AnalytixInsight

Major indices fell to multi month lows last week. So far, earnings have been a negative catalyst for stocks, coupled with heightened geo political risk going into the weekend. Dow Jones fell 2.1%, S&P 500 lost 2.5%, and Nasdaq composite was down 2.6% during the week. Google has committed US$2 billion to Anthropic, an OpenAI rival. Google has previously taken a roughly 10% stake in Anthropic. This follows Amazon’s US$1.25 billion investment into the company. Crusoe Energy, one of several emerging cloud providers that rent out Nvidia’s in-demand chips for artificial intelligence, raised US$200 million in debt usings Nvidia chips as collateral. Intel is expanding to the AI software business, and Apple is rumored to follow ChatGPT with generative AI features on iPhone as soon as iOS 18. Microsoft reported revenue growth of 13% as AI sales accelerated Azure cloud growth. Revenue growth at Alphabet parent Google accelerated for a third straight quarter. Amazon reported better-than-expected results, as revenue jumped 13%. The company’s ad growth driven mostly by search, not video, and the company launched AI tools for ad sellers. Amazon is considering offering veterinary telehealth as it looks to compete with Walmart. Meta reported a return to robust growth rates after nearly two years of weaker expansion caused by an anemic ad market, Apple’s ad targeting changes and competition from TikTok. A coalition of 41 states and the District of Columbia are filing lawsuits alleging that Meta Platforms has intentionally built its products with addictive features that harm young users of its Facebook and Instagram services. Ford delayed US$12 billion in EV investments as the automaker wrestles with demand. In Canada, Well Health acquired two cybersecurity businesses, for an undisclosed amount. Google and Nvidia-backed, Toronto based CentML secured $37 million to help companies deploy AI amid chip shortages.

Last week was tough again for tech investors, as Treasury yields surged, and stocks exhibited poor reactions to earnings. Weakness was more pronounced in the second half of the week, Dow Jones fell 1.6%, S&P 500 was down 2.4%, and Nasdaq composite lost 3.2% during the week. The week ahead has risks, including GDP and inflation data, as well as big tech earnings. OpenAI is in talks to sell shares at a US$86 billion valuation. Stack Overflow, whose site helps software engineers get answers to technical questions, has laid off about 28% of its staff. The move may be the strongest indication yet of how OpenAI’s ChatGPT has upended digital businesses this year. The U.S. government announced new rules that restrict American firms such as Nvidia and Intel from selling advanced semiconductors, including artificial intelligence chips, to Chinese companies. Shares of critical chip firm ASML dropped 4% after these new U.S. curbs, and an outlook warning. Lockheed beat estimates on sustained weapons demand amid geopolitical tensions. Snap’s stock rose 12% after CEO Spiegel targeted 20% revenue growth. Okta’s stock fell 11% after it disclosed on Friday that hackers breached its systems and read some customers’ files. Amazon is rolling out expanded robotics operations at fulfillment centers built on updated sorting machines, robotic arms, and its Roomba-like mover bots. In Canada, Sophic Client UGE International announced Q3 2023 milestones and business updates, and announced commercial operation for its community solar project in Norway, Maine. Sophic Client Kraken announced a $3 million contract in Europe. GameSquare will acquire one of the biggest names in gaming, FaZe Clan and will complete a private placement to raise US$10 milion. BBTV Holdings announced its going private transaction.

Last week, Nasdaq fell 0.2% mostly due to Friday’s 1.2% fall, S&P 500 was up 0.45%, and Dow Jones rose 0.8%. Chinese ride-hailing app Didi Global, which delisted from New York last year, is planning to list its shares in Hong Kong next year, Bloomberg reported. The Company’s autonomous vehicle arm also raised US$149 million from state investors. ChatGPT’s mobile app hit a record US$4.58 million in revenue last month, but growth is slowing. Microsoft is contesting an IRS audit that found that the company owes US$28.9 billion in unpaid taxes dating back to 2004. Activist Nelson Peltz is planning a fresh push for board seats at Disney following a relentless slide in the entertainment giant’s shares, even as Comcast and Disney hired investment banks to value Hulu. Atlassian is acquiring video messaging service Loom for US$975 million, the same company that had a US$1.53 billion valuation in May 2021 when it announced a US$130 million Series C. PC shipments’ decline slowed in Q3 2023, but Apple plunged over 23%. Apple is reportedly already designing a lighter Vision Pro to fix “neck strain”, while Meta’s plans to beat Apple’s Vision Pro include cheaper headsets and no controllers. In Canada, Sophic Client UGE announced a Marketed Offering of up To US$5 million of project development Green Bonds and achieved a Notice to Proceed milestone for a 3.5-Megawatt community solar project in Oregon (its first in the state). In news that bodes well for Sophic Client, Kraken, US based HII was awarded a US$347 million U.S. Navy Lionfish small UUV contract.

U.S. VC investments fell 30% Q3 to US$32.7 billion, the sixth straight quarter investing has dropped from the year earlier period, and the lowest level since the second quarter of 2018. Intel plans to IPO programmable chip unit within three years. Anthropic is talking to investors about raising an additional US$2 billion in new funding. Meal kit service Blue Apron said Friday that it plans to sell itself to Wonder for US$103 million. Blue Apron went public in 2017 at a valuation of US$1.9 billion. SmileDirectClub files for bankruptcy, capping years of losses. Rivian shares fell over 20% after the EV maker said it plans to raise US$1.5 billion. Microsoft was willing to lose US$15 billion annually to win Apple search deal. Amazon plans an AI Chatbot for search. Meta launched generative AI products for advertisers. JPMorgan’s Dimon predicts 3.5-day work week for next generation thanks to AI. MGM resorts refused to pay ransom in cyberattack on casinos, costing the company US$100 million. Meta proposes US$14 subscription fee for ad-free Instagram and Facebook. TikTok is testing a US$5-per-month, ad-free version of its app. According to a new report, Apple has held early talks with the College Football Playoff tournament about a streaming deal, joining the sea of rumors relating to Apple’s interest in sports rights. Microsoft will debut its AI chip next month. OpenAI also discussed building its own AI chip. Hyundai and Kia announced they will soon adopt Tesla’s electric vehicle charging system, beginning in the fourth quarter of 2024 in the US. In Canada, Sophic Client Legend Power announced significant operational and sales progress. Sophic Client Clear Blue provides a positive corporate Q3 2023 update. Sophic Client UGE International CEO Nick Blitterswyck, presented and did a fireside chat at the MicroCap Club Leadership Summit, and was on the Planet MicroCap Due Dilligence Series Podcast.