AnalytixInsight

Last week, markets were mixed, Dow Jones fell 0.45%, S&P 500 was up 0.8%, and Nasdaq rose 2.3%, after ending three-week losing streaks. Major indexes did see reversals on Thursday despite blowout Nvidia results, and stocks rebounded on Friday despite a hawkish comments from Fed chief Jerome Powell. Nvidia’s financial performance in the July quarter blew past its earlier projections. Shares rose nearly 10% in after-hours trading. Data and marketing automation company Klaviyo on Friday became the latest tech company to try to join the public markets. Instacart just filed for its IPO and revealed a plan to sell US$175 million in stock to PepsiCo. Arm, which is owned by SoftBank, filed for its initial public offering Monday. Arm is one of the most important companies in technology. Its chip designs found in nearly all the world’s smartphones, including Apple iPhones and most Android devices. In Canada, Sophic Clients Legend Power Systems, UGE International and Renoworks Software reported recent financial results. Sophic Client Clear Blue Technologies will report financial results on Tuesday. “Our focus this quarter remained around advancing sales opportunities and we currently have new late-stage large deals with very strong financial viability,” said Randy Buchamer, Legend Power Systems CEO. “The handful of late-stage deals could bring over $10 million in new potential bookings near term with the long term total pipeline now north of $100 million. The Company also closed a non-brokered $2.5 million financing. UGE ended Q2 with 3.8 MW of operating assets that contributed US$183.6K of energy generation revenue (+126% y/y) with 93% gross margins. The Company also closed its previously announced overnight marketed offering of debentures (the “Green Bonds”)for aggregate gross proceeds of US$5,749,655. The Offering was conducted by a syndicate of underwriters led by Canaccord Genuity, and iA Private Wealth.

Last week was another tough week for investors, Dow Jones fell 2.2%, S&P 500 lost 2.1%, and Nasdaq fell 2.6%. SoftBank is in talks to acquire the 25% stake in Arm it does not directly own. Arm’s revenue fell 1% to US$2.68 billion in its last fiscal year, Bloomberg reported. The chip designer’s revenue fell a further 2.5% in the June quarter. Instacart is aiming for a September IPO. Instacart last raised money in 2021 at a US$39 billion valuation, but is likely to go public around the US$10 billion mark. SpaceX profit hit US$55 million in Q1 on US$1.5 billion in revenue. In 2022, the company had US$559 million in losses on US$4.6 billion in revenue. Europe’s Stripe rival Adyen fell 39% after its slowest sales growth on record. Adyen attributed the tepid print to increased hiring, firmer wages and to a shift in its North American customers’ business prioritization from growth to cost savings in the first half of the year. Shares of Hawaiian Electric plunged as much as 41% on Monday and are down 49% since the devastating Maui fires broke out last week. Intel scrapped its US$5.4 billion deal to buy Israeli contract chipmaker Tower Semiconductor Ltd after their merger agreement expired without regulatory approval from China. Microsoft is planning a new AI service with Databricks, hedging its OpenAI bet. Gemini, Google’s answer to OpenAI’s core software, will launch this fall with the ability to generate conversational text as well as imagery. In Canada, Sophic Client OneSoft reported Q2 revenue of $2.5 million (+87% y/y). Annual recurring revenue increased q/q by 59%. Management reiterated its gross profit guidance of $7.6 million in Fiscal 2023. Squamish, BC-based cleantech startup Carbon Engineering has entered into a definitive agreement to be acquired by oil -and-gas company Occidental Petroleum for US$1.1 billion.

Last week, Nasdaq and growth names were more damaged as industrials, infrastructure, housing, energy sectors and some retail, travel, medical, transportation and financial names held up better. Dow Jones rose 0.6%, S&P lost 0.3% and Nasdaq fell 1.9%. SoftBank’s Vision Fund unit recorded quarterly investment gains for the first time in six quarters. Nikkei reported that chip design company Arm is set to go public on the Nasdaq later this year, with an IPO valued at more than US$60 billion. Apple, Samsung, Nvidia, Intel, and other leading chipmakers will invest in the IPO. Design App Canva was valued at US$25.5 billion in the secondary market, ~36% lower than its most recent financing in September 2021. WeWork warned it has ‘substantial doubt’ about whether it can keep going as a business. PENN Entertainment stock jumped 20% after striking US$2 billion sports-betting deal with ESPN. Nvidia revealed a new A.I. chip, and said costs of running LLMs will ‘drop significantly’. President Joe Biden signed an executive order on Wednesday aimed at regulating new U.S. investments and expertise that supports Chinese development of sensitive technologies. China’s internet giants ordered US$5 billion of Nvidia chips. Baidu, ByteDance, Tencent and Alibaba have made orders worth US$1 billion to acquire about 100,000 A800 processors. GM said all of its EVs will be able to power your home by 2026. In Canada, Algonquin Power & Utilities announced the resignation of its CEO and said it was considering a sale of its renewable energy unit, after activist firms urged action to reduce debt and boost earnings. Sophic Client Legend Power announced a proposed second tranche of its offering. Sophic Client OneSoft announced release dates for Q2 2023 results, as the stock hit a 52 week high. Vancouver fusion energy company General Fusion raised $33.5 millionin what it called the first close of its Series F raise.

As we suggested in our July 23rd post tech stocks got bumpy on earnings last week. Nasdaq lost 2.85%, S&P 500 index fell 2.3%, and Dow Jones was down 1.1%. While most companies have reported earnings, there are more in the coming week, after which market participants can have a better picture of whether the market rally is at an inflection point. Apple lost 7% last week as sales fell, while profits rose on a services shift. Arm is aiming for a US$60 billion valuation in September IPO. New Relic is being taken private by TPG and Francisco Partners in a US$6.5 billion all-cash deal amid stiff competition in the application performance monitoring space from rival software companies Datadog and Dynatrace. CoreWeave, a cloud provider that rents servers with Nvidia’s graphics processing units has secured a US$2.3 billion loan to buy more GPUs and expand its footprint of data centers. Disney’s ESPN is plotting its streaming future, seeking tie-ups with leagues and rivals. Walmart is expanding its in-store advertising initiatives, including at checkout. Meta is reportedly developing a range of AI-powered chatbots with different personalities, a move aimed at increasing user engagement. SEC reportedly asked Coinbase to halt all trading—except for Bitcoin. AMD is plans an AI chip debut by year-end, with a China AI opportunity. Sophic Client Legend Power announced the closing of a non-brokered Private Placement pursuant to the Listed Issuer Exemption for $2.3 million gross proceeds. Sophic Client UGE International announced a Best Efforts Overnight Marketed Offering of up to US$5 million of project development green bonds, which the company announced was oversubscribed along with key new hires and appointments. Shopify Q2 revenues beat guidance, helped by a price hike. National Bank acquired Silicon Valley Bank’s Canadian portfolio.