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Weekly Cache

Weekly Investment News and Analysis

Please see what we’ve been reading in technology and ESG related investing this week. Please feel free to send us what you’ve found interesting.

Latest Invesment News

December 1, 2024: Great November, Ready For Santa

Last week, Dow Jones rose 1.4%, S&P 500 and Nasdaq were up 1.1% — Dow Jones and S&P 500 hit record highs. In November, Dow Jones gained 7.5%, S&P 500 5.7% (for their best monthly gains in a year), and Nasdaq rose 6.2%. OpenAI is conducting a share sale for employees to sell about US$1.5 billion worth of shares to SoftBank. CrowdStrike stock fell after issuing a disappointing earnings outlook. Shares of Zoom dropped more than 4% after reporting Q3 results. China’s Huawei Technologies unveiled its latest flagship smartphone featuring a homegrown operating system designed to compete with Google’s Android and Apple. Meta plans to build a US$10 billion subsea cable spanning the world. Meta’s text app, Threads, gained 35 million new signups since Nov. 1, Meta provided the update amid a flurry of news reports about the growth of rival text app Bluesky. Australia passed a law banning social media for under 16s. The Federal Trade Commission has opened an investigation into whether Microsoft has violated antitrust law in multiple segments of its wide-ranging business. In Canada, Sophic Client Ionik reported Q3 results and provided a corporate update. Revenue of US$44.0 million, grew 29% y/y, Adjusted EBITDA of US$5.6 million grew 49% y/y. Sophic Client Plurilock, reported Q3 results — 2024 revenue is on track to exceed 2023 revenue. As of October, year-to-date revenue and Gross Margin already exceeds 2023. The company also announced a US$1.2 million critical services contract with a NASDAQ listed semiconductor manufacturer. Sophic Client, Boardwalktech, reported Q2 Fiscal 2025 results. Annual recurring revenue (“ARR”), at September 30, 2024 was US$4.6 million. The company continues to see growth and expansion from existing customers and expects to see both new direct sales and channel sales contracts. Sophic Client, NowVertical announced a strategic partnership with Microsoft and the launch of a global center of excellence.

Invesment News in the Past Weeks

November 24, 2024: Rally Back On! IPOs On The Horizon

November 24, 2024: Rally Back On! IPOs On The Horizon

Last week, Dow Jones gained almost 2%, and set a record close Friday, S&P 500 and the Nasdaq composite were up around 1.7%.ServiceTitan, which sells software to help tradespeople such as plumbers, electricians and landscapers run their businesses, filed paperwork for its IPO. Klarna’s planned IPO is fueling hopes that a long drought of fintech listings may be coming to an end. AI cloud platform CoreWeave, is aiming for a valuation of over US$35 billion in its expected 2025 IPO. Anthropic raises another US$4 billion from Amazon, and makes AWS its ‘primary’ training partner. Anthropic CEO Dario Amodei said he doesn’t expect the rate of improvement of large language models to slow down, despite recent reports that upcoming LLMs from his company as well as from Google and OpenAI didn’t show as many performance gains compared to earlier models. OpenAI has discussed powering AI in Samsung devices, similar to Apple. Elon Musk’s xAI startup was valued at US$50 billion in a new funding round. Nvidia forecasts 70% quarterly growth as the AI boom continues. Shares of database provider Snowflake jumped more than 19% after it reported that sales grew 28%. Trump’s social media group is reportedly in talks to buy crypto platform Bakkt. Nasdaq poised to list spot-Bitcoin ETF options as crypto assets rally. In Canada, Sophic Client Ionik acquired Rise4 for a total aggregate purchase price of almost US$20 million, in cash, debt and stock, and an earn-out consideration. Sophic Client Kraken Robotics reported Q3 2024 results. Revenue declined 4% y/y to $19.5 million, owing to lower KATFISH and Remote Mine Disposal System (RMDS) revenue. The Companyh’s 2024 revenue and adjusted EBITDA guidance remains unchanged (revenue of $90.0 million to $100.0 million, and Adjusted EBITDA of $18.0 million to $24.0 million), implying strong q/q growth in Q4. Sophic Client Intermap was awarded an initial U.S. Department of Defense subcontract. Sophic Client American Aires showcased its technology at the UFC Performance Institute. The first Neuralink clinical trials outside the US will take place in Canada.

