In today’s briefing:
- S&P500/400/600 Index Rebalance: Dell, Palantir Make It (Finally!); Apple Upweight
- Autodesk Inc.: Expansion into Digital Transformation Solutions & Use Of AI-ML To Drive Growth! – Major Drivers
- Elastic N.V.: An Insight Into Their Pricing Strategy & Our Revenue & Profitability Projections! – Major Drivers
- China Consumption Weekly (9 Sep 2024): Tesla, NIO, PDD, Anta, 361 Degree
- Affirm Holdings: Expanded Adoption of Wallet Partnerships & Other Major Drivers
- Nutanix Inc.: Increased Demand for Private Cloud Solutions Driving Our Optimism! – Major Drivers
- Burlington Stores Inc.: Leveraging Physical and Digital Growth Opportunities! – Major Drivers
- Brown-Forman Corporation: Can They Sustain Their Competitive Advantage With Brand Power? – Major Drivers
- Copper: Holding Its Ground, Value Emerging In Equities
- Box Inc.: Can They Survive The Risks of Competitive Pressure in Cloud Services? – Major Drivers
S&P500/400/600 Index Rebalance: Dell, Palantir Make It (Finally!); Apple Upweight
- There are 3 changes for the S&P 500 INDEX, 8 changes for the S&P Midcap400 Index and 15 changes for the S&P SmallCap600 Index at the September rebalance.
- Dell Technologies (DELL US) and Palantir Technologies (PLTR US) were finally added to the S&P 500 INDEX (SPX INDEX) and there is huge size to trade in the stocks.
- There will also be big buying in Apple (AAPL US) following a float increase driven by Berkshire Hathaway Inc Cl A (BRK/A US) selling last quarter.
Autodesk Inc.: Expansion into Digital Transformation Solutions & Use Of AI-ML To Drive Growth! – Major Drivers
- Autodesk, Inc. concluded its second quarter of Fiscal Year 2025 with robust results, characterized by a 13% revenue growth in constant currency, which has led to an upward revision of the full-year guidance.
- This reflects not only the success of the recent launch of their new transaction model in North America but also anticipates a similar introduction in Western Europe come September.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Elastic N.V.: An Insight Into Their Pricing Strategy & Our Revenue & Profitability Projections! – Major Drivers
- Elastic N.V. reported an 18% year-over-year growth in total revenue, with cloud revenue experiencing a 30% increase.
- The non-GAAP operating margin was 10.7%, aligning with the company’s performance exceeding its revenue and profitability guidance.
- A key strategy highlighted was their “land, expand, and consolidate” approach, which has led to growth in customers spending over $100,000 to more than 1,370.
China Consumption Weekly (9 Sep 2024): Tesla, NIO, PDD, Anta, 361 Degree
- In August, Tesla’s shipments grew by 3% YoY, while top domestic producers’ shipments grew over 30% YoY.
- The revenues of two domestic sneaker makers, 361 Degree and Anta, increased by 19% YoY and 14% YoY in 1H24.
- In 2Q24, NIO’s deliveries and revenue increased by 144% YoY and 99% YoY, but its losses were still significant.
Affirm Holdings: Expanded Adoption of Wallet Partnerships & Other Major Drivers
- Affirm Holdings recently reported its Fourth Quarter Fiscal 2024 Earnings and the management emphasized the company’s robust performance both in terms of growth and profitability for the fiscal year.
- The discussion underlined Affirm’s management’s ability to leverage technological advancements, particularly in artificial intelligence and machine learning, to maintain control over credit outcomes, which they describe as an intentional result of their strategies.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Nutanix Inc.: Increased Demand for Private Cloud Solutions Driving Our Optimism! – Major Drivers
- Nutanix’s fourth quarter and fiscal year 2024 earnings results mark a period of solid performance and strategic progress.
- During the fourth quarter, Nutanix exceeded its financial guidance, achieving revenue of $548 million, which represents an increase of 11% year-over-year.
- This growth was supported by substantial free cash flow generation and the acquisition of significant new customers, the highest in three years.
Burlington Stores Inc.: Leveraging Physical and Digital Growth Opportunities! – Major Drivers
- Burlington Stores, Inc. reported robust financial results for the fiscal second quarter of 2024, highlighted by significant growth in total sales and improvements in gross margin.
- The positive performance can be largely attributed to strategic store expansions and efficient supply chain management.
- The company opened 36 new stores, taking the total to 1,057 locations, and reported a 5% increase in comparable store sales, surpassing the guided range of flat to 2%.
Brown-Forman Corporation: Can They Sustain Their Competitive Advantage With Brand Power? – Major Drivers
- Brown-Forman Corporation’s first quarter fiscal year 2025 results reflect a challenging start to the year, consistent with the company’s expectations of a stronger second half.
- The globally recognized beverage company reported an 8% decline in reported net sales and a 4% decrease in organic net sales, highlighting a period of adjustment and alignment with strategic transitions and economic influences.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Copper: Holding Its Ground, Value Emerging In Equities
- Concerns about a further slowdown in the Chinese and US economies have led to the commodity complex selling off, but copper remains resilient at the 9000 USD/ton level.
- Copper inventories on the exchanges have declined by over 6% in the last three weeks, although they remain elevated at over 470k tons.
- We see pockets of value emerging in equities post the sell-off but would only trigger stocks like Southern Copper (SCCO US) and Ivanhoe Mines (IVN CN) at lower levels.
Box Inc.: Can They Survive The Risks of Competitive Pressure in Cloud Services? – Major Drivers
- Box, Inc. reported its second-quarter fiscal 2025 earnings with a focus on operational discipline, driving higher revenue growth and improved gross margins.
- The results demonstrate the company’s ability to adapt to the evolving technological landscape, particularly through its integration of AI into service offerings.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
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