Weekly Investment News and Analysis

Last week, Dow Jones was down 0.1%, S&P 500 lost 0.1%, and Nasdaq composite was up 0.2%. Nasdaq and S&P 500 both reversed after hitting record highs Friday morning. Webtoon, which operates a smartphone app for authors and readers of comics jumped 9% following its IPO. Clario, a provider of software to help drugmakers advance treatments through clinical trials, has filed confidentially for an IPO and is targeting a valuation of US$10 billion+. SpaceX will value insider shares at US$112 each for a total valuation for the rocket company of almost US$210 billion. Anduril has lined up backers for one of the biggest venture deals this year as it is close to finalizing a US$1.5 billion investment, which will value the 7-year-old company at around US$12.5 billion, pre-money. Volkswagen Group plans to invest up to US$5 billion into electric vehicle maker Rivian, giving the startup a cash infusion to help it fund its heavy losses. Amazon hit a market capitalization of US$2 trillion for the first time in trading on Wednesday. OpenAI sales of conversational AI models passed a US$1 billion annual rate. Apple and Meta discussed integrating Meta’s AI assistant on Apple products. Amazon is planning to launch a ChatGPT-like consumer chatbot. In Canada, Sophic Client Legend Power reported its first orders for the city of New York. Sophic Client, Plurilock won Ua 814K three year contract with an existing customer to deliver cloud security to a major laboratory data and advisory firm. Sophic Client, Xcyte Digital announced the closing of the MCON transaction. Hut 8 will receive US$150 million from Coatue to provide AI computing power. Thoma Bravo is exploring the sale of Trader, a Canadian automotive marketplace and software provider. State Street, and Galaxy will jointly develop new digital assets ETFs. Target and Shopify teamed up to expand Target’s third-party marketplace.

Despite some market weakness late last week, Dow Jones was up 1.45%, S&P 500 gained 0.6% and Nasdaq composite rose marginally for the week ended June 21. Cerebras, a developer of AI chips, trying to compete with Nvidia, has filed for an IPO confidentially. Brazilian fintech PicPay is working on a US IPO. Investing app, Acorns is eyeing an IPO in the next couple of years. Most stocks hyped as winners from the AI boom have fallen this year, according to Citi. Nvidia plans to design server racks could pressure server designers such as Dell, HPE and Supermicro. Apple on Friday told media outlets that its new artificial intelligence features won’t be available in the European Union because of concerns that the Digital Markets Act could compromise user privacy and data security. Apple has also reportedly halted work on Vision Pro and is aiming to release cheaper Vision headset next year. Accenture expects strong AI demand to power its 2024 revenue growth. Amazon is planning to revamp its Alexa voice assistant business with two tiers of new generative AI features, one of which will charge a subscription fee of US$5 to US$10 a month. Green bonds are on track to hit a total of US$1 trillion of issuance this year. The rush into sustainable debt contrasts sharply with investor outflows from stock funds focused on environmental, social and governance (ESG) metrics. In Canada, Sophic Client, Plurilock announced a US$6 million+ contract with the U.S. Treasury. Sophic Client, Kraken Robotics received a $2.2 million order for subsea batteries.

