Daily Brief United States: Alphabet, Crude Oil, Ashford Inc, P10 Inc, Embecta , Ethereum, Perfect , HighPeak Energy Inc, Imperial Petroleum and more

• Yesterday’s Google’s earnings may have been bit of “meh” at first glance, but there were nuggets in the call that may have important implications for the broader market.
• Network segment continues to struggle, but the rest of the businesses continue to grow at healthy double digit rate.
• Search revenue growth surpassed YouTube ads revenue growth last quarter. For the first time, Cloud posted >$10 Bn quarter while maintaining high 20s growth YoY.

• Alphabet’s revenue jumped 14% YoY to $84.74B, exceeding the $84.19B forecast, fueled by strong digital ad sales and cloud services demand.
• Net income rose 28.6% to $23.6B, surpassing the $22.9B estimate, reflecting effective cost management and revenue growth despite margin concerns.
• YouTube’s ad revenue fell short of expectations, growing slower than Q1 due to increased competition and tougher year-on-year comparisons, impacting overall share performance.

• US crude inventories fell for the fourth straight week, with a 3.7 mb drawdown. Gasoline stocks dropped by 5.6 mb, the largest decline since March.
• As of 19/Jul, US natural gas inventories were up 8.4% YoY and 16.4% above the 5-year seasonal average.
• TotalEnergies’ Q2 revenue fell 5.2% YoY, missing estimates by 7.3%. EPS dropped 7.5% YoY and missed estimates by 7.2%.

• Ashford Inc. has approved a going dark transaction offering $5.00 cash per share to common stockholders with fewer than 10,000 shares
• Potential profits of $2,300 using 9,999 shares represent a 4.8% return, annualizing to 19.2% due to a projected July closing
• AINC is a hotel management company led by Monty Bennett, and the transaction is subject to a stockholder vote and IRA Waiver Proposal, with directors and executive officers expressing their support.

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.

• P10 is an alternative asset manager providing access to private markets, charging fees on committed capital over a 10-to-15-year period.
• Recent decrease in cash margins due to factors like strategy mix shift and CEO transition has led to P10 trading at a highly discounted multiple of AUM and revenue.
• Valuation uncertainty and disappointing growth forecasts for 2024 may be offset by potential for growth and re-rating of equity with new CEO focused on improving FPAUM and margins.

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.

• Embecta is in an intricate phase as strategists contemplate its potential as an acquisition target.
• Analyzing Embecta’s scenario involves balancing an array of factors highlighted during its thorough earnings discussion.
• On the positive side, Embecta has displayed a robust earnings performance in the fiscal second quarter of 2024, with a total revenue growth of 3.6% on an as-reported basis and 4.5% on a constant currency basis.

• The U.S.-based Ethereum spot ETFs were launched on Tuesday, concluding their second trading session yesterday.
• Since the launch, Ethereum has declined slightly both in dollar terms and relative to Bitcoin.
• Despite this situation, there is nothing to fear – in fact, quite the opposite, as we will demonstrate in today’s Crypto Moves.

• Perfect Corp. provides an AI and machine learning based B2B SaaS platform for virtual try on and marketing of beauty and fashion products as well as six mobile apps sold B2C for makeup suggestions, try-on, tutorials, photo and video editing and most recently, Gen AI creation and editing.
• It is expanding its offering to new verticals and has strong IP as well as the largest database for AI training in the industry.
• It has a dominant market share and serves almost all the major beauty brands worldwide.

• We are updating our estimates to reflect actual 2Q24 NYMEX reference prices of $80.66/bbl for oil and $2.32/MMBtu for natural gas.
• Oil accounts for 78% of our 2Q24 oil production estimate and 98% of our 2Q24 revenue estimate.
• Management’s FY24 production outlook is 43.0-47.0 MBOE/d (Figure 1). 1Q24 production averaged 49.7 MBOE/d (80% oil). 

• IMPP is a shipping company that spun off in May 2021 with 4 ships, raising $140 million through 5 offerings
• Company has a strong balance sheet with net tangible equity of $360 million, over $140 million in net cash and $40-50 million in earnings power
• Shorting IMPP is effectively shorting cash with 3.8 million shares sold short and a borrow rate of -45%, potential for high returns with possible target stock price of $7-8 later in the year

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.