Weekly Investment News and Analysis

Last week, Dow Jones fell 7.5%, S&P 500 lost 9.1%, Nasdaq Composite was down 10%, both near 11-month lows. Nasdaq is more than 20% below recent highs, and officially entered a bear markets. Major technology stocks including Meta, Amazon, Nvidia, and Apple fell sharply due to newly announced tariffs by President Trump. Several high-profile IPOs, including Klarna, StubHub, and eToro, have been stalled due to the escalating trade tensions and recent market volatility. Circle, however, filed publicly for an IPO a few days before the market’s latest leg down. Tesla reported its worst quarter since 2022 as deliveries fell well below expectations. Microsoft has pulled back on data center projects around the world. Apple is developing a revamp of its Health app to incorporate an AI -powered agent product to designed to replicate a doctor. Amazon’s new AI agent will shop third-party sites for you. Meta plans to introduce its first smart glasses with a screen by the end of this year, code-named Hypernova, with a price tag of over US$1,000 and features like hand-gesture controls and a screen for displaying photos and apps. In Canada, MDA Space announced it will acquire SatixFy Communications in an all-cash deal valued at ~US$193 million. Tiny acquired a controlling 66% stake in DJ software provider Serato for US$66 million. In news relating to Sophic Clients, Plurilock secured US$5.9 million in new federal and public sector contracts in the U.S. and Canada. ADM Endeavors reported fiscal 2024 revenues rose 11% to US$5.76 million, driven by growth in government sector sales and promotional products. Net income increased 136% y/y to US$324,311. Xcyte Digital’s subsidiary, Streamlined Communications, experienced rapid client growth as legacy conferencing providers phase out services.

After a promising start last week, Dow Jones ended the week down ~1%, S&P 500 fell 1.5%, and Nasdaq composite lost 2.6%. CoreWeave raised US$1.5 billion in its IPO Thursday, a smaller amount than it had expected. OpenAI expects its revenue will triple to US$12.7 billion this year. X and xAI will be merged, in a combination that values xAI at US$80 billion and X at US$33 billion. EToro Group filed for an IPO, showing revenue tripled last year. The IPO of Cerebras Systems, which designs semiconductors for AI, has stalled. BYD’s sales surged 29% last year, topping US$100 billion. Tesla is aiming to produce first “legion” of Optimus robots this 2025. AppLovin shares tumbled as much as 13% Thursday after Muddy Waters issued a short report. Google says tech is ‘5 years out from a real breakout’. Some European companies and government agencies are thinking about dumping cloud services from Amazon, Microsoft, and Google in favor of European providers. Apple will reportedly spend US$1 billion on NVIDIA servers for AI. Robinhood will roll out checking and savings accounts later this year to its paying “Gold” subscribers. In Canadian news pertaining to Sophic Capital clients, Intermap reported strong 2024 results, with revenue rising significantly to US$17.6 million from US$6.2 million in 2023, the Company guided for continued robust growth in 2025, forecasting revenues between US$30–35 million and ~28% adjusted EBITDA margins. Plurilock entered into a strategic partnership with cybersecurity giant Forcepoint. American Aires expanded its market awareness through a featured segment on the reality TV show “Military Makeover with Montel®,”. Boardwalktech partnered with Trillium Digital Services to strengthen its supply chain solutions. In other Canadian news, Descartes Systems made a US$164.4 million acquisition. EMERGE is acquiring golf apparel company Tee 2 Green in a US$2.2 million deal expected to push EMERGE to positive cash flow.