Last week, Nasdaq and S&P 500 rose again, as both indices hit fresh highs. Dow Jones fell 0.5%. The market rally could be due for a breather as indices appear to diverge. Shares in newly public Tempus AI began trading on the stock market on Friday, ending up 8.8% from its IPO price. StubHub’s EBITDA is said to be US$350 million ahead of a planned IPO. Apple on Monday announced highly anticipated updates that will bring generative AI capabilities to its devices, including a partnership with OpenAI’s ChatGPT that will aid Siri queries. Apple isn’t paying OpenAI for the ChatGPT partnership, and could work with Google’s Gemini in the future. OpenAI has surpassed US$3.4 billion in annualized revenue, more than doubling since late 2023. Adobe shares rose over 14% in extended trading Thursday as generative AI fueled its revenue growth. Broadcom revenue jumped 43% on AI chip demand. Microsoft will directly tie one third of performance bonuses for its 14 highest-paid executives to their success in improving the company’s cybersecurity. In Canada, there was yet another take-out, with Copperleaf being acquired for $12/sh in cash, a premium of ~66% to the 90–day VWAP. HEALWELL entered into an agreement to acquire BioPharma Services Inc., one of the largest full-service Contract Research Organizations headquartered in Canada, for up to ~$14.5 million. Tribe Property Technologies will conduct a non-brokered private placement, under the Listed Issuer Financing Exemption for gross proceeds of up to $2.5 million. Sophic Client, Xcyte Digital announced the execution of a definitive agreement with MCON Live, expanding into the military veteran community. Samsung, is leading a round of at least US$300 million in Tenstorrent, a Toronto-based AI chip company. Toronto-based cleantech startup Parity has a secured $26.1 million Series B financing to scale the adoption of its software solution aimed at reducing greenhouse gas emissions in urban buildings.

Despite markets falling on Friday after a strong jobs report, Dow Jones was up 0.3% for the week, S&P 500 rose 1.3%, and Nasdaq composite gained 2.4%. Both NASDAQ and S&P set all-time highs. Nvidia’s market cap passed Apple, putting it just behind Microsoft. The company’s stock price increase could have been aided by a “gamma squeeze”, (a bulk buying of call options) according to analysts. The Company also said its next-generation AI chip platform will be rolled out in 2026. Online fashion retailer Shein is close to filing an application to list on the London Stock Exchange. Bakkt Holdings, the digital-asset marketplace backed by the parent company of the New York Stock Exchange, is working with a financial advisor to explore strategic options, including a potential sale or breakup. Robinhood has agreed to buy Bitstamp, one of the oldest crypto exchanges, for about US$200 million in cash. Humane is reportedly trying to sell itself to HP for US$1 billion. The U.S. has cleared the way for antitrust investigations into Microsoft, OpenAI and Nvidia, as federal regulators have reached an agreement on how to divide up the responsibilities for the probes. In Canada, Sophic Client OneSoft, announced its first customer in South America. Sophic Clients, Kraken Robotics was featured in a prominent Canadian tech blog, and Xcyte Digital Corp. presented at the Spring MicroCap Rodeo Conference on June 6, 2024. Shopify acquired popular no-code checkout customizer Checkout Blocks. Cohere recently secured US$450 million from Nvidia, Salesforce Ventures, Cisco and Canadian pension fund PSP Investments. Québec-based hardware startup Vosker closed $171.2 million in debt financing. McRock Capital announced an initial $111 million close of its third fund.

While Nasdaq topped 17,000 for the first time, earnings losers hit tech names hard. Nasdaq was down 1.1% for the week, despite a strong bounce into the close. S&P 500 lost 0.5%, and Dow Jones fell 1%. Cloud computing startup CoreWeave is preparing for a 2025 IPO. The company was last valued at US$19 billion. AI Startup Perplexity is in talks to raise money at a US$3 billion valuation (3x last round). Elon Musk’s xAI has completed a US$6 billion fundraising round. Salesforce stock plunged 16% after the company warned that a cautious attitude among buyers of enterprise software. MongoDB shares dropped 26% on weak growth. Trading app Robinhood said it would repurchase shares worth up to US$1 billion over a two to three year period starting from Q3. Bloomberg journalist Mark Gurman reported in his Power On newsletter that Apple and OpenAI have reached a deal for OpenAI to provide chatbot functionality in iOS 18. OpenAI two months ago revived a robotics team it disbanded four years ago. Chinese Tesla rival BYD says its new hybrid cars can go 1,250 miles without stopping for gas or charging. In Canada, Sophic Client UGE, entered into an arrangement agreement for a going-private transaction. The all-cash consideration of $2.00/sh represents a 270% premium to the closing price of the stock on the last trading day immediately prior to the announcement. Tribe Property Technologies will acquire Toronto-based DMSI Holdings, and announced a private placement led by PROPELR Growth Fund. Sophic Clients, Kraken and Plurilock reported record Q1 2024 financial results. Sophic Client, Ionol reported continued growth in Q1 2024. Sophic Client, Clear Blue reported Fiscal 2023 financial results.

