AnalytixInsight

The share price Arm Holdings ended Thursday at US$63.59, up nearly 25% above the initial public offering price, a strong early sign for the tech listing market overall. Instacart is targeting a valuation of roughly US$8.6 billion to US$9.3 billion in its imminent IPO, a fraction of what the grocery-delivery company was previously worth. Although reports on Friday morning suggested this pricing could be revised up given ARM’s successful listing. Marketing automation software firm Klaviyo is targeting a valuation of as much as US$8.37 billion in its initial public offering, according to updated IPO paperwork on Monday, a slight drop from the more than US$9 billion valuation the company landed when it raised money in 2021. Google on Wednesday said it laid off hundreds of recruiting staff as the company slows hiring. SpaceX’s satellite internet business Starlink brought in US$1.4 billion in revenue in 2022, up from US$222 million in 2021. Apollo is among suitors for IGT’s global slot-machine unit, the unit could fetch US$4 billion to US$5 billion, or ~11x EBITDA. Faze Clan has fired its CEO as the esports industry struggles. The Biden administration has approved US$100 million to fix the nation’s broken EV chargers. Ford will double its F-150 hybrid pickup production as EV sales growth slows. Tesla is closing in on a new manufacturing process that could significantly reduce costs and increase production of its electric vehicles. Tesla is the most shorted stock in the market – and investors have bet against it more than any other name for 3 straight months, according to a recent report. Sophic Client Kraken Robotics CEO, Greg Reid recently presented to investors at the Planet MicroCap Showcase in Vancouver. The Company also recently reiterated guidance for strong revenue growth and are expecting to be Net Income positive this year.

Last week was tough in the markets, as Dow Jones fell 0.75%, S&P 500 lost 1.35, and Nasdaq was down 1.9% — these major indices fell below their 50 day moving averages. China has banned iPhone use for government officials at work. China Mobile reportedly won’t sell the iPhone 15 amid local government ban. Arm is seeking a valuation topping US$50 billion, according to a Tuesday morning filing. The IPO of Renault’s Ampere electric vehicle division could get a valuation of up to 10 billion euros. Midjourney, a generative artificial intelligence startup that charges users between US$10 and US$120 for a monthly subscription, is on pace to surpass US$200 million in revenue this year. Private equity firm Thoma Bravo has agreed to acquire health-records software company NextGen. Business software company Alteryx is exploring a sale. An FTC Antitrust suit against Amazon is set for later this month after a meeting failed to resolve an impasse. Venture-backed defense giant Anduril is acquiring Blue Force Technologies, the advanced design and engineering firm behind the “Fury” unmanned fighter jet, as the company looks to build out its suite of autonomous systems for national security customers. The Pentagon intends to field a vast network of AI-powered technology, drones and autonomous systems within the next two years to counter threats from China and other adversaries. To meet the challenge of a rising China, the Australian Navy is taking two very different deep dives into advanced submarine technology, including unmanned subs, powered by artificial intelligence, called Ghost Sharks. These geopolitical considerations, could be a tailwind for Sophic Client Kraken Robotics. Rockwell Automation signed an agreement to acquire Waterloo-based Clearpath Robotics, terms were not disclosed. Sophic Client LuckBox signed an LOI for potential merger or acquisition. Sophic Client Renoworks has partnered with ROOFLE to offer combined solution for roofing professionals.

Growth stocks performed well last week, Nasdaq was up 3.25%, S&P 500 rose 2.5%, and Dow Jones gained 1.4%. Arm will start conversations with potential IPO investors with a US$50 billion to US$55 billion valuation in mind, for at least a 56% increase from the price at which SoftBank bought Arm seven years ago. OpenAI is on pace to generate more than US$1 billion in revenue, up more than 35 times compared to last year. Nvidia-backed CoreWeave is seeking stake sale at up to a US$8 billion valuation, even as some employees are looking to cash out an astonishing US$500 million worth of shares, according to The Information. In Canada, Sophic Client Kraken announced a $2.7 million sonar & subsea battery order, and reiterated financial guidance for 2023 with Q2 results. The Company expects revenue to be in the $66 – $78 million range and adjusted EBITDA in the $12 – $17 million range. Mid-point of guidance range implies revenue growth of 76% over 2022 and adjusted EBITDA growth of 275%. Sophic Client, Clear Blue Technologies announced Q2 results, and is focused on revenue growth in H2 2023, net-zero cash burn and positive EBITDA. Private equity firm Veritas Capital made an offer to buy BlackBerry, months after the Company began a strategic review, its U.S-listed shares rose about 17% on the news. Amazon and Shopify announced a partnership Wednesday to allow Shopify sellers to offer Amazon’s Buy With Prime service on their e-commerce sites, Shopify also began quietly rolling out a TikTok integration. Toronto-based Cohere is being advised by JPMorgan and Goldman Sachs on a potential financing round. Cohere, a competitor to OpenAI, raised US$270 million in June at a valuation of up US$2.2 billion, recently Tiger Global was close to selling a stake in Cohere in a deal that would have valued the company at about US$3 billion.

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.