In today’s briefing:
- What to Watch in 2023
- Meta Platforms: Q4 Earnings Update, Our Approach Now
- Advanced Micro Devices (AMD): New Launches & Other Drivers
- IMMR: Rumbles of a Special Sit, Initiating
- New Ruipeng Pet Group IPO: Struggling Pet Hospital Operator. Hard To Justify Premium Valuation
- Major Commodity Fund Outflows Continue in January
- UI: Margin Rebound with Revenue Growth
- CEL Token Inflated By Insiders
- General Motors Company: EV Plant In Canada & Other Developments
- Edwards Lifesciences: Sapien-3 Ultra Resilia Valve Launch & Other Developments
What to Watch in 2023
- Investors will remember 2022 as the first real credit crisis that bitcoin and the broader crypto space have suffered. In historical terms, it was a significant year.
- The ensuing deleveraging eliminated many entities that got overzealous in the bull market and didn’t adjust their strategies to new market conditions.
- Almost the entirety of those now-insolvent entities were centralised conduits to the world of blockchain and digital assets.
Meta Platforms: Q4 Earnings Update, Our Approach Now
- Meta announced its Q4 earnings, exceeding expectations on the top line by 1.5%, but falling short on the bottom line by 20.8%.
- The key highlights from the announcement included an increase in share buybacks, reductions in capital expenditures, and a lowered outlook for operating expenses.
- Since the release of new earnings by Meta (NASDAQ:META), we have been following up on our last report, which got a very positive response.
Advanced Micro Devices (AMD): New Launches & Other Drivers
- AMD had a strong quarter and managed an all-around beat despite the fact that the company navigated quite a challenging macro environment.
- The company also launched the Ryzen 7000 mobile APUs, RX 7000 laptop GPUs, and V-cache chips.
- For the company’s Xilinx data center as well as networking products, AMD had strong sales in the quarter.
IMMR: Rumbles of a Special Sit, Initiating
- We are initiating coverage of Immersion (IMMR) with a Buy Rating and $11 target
- IMMR is a haptics technology developer that has undergone a management change that could further result in a series of material developments
- IMMR naming Eric Singer as its CEO suggests there is more to come from IMMR than the cost cuts IMMR undertook two years ago when Mr. Singer joined the Board
New Ruipeng Pet Group IPO: Struggling Pet Hospital Operator. Hard To Justify Premium Valuation
- New Ruipeng Pet Group, a China-based pet clinic operator and provider of pet care services, filed for a U.S. IPO. The company plans to list ADSs under the ticker “RPET.”
- The company’s most recent private round was a $500M venture round led by Boehringer Ingelheim and Tencent at a ~$4.4B valuation in September 2020.
- We believe investors should think twice before investing in the New Ruipeng IPO as the pet hospital operator struggled to grow revenues, operating losses mounted, and labor costs increased.
Major Commodity Fund Outflows Continue in January
- Glencore said last week that its copper production fell 12% in 2022.
- The miner and trader said it produced 1.06 million tonnes of copper last year and kept its 2023 outlook unchanged at around 1.04 million tonnes.
- Many miners revise their copper output lower, as extreme weather, labor issues, or lower grades have caused companies to deal with problems and limit the output accordingly.
UI: Margin Rebound with Revenue Growth
- Ubiquiti (UI) reported fiscal second quarter (December) results affirming our expectations of the enterprise segment being the source of growth
- Ubiquiti has introduced several new products lines over the past two years, which we believe are becoming an important part of the revenue story
- The product mix and reduced shipping costs resulted in Ubiquiti reporting gross margin of 40 percent. This is the first time in four quarters gross margin reached 40 percent
CEL Token Inflated By Insiders
- Price Movements: DYDX has rallied 130% since the decentralized exchange announced they would postpone a planned unlock for the token.
- Market Liquidity: BUSD’s market share has held steady since Binance admitted to mismanaging reserves.
- Derivatives: The open interest to market cap ratio suggests Optimism’s OP token is highly leveraged.
General Motors Company: EV Plant In Canada & Other Developments
- General Motors managed to deliver an all-around beat in the recent result with an increase in the market share and record ATPs.
- In the commercial fleet business, the company gained a profitable, considerable market share.
- We provide the stock of General Motors with a ‘Hold’ rating and a revision in the target price.
Edwards Lifesciences: Sapien-3 Ultra Resilia Valve Launch & Other Developments
- Despite the healthcare disruptions in several key geographies, Edwards Lifesciences delivered a good result surpassing the analyst consensus estimates in terms of revenues as well as earnings.
- In the quarter Edwards made a series of some external investments in several promising early-stage technologies.
- We provide the stock of Edwards Lifesciences with a ‘Hold’ rating and a revision in the target price.
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