Last week, Dow Jones rose 1.2%, S&P 500 gained 0.5%, Nasdaq moved up 0.2% — a welcome sign after successive weeks of declines. CoreWeave is seeking an IPO valuation of US$27– US$32 billion, even as some investors question the company’s heavy debt load and capital intensive business model. Ticket reseller StubHub filed for an IPO. StubHub rival Vivid Seats has seen its stock price fall by more than 45% over the past year, and reportedly is seeking a buyer. Perplexity is in talks to raise US$500 million to US$1 billion at a US$18 billion post money valuation. Google will acquire the cybersecurity startup Wiz for US$32 billion. SoftBank is acquiring Ampere Computing, a chip design startup, for US$6.5 billion in cash. Accenture stock fell 7.3% after the firm said efforts to tighten U.S. federal spending are starting to weigh on its revenues. Nvidia unveiled a slew of new software for robotics, including a simulator it made with Disney and Google’s help. Boston Dynamics demonstrated another major leap in humanoid mobility. Robinhood is getting into prediction-betting markets just in time for March Madness. BYD unveiled its new super-charging EV tech, to build a charging network in China. In Canada, Shopify will transfer its US stock listing to Nasdaq, from NYSE. SolarBank announced an equity financing of up to US$19 million. Tribe Property Technologies announce a Non-Brokered Private Placement of ~$800K led by its senior leadership team. In news pertaining to Sophic clients, Boardwalktech announced the closing of an initial tranche of its Non-Brokered Private Placement for aggregate gross proceeds of approximately $1.1 million. Intermap’s global insurance business is off to a strong start in 2025 with awards surpassing $1.1 million. Legend Power’s voltage adherence risk measurement led to an accelerated purchase order. Cybeats provided a market update for critical infrastructure & energy sectors. Streamlined Communications, an Xcyte Digital company, joined London Stock Exchange’s marketplace. Plurilock received multiple industry awards recognizing its leadership in cybersecurity innovation and service excellence.

Last week Dow Jones lost 3.1%, S&P 500 fell 2.3%, and Nasdaq was down 2.4% — all three major indices hit six-month lows during the week. Autonomous trucking startup Kodiak Robotics, is in talks to merge with Ares Acquisition Corp. II in a SPAC deal that would result in a post-merger valuation of US$2 billion. Klarna eked out a slim US$21 million profit last year after a series of annual losses following an international expansion into the U.S. according to the Company’s pre-IPO filing. Hinge Health has officially filed to go public. Anthropic reached $1.4 billion in annualized revenue as of this month. Binance, the world’s biggest crypto exchange, announced it has received a US$2 billion investment from MGX. Mortgage firm Rocket agreed to buy Redfin at a valuation of US$2.4 billion, a 50% premium. Google announced two new AI models to power robots, built on top of its most recent main Gemini model. Meta is reportedly testing in-house chips for AI training. In Canada, in news pertaining to Sophic Capital clients, Kraken Robotics expanded its U.S. footprint with the acquisition of 3D at Depth. Kraken will indirectly acquire 3D at Depth for US$17 million in cash subject to adjustment for, among other things, any debt indirectly assumed or paid out on closing and to customary working capital adjustments. 3D at Depth has grown revenue at a 20% CAGR over the last three years and reported 2024 unaudited US GAAP revenues of US$14 million, gross profit of US$8.4 million (60%), and US$1.1 million of Operating Income. Plurilock secured a $1.4 million contract with the Canadian Federal Government. The Company also provided an update on the status of exercised Warrants. Over 22 million of $0.25 warrants have been exercised, raising more than $6 million. The remaining $0.25 warrants could bring over $2 million in additional funds. In other Canadian news, Toronto based Cohere is partnering with LG to offer AI products for South Korea. Toronto-based construction technology startup Augmenta has secured an additional US$10 million in seed funding to refine and expand its building design software.

Last week, Dow Jones fell 2.4%, S&P 500 was down 3.1%, and Nasdaq composite lost 3.45%, major indices continue to chop around in a headline-driven market. Genesys, a private equity-backed customer service software company, delayed what would have been one of the largest 2025 IPO, citing a sliding stock market. Gemini, the crypto exchange founded by billionaire twins Cameron and Tyler Winklevoss, has filed confidentially for an IPO. Discord, the social messaging app, is in early talks with bankers about an IPO. Humanoid robotics firm ‘Figure’ is planning to raise US$1 billion to US$2 billion in equity financing at a US$38.5 billion pre-money valuation. That’s a staggering 15 times its valuation from a year ago. Anthropic, announced Monday that it has raised US$3.5 billion in its Series E funding round, hitting a US$61.5 billion valuation including the new money. CrowdStrike shares dropped nearly 9% in extended trading on Tuesday after the cybersecurity software provider issued disappointing earnings guidance. Broadcom’s latest quarterly results, boosted shares more than 11% in after-hours trading. Trump signed an executive order to build a Bitcoin reserve — crypto prices dropped following the announcement, because the stockpile will only involve the government maintaining existing crypto holdings. OpenAI reportedly plans to charge up to US$20,000 a month for specialized AI ‘agents’. Taiwan Semiconductor Manufacturing Company plans to invest US$100 billion in new chip manufacturing facilities in the U.S. In Canada, Spectra7 Microsystems will be acquired by Parade Technologies. Shareholders could receive a special cash distribution of ~$0.028/sh. In news pertaining to Sophic Capital clients, Beacon Securities launched research coverage of Intermap) with $4.00/share price target. Legend Power debuted its voltage adherence risk metric to identify and combat “dirty power” in buildings.