November 17, 2024: And It’s Gone, NASDAQ Below Post Election Gap Up

November 17, 2024: And It’s Gone, NASDAQ Below Post Election Gap Up

Last week, Dow Jones lost 1.2%, S&P 500 was down 2.1%, Nasdaq composite lost 3.15%, and fell below the lows of the post election gap up. The 10-year jumped 12 basis points to 4.43%. Fed chief Jerome Powell on Thursday signaled that the Fed is in “no hurry,”. CoreWeave closed a US$650 million secondary share sale at US$23 billion valuation, a 3x increase in valuation over the past year. Trump’s win has stoked defense tech bulls, despite talk of a bubble — at US$14 billion, investors have valued Anduril between 18 and 19x this year’s expected sales, traditional defense contractors, which are profitable but grow much more slowly, are valued at ~1-2x sales. Shares of electric vehicle companies including Tesla fell Thursday after a report that the incoming Trump administration hopes to end US$7,500 consumer tax credits on the purchase of EVs. Tesla shares fell almost 6% after the Reuters report. Amazon is developing smart glasses for delivery workers, Reuters reported Monday. Apple is developing surveillance camera amid smart home push. OpenAI discussed plans for an AI data center that could cost US$100 billion. OpenAI is preparing to launch a new AI agent that can use a computer to take actions on a person’s behalf, such as writing code or booking travel, according to two people familiar with the matter. In Canada, Shopify stock was up more than 20% on revenue, margin growth. Sophic Client Intermap announced Q3 revenue grew 241% year-over-year, the stock closed the week up nearly 20%. Sophic Client, NowVertical Group reported Q3 results, which put the company on a path to achieving annual EBITDA of US$10 million, by achieving annual revenue of US$50 million and a best-in-class 20% EBITDA margin, the stock closed the week up around 150%. Sophic Client, ADM Endeavors reported Q3 results, revenue grew 12% y/y, the company is pursuing new school uniform opportunities and has hidden asset value in its new facility. Sophic Client, Plurilock announced a $5.4 million order with a law enforcement agency, and provided a corporate update.

November 10, 2024: Hold My Beer, Major Indices Hit Record Highs

November 10, 2024: Hold My Beer, Major Indices Hit Record Highs

Last week, Dow Jones rose 4.6%, S&P 500 gained 4.7%, and Nasdaq composite leaped 5.7% — all hitting record highs. Palantir climbed 13% on accelerating growth, and a higher revenue projection on Monday, as the company raised its full-year 2024 guidance for the third time this year. The retail favorite stock is now trading at ~35-40x sales. Palantir will also provide Anthropic’s Claude to the U.S. military. Amazon is discussing making another multi billion-dollar investment in Anthropic. VC’s are in talks about an investment in Perplexity, at a US$9 billion valuation, triple the valuation from a round earlier this year. Cryptocurrencies and related equities, Coinbase, Robinhood, and Microstrategy broadly rallied on Wednesday, after Donald Trump won the U.S. presidential election and Republicans took control of the Senate. Bitcoin hit an all time high, jumping more than 8% to US$75,450. Arm Holdings’ revenue growth slowed to just 5% in Q3, from 39% in Q2, the stock fell 4% in after-hours trading. SuperMicro showed disappointing earnings but “no evidence of fraud”, according to media reports. Airbnb’s growth slowed further in Q3, down eight points from Q1. Pinterest’s revenue growth slowed to 18% in Q3, the stock fell ~15% after the company projected even slower growth in Q4. Apple is reportedly exploring smart glasses in order to challenge Meta, and Snap. According to Mark Gurman from Bloomberg, Apple is ‘seriously considering’ developing a cheaper Apple Vision device that offloads all of the computing power to your iPhone, essentially developing a headset with primarily displays and a battery. Meta is opening a pop-up retail store for the Ray-Ban Meta glasses. Baidu will reportedly announce AI-powered smart glasses in China next week. Sophic Client, Kraken Robotics demonstrated a new KATFISH autonomous launch and recovery system to Navy customers. Sophic Client, Plurilock achieved CMMC Level 1 compliance for the United States Department of Defense.

November 03, 2024: Slow Your Roll

November 03, 2024: Slow Your Roll

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.

October 27, 2024: Indices Diverge Ahead Of Major News Events

October 27, 2024: Indices Diverge Ahead Of Major News Events

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.