Last week was mixed despite Nvidia’s stellar earnings and guidance. Nasdaq composite rose 1.4% for the week (fifth straight weekly gain, and an all-time record). S&P 500 index closed marignally higher (after a brief record high Thursday). Dow Jones lost 2.3% last week. Nvidia revenue rose 262% to US$26 billion in the quarter that ended in April as its artificial intelligence chip sales helped the company beat its revenue projection for the quarter by more than 30% for the second quarter in a row. Free cash flow rose by nearly 6 times to US$14.9 billion in the April quarter compared to the same quarter a year ago. And the company gave another strong revenue projection for the current fiscal quarter, which ends in July, saying sales would rise about 107% from last year. Anduril is seeking a US$12.5 billion valuation after doubling revenue. SpaceX is weighing a plan to sell shares at US$200 billion valuation. Shares of database provider Snowflake fell 5% on Thursday after the company said a day earlier that revenue growth had “moderated” in April. Microsoft unveils new AI ‘agents’ to automate workplace tasks and AI focused PCs. U.S. approved NASDAQ and NYSE requests to list Ether ETFs. Ether has jumped nearly 30% in recent days on the anticipation of the SEC decision. In Canada, Blackline announced a $20 million bought deal and $10 million concurrent private placement. Sophic Capital client, Kraken Robotics completed a $20 million bought deal equity financing. Sophic Clients, ADM Endeavors, Legend Power Systems, OneSoft Solutions reported quarterly results. ADM’s focus is now on expanding operational capacity from its new facility in 2024. LPS closed on some large deals, has a strengthened balance sheet, and a growing pipeline. OneSoft reported 30%+ y/y revenue growth, and estimates 2024 in the range of $15 – $16 million, 44% to 54% y/y growth.

Last week, Dow Jones, S&P 500 and Nasdaq all hit record highs. Dow Jones rose 1.2% during the week, S&P 500 gained 1.5%, and Nasdaq composite was up 2.1%. CoreWeave, an upstart cloud provider that rents out servers with Nvidia’s artificial intelligence chips, raised US$7.5 billion in debt financing led by Blackstone, the company said Friday, adding that it was the largest deal of its kind. OpenAI on Monday launched a new AI model and desktop version of ChatGPT, along with an updated user interface. Google is expanding conversational search results that summarize answers instead of just listing links to other websites. Snowflake is said to be discussing buying AI startup Reka AI for US$1 billion. Squarespace said Monday it had agreed to a buyout by private equity firm Permira for US$44 a share in cash, in a deal that values the company at US$6.9 billion including debt. Reddit shares surged as it struck a content deal with OpenAI. Meta is reportedly working on camera-equipped AI earphones. Netflix said it plans to launch its own advertising technology platform to allow advertisers to buy ads on the streaming service. Millennium, Point72 and Elliott are among Bitcoin ETF buyers, according to a Bloomberg analysis of Q1 13F filings of roughly 1,000 filers. In Canada, Xybion Digital, and CloudMD were both taken out — as we’ve highlighted previously, we expect small to mid cap Canadian listed companies to be acquired unless the valuation gap with US listed companies narrows. Sophic Client, Xcyte Digital released its “Xperience” subscription service. Xperience, the first-of-its-kind service, gives subscribers the flexibility to select the most suitable technologies for hosting events bringing together a global ecosystem of event technology. The Xperience partner ecosystem is intended to be distributed globally and offered to, among others, large multinational enterprises, which is expected to broaden Xcyte’s reach into major worldwide markets.