Last week, Dow Jones rose 0.95%, S&P 500 lost 1%, and Nasdaq composite fell 3.5%, despite Friday’s bounce. Both Nasdaq and S&P 500 have almost given up their post US election gains. General Catalyst, the powerhouse venture capital firm, is reportedly considering an IPO. Shein’s profits dropped by more than a third last year, adding to the Company’s challenges ahead of a long-planned London IPO. Stripe struck a deal with investors to finance a tender offer for current and former employees to sell shares at a US$91.5 billion valuation. Stripe’s valuation had fallen to US$50 billion in March 2023. Anthropic is finalizing a US$3.5 billion fundraising round that values the company at US$61.5 billion. Nvidia projected 65% revenue growth in its April quarter on strong chip orders. Apollo Global is in talks to lead a US$35 billion debt financing by Meta to build data centers in the U.S. Meta is also planning to launch a standalone AI app. Microsoft said its plan to spend US$80 billion on data centers “remains on track”. Alibaba will spend US$53 billion on cloud and AI over next three years. Apple plans US$500 billion in US investment, 20,000 research jobs in next four years. Figure will reportedly start ‘alpha testing’ its humanoid robot in the home in 2025, earlier than expected. In Canada, Cohere’s annualized revenue hit US$70 million, up more than 3x since last March. In news, pertaining to Sophic clients, Boardwalk announced a Non-Brokered Life Offering, for up to $1.5 million. The Company also recently reported Third Quarter Fiscal 2025 financial results. The Company’s pipeline continues to scale with several engagements in the latter stages; and cost savings initiatives are tracking ahead of guidance. Kraken received $34 million of SeaPower battery orders. Plurilock launched new offerings to strengthen cyber resilience. American Aires teamed up with former UFC fighter Tim Kennedy’s Apogee Schools to create first US-based EMF-friendly schools.

Last week, after the S&P 500 hit record highs on Wednesday, major indices suffered reversals and ended the week down. Dow Jones was down 2.5%, S&P 500 fell 1.7%, Nasdaq composite lost 2.5% owing to growing concerns about U.S. consumer softness. The billion-dollar startup bubble is deflating, and more than US$1 trillion in value is locked up in companies with dwindling prospects, according to industry sources. X is in talks with investors to raise fresh equity capital at the US$44 billion valuation at which Musk bought the social media firm, then known as Twitter, in 2022. Austin-based defense startup Saronic has raised a US$600 million Series C to build an autonomous ship factory called “Port Alpha,” quadrupling its valuation to US$4 billion from its last round. Palantir’s surging stock fell 10% after reports of Pentagon budget cuts. OpenAI has topped 400 million users, despite DeepSeek’s recent emergence. Microsoft on Wednesday announced a new quantum computing chip called “Majorana 1” that it said is more reliable than previous quantum computers. The chip reflects a scientific breakthrough in the quantum computing field and could be used to train and run large AI models in “years, not decades,” the company said. In Canada, Shopify expanded its Affirm partnership to bring BNPL offerings to Canadian merchants. Ottawa-based Hyperlume raised US$12.5 million in seed funding to commercialize its data-centre interconnection technology. Sophic Clients had an eventful week. Intermap closed its $12 million financing. Legend Power reported Q1 F2025 financial results, an improved balance sheet, and new sales partnerships. Kraken took the top spot on the 2025 TSX Venture 50 list. Plurilock secured multiple high-profile government sales in The U.S. and Canada, and also signed a US$800,000 contract with a leading US hospital. Minnesota Timberwolves, and Aires Tech launch pioneering “EMF-Friendly Venue” tech.

