered its largest EA Sports FIFA console and PC launch.

Lear Corporation: New Sustainability Solutions Addition & Other Developments

By Baptista Research

  • Lear Corporation saw a significantly improved set of results in the last quarter and it managed to surpass Wall Street expectations on all fronts.
  • The improved results reflect higher production volumes as well as its strong new business backlog.
  • Core operating earnings and sales increased and in both e-Systems and seating, operating margins improved as compared to the previous year.

Match Group: Major Drivers

By Baptista Research

  • Match Group is currently operating in a challenging macro-economic environment and its stock price has been tumbling over the past few months.
  • Excluding the forex impact, Match Group delivered double-digit growth given the fact that Tinder has been performing quite well.
  • We provide the stock of Match Groups with a ‘Hold’ rating and a revision in the target price.

Qorvo Inc: Major Drivers

By Baptista Research

  • Qorvo delivered an excellent result with its quarterly revenue as well as EPS above the market expectations.
  • Revenue in high-performance analog was broad-based, with the strength primarily in high-power applications and defense.
  • In Advanced cellular, Qorvo enjoyed quite a big customer ramp in the quarter.

Roku Inc: Expansion Of Free Streaming In Mexico & Other Drivers

By Baptista Research

  • This is our first report on streaming major, Roku.
  • The company had a strong first quarter of 2022 with Platform revenue up 39% yearly, driven by increased content distribution and advertising revenue.
  • As one of the industry’s top platforms for streaming TV, the company anticipates long-term growth in active users and platform revenue.

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Nov 17
0

Daily Brief United States: FTX Token, Meta Platforms (Facebook), NVIDIA Corp and more

By | Daily Briefs, United States

In today’s briefing:

  • FTX Fallout – A Quick Update
  • Buy Polygon For Big-Brand Crypto Scaling
  • Breaking Growth Short Candidates: Plug Power, Nvidia, Palantir, Roblox

FTX Fallout – A Quick Update

By Rose Choy

  • FTX filed for bankruptcy on 11/11 after halting client withdrawals in the previous week, despite SBF (the ex-CEO) tweeting 2 days prior that it had $1 bn of excess cash.
  • With over 130 affiliates included in the filing and no first day documents in the Delaware Court, the bankruptcy filing seems disorderly. The fallout is far-reaching in the industry.
  • As we await the top 50 creditor list and more details, we have compiled a hit list of some of the major affected players in the industry. 

Buy Polygon For Big-Brand Crypto Scaling

By Kevin George

  • Polygon added to Disney Accelerator program. Fashion and payments companies add to the recent partnerships.
  • Polygon also added to the recently partnerships with Instagram NFTs.
  • In a recent article, I advised buying Disney for eventual growth in the metaverse. Polygon (MATIC-USD) is a crypto project that has been making waves with a series of big-name corporate partnerships, including Disney.

Breaking Growth Short Candidates: Plug Power, Nvidia, Palantir, Roblox

By Eric Fernandez, CFA

  • This model looks for slowing growth, margin declines, sales and/or earnings disappointments, troubling working capital trends, poor estimate trends or lowered guidance, among other characteristics.
  • The key judgement is whether a slowdown is temporary or the beginning of a trend.  These shorts tend to have high valuations and betas.  Multiple compression accelerates the stock’s decline.
  • Today we are flagging Plug Power, Nvidia, Palantir, and Roblox

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Nov 16
0

Daily Brief United States: Dollar Index, Palantir Technologies Inc, FTX Token, Square Inc, Datadog Inc, Oracle Corp, Bitcoin Pro, Hyatt Hotels Corp Cl A, The Walt Disney Co and more

By | Daily Briefs, United States

In today’s briefing:

  • Rally Continues Following Breaks in USD & 10-Yr Yield; Buy Ideas in Energy & Consumer Discretionary
  • Palantir Inc: Major Drivers
  • #40 The Contagion Vectors of the FTX debacle
  • Sporting Crypto – Nov 14th: Leading Sports Crypto Sponsor FTX File for Bankruptcy
  • Block Inc (formerly Square Inc): Continuing Bullish Approach Towards Crypto
  • Datadog Inc: The Cloudcraft Acquisition & Other Drivers
  • Oracle Corporation (ORCL US): TSS < 10 - Target Tactical 4.0% to 5.5% Decline
  • Crypto Liquidity in a Post-Alameda World
  • Hyatt Hotels Corporation: The Find Platform & Other Drivers
  • Walt Disney Company: Merchandise Marketing Through Disney+ & Other Drivers

