In today’s briefing:
- Karuna Therapeutics Inc (KRTX.US) – This Company Is Worth Bristol Myers Squibb Paying a High Premium
- Crypto Moves #18 – The Least Speculative Crypto Bull Market
- Zoom Video Communications: Incorporating AI Capabilities to Improve Customer Engagement and Productivity! – Major Drivers
- Karuna Therapeutics (KRTX US): BMS Acquisition Offers Decent Short-Term Trading Opportunity
- Snowflake Inc: Can Its Rapid Development & Adoption Of AI Products Grow Its Market Share? – Major Drivers
- salesforce.com Inc: Can The Spiff Acquisition Truly Enhance Their Offerings & Create Synergies? – Major Drivers
- Celsius CEO Explains How They Win in Energy Drinks
- Domino’s Pizza: Is Its Improving Supply Chain Profitability Enough To Warrant A Bullish Rating? – Major Drivers
- HEICO Corporation: Is It Able To Capture Adequate Value From Acquisitions? – Major Drivers
- eBay Inc: Increasing Investment in AI & Product Enhancement Is A True Game Changer! – Major Drivers
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Karuna Therapeutics Inc (KRTX.US) – This Company Is Worth Bristol Myers Squibb Paying a High Premium
- Due to large patient population and strong clinical demand for new therapies, the future commercialization prospects of effective drugs in the field of schizophrenia would be relatively certain and promising.
- Our forecast on the peak sales of KarXT is about US$10 billion. In other words, at this peak sales level, BMS is able to recover the US$14 billion in cost.
- Karuna’s P/B is much higher than peers. If investors already have Karuna in portfolio, they may consider taking profits in time.But another rally is possible when KarXT is officially approved.
Crypto Moves #18 – The Least Speculative Crypto Bull Market
- The cryptocurrency market is probably the most speculative, largely because it has not had enough time for price discovery, lacks consistent and measurable metrics, and has seen minimal institutional involvement.
- The crypto market is unique for its overwhelming number of retail investors compared to institutional ones, a rarity in most other markets where institutions lead the way.
- This dynamic has led to significant volatility, primarily driven by the emotional reactions of retail investors, more so than in any other market.
Zoom Video Communications: Incorporating AI Capabilities to Improve Customer Engagement and Productivity! – Major Drivers
- Zoom Video Communications, Inc reported financial results for its fiscal Q4 and full-year 2024.
- The company’s revenue for the Q4 reached $1.146 billion, up 3% YoY. Zoom’s Enterprise revenue grew by 5% YoY and formed 58% of total revenue.
- The company’s non-GAAP income from operations grew 10% YoY to $444 million.
Karuna Therapeutics (KRTX US): BMS Acquisition Offers Decent Short-Term Trading Opportunity
- Bristol Myers Squibb Co (BMY US) is acquiring Karuna Therapeutics Inc (KRTX US) for $330/share in cash for equity value of ~$14B. The transaction is expected to close in 1H24.
- Karuna’s lead asset, KarXT has FDA action date of September 26, 2024 for the treatment of schizophrenia in adults. KarXT has peak annual sales potential of $6–7B.
- Considering strong clinical efficacy and favorable risk profile of KarXT, the deal seems to be fairly valued. Current market price of Karuna shares of $318.41 represents absolute spread of ~3.6%.
Snowflake Inc: Can Its Rapid Development & Adoption Of AI Products Grow Its Market Share? – Major Drivers
- Snowflake reported strong annual performance for fiscal 2024 with a 38% YoY product revenue growth reaching $2.67 billion, highlighting the company’s continued growth trajectory.
- The company also saw an expansion of its non-GAAP product gross margins to 77.8% and it reported non-GAAP adjusted free cash flow worth $810 million, indicating robust fiscal health.
- The company’s exceptional bookings in Q4 with $5.2 billion of remaining performance obligations mark a significant 41% YoY growth, this along with 14 Global 2000 new customers, underscores strong customer adoption and trust in Snowflake’s offerings.
salesforce.com Inc: Can The Spiff Acquisition Truly Enhance Their Offerings & Create Synergies? – Major Drivers
- Salesforce announced its Q4 and full year results for fiscal 2024, reporting a strong performance across all its key metrics.
- This signifies an exceptional year for the company, with revenue, margin, earnings per share (EPS), cash flows, and current remaining performance obligations (cRPO) all recording increased growth.
- The overall transformation seen in Salesforce and its industry has been noted to be substantive, primarily driven by the surge in artificial intelligence.
Celsius CEO Explains How They Win in Energy Drinks
- Bloomberg Audio Studios podcasts Radio News with hosts Weisenthal and Tracy Alloway
- Discussion on energy drinks like Celsius and their rise in popularity
- Interview with John Fieldley, President and CEO of Celsius holdings, discussing the competitive energy drink market and distribution strategies
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Domino’s Pizza: Is Its Improving Supply Chain Profitability Enough To Warrant A Bullish Rating? – Major Drivers
- Domino’s Pizza had a strong Q4 which the company attributes to its new “Hungriest for MORE” strategy, focusing on increased sales, store growth, and profits.
- Throughout the earnings call, the company pointed at positive U.S. same-store sales and transaction growth in both delivery and carryout, signaling strong momentum in the business.
- In 2023, Domino’s added over 60 new franchisees to its system, the most in 15 years, highlighting the company’s expansion strategy.
HEICO Corporation: Is It Able To Capture Adequate Value From Acquisitions? – Major Drivers
- In its recent results, Heico is showing a significant growth trajectory in its recent financial results.
- This growth can be attributed to a couple of key factors, but there are also a number of risks and potential downsides that investors should be aware of.
- In terms of positives, HEICO’s first quarter of fiscal 2024 showed dramatic improvement over the first quarter of fiscal 2023.
eBay Inc: Increasing Investment in AI & Product Enhancement Is A True Game Changer! – Major Drivers
- eBay’s Fourth Quarter 2023 results demonstrated an approximate organic GMV (gross merchandise volume) growth breakdown of roughly 1% for the full year, despite discretionary spending pressure across major markets.
- This resilience was due to an improvement in this metric during each quarter of 2023.
- Focus category GMV indicated a promising upward trend, with growth close to 4%, significantly outpacing the other areas of eBay’s business by around 7 points.