Last week, though volatile, ended on a positive note. Dow Jones closed the week up 0.55%, S&P 500 gained 1.5%, and Nasdaq composite rose 2.6% — all three major indices are approaching all time highs. The Market has been range-bound since mid-December, a break above could signal a move to further upside from a technical point of view. Turo on Thursday withdrew its plans for an IPO. Elon Musk’s AI company, xAI, is said to be in talks to raise US$10 billion in a round that would value xAI at US$75 billion. Trump officials asked TSMC to weigh taking a stake in Intel’s chip factories. French President Emmanuel Macron said in an interview with France 2 TV Sunday that he expects companies and funds to invest US$100 billion in artificial intelligence projects in the county. Super Micro’s stock surged after outlining ambitious 2026 targets, assuring investors it will avoid delisting. Robinhood’s crypto business powered a revenue surge. Coinbase also reported strong revenue and profit growth. Airbnb’s stock rose 14% in after-hours trading after the company said Q4 rose 12%, exceeding its guidance. Alibaba’s stock closed 8.5% higher in Hong Kong Wednesday, following reports of the e-commerce giant’s partnership with Apple, which also continues to work with Baidu to power AI on iPhones in China. Apple and Meta, are both reportedly exploring humanoid robots. In Canada, Shopify indicated that its free cash flow margin could shrink to the mid-teens in Q1, down from 22% in Q4. Sophic Client American Aires launched the Aires Certified Spaces (ACS) standard for creating authorized EMF-friendly physical spaces, as part of strategic efforts to expand brand awareness and grow sales by leveraging more mass market exposure. Vancouver-based quantum startup Photonic published a paper detailing a new quantum error correction method. Major media companies sued Cohere for alleged copyright infringement.

Last week, Dow Jones fell 0.5%, S&P 500 lost 0.2%, and Nasdaq composite was down 0.5%. Tariff headlines, mixed earnings and economic data made for a choppy week. Cybersecurity company SailPoint is hoping to go public, in a US$11.5 billion IPO. Crypto exchange, Gemini, is also weighing an IPO. Anduril is in talks to invest about US$2.5 billion at a US$28 billion pre money valuation — more than 2x its last financing announced in August. President Donald Trump signed an executive order on Monday to create a sovereign wealth fund for the U.S., telling reporters later that it could buy part of TikTok. Palantir stock rose 23% after-hours after reporting a strong Q4 and providing strong guidance. Amazon reported 10% sales growth, shares were roughly flat in after hours trading on Thursday. Google’s revenue growth slowed slightly, and shares fell 7% as investors still await the company’s AI boost. Shares of AMD dropped nearly 9% in after-hours trading as investors reacted to the company’s tepid sales forecast. Roblox shares plunged 11.1% after the gaming platform fell short of Wall Street’s bookings and daily active user estimates. Bill Ackman said his hedge fund owns 30.3 million shares of Uber as it started building a position in January. In Canada, Converge Technology Solutions will be acquired for $5.50/sh in cash, representing ~56% and 57% premiums to the closing price and 30-day VWAP on the last trading day prior to the announcement of the transaction. Lightspeed will remain public company after a strategic review. Sophic Client, Intermap announced a $5 million Bought Deal offering. Sophic Client, Cybeats closed the final tranche of its Non-Brokered Offering, raising over $2 million in total proceeds. Sophic Clients Boardwalktech, and Plurilock announced progress with their businesses. Canada’s StackAdapt raised $235 million for its AI-based programmatic platform, in one of the largest Canadian start up funding rounds.

Last week, Dow Jones was up 0.3%, S&P 500 lost 1%, and Nasdaq was down 1.6%. The week was especially volatile, AI plays were down Monday on DeepSeek concerns, and then had a strong week, until US tariff developments sent stocks down again Friday afternoon. Nvidia, Broadcom and Marvell and other U.S. firms that design AI chips each fell more than 17% Monday, Apple, however rose 3% — as some market participants suggested the DeepSeek model bodes well for on-device light LLMs. Meta CEO Mark Zuckerberg said the tech giant would invest “very heavily” in AI — even “hundreds of billions of dollars” — over the long term, during Meta’s earnings call on Wednesday. OpenAI is in talks with SoftBank to raise US$40 billion in a new funding at around a US$300 billion post-money valuation. Microsoft is one of the companies in talks to acquire TikTok’s US operations, President Donald Trump told reporters on Monday. A decision on TikTok’s future in the US is expected in 30 days. In Canada, Sophic Client, Legend Power Systems closed the final tranche of its Non-Brokered Private Placement, raising a total of $1.6 million. Sophic Client, Plurilock closed an Over-Subscribed Special Warrant Offering, for gross proceeds of nearly $5 million. Sophic Client American Aires announced record preliminary Q4/2024 performance & provided 2025 guidance. Cash and Inventory Balances were a record $6.5 million. Management expects 2025 sales in the $28 million to $32 million range, and EBITDA in the range of a $2 million loss to a $2 million profit. From January 1 through January 24, order volumes grew 111% y/y. Q4/2024 set yet another quarterly record with $8.8 million in sales, up 135% y/y. Additionally, Sophic Clients, Cybeats, Legend Power and Plurilock, all announced progress in their respective businesses.