Rally Continues Following Breaks in USD & 10-Yr Yield; Buy Ideas in Energy & Consumer Discretionary

By Joe Jasper

  • Our Russell 2000 (IWM) and S&P 500 targets for this rally have been the 200-day MAs, coinciding with YTD downtrends.
  • The Russell already hit this target while the S&P is closing in, less than 1% away.
  • Still, the vast majority of signals point to further upside ahead for the market indexes, and a possible end to the bear market.

Palantir Inc: Major Drivers

By Baptista Research

  • Palantir delivered a mixed set of results in the last quarter.
  • Its $478 million in revenue surpassed Wall Street expectations but the company missed out on the earnings expectations of analysts.
  • U.S. commercial business expanded for the ninth consecutive quarter, up 53% yearly.

#40 The Contagion Vectors of the FTX debacle

By Carbono Insights

  • Time flies in crypto. If you swap “years” for “hours” in this quote from Marvin, the Paranoid Android from The Hitchhiker’s Guide to the Galaxy, you get a glimpse of what crypto has been like in recent weeks. 
  • “The first ten million years were the worst,” said Marvin, “and the second ten million years, they were the worst too. The third ten million years I didn’t enjoy at all. After that, I went into a bit of a decline.”
  • In the last few weeks, FTX has exploded, and somehow it keeps exploding. 

Sporting Crypto – Nov 14th: Leading Sports Crypto Sponsor FTX File for Bankruptcy

By Sporting Crypto

  • FTX blowing up has been seen by many as the most shocking thing to happen in crypto.
  • I’ve spoken to people who have been in the space for longer than me (5 years) and there’s consensus that this really is the craziest thing that has happened – in an industry that is already labelled as the ‘digital wild west’.
  • But how did FTX, a crypto exchange making 8 figures in trading fees *per day* and a modestly sized team blow up?

Block Inc (formerly Square Inc): Continuing Bullish Approach Towards Crypto

By Baptista Research

  • Block delivered a decent set of results with an all-around beat and good profitability during the last quarter.
  • Its BNPL platform produced $150 million in gross profit in the third quarter, distributed between Square and Cash App.
  • Inflows per active user have been improving in the third quarter compared to the first and second quarters and stable year over year.

Datadog Inc: The Cloudcraft Acquisition & Other Drivers

By Baptista Research

  • Like most technology stocks, Datadog has also taken a massive beating in terms of its share price but its financial performance has been good.
  • The company reported strong results for the third quarter and managed an all-around beat.
  • Since customers continue to manage their companies with greater cost consciousness, the company observed current customer usage growth at similar levels as Q2.

Oracle Corporation (ORCL US): TSS < 10 - Target Tactical 4.0% to 5.5% Decline

By David Coloretti, CMT

  • Oracle Corporation (ORCL US) has rallied 30% in October/November 2022.  
  • A new 2 month high of 79.53 was produced on Monday 14 November amid extreme bearish ST momentum failure. 
  • Our TSS methodology triggered a Trend Sustainability Score (TSS) < 10 at the high and justifies a further 4.0% to 5.5% decline in the coming 1-2 weeks.

Crypto Liquidity in a Post-Alameda World

By Kaiko

  • The FTX saga keeps entering new levels of strange.
  • On Friday, both FTX and FTX US filed for bankruptcy, along with 134 related entities, highlighting just how tangled the exchange’s corporate web had become.
  • Just a few hours later, the exchange suffered what now appears to be a massive hack, with more than $600mn siphoned from both FTX and FTX US wallets, instantly triggering rumors of an inside job. 

Hyatt Hotels Corporation: The Find Platform & Other Drivers

By Baptista Research

  • Hyatt delivered a strong performance in the quarter and managed to surpass Wall Street expectations in terms of revenues as well as earnings.
  • With outstanding bookings for upcoming periods during the quarter, group room revenue also saw growth during the third quarter.
  • Besides, they launched The Find platform, a new experiences platform, for members of its World of Hyatt loyalty program.