Major indices resumed their move towards record or 52-week highs last week — Dow Jones gained 2.2%, S&P 500 rose 1.85%, and the Nasdaq composite was up 1.1%. Chinese EV maker Zeekr priced its US IPO at top of range to raise US$441 million, the stock popped 30%+ on its debut. S&P 500 companies that have reported Q1/24 results disclosed buying back US$181.2 billion of their shares during the period, up 16% y/y. Since the start of 2023, the volume of M&A financed by stock or a mix of cash and stock has touched its highest level in more than two decades. SoftBank is in talks to acquire Graphcore, a struggling British semiconductor startup once valued at US$2.8 billion. BigCommerce reportedly hired bankers to explore potential sale. Private equity firms are reportedly circling Peloton for a potential buyout. Warren Buffett gave a prominent gesture of confidence to Apple at Berkshire Hathaway’s annual meeting on Saturday, saying it’s “extremely likely” the stock will remain his holding company’s biggest investment despite Apple’s recent struggles. OpenAI will announce and demonstrate updates to ChatGPT and GPT-4 on Monday via livestream, the company said on X on Friday. Apple is finalizing a deal with OpenAI to bring ChatGPT features to iOS 18. TikTok and its parent company ByteDance sued the U.S. government on Tuesday to block a new law signed by President Biden forcing a sale or ban of the short-form video app. In Canada, Sophic Client, Kraken received $3.5 million of orders for subsea security equipment. Tantalus Systems announced a $10 million bought deal financing. American Aires announced a $3 million private placement. Shopify fell 18% on Wednesday, shaving almost US$20 billion off the company’s value, after the company gave revenue and profit guidance for the current quarter that spooked investors.

Markets ended the week strongly, due to a tame jobs report, which led to rate cut hopes and a rebounding Apple, prior to Berkshire indicating it cut its Apple position on Saturday. Dow Jones rose 1.1% during the week, S&P 500 gained 0.55%, and Nasdaq composite rose 1.4%. CoreWeave, an Nvidia-backed cloud startup, said it raised US$1.1 billion in new funding led by Coatue Management. The round valued it at US$19 billion. Artificial intelligence startup Anthropic on Wednesday unveiled its first mobile app for iPhone users and a new subscription plan for enterprise customers. Tesla shares surged 15% on Monday after Bloomberg reported that the automaker had partnered with Chinese internet company Baidu to help bring the electric vehicle maker’s driver assistance technology to China. A 10.5% drop in iPhone revenue dragged down Apple’s overall revenue by 4% in the March quarter, the tech giant reported Thursday, leading to a 2.3% decline in net profit. Apple announced a new US$110 billion share buyback and increased the dividend. Apple has renewed discussions with OpenAI about using the startup’s technology to power some new features coming to the iPhone later this year. Google on Monday announced new features for its Performance Max ad-buying tool, which uses artificial intelligence to optimize ad campaigns. In Canada, Sophic Client Ionik announced the sale of PopReach Games portfolio for a total aggregate purchase price of up to US$9.8 million. Sophic Capital Client, Xcyte Digital signed agreement to purchase assets of Webinar.net, bringing the Companys’ Pro Forma revenue run rate to US$5.0 million, before synergies, up 500% since the Company’s 2023 RTO. Zedcor announced a $4 million Bought Deal and $10 million concurrent Private Placement offering. Stack Capital invested US$8 million into Canva.

