Daily Brief TMT/Internet: Reddit , Taiwan Semiconductor (TSMC), Cisco Systems, Lenovo, Godaddy Inc Class A and more

• Reddit is getting ready for an IPO in the United States in the next several weeks. It is expected that this IPO will be completed in March. 
• The company was previously valued at US$10 billion in a funding round in 2021. It is expected that the company could sell about 10% of its shares in this IPO.
• Reddit may be seeking a valuation of at least US$5 billion in this IPO, which would be nearly half its valuation it received in 2021 in a private funding round. 

• Usually, February is typically the month with the fewest working days of the year, and therefore, revenue is likely to be at its lowest as well.
• We consider that the Taiwanese government may desire TSMC to build fabs in countries aligned with those who signed the “Wassenaar Arrangement.” 
• The price hike of NVIDIA Corp (NVDA US) by US$785.38 on February 22 in the US market could signal an important development in the AI sector.

• Cisco Systems Inc.’s fiscal second-quarter results demonstrated a mix of positives and negatives, balanced by the company’s flexible strategic route and shifting market conditions.
• Revenue for the quarter edged at the high end of the company’s guidance range, owing to robust operating leverage across business segments that surpassed margin expectations and facilitated better-than-expected earnings per share.
• A total of $2.8 billion value was returned to investors through dividends and share buybacks, evidencing Cisco’s ongoing commitment to its shareholders.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Lenovo

• In summarizing GoDaddy’s fourth quarter and annual 2023 results, it appears like the company has maintained a steady growth trajectory, particularly in its Applications & Commerce segment that achieved a 16% bookings growth.
• The company has also successfully driven a 2023 normalized EBITDA margin that surpassed previous guidance due to its investment in growth and cost structure management.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.