Walt Disney Company: Merchandise Marketing Through Disney+ & Other Drivers

By Baptista Research

  • Disney had highly disappointing quarter and failed to meet the market expectations in terms of revenues as well as earnings.
  • The quarter saw the company reaching the highest point in DTC operating losses to date which is why operating margins were significantly below analyst expectations.
  • This quarter was strong for products, experiences, and parks that continue to deliver good results despite Hurricane Lan.

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Nov 15
0

Daily Brief United States: Nitro Software Ltd, Silver, Marriott International, Paypal Holdings, Starbucks Corp, Conocophillips, Monster Beverage, Mcdonald’s Corp, Microchip Technology, Amgen Inc and more

By | Daily Briefs, United States

In today’s briefing:

  • Nitro Software: KKR’s $2.00/Share Firm Offer
  • The Commodity Report #77
  • Marriott International: Acquiring The City Express Brand Portfolio & Other Developments
  • PayPal Inc: The PayPal Zettle Terminal & Other Recent Drivers
  • Starbucks Inc: Divestment Of Seattle’s Best Coffee & Other Developments
  • ConocoPhillips: Partnership With Qatar Energy & Other Developments
  • Monster Beverages: Major Drivers
  • McDonald’s Corporation: Major Drivers
  • Microchip Inc: Major Drivers
  • Amgen Inc: Major Drivers

Nitro Software: KKR’s $2.00/Share Firm Offer

By David Blennerhassett

  • Adobe rival Nitro Software Ltd (NTO AU)  has announced KKR (via Alludo) has firmed its $2.00/share Offer, by way of a Scheme, in tandem with an off-market takeover.
  • Both the Scheme and takeover are subject to FIRB and MACs/prescribed occurrences. The takeover is subject to a 50.1% acceptance hurdle. The proposals have the unanimous support of Nitro’s board.
  • The Transaction Booklet is expected to be despatched to shareholders in early February 2023, with a Scheme Meeting expected to be held in March 2023.

The Commodity Report #77

By The Commodity Report

  • Fundamentally speaking, it was nearly a perfect week for commodities as much major news aligned during the week after China eased some Covid restrictions, raising hopes of a demand recovery in the world’s second-biggest economy. 
  • Almost all major commodities traded higher following China’s move to reduce the time that travelers and close contacts of infected people must spend in quarantine, a significant amendment to the Covid Zero policy.
  • China’s loosening of restrictions strengthened a rally that began on Wall Street, with risk assets rising after US inflation slowed.

Marriott International: Acquiring The City Express Brand Portfolio & Other Developments

By Baptista Research

  • Marriott delivered a mixed set of results for the third quarter.
  • The leisure demand for the quarter remained strong and far above 2019 levels.
  • Travelers are apparently continuing to mix pleasure and work visits, according to third quarter day-of-the-week trends.

PayPal Inc: The PayPal Zettle Terminal & Other Recent Drivers

By Baptista Research

  • PayPal’s financial performance was impressive and the company managed to deliver an all-around beat.
  • This will make it simple for PayPal’s merchant community to utilize their iPhone as a mobile point of sale without using a dongle or other payment terminals.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Starbucks Inc: Divestment Of Seattle’s Best Coffee & Other Developments

By Baptista Research

  • Starbucks’ stock has been on a roll after a solid Q4 and fiscal 2022 which surpassed Wall Street expectations on all counts.
  • With improving foot traffic, the company recently expanded its presence in the Italian market as well.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

ConocoPhillips: Partnership With Qatar Energy & Other Developments

By Baptista Research

  • ConocoPhillips’ stock has continued its phenomenal bull run and continues to reach new highs as the company delivered a solid third quarter result surpassing Wall Street expectations in terms of revenues as well as earnings.
  • This is especially true for U.S. shale, where the rate of production increase across the board is being constrained by quickly rising costs and an exceedingly constrained supply.
  • The company is well-positioned to address these long-term supply challenges thanks to the depth and high quality of its unconventional U.S. inventory and broad global portfolio.

