AnalytixInsight

This past week witnessed one of the most volatile stock reactions for multiple stocks on earnings we recall seeing. Amazon repurchased ~US$1.3 billion of its stock in January, the first buyback in a decade. After getting smashed earlier this year, Peloton stock shot up more than 30% after market on Friday after reports of Amazon’s acquisition interest. Facebook was set to shed about US$200 billion in market value, following its earnings report, in what would be one of the biggest one-day market capitalization wipeouts for any company on record. PayPal stock sank to a 21-month low Wednesday after the payments platform trimmed its financial forecast, citing the impact of inflation. On the flip side, The startup behind Bored Ape Yacht Club is reportedly in talks with Andreessen Horowitz for funding at a US$5 billion valuation. FTX, the third largest cryptocurrency exchange by trading volume, raised US$400 million in a new funding round that valued the company at US$32 billion, the company announced Monday. Wag Labs Inc., the developer of dog-walking app Wag!, has agreed to go public through a merger with a blank-check company. San Francisco-based Wag and CHW Acquisition Corp. will have a value of about US$350 million as a combined company, according to a Thursday announcement confirming a Bloomberg News report. In Canada, this week we counted nearly a billion dollars of VC funding announcements, including a US$6 million investment by Stack Capital Group (STCK-TSX) into Montreal based Canadian travel Unicorn, Hopper. While announcements can be made after a decent amount of time has elapsed since the funding – this level of VC activity is nonetheless impressive in light of public markets volatility.

Last week, at least four SPACs pulled their initial public offering plans, and Dutch file-sharing service WeTransfer abruptly canceled its IPO in Amsterdam, with its chief executive officer citing turbulent public markets. That said, Chinese fast fashion retailer Shein revived plans for IPO in the U.S. and delivery company Gopuff reportedly hired bankers for its IPO. Nvidia is reportedly preparing to abandon its US$40 billion takeover of Arm. UBS agreed to buy robo-adviser Wealthfront for US$1.4 billion. ESL, FACEIT acquired and merged by Saudi-owned Savvy Gaming Group for a reported US$1.5 billion, as esports gains global acceptance. Hedge fund manager Bill Ackman said his firm has purchased more than 3.1 million shares of Netflix, making it a top-20 holder. Activist investor Blackwells Capital wants the board of Peloton to fire CEO John Foley and pursue a sale of the company. Climate technology startups around the world raised close to US$40 billion in funding over more than 600 venture capital deals last year. In Canada, Exro announced an increase in its bought deal financing to $17.5 million. Eguana filed a final base shelf prospectus for an aggregate amount of up to $150 million during a 25-month period. HealthSpace Data Systems announced pricing of its overnight marketed financing. In mid-November, Gross Merchandise Sales (“GMS”) on EMERGE Commerce’s marketplaces exceeded $100 million. Founder and CEO, Ghassan Halazon, published a shareholder letter outlining progress and plans for EMERGE in 2022 and beyond. Over the years, investors gravitate towards, and anticipate annual shareholder letters, which offer unique/insightful commentary. We’re optimistic this could be the beginning of a similar series, offering insights on an interesting ecommerce capital allocation strategy from EMERGE. Unity’s recent Ziva acquisition, and Apple’s contactless payment announcement for iPhones (which sent Square stock down on Thursday), both leverage Canada’s technology ecosystem, which continues to go from strength to strength despite market turbulence.