August 28, 2022: Market Resumes Downward Trajectory
Last week, the Dow Jones fell 4.2%, the S&P 500 fell 4%, and the Nasdaq composite fell 4.4%. Hedge funds are piling back into their favorite FANG stocks amid rising uncertainties in the stock market as investors grapple with elevated inflation and a Federal Reserve that is still expected to raise interest rates, according to Goldman Sachs. Global spending on technology, which includes cloud services, is expected to rise about 3% this year, well below the 10% annual growth in 2021 and the nearly 7% gain the year before, according to Gartner. The US IPO market faced the worst year in two decades. So far this year, traditional IPOs have raised only US$5.1 billion, Dealogic data shows. Typically, at this point in the year, traditional IPOs have raised around US$33 billion. Instacart orders and revenue grew in the second quarter as consumers stuck to online grocery delivery despite rising prices and store reopenings, a promising sign for investors as the company prepares for an initial public offering as soon as later this year. An army of Tesla fans in South Korea holds a collective stake of more than US$15 billion, putting them among its top shareholders, report says. The U.S. and China are nearing an agreement that would allow American regulators to inspect the audit records of Chinese companies listed in New York. China’s Pinduoduo to enter US market in first international step. T-Mobile and SpaceX Starlink say your 5G phone will connect to satellites next year. Sophic Client, UGE International (UGE-TSXV, UGEIF-OTC) CEO Nick Blitterswyk discussed the solar boom and how Biden’s climate bill could benefit business on ‘ on Fox Business. Eguana (EGT-TSXV) announced a US$33.0 million strategic investment by ITOCHU Corporation and provides update on US$5 million second tranche loan from Western Technology investment. Sophic Client Swarmio (SWRM-CSE, SWMIF-OTC) announced that it received $802,275 in secured debt from various private lenders. Open Text (OTEX-NYSE, OTEX-TSX) plans to acquire Micro Focus at US$6 billion valuation.
August 21, 2022: Tough End To The Week
Friday reversed a good start to the week, the Dow Jones closed the week down 0.2%, the S&P 500 fell 1.2%, and the Nasdaq composite was down 2.6%. In the USA, 522 startups have laid of 70,698 employees in 2022, according to Layoffs.fyi. Fidelity,and BlackRock cut fintech giant Ant’s valuation lower. WeWork’s co-founder lined up a US$350 million A16Z investment for a new billion-dollar real estate venture. Chinese internet giant Tencent reported its first-ever quarterly revenue decline since the company went public in 2004, as China’s economic slowdown took a toll. Shares of Hong Kong-listed food delivery service Meituan fell as much as 10% after Reuters reported that shareholder Tencent Holdings was planning to sell all or a bulk of its US$24 billion stake. Unity Software on Monday rejected gaming software company AppLovin Corp’s US$17.54 billion takeover offer and said it would go ahead with its deal to purchase mobile app monetization software company ironSource. Amazon is testing a feature in its app that would show users a TikTok-style photo and video feed of products for shoppers to share with other users. After dealing with booming demand and global shortages since the start of the pandemic, the semiconductor industry is facing a sudden downturn. The suddenness of the turn has ricocheted through the sector since late July, when Intel stunned Wall Street with the news that revenue in its latest quarter had fallen US$2.6 billion, or 15 per cent, short of expectations. In Canada, After the boom of 2021, Canadian venture capital investment is normalizing back to pre-pandemic levels, per the latest data from the Canadian Venture Capital and Private Equity Association (CVCA). Sophic Client LuckBox (LUCK-TSXV, LUKEF-OTC), management provided positive forward looking comments at the Company’s AGM held last week, guiding to profitability in H1 2023 supported by the Company’s existing cash balance.
August 14, 2022: A Good Week, But A Technical Bull Market?
Last week, the Dow Jones was up 2.9%, the S&P 500 was up 3.25%, and the Nasdaq composite was up 3.1%. The Nasdaq is now up 20%+ since it’s June 16th low. SoftBank reported a record net loss of US$23.4 billion for Q2 2022, as the global stock market rout dealt a severe blow to the vast portfolio of the company’s Vision Fund. The company now expects to book a gain of more than US$34 billion by reducing its stake in Chinese e-commerce giant Alibaba. Shares of Nvidia dropped 8% after a preliminary earnings announcement for the July quarter warned that weaker-than-expected demand for its gaming chips caused it to fall far short of the revenue target it had shared with investors last quarter. Palantir plunges 14% after scaling back its annual forecast. Trade Desk stock soars toward best day since 2018 amid ‘standout’ performance. AppLovin offers to buy video game software maker Unity in US$17.5 billion deal. Elon Musk sells nearly US$7 billion worth of Tesla stock amid Twitter uncertainty. South Korean investors pour more cash into SpaceX at US$125 billion price tag. Apple tells suppliers to make at least 90 million iPhone 14 units. BlackRock launches Bitcoin Trust for big clients. In Canada, D-Wave listed on the NYSE following the close of a SPAC deal. With a new team, Framework Venture Partners secures US$100 million first close for its second fund. Sophic Client Jasper, Commerce preannounced continued growth in Fiscal 2022 (ending July 31). Sophic Capital published a piece on client UGE International’s benefit from the largest climate package in U.S. history. We also published the first part of a CEO interview from our client Edge Total Intelligence, highlighting the company’s enterprise software platform, value proposition and end markets.
CEO Interview – One Pane of Glass To Rule Them All
Most executives don’t know what’s happening in every corner of their organization. Why? 34% of enterprises use more than 50 SaaS apps and 16% use more than 100 SaaS apps, creating the potential for data silos and making it challenging to view a holistic picture. edgeTI provides one platform that is easily connectable, quick to build on and scalable, providing its customers a lower cost of ownership for maximizing value from their existing technology solutions.