Monster Beverages: Major Drivers

By Baptista Research

  • Monster delivered a mixed set of results with record third-quarter net sales of $1.62 billion which was below analyst expectations.
  • Their cost of sales increased significantly during Q3 of 2022 compared to the third quarter of 2021, primarily because of higher costs for ingredients and other inputs, such as secondary packaging materials and co-packing fees, higher logistical costs, higher aluminum can cost, and mix of geographic and product sales.
  • Monster’s strength remains its wide distribution versus smaller peers that helped the company create a strong demand for its energy drinks even in lull periods.

McDonald’s Corporation: Major Drivers

By Baptista Research

  • McDonald’s delivered a solid Q3 performance surpassing Wall Street expectations on all counts which is why its stock price has been surging over the past few weeks.
  • The company’s sustained resiliency is demonstrated by its quarterly global comp sales, which increased by 9.5%.
  • In the quarter, the chicken was a significant contributor to comp sales growth across all of their key markets, and they will continue to concentrate on expanding their worldwide market share in this significant category.

Microchip Inc: Major Drivers

By Baptista Research

  • Microchip’s quarterly result was solid and it managed to surpass Wall Street expectations in terms of revenues as well as earnings.
  • The company’s positive performance was driven by strong execution of the management and resilient end markets.
  • Market demand increased sequentially at roughly the same rate as their sell-in-recognition-based GAAP net sales.

Amgen Inc: Major Drivers

By Baptista Research

  • Despite the challenges in the macroeconomic environment and the pharmaceutical business, Amgen’s stock has been on a strong upward trajectory over the past weeks.
  • The development of Tavneos is the first new therapy for ANCA-associated vasculitis in more than ten years.
  • They also developed an industry-leading biosimilar business and will soon be the first company to introduce a biosimilar to Humira in the United States.

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Nov 14
0

Daily Brief United States: Dollar Index and more

By | Daily Briefs, United States

In today’s briefing:

  • USD Breakdown a Tailwind for Asia

USD Breakdown a Tailwind for Asia

By Thomas Schroeder

  • We were transitioning to short USD at DXY 114 and 113 ahead of the touted break below trendline support that is now unfolding. Our pullback target is DXY 103.
  • A weaker USD is acting as a key risk turn for EM and Asian equities (EEM bull from 34).
  • The USD breakdown is accompanied by a clear yield support break that is perhaps the higher conviction bet into a recession.

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Nov 13
0

Daily Brief United States: Ansys Inc, Etsy Inc, Hubspot Inc, Trimble Navigation and more

By | Daily Briefs, United States

In today’s briefing:

  • Ansys Inc: Ansys Gateway On AWS & Other Drivers
  • Etsy Inc: New Image Search Feature & Other Developments
  • HubSpot Inc: New Products & Other Drivers
  • Trimble Inc: Acquisition of B2W Software & Other Drivers

Ansys Inc: Ansys Gateway On AWS & Other Drivers

By Baptista Research

  • Ansys delivered a positive quarterly result with a strong performance on most key metrics, including revenues, earnings per share, operating margins, and ACV.
  • Semiconductor and high-tech, automotive and ground transportation, and aerospace and defense were again the largest contributors in this quarter.
  • The startup program of the company is growing as the nascent companies are taking advantage of Ansys solutions.

Etsy Inc: New Image Search Feature & Other Developments

By Baptista Research

  • Etsy reported a strong set of results that were beyond market expectations with a strong adjusted EBITDA margin and growth in revenue.
  • Also, it had some early incorporation of buyer interests and taste to create more personalized and predictable recommendations.
  • The company held Etsy Up: Holiday edition, its foremost global holiday kickoff event for sellers all over the world.

HubSpot Inc: New Products & Other Drivers

By Baptista Research

  • HubSpot delivered a good quarterly result with revenue growth beyond market expectations, especially in terms of constant currency.
  • The company also delivered an earnings beat as it added more than 8000 net new customers this quarter.
  • In spite of the more challenging macro environment, HubSpot maintained a healthy growth retention rate largely given its low pricing.

Trimble Inc: Acquisition of B2W Software & Other Drivers

By Baptista Research

  • Trimble showed a decent organic revenue growth in the last quarter but failed to meet Wall Street expectations on the revenue front.
  • The company’s top-line was impacted by the changes in the foreign exchange rates and it barely managed to meet market expectations regarding earnings.
  • Recurring and software revenue continued to grow at quite a strong rate which is reflected by the sequential acceleration of its organic ARR growth.

