AnalytixInsight

After mixed Q3 results from big tech, going into the US election, with 10 year yields at their highest in four months — Dow Jones ended the week down 0.15%, S&P 500 lost 1.4%, and Nasdaq was down 1.5% after hitting a record high Thursday morning. Investors valued Waymo at US$45 billion, a surprisingly low number, according to reports. Some 75% of OpenAI’s revenue comes from consumers. Apple grew revenue 6% to US$94.9 billion in the September quarter, its strongest growth in two years, while Warren Buffett/Berkshire sold more stock in the quarter. Microsoft’s revenue rose 16% in the September, but cloud server rental growth slowed. Alphabet said its revenue grew 15% y/y in Q3. More than a quarter of new code at Google is now generated by AI. OpenAI’s ChatGPT added search features. OpenAI will start using AMD chips and could make its own AI hardware in 2026. Nvidia stock is undervalued because AI companies need to spend another US$9 trillion to achieve superintelligence, according to Softbank’s CEO. Super Micro shares plunged 33% as the company’s auditor resigned. In Canada, Sophic Client OneSoft Solutions announced the completion of its acquisition by Irth Solutions LLC, a Blackstone Portfolio company. The all cash consideration represents a premium of 42% to the closing price on last trading day before the deal was announced. Sophic Client American Aires generated record quarterly order volume and sales in Q3/2024, and the seasonally strong Q4 appears to be off to a very strong start. Sophic Client ADM Endeavors provided a corporate and industry update, highlighting growth opportunities and robust asset value, which provides additional support to shareholder equity. Sophic Client Boardwalktech and Scadea Software Solutions announced a partnership to sell and deploy Boardwalk Unity Central and Velocity Platform applications. Sophic Client NowVertical Group launched a data risk mitigation solution with client guarantees for enhanced data security.

Last week, Dow Jones fell 2.7%, S&P 500 was down ~ 1%, Nasdaq rose 0.2%, and hit a record high Friday, 10-year Treasury yield rose 16 bps to 4.23%. In the near term, aside from the US Presidential election, investors will get a first read on Q3 GDP, October jobs, a Fed meeting, and mega cap earnings from Google, Microsoft, Meta, Apple, and Amazon. Wiz hopes to hit US$1 billion in ARR in 2025 before an IPO. WeRide raised US$440.5 million through its US IPO and private placement. Jeff Bezos-backed Perplexity AI has begun fundraising talks in which it is looking to more than double its valuation to US$8 billion – a couple mega cap companies were also interested in acquiring the Company last year, at 1/40 of its current valuation per media reports. Tesla surprised Wall Street with strong profit margins and a projection that it would sell a record number of electric vehicles this year. Shares rose 12% in after-hours trading. Nvidia CEO Jensen Huang said on Wednesday a design flaw with its latest Blackwell AI chips which impacted production has been fixed with the help of longtime Taiwanese manufacturing partner TSMC. Meta’s Ray-Ban smart glasses are the best-seller in 60% of the Ray-Ban stores in Europe. Anthropic says its latest AI model can control users’ computers. Netflix has pulled back on its gaming expansion. TSMC achieved early production yields at its first plant in Arizona that surpassed similar factories back home, a significant breakthrough for its US expansion project. Arm cancelled Qualcomm’s license to design chips based on ARM technology. In Canada, Sophic Client Kraken Robotics, completed its $51.75 million Bought Deal public offering. Shareholders of Sophic Client OneSoft Solutions approved the Company’s take-out. Firan Technology will acquire FLYHT Aerospace Solutions in a cash and stock deal at a ~40% premium.