October 20, 2024: Markets Keep Climbing Wall of Worry

October 20, 2024: Markets Keep Climbing Wall of Worry

Last week, major indexes rose for the sixth straight week. Dow Jones rose, ~1% and a hit a record high Friday, S&P 500 was up 0.85%, and hit a record close Friday, Nasdaq composite rose 0.8%. Chinese robotaxi firm, Pony AI filed for a US IPO. Zuora, which sells software for businesses to manage subscription billing, has agreed to be bought by private equity firm Silver Lake and Singaporean sovereign wealth fund GIC for US$1.7 billion. Uber reportedly explored a possible bid for Expedia in a ‘super app’ growth push. Stripe is in talks to acquire Bridge for US$1 billion, Stripe has made it clear that crypto is a huge priority for the company. Billionaire investor Stanley Druckenmiller said he regrets selling his entire Nvidia stake, and is looking to buy again. Shares in semiconductor equipment maker ASML fell 16% on Tuesday, after the Dutch company published financial results a day early, issuing disappointing sales forecasts. TSMC’s profit rose 54% on AI demand. Netflix stock hit an all time high in Q3 results. Amazon and Google are also investing in nuclear power and backing small nuclear reactors. iPhone reportedly had its best ever and nearly topped Samsung globally per research firm Canalys. In Canada, a Hong Kong billionaire increased their stake in Well Health Technologies with a $81-million private share purchase. Sophic Client, Kraken Robotics filed its final short form prospectus in connection with its bought deal public offering. The Company also received $13 million of subsea battery orders. Sophic Client, Intermap announced that Česká podnikatelská pojišťovna (ČPP), a subsidiary of the Vienna Insurance Group subscribed to Intermap’s innovative solution for determining the market price of real estate properties. Sophic Client, American Aires and MBM Motorsports partnered to protect NASCAR Cup team from in-race EMF radiation in an innovative sponsorship.

October 13, 2024: Five Up Weeks For Major Indices

October 13, 2024: Five Up Weeks For Major Indices

Last week, Nasdaq and S&P 500 both gained 1.1%, while Dow Jones gained 1.2% – the fifth straight weekly rise for all major indices. Cerebras Systems is likely to postpone its IPO. CoreWeave, an Nvidia-backed AI startup that rents out chips to other companies, announced that it has a new US$650 million credit line to expand its business and data center portfolio. Shortseller Hindenburg accused Roblox of inflated metrics. Tesla CEO Elon Musk unveiled autonomous Robotaxis he says will be available in 2026. Google’s grip on search appears to be slipping as TikTok and AI startups mount challenges. The Justice Department said Tuesday that it may ask a federal judge to force Google to divest Chrome, Google Play and Android, in order to fix Google’s illegal monopoly in general search engines and search text advertising. More than a dozen US states sued TikTok over allegedly harming kids, and the company has reportedly earmarked US$1 billion for future EU privacy fines. Delta Air Lines spent US$170 million on customer and crew-related costs in the wake of the CrowdStrike outage in the summer. Apple will sell its TV+ service on Amazon Prime video. In Canada, Sophic Client Plurilock and CrowdStrike partnered to secure critical infrastructure and organizations. Plurilock also announced a new US$1.7 million sale with an existing client, a major semiconductor manufacturer. Sophic Client, Kraken Robotics was featured in Motley Fool as a no-brainer tech stock to buy right now for less than $200. Sophic Client American Aires announced a partnership with dynamic UFC Lightweight title contender Michael Chandler. Sophic Client NowVertical highlighted a solution that provides simplified data management and provides greater transparency into partner marketing activities. Sophic Client Xcyte Digital, unveiled advanced AI capabilities.

October 6, 2024: First Major AI IPO Coming?

October 6, 2024: First Major AI IPO Coming?