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Nov 12
0

Daily Brief United States: Moderna Inc, Starbucks Corp, Terra, Qualcomm Inc, Assertio Holdings, Estee Lauder Companies Cl A, Ebay Inc, Comcast Corp Class A, Yum! Brands Inc and more

By | Daily Briefs, United States

In today’s briefing:

  • Reminder: Earnings Quality Short Candidates: Moderna, Sonos, Knowles, Juniper Tech
  • Starbucks Opens its 6,000th Store in China
  • The FTX Collapse: A Market Analysis
  • Qualcomm Inc: Collaboration With Renault & Other Developments
  • ASRT: Asserting a Low Valuation
  • Estee Lauder: The Balmain Partnership & Other Drivers
  • eBay Inc: Acquisition of TCGplayer & Other Drivers
  • Comcast Inc: New Broadband Initiative & Other Drivers
  • Yum Brands: Major Drivers

Reminder: Earnings Quality Short Candidates: Moderna, Sonos, Knowles, Juniper Tech

By Eric Fernandez, CFA

  • This model seeks short-sale candidates among companies that use aggressive accounting and/or exhibit deteriorating quality of earnings.  
  • They are typically highly idiosyncratic shorts and require thoughtful analyses of upcoming catalysts.  When the company’s issues become well-known, there is often multiple compression as well as a rerating.
  • These shorts can have high or low betas, valuations based on artificial earnings and exhibit good short responses to subsequently disappointing earnings. This week: Moderna, Sonos, Knowles, Juniper Tech

Starbucks Opens its 6,000th Store in China

By Investment Talk

  • While the world moves on from the events of 2020 and the pandemic fades through the rear-view mirror, a cluster of fallout still clings to Starbucks, the world’s largest coffee retailer.
  • The operational stress of the pandemic, as well as concerns over in-store safety1 , catalysed demand for unionisation in the company’s most integral market, the United States.
  • Since the first store won its union vote in Buffalo, New York, in December 2021, over 330 stores in 38 states have filed for an election, yielding more than 250 successfully unionised stores.

The FTX Collapse: A Market Analysis

By Kaiko

  • First came the Terra collapse. Then the bankruptcies of the centralized lenders.
  • And now the (almost certain) insolvency of FTX, one of the largest cryptocurrency exchanges in the world. 
  • FTX’s collapse has shaken the industry to its core, in part because it is a fundamentally different type of business than a crypto lender like Celsius.

Qualcomm Inc: Collaboration With Renault & Other Developments

By Baptista Research

  • Qualcomm delivered a mixed set of results as its revenues were higher than the market expectations as a result of a solid chipset business performance and good execution of its diversification and expansion plan.
  • The management is working towards transforming Qualcomm from a wireless communications provider for the mobile industry to a provider of linked processors for the intelligent edge.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

ASRT: Asserting a Low Valuation

By Hamed Khorsand

  • ASRT reported third quarter revenue that were down from the second quarter due to ASRT deciding to remove Indocin from the Government’s voluntary 340b pricing program
  • The addition of Sympazan gives ASRT a new asset in growing revenue and adjusted EBITDA in 2023
  • ASRT reported third quarter revenue of $34.2 million compared to our estimate of $31.6 million. We were expecting ASRT’s commentary related to Indocin would yield lower revenue than it did.

Estee Lauder: The Balmain Partnership & Other Drivers

By Baptista Research

  • Estee Lauder has shown some reversal in the past few days despite delivering a mixed set of results.
  • Besides, 13 brands had organic growth, growing by high single digits to account for more than half of their organic sales.
  • Overall, we remain neutral on Estee Lauder and maintain our ‘Hold’ rating with a revised target price.

eBay Inc: Acquisition of TCGplayer & Other Drivers

By Baptista Research

  • eBay had a solid third quarter and delivered an all-around beat.
  • The company also completed the tech-led re-imagination in the quarter and met its short-term commitments.
  • Additionally, eBay is attempting to improve the standard and volume of the supply of components and accessories.

