Daily Brief TMT/Internet: Kakao Corp, China Tower , NVIDIA Corp, Acer Inc, Travelzoo Inc, Smartsheet Inc, Solera Corp and more

• As a result of the arrest of Kim Beom-Su, the near term impact on the Kakao companies (including Kakao Corp, Kakao Bank, Kakao Pay, and Kakao Games) is clearly negative.
• Given that this is a highly publicized event, it is likely that this legal case will be PROLONGED and finally decided by the Supreme Court which could take several years.
• Some of the scenarios include Kakao Group selling partial stakes in Kakao Bank and SM Entertainment but this is likely to get dragged on, resulting in further uncertainty.

• A month out from cutoff for the September rebalance, we see one potential change for the iShares China Large-Cap (FXI) (FXI US). 
• China Tower (788 HK) is a potential inclusion while China International Capital Corporation (3908 HK) should be deleted from the ETF.
• Shorts have been dropping in China Tower (788 HK) and are near their lows while increasing in China International Capital Corporation (3908 HK). 

• NVIDIA Corporation, a titan in the semiconductor industry, has been at the forefront of artificial intelligence (AI) innovation, primarily due to its cutting-edge GPUs that power everything from deep learning algorithms to complex simulations.
• As the company approaches its earnings report, investors are keenly observing the performance of its AI-driven products amidst a backdrop of global market dynamics and regulatory challenges.
• The company’s recent advancements, such as the “Blackwell” chip series, promise significant improvements in processing speed and efficiency.

• Kamala Harris assumes presidency after Joe Biden steps down amidst discussions on AI regulations and semiconductor debates.
• India’s iVP Semi focuses on domestic market with locally developed strategy, aiming to penetrate the fabless startup industry.
• Composite materials boast superior performance but come with higher costs due to advanced properties and manufacturing processes; South Korean experts urge government to protect OLED panel market against Chinese competition.

• Travelzoo (TZOO) is an online club for travel enthusiasts, featuring travel deals from airlines, hotels, cruiselines, vacations, and vouchers for offers from local businesses.

• TZOO has 223 employees, TZOO boasts 30 million members, 8 million mobile app users and 5 million social media followers, and publishes deals from over 5,000 travel, entertainment and local providers.

• In 2020, due to the pandemic, which decimated travel generally, TZOO’s revenues declined ~50% and the company lost $1/sh. 

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Smartsheet has recently been in the news for fielding buyout interest.
• The company reported its First Quarter of Fiscal Year 2025 earnings with positive developments, demonstrating steady improvements.
• The company showcased an expansion, notably reaching a total of 72 customers with annualized recurring revenue (ARR) over $1 million, marking a 50% increase from the previous year.

• Solera Corp, the global leader in vehicle lifecycle management and automotive software solution provider, filed to list IPO on New York Stock Exchange.  
• The software company plans to raise capital and repay a portion of massive debt obligations, which exceeded $8B as of Jun-24. Goldman Sachs is leading the offering.  
• With $8B+ of variable rate indebtedness and low single-digit growth, the risk-reward profile of Solera IPO looks increasingly skewed to the downside.