Daily Brief United States: Karuna Therapeutics Inc, Ethereum, Zoom Video Communications Inc, Snowflake , Salesforce.Com Inc, Celsius Holdings, Domino’s Pizza, HEICO Corp, Ebay Inc and more

• 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.

• 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, 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.

• 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 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 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.

• 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 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.

• 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’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.