Comcast Inc: New Broadband Initiative & Other Drivers

By Baptista Research

  • Comcast delivered an all-around beat in its recent results and its performance in its Cable Communications business in the third quarter remained impressive.
  • However, it operates in a turbulent business environment in terms of increased competition from the new entrants as well as depressed move activity.
  • Comcast has recently unveiled an ambitious broadband initiative promising to pass 50 million businesses and homes with the combination of Wi-Fi and 10G-enabled broadband by 2025.

Yum Brands: Major Drivers

By Baptista Research

  • Yum Brands’ stock has been on a solid upward trajectory off-late after the company reported an impressive top-line growth this quarter.
  • Even though it missed out on earnings, the company achieved a 10% system sales increase, supported by 6% unit growth and 5% same-store sales growth which did drive positive sentiment in the markets.
  • KFC did an excellent job of accelerating transaction growth through its omnichannel strategy, which helped to improve comps sequentially from the previous quarter.

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Nov 11
0

Daily Brief United States: FTX Token, Booking Holdings, Caterpillar Inc, Clorox Company, Cvs Health Corp, Fiserv Inc, Gilead Sciences, Harris Corp, Honeywell International, Intel Corp and more

By | Daily Briefs, United States

In today’s briefing:

  • Why the FTX Collapse Is a Big Deal
  • Booking Holdings: Major Drivers
  • Caterpillar Inc: EV Prototype Launches & Other Drivers
  • Clorox Inc: New Eco-Friendly Product Launches & Other Drivers
  • CVS Health Corp: Acquisition of Signify Health & Other Drivers
  • Fiserv Inc: The Vert Launch & Other Drivers
  • Gilead Sciences: Acquisition of MiroBio & Other Drivers
  • L3Harris Corp: Acquisition of Viasat’s Tactical Data Links Business & Other Drivers
  • Honeywell International: Improved Air Quality Monitoring Solutions & Other Drivers
  • Intel Corp: New Launches & Other Drivers

Why the FTX Collapse Is a Big Deal

By Tech in Asia

  • FTX is one of the largest crypto exchanges in the world in terms of market capitalization – at one point it was second only to Binance. It is one of the biggest collapses the crypto ecosystem has seen
  • FTX has a suite of big-name investors – including Temasek, SoftBank, Sequoia Capital, and BlackRock – that have poured US$1.8 billion into the exchange.
  • FTX was the white knight that prevented its fellow crypto firms from dying. It was a savior who helped to stabilize the market.

Booking Holdings: Major Drivers

By Baptista Research

  • Booking Holdings delivered a positive set of results in the quarter and managed an all-around beat.
  • Their consumers reserved 240 million room nights in Q3, just under 0.25 million more than in Q3 2019.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Caterpillar Inc: EV Prototype Launches & Other Drivers

By Baptista Research

  • Caterpillar delivered another solid quarter with an all around beat and generated strong ME&T free cash flow and a higher operating profit margin.
  • To expand its offerings in the construction industry, Caterpillar is launching four prototypes of electric vehicles that are powered by lithium-ion batteries.
  • We provide the stock of Caterpillar with a ‘Hold’ rating and a revision in the target price.

Clorox Inc: New Eco-Friendly Product Launches & Other Drivers

By Baptista Research

  • Despite the continuing difficult and unstable global operating environment, Clorox managed an all-around beat in the last quarterly results.
  • The fact remains that Clorox is already facing a number of macro challenges and future quarters may not be showing such a positive performance.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

CVS Health Corp: Acquisition of Signify Health & Other Drivers

By Baptista Research

  • CVS Health delivered another strong quarter.
  • The company increased sales by 10% compared to the last year, reaching over $81 billion and surpassed Wall Street expectations in terms of revenues as well as earnings.
  • The Health Care Benefits segment also had a good quarter.

Fiserv Inc: The Vert Launch & Other Drivers

By Baptista Research

  • Fiserv had a decent quarter on the revenue front and delivered a double-digit growth as it continues to demonstrate the strength of its client base.
  • Merchants took advantage of the more value-added business, continued to deliver better experiences, and opened up new businesses.
  • Also, Fiserv was awarded another quarter with California State Comptroller for the cards that support different disbursement needs.

Gilead Sciences: Acquisition of MiroBio & Other Drivers

By Baptista Research

  • Gilead Sciences delivered a good result with an all-around beat as its total product sales continued to grow sequentially.
  • The majority of the growth was driven by sales coming from oncology and HIV.
  • Gilead Sciences continues to strengthen its early-stage portfolio, thus adding a BTLA agonist for the inflammation of MicroBio, also an option for the bispecific antibody for MacroGenics for oncology.

