Daily BriefsTMT/Internet

Daily Brief TMT/Internet: Intel Corp, Plover Bay Technologies, Telefonica SA, Sps Commerce, XL Axiata, Monday.com , On Semiconductor, Lattice Semiconductor, Amkor Technology and more

In today’s briefing:

  • Intel. What’s Really Going On?
  • Shortlist Of High Conviction Ideas: Income, Value, and Margin of Safety – February 2025
  • Asset Sales as a Catalyst for Share Price Recovery
  • SPS Commerce Is Expanding Its Total Addressable Market (TAM) & Wallet Share But Does It Warrant A ‘Buy’ Rating?
  • XL Axiata (EXCL IJ) – Reasons to Be Cheerful
  • Monday.com’s Multi-Product Power Play: The Cross-Selling Strategy Fueling Massive Revenue Growth!
  • ON Semiconductor: Silicon Carbide Growth & Market Positioning Driving Our Optimism!
  • Lattice Semiconductor Corporation: Can It Capitalize On The Advancements in Far Edge AI Applications?
  • Amkor Technology: Solid Tailwinds From CHIPS Act & Regulatory Environment Driving Our Bullishness!


Intel. What’s Really Going On?

By William Keating

  • Carving out IFS & taking it private is the most likely outcome for Intel. However, it’s complicated by the SCIP deals and restrictions attached to the CHIPS money.  
  • Intel Products Group most likely stays with Intel, maintaining the iconic brand and doubling down on efficiency and innovation. I don’t think it gets sold. 
  • TSMC is unlikely to have any technical role in a spun out Intel Foundry due to a myriad of reasons including monopoly, conflict of interest, insufficient bandwidth etc.


Asset Sales as a Catalyst for Share Price Recovery

By Jesus Rodriguez Aguilar

  • Telefónica is actively pursuing asset sales in Latin America and Europe, aiming to streamline operations and reduce net debt. The company anticipates generating approximately €3.27 billion from these transactions.
  • Assuming minimal tax liabilities due to potential offsets from existing losses, the net proceeds could be applied directly to debt reduction, representing an 11.4% decrease in net debt (2.5x EBITDA).
  • Telefónica’s dividend remains well covered, with a dividend yield of 7.2% for 2025e, significantly above the 10-year Spanish bond yield (3.2%).

SPS Commerce Is Expanding Its Total Addressable Market (TAM) & Wallet Share But Does It Warrant A ‘Buy’ Rating?

By Baptista Research

  • SPS Commerce has reported a strong performance for the fourth quarter and full-year 2024, showcasing a notable growth trajectory.
  • For the full year, the company’s revenue increased by 19% to $637.8 million, with recurring revenue rising by 20%.
  • Fulfillment and analytics sectors also saw significant growth, with the former growing by 20% and the latter by 8%.

XL Axiata (EXCL IJ) – Reasons to Be Cheerful

By Angus Mackintosh

  • XL Axiata 4Q2024 results were solid despite lingering price competition in 4Q2024, especially from Telkomsel but this now looks to have abated with higher data pricing likely in 2025.
  • The company saw its revenues driven by increasing data traffic and higher ARPUs but XL also grew its subscriber numbers last year despite increasing data pricing ahead of competitors.
  • The FREN merger is ongoing with the completion due by end1H2025, with its Link Net restructuring complete, boosting its fixed broadband business. Valuations attractive with easing competition in 2025.

Monday.com’s Multi-Product Power Play: The Cross-Selling Strategy Fueling Massive Revenue Growth!

By Baptista Research

  • Monday.com’s fourth quarter and fiscal year 2024 results, highlighted noteworthy achievements alongside challenges and strategic changes.
  • Roy Mann, Co-CEO, emphasized reaching a major milestone of $1 billion in annual recurring revenue, indicating robust demand for monday.com’s Work OS platform.
  • The company reported substantial growth with total revenue for Q4 2024 at $268 million—a 32% increase from the previous year—and an annual revenue of $972 million, marking a 33% year-over-year growth.

ON Semiconductor: Silicon Carbide Growth & Market Positioning Driving Our Optimism!

By Baptista Research

  • On Semiconductor Corporation’s latest earnings call for the fourth quarter and full year 2024 reveals a mixed set of results, shaped by a combination of strategic decisions and challenging market conditions.
  • The company’s revenue for the full year was $7.1 billion, with a non-GAAP gross margin of 45.5%.
  • This reflects a commitment to their transformation strategy focusing on intelligent power and sensing technologies, particularly in automotive, industrial, and AI data centers.

Lattice Semiconductor Corporation: Can It Capitalize On The Advancements in Far Edge AI Applications?

By Baptista Research

  • Lattice Semiconductor provided a detailed overview of its financial performance and strategic outlook for the third quarter of 2024.
  • The company’s results were generally in line with internal expectations, marking distinct progress in specific segments despite facing notable industry-wide headwinds.
  • Revenue for the quarter was reported at $127.1 million, maintaining alignment with previously provided guidance.

Amkor Technology: Solid Tailwinds From CHIPS Act & Regulatory Environment Driving Our Bullishness!

By Baptista Research

  • Based on Amkor Technology’s latest earnings call, the company’s performance for the fourth quarter and full year 2024 presented a mixed outlook with various challenges and achievements across different market sectors.
  • For the fourth quarter, Amkor Technology reported revenues of $1.63 billion and an earnings per share (EPS) of $0.43, aligning with earlier guidance.
  • However, the company witnessed a 3% revenue decline year-over-year, closing the year with $6.3 billion.

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