AnalytixInsight

Last week, Nasdaq and S&P 500 rose again, as both indices hit fresh highs. Dow Jones fell 0.5%. The market rally could be due for a breather as indices appear to diverge. Shares in newly public Tempus AI began trading on the stock market on Friday, ending up 8.8% from its IPO price. StubHub’s EBITDA is said to be US$350 million ahead of a planned IPO. Apple on Monday announced highly anticipated updates that will bring generative AI capabilities to its devices, including a partnership with OpenAI’s ChatGPT that will aid Siri queries. Apple isn’t paying OpenAI for the ChatGPT partnership, and could work with Google’s Gemini in the future. OpenAI has surpassed US$3.4 billion in annualized revenue, more than doubling since late 2023. Adobe shares rose over 14% in extended trading Thursday as generative AI fueled its revenue growth. Broadcom revenue jumped 43% on AI chip demand. Microsoft will directly tie one third of performance bonuses for its 14 highest-paid executives to their success in improving the company’s cybersecurity. In Canada, there was yet another take-out, with Copperleaf being acquired for $12/sh in cash, a premium of ~66% to the 90–day VWAP. HEALWELL entered into an agreement to acquire BioPharma Services Inc., one of the largest full-service Contract Research Organizations headquartered in Canada, for up to ~$14.5 million. Tribe Property Technologies will conduct a non-brokered private placement, under the Listed Issuer Financing Exemption for gross proceeds of up to $2.5 million. Sophic Client, Xcyte Digital announced the execution of a definitive agreement with MCON Live, expanding into the military veteran community. Samsung, is leading a round of at least US$300 million in Tenstorrent, a Toronto-based AI chip company. Toronto-based cleantech startup Parity has a secured $26.1 million Series B financing to scale the adoption of its software solution aimed at reducing greenhouse gas emissions in urban buildings.

Despite markets falling on Friday after a strong jobs report, Dow Jones was up 0.3% for the week, S&P 500 rose 1.3%, and Nasdaq composite gained 2.4%. Both NASDAQ and S&P set all-time highs. Nvidia’s market cap passed Apple, putting it just behind Microsoft. The company’s stock price increase could have been aided by a “gamma squeeze”, (a bulk buying of call options) according to analysts. The Company also said its next-generation AI chip platform will be rolled out in 2026. Online fashion retailer Shein is close to filing an application to list on the London Stock Exchange. Bakkt Holdings, the digital-asset marketplace backed by the parent company of the New York Stock Exchange, is working with a financial advisor to explore strategic options, including a potential sale or breakup. Robinhood has agreed to buy Bitstamp, one of the oldest crypto exchanges, for about US$200 million in cash. Humane is reportedly trying to sell itself to HP for US$1 billion. The U.S. has cleared the way for antitrust investigations into Microsoft, OpenAI and Nvidia, as federal regulators have reached an agreement on how to divide up the responsibilities for the probes. In Canada, Sophic Client OneSoft, announced its first customer in South America. Sophic Clients, Kraken Robotics was featured in a prominent Canadian tech blog, and Xcyte Digital Corp. presented at the Spring MicroCap Rodeo Conference on June 6, 2024. Shopify acquired popular no-code checkout customizer Checkout Blocks. Cohere recently secured US$450 million from Nvidia, Salesforce Ventures, Cisco and Canadian pension fund PSP Investments. Québec-based hardware startup Vosker closed $171.2 million in debt financing. McRock Capital announced an initial $111 million close of its third fund.

While Nasdaq topped 17,000 for the first time, earnings losers hit tech names hard. Nasdaq was down 1.1% for the week, despite a strong bounce into the close. S&P 500 lost 0.5%, and Dow Jones fell 1%. Cloud computing startup CoreWeave is preparing for a 2025 IPO. The company was last valued at US$19 billion. AI Startup Perplexity is in talks to raise money at a US$3 billion valuation (3x last round). Elon Musk’s xAI has completed a US$6 billion fundraising round. Salesforce stock plunged 16% after the company warned that a cautious attitude among buyers of enterprise software. MongoDB shares dropped 26% on weak growth. Trading app Robinhood said it would repurchase shares worth up to US$1 billion over a two to three year period starting from Q3. Bloomberg journalist Mark Gurman reported in his Power On newsletter that Apple and OpenAI have reached a deal for OpenAI to provide chatbot functionality in iOS 18. OpenAI two months ago revived a robotics team it disbanded four years ago. Chinese Tesla rival BYD says its new hybrid cars can go 1,250 miles without stopping for gas or charging. In Canada, Sophic Client UGE, entered into an arrangement agreement for a going-private transaction. The all-cash consideration of $2.00/sh represents a 270% premium to the closing price of the stock on the last trading day immediately prior to the announcement. Tribe Property Technologies will acquire Toronto-based DMSI Holdings, and announced a private placement led by PROPELR Growth Fund. Sophic Clients, Kraken and Plurilock reported record Q1 2024 financial results. Sophic Client, Ionol reported continued growth in Q1 2024. Sophic Client, Clear Blue reported Fiscal 2023 financial results.

Last week was mixed despite Nvidia’s stellar earnings and guidance. Nasdaq composite rose 1.4% for the week (fifth straight weekly gain, and an all-time record). S&P 500 index closed marignally higher (after a brief record high Thursday). Dow Jones lost 2.3% last week. Nvidia revenue rose 262% to US$26 billion in the quarter that ended in April as its artificial intelligence chip sales helped the company beat its revenue projection for the quarter by more than 30% for the second quarter in a row. Free cash flow rose by nearly 6 times to US$14.9 billion in the April quarter compared to the same quarter a year ago. And the company gave another strong revenue projection for the current fiscal quarter, which ends in July, saying sales would rise about 107% from last year. Anduril is seeking a US$12.5 billion valuation after doubling revenue. SpaceX is weighing a plan to sell shares at US$200 billion valuation. Shares of database provider Snowflake fell 5% on Thursday after the company said a day earlier that revenue growth had “moderated” in April. Microsoft unveils new AI ‘agents’ to automate workplace tasks and AI focused PCs. U.S. approved NASDAQ and NYSE requests to list Ether ETFs. Ether has jumped nearly 30% in recent days on the anticipation of the SEC decision. In Canada, Blackline announced a $20 million bought deal and $10 million concurrent private placement. Sophic Capital client, Kraken Robotics completed a $20 million bought deal equity financing. Sophic Clients, ADM Endeavors, Legend Power Systems, OneSoft Solutions reported quarterly results. ADM’s focus is now on expanding operational capacity from its new facility in 2024. LPS closed on some large deals, has a strengthened balance sheet, and a growing pipeline. OneSoft reported 30%+ y/y revenue growth, and estimates 2024 in the range of $15 – $16 million, 44% to 54% y/y growth.