L3Harris Corp: Acquisition of Viasat’s Tactical Data Links Business & Other Drivers

By Baptista Research

  • L3Harris delivered a highly disappointing set of results for the previous quarter as it failed to meet Wall Street expectations in terms of revenues as well as earnings.
  • The reduced margins and revenue have been responsible for the guidance decline in free cash flow and EPS.
  • L3Harris performed well in the non-traditional prime business with a record quarter of more than $5 billion in funded orders.

Honeywell International: Improved Air Quality Monitoring Solutions & Other Drivers

By Baptista Research

  • Honeywell delivered a mixed set of results while going through a tough operating environment.
  • Honeywell delivered organic sales growth and strong double-digit growth in its building products businesses, commercial aerospace, and advanced materials.
  • In the quarter, earnings and cash flows was a bright spot as Honeywall managed an earnings beat.

Intel Corp: New Launches & Other Drivers

By Baptista Research

  • Intel continues to face growing economic headwinds and delivered no growth in its revenues on a sequential basis.
  • The service share of the company is tracking in line with its expectations, and against its product roadmap.
  • The company launched its 13th Generation Intel Core processor family, which is led by the 13th Generation Intel Core i9-13900L.

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Nov 10
0

Daily Brief United States: The Walt Disney Co, Wynn Resorts, Arlo Technologies Inc, ACCO Brands, Xperi and more

By | Daily Briefs, United States

In today’s briefing:

  • Disney 4Q2022: Cord Cutting Exacerbating DTC Losses
  • Wynn Resorts Ltd: Possible Macau Openings, Las Vegas Recovery,big Investor Takes 6.1% Position
  • ARLO: Service in a Tough Market, PT to $8
  • ACCO: Free Cash Flow Begins to Show
  • XPER: New Launches Reduce Execution Risk

Disney 4Q2022: Cord Cutting Exacerbating DTC Losses

By Aaron Gabin

  • Across the board miss as DTC losses peak, park margins weaken, and linear likely to fall off a cliff. 
  • Big FY2023 guide down on revenues (HSD vs. LDD previously) and OI growth (HSD vs. ~25% consensus previously). 
  • Disney profitability lower for longer as macro headwinds on parks, accelerating cord cutting, and pushed out D+ profitability means OI likely down $2B in both FY23-24.

Wynn Resorts Ltd: Possible Macau Openings, Las Vegas Recovery,big Investor Takes 6.1% Position

By Howard J Klein

  • Billionaire US investor Tillman Fertitta has bought into what he believes is an undervalued stock as the Las Vegas market recovery speeds up.
  • Stock could now be in play as Fertitta, Wynn’s ex-wife and Macau giant Galaxy now control a al of 20%  the outstanding shares.
  • Stock is up 18% since Fertitta’s buy last week. It could well be in play.

ARLO: Service in a Tough Market, PT to $8

By Hamed Khorsand

  • ARLO affirmed the slowdown in consumer purchasing that began in September and is expecting the market to remain soft through the middle of 2023
  • While ARLO had reduced channel inventory in the second quarter, it had started to ship more product into the channel by the time there was a shift in the market
  • Number of paid subscribers continues to rise in Q3 with ARLO adding 195 thousand. ARLO is expecting paid subscriber growth to continue as the channel sells units to the consumer

ACCO: Free Cash Flow Begins to Show

By Hamed Khorsand

  • ACCO had already warned of the sales shortfall in the third quarter but followed through on exhibiting the free cash flow capabilities of the business.
  • Retailers have changed their purchasing habits and that has led to slower sales at ACCO. 
  • Looking ahead to the fourth quarter, back to school season begins in Brazil and Australia, which should give a lift to sales. 

XPER: New Launches Reduce Execution Risk

By Hamed Khorsand

  • XPER reported third quarter results after becoming a separate operating business at the beginning of October
  • XPER is progressing in adding new customers for its different product lines with revenue expected to ramp in subsequent quarters
  • The third quarter did not have much in the form of surprises with XPER maintaining its full year guidance. 

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