In today’s briefing:
- How Has the Index Rebalance Strategy Performed in 2024?
- Synopsys Inc.: How Is It Tackling The China Market & Dealing With Macro Uncertainties? – Major Drivers
- EQD | NDX OVERSOLD: A High Probability LONG Trade Idea
- A Comparison of KOSPI 200 and S&P 500 Companies Performances in 2024
- Oracle’s Astonishing SaaS Expansion Promises to Catapult Stock Prices! – Major Drivers
- C3.ai: Will Its Expansion in Federal & Defense Sectors Be A Breakthrough Move? – Major Drivers
- Adobe Inc.: Strategic Product Tiering & Monetization As A Pivotal Factor Driving Growth! – Major Drivers
- IMMR: The Business of Profits
- Tech Supply Chain Tracker (19-Dec-2024): XPeng, Nio drop Nvidia Thor chip due to delays.
- Macbee Planet (7095) – Prioritizing Sales Expansion
How Has the Index Rebalance Strategy Performed in 2024?
- It has been a decent year for the index rebalance strategy, though there have been some big hiccups along the way.
- Forecasting the index changes and impacts has been important, but timing (especially momentum/value regime changes) and hedge selection have also been major factors affecting the returns of the strategy.
- As passive AUM continues to increase, we expect focus on the strategy to continue in 2025 with market players taking different approaches to trading the potential and announced index changes.
Synopsys Inc.: How Is It Tackling The China Market & Dealing With Macro Uncertainties? – Major Drivers
- Synopsys reported a strong performance for its fourth quarter and fiscal year 2024, achieving record revenue and earnings.
- The company crossed the $6 billion revenue mark, with a 15% year over-year increase, driven by its strategic focus on high-growth segments like AI, silicon proliferation, and software-defined systems.
- Synopsys has expanded its bottom line significantly, with EPS growing at a 24% CAGR over the past five years.
EQD | NDX OVERSOLD: A High Probability LONG Trade Idea
- The Nasdaq 100 Index (NDX) selling lead the index straight into OVERSOLD territory on December 18th.
- The sell off is overdone, our DAILY NDX model suggests a high probability LONG trade for Thursday.
- High volatility may affect trades, triggering stops and making it difficult to hold without taking the risk of big losses, Vertical Spreads (Bull PUTs) are a better instrument choice.
A Comparison of KOSPI 200 and S&P 500 Companies Performances in 2024
- S&P500 is up 27.7% YTD, outperforming KOSPI which is down 6.9% YTD. Global fund flow continues to pour into top quality US stocks such as Palantir, Tesla, and NVIDIA.
- The top 20 best performing stocks in KOSPI 200 are up on average 106.8% YTD. However, the remaining 180 stocks in KOSPI 200 are down on average 9.2% YTD.
- There is no large Palantir-like company that deals with AI/data analytics in Korea. However, large cap IT services and telcos in Korea are increasingly expanding their AI/data analytics related business.
Oracle’s Astonishing SaaS Expansion Promises to Catapult Stock Prices! – Major Drivers
- Oracle Corporation’s recent earnings for the second quarter of fiscal year 2025 highlighted a strong performance driven by significant growth in their cloud services segment.
- Total revenue reached $14.1 billion, reflecting a 9% increase from the previous year, while non-GAAP earnings per share were reported at $1.47, marking a 10% growth year-over-year.
- Such results slightly surpassed expectations, given the challenging currency fluctuations owing to a strengthening U.S. dollar.
C3.ai: Will Its Expansion in Federal & Defense Sectors Be A Breakthrough Move? – Major Drivers
- C3.ai reported its second-quarter fiscal year 2025 results, reflecting a continuation of strong performance with several noteworthy highlights and challenges.
- The company posted total revenue of $94.3 million, representing a 29% year-over-year increase, which exceeded the high end of their revenue guidance.
- Notably, subscription revenue rose by 22% to $81.2 million, making up 86% of total revenue, while professional services revenue was $13.2 million.
Adobe Inc.: Strategic Product Tiering & Monetization As A Pivotal Factor Driving Growth! – Major Drivers
- Adobe’s recent earnings release reflects a period of consistent growth and innovation, demonstrating both strengths and challenges.
- For the fiscal year 2024, Adobe achieved record revenue of $21.51 billion, marking an 11% year-over-year increase.
- This growth was fueled by robust performance across its business segments, most notably within its Digital Media and Digital Experience divisions.
IMMR: The Business of Profits
- IMMR reported fiscal Q2 (October) after having changed its fiscal year end to April. IMMR changed its fiscal year end after the purchase of approximately 11 million shares of BNED.
- The quarter was continuation of IMMR reporting increased revenue from fixed rate royalties while per unit royalties declined slightly from the prior year.
- IMMR reported revenue of $14.1 million compared to our estimate of $10.1 million. We were not expecting a large bump in fixed royalties like IMMR reported in the quarter.
Tech Supply Chain Tracker (19-Dec-2024): XPeng, Nio drop Nvidia Thor chip due to delays.
- XPeng and Nio abandon Nvidia Thor chip over delays, impacting production schedules and development timelines.
- Wistron set to establish new plant in Vietnam in 2025, with potential expansion of current facilities, boosting local economy.
- MSI launches made-in-India notebooks as part of market expansion strategy, tapping into growing demand for tech products in the region.
Macbee Planet (7095) – Prioritizing Sales Expansion
- Back on track – With solid double-digit sales growth of 30.0% YoY, Q1-2 FY4/25 results highlight the company’s ongoing success in expanding the performance-based online advertising market.
- Slight margin dilution YoY points to a changing sales mix in the Wellness sector, but the overall direction of travel remains positive with a sustained growth profile.
- FY guidance has been maintained while a large-scale PR initiative for the company is planned in H2, and the company has managed to reverse some of the allowances for doubtful debt booked in FY4/24, which is a positive development.
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