Last week, Dow Jones rose 0.1% and hit a record close, S&P 500 rose 0.2%, and Nasdaq composite was up 0.1%. That said, 10-year Treasury yield spiked 23 basis points to 3.98%, for its biggest weekly gain in nearly a year, two-year yield, which is more closely tied to Fed policy, shot up the most in two years by 37 basis points, to 3.93%. U.S. startups raised US$37.5 billion in the three months ended in September, up 8% y/y. OpenAI completed a US$6.6 billion raise, that values the company at US$157 billion post-money. The company also secured a US$4 billion revolving credit line. OpenAI also told employees Wednesday it plans to allow them to sell some of their stock through a tender offer. Cerebras, which designs chips for training and running AImodels, disclosed in its IPO that it lost US$127 million last year on US$78 million in revenue. Shein is hosting informal roadshows in London and New York in preparation for the company’s IPO on the London Stock Exchange. Accenture will train 30,000 employees on Nvidia’s full stack of AI technologies and start a new business group dedicated to AI. Google is considering nuclear power to feed its energy-hungry AI data centers. Kalshi, a prediction market startup, went live with its betting market that allows U.S. users to bet on who will win the November presidential election. In Canada, Toronto-based, Koho Financial raised a $190 million round of debt and equity funding as it continues its efforts to secure a Schedule 1 banking licence. Sophic Client, upsized its bought deal to $45 million from $25 million, the stock is trading above deal price, which bodes well. Sophic Client, Clear Blue Technologies closed a Convertible Debenture financing, raising $2.2 million. Sophic Client, Plurilock signed a US$19.3 million contract with a S&P 500 semiconductor company, and also announced nearly US$2 million of Critical Services contracts. Sophic Client, American Aires expects to receive mass media exposure through upcoming appearance on Military Makeover with Montel.

September 29, 2024: Tech Market Showing Positive Signs Despite More OpenAI Drama

September 29, 2024: Tech Market Showing Positive Signs Despite More OpenAI Drama

Cerebras Systems, is targeting raising US$750 million to US$1 billion in an IPO, potentially valuing the company between US$7 to US$8 billion. Fintech Chime has reportedly hired Morgan Stanley to lead its IPO. Cyberecurity startup Wiz is reportedly in share sale talks at up to a US$20 billion valuation. Anthropic is discussing a new funding round aiming for a valuation between US$30 to US$40 billion, projecting US$1 billion in annualized revenue for this year. OpenAI is raising up to US$6.5 billion in its latest funding round, which could value the company at US$150 billion. Apple is reportedly no longer participating in the round. Hours after OpenAI’s CTO announced her departure, two more research leaders at the ChatGPT maker said they also planned to leave. New data from payments group Stripe suggests AI groups are making revenues at an unprecedented rate, scaling to over US$30 million in annualised revenue in 20 months — 5x faster than SaaS companies. Nvidia shares climbed as much as 5% on Tuesday as Barron’s reported CEO Jensen Huang is done with planned sales of stock. In Canada, Lightspeed is reportedly exploring a sale. Propel Holdings announced a $95.9 million acquisition of UK-based QuidMarket to expand its online lending platform. Propel is funding this with a $100 million equity offering led by Canaccord Genuity Corp. and Scotia Capital Inc. Kneat announced a $35 million bought deal led by Cormark Securities. Scribenote, an AI startup from Kitchener-Waterloo, raised $8.2 million in seed funding led by Andreessen Horowitz (a16z). Sophic Capital, Client Intermap in partnership with CACI has been selected by the National Geospatial-Intelligence Agency (“NGA”) as one of 10 qualified vendors for the Luno A program. The Luno A contract, valued at up to $290 million over five years, marks a substantial increase from the initial EIM budget of $29 million. Sophic Client, Intermap Technologies was selected by the National Geospatial-Intelligence Agency (NGA) for the Luno A program, a US$290 million contract over five years, to leverage AI-driven geospatial intelligence for real-time insights. Sophic Client, Kraken Robotics received $3 million in orders for its AI-enabled synthetic aperture sonar systems for naval use, indicating increased demand in mine countermeasure operations.

September 22, 2024: S&P 500 & Dow Jones Record Highs

September 22, 2024: S&P 500 & Dow Jones Record Highs

Last week, following the Fed’s 50 bps rate cut, Dow Jones rose 1.6%, S&P 500 gained 1.4%, and Nasdaq Composite was up 1.5%. Chipmaker Qualcomm has been considering a full takeover of Intel. Intel’s shares have fallen 60% this year. WSJ notes that a deal between Qualcomm and Intel has a high chance of being stopped. One possible way to close the deal would be for Qualcomm to sell assets or parts of Intel to other buyers. Earlier in the week, Intel was said to separate its foundry business, and struck a networking chip deal with AWS. OpenAI’s latest US$6.5 billion funding round is oversubscribed. Microsoft and BlackRock said Tuesday they are planning a US$30 billion fund to develop data centers and power plants to power artificial intelligence. The fund would be one of the largest of its kind. Constellation Energy struck a deal to provide Microsoft with nuclear power for the next two decades by bringing part of the Three Mile Island nuclear plant back into service by 2028. Playtika will acquire mobile game maker SuperPlay for up to US$1.95 billion. Flutter Entertainment agreed to buy Playtech’s Italian gambling business for an enterprise value of €2.3 billion. Google earlier this year offered to sell a key part of its advertising technology empire—an ad exchange that helps ad buyers transact with sellers of ad space, including Google—to win over website publishers and end their legal attacks over Google’s dominance, Reuters reported. Snap, on Tuesday announced a new generation of its augmented reality glasses Spectacles. The new Spectacles overlay augmented reality filters over objects in the real world and operate via voice commands and hand gestures. EssilorLuxottica extended its partnership with Meta Platforms to develop smart eyewear for another decade.

