AnalytixInsight

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.

After a big tech earnings week, with Apple and Amazon to report in the coming week: Nasdaq was up 2%, S&P 500 climbed 1%, and Dow Jones a snapped a 13-day win streak on Thursday, but still managed to close the week up 0.7%. Alphabet added US$111 billion in market value after showing progress on AI in Q2 earnings. Volkswagenplans to invest US$700 million in Xpeng and jointly develop electric vehicles in China. Facebook has more than 3 billion monthly active users, and Threads could be Meta’s next social network with 1 billion users. Elizabeth Warren and Lindsey Graham want to create a new regulatory agency that will oversee tech companies on a broad range of issues. Walmart launched a new travel benefit for members of its Walmart+ subscription as it continues to add features in a bid to compete with Amazon’s Prime membership and convert wealthier shoppers to frequent Walmart customers. Apple card notched roughly 10 million users earlier this year. EU passed a law to blanket highways with fast EV chargers by end of 2025. Seven of the largest automakers announced a joint venture to create a sprawling vehicle recharging network across North America, even as Reuters reported Tesla formed a team last year to thwart driving range complaints. In Canada, Dialogue will be acquired by Sun Life at a 43% premium. CGI will invest $1 billion to expand its AI capabilities. Shopify announced it will expand into credit cards. EMERGE announced it will sell WagJag for $1 million (acquired for$500K), and continue to prioritize strengthening its balance sheet and unlocking savings.

Last week, Dow Jones rose 2.1% and is on a 10-day win streak, the longest in six years. S&P 500 rose 0.8%, while Nasdaq lost 0.6%, largely due to Thursday’s 2.05% fall. Next week, we expect earnings from Microsoft, Alphabet, and Meta, at the same time, the Fed is expected to raise rates. Outlook comments from any of these events could send tech stocks on another leg down. Newly listed Oddity shares closed up more than 35% from their IPO price. The company joins a list of other recent strong debuts in the consumer sector including fast-casual chain Cava. Microsoft added US$154 billion in market value after it announces US$30 per month AI subscription. SpaceX forecasts doubling of revenue to US$8 billion. Cathie Wood’s flagship exchange-traded fund has rallied more than 50% this year, but Investors have pulled a net US$717 million from the ETF over the past 12 months. Apple is using custom ‘Apple GPT’ chatbot internally as it plans for generative AI features in 2024. ESPN reportedly held talks with the NFL, NBA and MLB for minority stakes. TSMC Arizona chip production has been delayed from 2024 to 2025. In Canada, Sophic Client Legend Power announced a minimum $2 million non-brokered private placement pursuant to the listed issuer exemption. A multinational industry leader entered into a multi-year agreement with Sophic Client OneSoft to deploy the Company’s Cognitive Integrity Management SaaS solution. Sophic Client UGE International achieved a notice to proceed milestone for a 1.3MW rooftop community solar project in New York City. The project is estimated to produce an average of $286K annual revenue, over at least 25 years, at ~85% Gross Margins. CEO Nick Blitterswyck also provided an update for investors as the Company’s backlog is approaching 100 MW year to date. EMERGE announced the closing of a Private Placement for gross proceeds of ~$750K. U.S. mortgage data vendor Black Knight will sell its Optimal Blue business for US$700 million to Constellation Software.

Last week, Dow Jones rose 2.3%, and hit a 2023 high, just below its 52 week high, S&P 500 rose 2.4%, and Nasdaq composite was up, both setting fresh 52 week highs. It was the Nasdaq’s best weekly gain since the end of March. At the same time, according to market watchers, we haven’t seen a software IPO since the end of 2021 — this 18 month software IPO “drought” exceeds the last couple “droughts” of ~6 months each. Nvidia is in talks to be an anchor investor in Arm’s IPO, as the two parties discuss valuation and appear to be about US$40-45 billion apart. SpaceX, the most valuable private company in the US, is approaching a US$150 billion valuation in secondary share sales. Shares of Tencent and Alibaba on Monday gained after China’s central bank fined the companies, a sign that investors think the country’s regulatory crackdown is coming to an end. Warren Buffett’s Berkshire Hathaway is poised to score a US$1 billion profit after Microsoft beats FTC in Activision case. In Canada, Sophic Client OneSoft hit another 52 week high. Investors are beginning to think of the Company as a revenue generating Aritificial Intelligence Company, with a strong moat with unique data, trained machine, and proven tech with fortune 100/500 customers. Sophic Client UGE announces Q2 2023 milestones and business updates. In the second quarter, UGE’s project backlog (stages 3.1-5) increased 14% to 356MW from 313MW. Since the start of the year, the Company’s backlog has increased by 96MW, marking near-achievement of its 2023 annual goal to add 100MW to its backlog. UGE anticipates achieving and exceeding this goal during the third quarter, far ahead of schedule. HIVE debuts a strategic expansion to power the future of artificial intelligence with its NVIDIA GPU cards. Dye & Durham entered into agreement to sell TM Group for up to £91 million; with up-front proceeds to be used to reduce debt.