In today’s briefing:
- Nvidia Vs. Taiwan Short Basket: Hedge Working; CES 2024 Likely Positive for Nvidia Vs. Basket
- Marvell Technology Inc.: AI and Cloud Growth – Are They the New Tech Leaders? – Major Drivers
- China Healthcare Weekly (Dec.31)-New Medical Device Policy, AstraZeneca to Acquire Gracell, PD-1+ADC
- Akamai Technologies Inc.: Paving the Way for a Safer
- American International Group (AIG): Acquisition of UK Protection Business & Other Major Drivers
- Analog Devices Inc.: Revolutionizing AI ML Systems with Innovative Power Solutions! – Major Drivers
- American Airlines Group: Additions of New Routes & Other Major Drivers
- Best Buy Co. Inc.: The Strategy Driving Their Membership Program Success! – Major Drivers
- BILL Holdings Inc.: Transforming Financial Operations in the Face of Macroeconomic Challenges! – Major Drivers
- AppLovin Corporation: AI-Driven Tech Powering Advertising – A Deep Dive! – Major Drivers
Nvidia Vs. Taiwan Short Basket: Hedge Working; CES 2024 Likely Positive for Nvidia Vs. Basket
- Long Nvidia vs. Short Basket of Taiwan AI Concept Stocks — The trade has held steady since our last piece with Nvidia outperforming the shorts slightly.
- CES 2024 will be held January 9th to 12th. It will showcase AI expanding into a wide range of Edge AI applications such as home appliances and PCs.
- One can maintain the L/S trade into CES 2024 given that the Taiwan AI Short Basket constituents are unlikely to be beneficiaries of positive news flow from the event.
Marvell Technology Inc.: AI and Cloud Growth – Are They the New Tech Leaders? – Major Drivers
- Marvell Technology managed to surpass Wall Street’s revenue and earnings expectations, achieving a commendable revenue of $1.42 billion, marking a 6% sequential growth above the midpoint of the provided guidance.
- The data center end market witnessed revenue of $556 million in the third quarter, surpassing expectations, mainly driven by robust AI revenue.
- Despite the anticipated decline in enterprise on-premise revenue, Marvell’s diverse product portfolio, including PAM4 optical products and Teralynx Ethernet switches, contributed to the broad-based growth.
China Healthcare Weekly (Dec.31)-New Medical Device Policy, AstraZeneca to Acquire Gracell, PD-1+ADC
- Ministry of Finance and National Health Commission issued new policy strictly prohibiting public hospitals from borrowing to purchase medical equipment, which will change the investment logic of medical device sector.
- “PD-1+ADC” is expected to replace “PD-1+chemotherapy” as the first-line standard therapy. This will be a huge market. So, good story of ADC CDMO (such as WuXi XDC) would continue.
- The inspiration that AstraZeneca’s acquisition of Gracell brings to investors is IPO isn’t the only way for exit.Being acquired is also good, which will become more important in the future.
Akamai Technologies Inc.: Paving the Way for a Safer
- Akamai Technologies, Inc. exceeded analyst expectations in terms of revenue as well as earnings, with a revenue surge to $965 million, marking a substantial 9% year-over-year growth.
- The non-GAAP operating margin stood impressively at 31%, while non-GAAP earnings per share reached $1.63, reflecting a remarkable 29% year-over-year increase.
- Akamai’s security segment experienced a notable 20% year-over-year growth in Q3.
American International Group (AIG): Acquisition of UK Protection Business & Other Major Drivers
- AIG delivered mixed results for the previous quarter, with revenues well below analyst expectations, but managed an earnings beat.
- In the third quarter, AIG continued to achieve remarkable results, demonstrating significant progress in strategic, operational, and financial objectives across the organization.
- They had adjusted after-tax income of $1.2 billion, a 92% YoY increase, and consolidated net investment income reaching $3.3 billion, a 29% YoY increase.
Analog Devices Inc.: Revolutionizing AI ML Systems with Innovative Power Solutions! – Major Drivers
- Analog Devices, Inc. delivered a mixed set of results in its most recent result, with revenues above Wall Street expectations but below-par earnings, reaching $2.7 billion, primarily fueled by substantial growth in the automotive sector.
- Amid challenging times, ADI’s design win pipeline witnessed double-digit growth, buoyed by sustained momentum in Maxim revenue synergies, surpassing initial expectations.
- In the consumer sector, ADI secured multiple power management sockets in portable applications, showcasing the success of its acquisition strategy.
American Airlines Group: Additions of New Routes & Other Major Drivers
- American Airlines Group delivered mixed results for the previous quarter, with revenues below the analyst consensus.
- The financial results for the third quarter showcased high revenues of approximately $13.5 billion, driven by a resilient demand environment and significant travel rewards program revenue.
- American Airlines experienced steady domestic demand, with international demand fueling revenue growth, particularly in the Atlantic, Caribbean, and Central America regions.
Best Buy Co. Inc.: The Strategy Driving Their Membership Program Success! – Major Drivers
- Best Buy Co., Inc. delivered mixed results for the previous quarter, with revenues well below analyst expectations but managed earnings beat.
- The company disclosed a 6.9% decline in comparable sales, a tad below the projected figure, due to softened consumer demand during the quarter.
- The third quarter witnessed growth in the paid membership base and enhanced customer satisfaction across various service offerings.
BILL Holdings Inc.: Transforming Financial Operations in the Face of Macroeconomic Challenges! – Major Drivers
- BILL Holdings, Inc. surpassed the revenue expectations as well as the earnings expectations of Wall Street, marking a milestone with Q1 revenue surpassing $300 million, a remarkable 33% YoY increase.
- Despite surpassing expectations and witnessing strong customer adoption, the company faced growing macroeconomic pressures toward the end of the quarter, persisting into October.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
AppLovin Corporation: AI-Driven Tech Powering Advertising – A Deep Dive! – Major Drivers
- AppLovin Corporation delivered an all-around beat in the previous quarter, experiencing substantial year-over-year and quarter-over-quarter revenue growth.
- As part of the portfolio optimization program, the apps sector marked its first quarter of quarter-over-quarter revenue growth, generating a total revenue of $864 million, surpassing guidance with an adjusted EBITDA of $490 million, up 63% year-over-year.
- In the app segment, revenue grew 5% sequentially to $360 million, representing the initial quarter of growth since the portfolio optimization initiative began.
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