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.
While Nasdaq closed last week up fractionally higher, September was its worst month in the year, as the index was down nearly 6%. Dow Jones fell 1.2% and S&P 500 lost 0.4% last week. OpenAI is seeking a new valuation of between US$80 billion to US$90 billion, roughly triple its level earlier this year. The startup, which is 49% owned by Microsoft, has told investors that it expects to reach US$1 billion in revenue this year and generate many billions more in 2024. CoreWeave, a cloud computing provider that’s among the hottest startups in the artificial intelligence race, is finalizing a minority stake sale that values the company at US$7 billion. CoreWeave was an early adopter of Nvidia Corp. graphics chips for data centers, getting ahead of a wave of demand for powerful processors to run artificial intelligence applications. Amazon has agreed to invest up to US$4 billion in AI startup Anthropic. iPhone designer Jony Ive and OpenAI CEO Sam Altman are in advanced talks with SoftBank CEO Masayoshi Son to raise US$1 billion in capital to fund the creation of the “iPhone of artificial intelligence” that uses OpenAI’s artificial intelligence software, the Financial Times reported. In a complaint filed in federal court in Seattle Tuesday, the FTC and 17 states accused Amazon of engaging in a course of conduct to exclude rivals in online marketplace services and stifle competition. Nvidia’s France offices were raided by the country’s competition authority this week, according to a report from The Wall Street Journal. In Canada, HS GovTech will be acquired for an all-cash consideration of $0.54, a ~150% premium. Canadian small cap tech names are beat up, and investors are beginning to notice. Shopify has invested in wholesale site Faire. The companies did not disclose the size of Shopify’s stake or the value of the deal.
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.