September 15, 2024: Best 2024 Weekly Gains After Worst Week In Over A Year

September 15, 2024: Best 2024 Weekly Gains After Worst Week In Over A Year

Markets had a dramatic revival mid-week, as result, Dow Jones closed the week up 2.6%, S&P 500 was up 4%, and Nasdaq Composite gained 5.95% — their best weekly gains of the year. Market participants are widely expecting a Fed rate cut next week, with some disagreement over whether the Fed cuts 25 or 50 bps. OpenAI is reportedly raising up to US$7 billion at a US$150 billion valuation — making it worth more than 88% of S&P 500 firms. Notably, ChatGPT has passed 11 million paying subscribers. The CEOs of Nvidia, Microsoft, CoreWeave, Amazon Web Services and OpenAI met with the U.S. secretaries of energy and commerce at the White House on Thursday to discuss how the energy grid would handle growing power needs from AI and how to speed up the development of AI-focused data centers. Bitcoin prices and Coinbase shares fell after the U.S. presidential debate. Adobe shares tanked on lower year-end guidance. The European Court of Justice has ruled against Apple and Google on Tuesday, imposing billions in penalties against the tech giants. Apple will have to pay 13 billion euros in back taxes to Europe. In Canada, Sophic Client NowVertical Group streamlined its LATAM business structure, with a cash payment of US$130K satisfying all earn out obligations and the remaining holdback amount payable to the A10 vendors. Sophic Client, Plurilock entered a Critical Services partnership with TD SYNNEX to provide AI services in North America. Sophic Client, Clear Blue Technologies, announced a couple contracts in Africa. Shopify is adding PayPal to help process credit and debit card transactions for its Shopify Payments payment processing service in the U.S. BDC is writing its down venture capital portfolio by $220 million. BDC said in its report that it expects “challenging market dynamics for venture capital” to persist in fiscal 2025.

September 8, 2024: Worst Week For Market In Over a Year

September 8, 2024: Worst Week For Market In Over a Year

Last week, Dow Jones dropped 2.9%, S&P 500 lost 4.25% (worst weekly losses for both indices since March 2023), Nasdaq composite fell 5.8% (worst weekly loss since January 2022). Investors appear concerned the Fed may be behind the curve on a slowing economy, and the sell-off in AI stocks intensified. Nvidia plunged 9.5% on Tuesday, wiping nearly US$300 billion off the chipmaker’s market cap and pulling chip stocks down with it. Intel fell almost 8%, Marvell slid 8.2%, and Broadcom lost about 6%. AMD dropped 7.8%, and Qualcomm fell nearly 7%. Nvidia on Wednesday denied reports it received a subpoena from the Department of Justice over antitrust concerns. OpenAI CEO Sam Altman’s plan to raise money for new data centers, power sources, and chip manufacturing plants for artificial intelligence will start in the U.S. and could cost tens of billions of dollars, according to a Bloomberg report. Investors in other countries such as Canada, Korea, Japan and the United Arab Emirates also plan to participate, the report said. CBOE plans to start a platform for trading private company shares. Shares of AI software Firm C3.ai dropped 17%, despite stronger revenue growth projection. In Canada, Exro announced a public financing of up to approximately $30 million. Kits Eyecare increased its previously announced secondary offering of common shares to $11.4 million and increased the block trade of its common shares. Shopify will become Roblox’s first platform commerce partner. Sophic Client Ionik acquired Nimble5, a performance marketing company headquartered in San Diego, California for a total aggregate purchase price of ~US$33.7 million for cash, debt and stock, plus an earn-out consideration. Sophic Client Plurilock won a US$1.1 million contract with a U.S. agency.