Last week, Dow Jones gained 2.15%, S&P 500 was up 1.7%, and Nasdaq rose 1.65%, despite Friday’s modest losses. Magnificent Seven stocks Tesla, Meta, Microsoft, and Apple will report earnings this coming week, and could provide clues about planned AI capex – with read throughs to a broad range of stocks. French AI startup Mistral, often billed as Europe’s answer to OpenAI, plans to IPO. Space tech company Voyager is aiming for a multibillion-valuation IPO. OpenAI will team up with SoftBank, and Oracle to build multiple data centers for AI in the U.S. The joint venture, called the Stargate Project. The companies expect to commit US$100 billion to Stargate initially and pour up to US$500 billion into the venture over the next four years. Microsoft is also involved in Stargate as a tech partner. So are Arm and Nvidia. The massive venture will reportedly be powered, at least in part, by solar and batteries. OpenAI announced a new ChatGPT feature called “Operator” that will automate complex tasks typically done through the Web browser, such as planning trips or ordering groceries. Google invested a further US$1 billion in OpenAI rival Anthropic. Hard drive firm Seagate sees surging cloud, AI demand. Meta will boost its capex 60% this year to develop AI data centers. ByteDance plans US$20 billion capex in 2025, mostly on AI. President Trump signed an executive order on Thursday to promote digital assets in the U.S., including evaluating the possibility of creating a national digital asset stockpile. The SEC withdrew previous crypto accounting guidance. In Canada, Raymond James launched research coverage with a $3.50/share price target on Sophic Client, Kraken Robotics. Sophic Client Xcyte Digital completed the purchase of former Streamlined Communications LLC. assets. The total consideration of US$3.56 million is comprised of cash, debt and stock. Sophic Client, Boardwalktech, and LTIMindtree expanded their relationship with global banking clients.

Markets had a positive end even as US markets will be closed on Monday, suggesting the intermediate ~month long pause could be behind us. Dow Jones rose 3.7% last week, S&P 500 gained 2.9%, and Nasdaq composite was up 2.45%. Trading platform eToro has filed confidentially for a US IPO that could value the company at over US$5 billion. eCommerce company, Rokt, was valued at US$3.5 billion in secondary deal, and is targeting a 2026 IPO. Data analytics firm Databricks raised US$5 billion in debt in a new round of financing that will help the company offset taxes from employee share sales, Bloomberg reported.A.I. military start-up Anduril is planning a US$1 billion factory in Ohio. Saronic, a three-year-old startup that is aiming to make a fleet of autonomous boats for the U.S. Navy, is in talks to raise US$500 million. The Series C round talks, which remain ongoing, would value the nascent company at over US$3 billion. TSMC, the world’s largest chipmaker, reported on Thursday that net income increased 57% to US$11.6 billion in the December quarter from a year ago, thanks to strong demand for artificial intelligence chips. The EU is reassessing its probes into Apple, Meta, Google and other big tech companies. In Canada, Sophic Client Plurilock, upsized its special warrant offering to $4.8 million from $2.5 million. Edge Total Intelligence announced a non-brokered private placement for gross proceeds of ~$5 million. Sophic Client NowVertical Group executives purchased shares in the open market, and the CEO is taking an equity bonus in lieu of cash. A Fortune 500 food company signed a five-year renewal with Sophic Client Boardwalktech. Toronto-based healthcare platform League secured a US$100 million ($144 million) credit facility from RBCx. Toronto-based corporate card and expense management technology startup Float has secured a $70 million Series B round.