Last week, the stock market rebounded strongly due to mega-cap earnings even amid an alarming inflation report — Dow Jones rose 0.7%, S&P 500 gained 2.7%, Nasdaq advanced 4.2%. Rubrik rose 16% in its trading debut after the cloud and data security startup backed by Microsoft topped its fundraising goal with a US$752 million IPO. Vista Equity Partners-backed automotive data and software services provider Solera is weighing an IPO that may raise over US$1 billion. Traders who bet against the “Magnificent 7” group of big U.S. tech stocks booked their biggest-ever weekly profit of more than US$10 billion last week, with the biggest gains coming from their short position in shares of Nvidia and Tesla. Thoma Bravo will buy UK-listed Darktrace for £4.3 billion. IBM has agreed to buy Hashicorp, for US$6.4 billion in cash to strengthen its position in cloud computing and AI. Alphabet shares rose as much as 13% in after-hours trading after the company reported 15% higher revenues in the first quarter—stronger growth than analysts had anticipated—and announced it would begin paying a dividend. Meta plunged 16% on weak guidance even though Q1 results beat estimates. Tesla shares jumped 13% after Musk says the company aims to start production of an affordable new EV by early 2025. President Joe Biden signed into law a foreign aid package that includes a requirement that TikTok cut ties with its Chinese owner ByteDance or face a ban. TikTok has about a year to find a new owner, under the law. In Canada, Sophic Client Kraken Robotics gained access to over $100 million in liquidity via a bought deal equity offering and new expanded bank credit facilities in order to fund growth. Sophic Clients Xcyte Digital, OneSoft Solutions, UGE, ADM Endeavors will be presenting at the Planet MicroCap Showcase next week and will also host 1×1 investor meetings.

Last week, S&P 500 lost 3.05% – its biggest weekly decline in a year. Nasdaq composite fell 5.5% – its worst week since November 2022. However, the first-day stock price of Ibotta, traded up 17% Thursday from its US$88 IPO price, which already was at the top of the range bankers expected. French AI start-up Mistral, is in talks to raise €500 million in a deal that would more than double its valuation to at least €5 billion. Venture capital firm Andreessen Horowitz has completed a US$7.2 billion fundraise, exceeding an earlier target of US$6.9 billion. Italy’s Prysmian announced a deal to buy US firm Encore Wire for an enterprise value of about 3.9 billion euros (US$4.15 billion). Bentley Systems is exploring options that include a sale after attracting acquisition interest. Google could spend more than US$100 billion over time developing its artificial intelligence technology. Microsoft is looking to double new data center capacity. Meta Platforms on Thursday launched a new version of Meta AI, available in its apps and Ray-Ban smart glasses. Baidu’s Ernie AI chatbot now has 200 million users. Shares of critical chip firm ASML dropped 5% as sales missed expectations. TSMC cut its chip market outlook as consumer weakness persisted. TSMC’s stock slid more than 6% in Taipei, the biggest intraday decline in about 18 months. In Canada, Sophic Client, Kraken Robotics reported record 2023 financial results, and sees its strong momentum continuing. For 2024, Kraken reiterated guidance, expecting revenue between $90.0 million and $100.0 million and Adjusted EBITDA in the $18.0 million to $24.0 million range. Sophic Client, UGE International achieved notice to proceed milestone for a 847kw rooftop community solar project in Queens, New York. UGE had the project appraised by a third party for a fair market value of US$2.7 million or USD$3.14/watt.

NASDAQ hit a record close Thursday, then fell 1.6% Friday, ending the week down 0.45%. During the week, S&P 500 lost 1.55%, Dow Jones was down 2.4%. the CBOE Volatility index rose to 17.31 Friday, with a its 19.20 session peak, the highest since last fall. Ibotta Inc., a digital marketing software firm that counts Walmart Inc. as a backer, and shareholders are seeking to raise as much as US$472.5 million in an initial public offering. Tech stocks saw inflows of US$18.6 billion in Q1, the third largest quarterly inflow on record, Bank of America said. OpenAI has told some former employees they can sell shares in an extension of a recent tender offer that valued it at US$86 billion. Investors are seeking US$3 billion for Musk’s xAI at US$18 billion valuation. Intel, Meta and Google are releasing new chips. Adobe is buying videos for US$3 per minute to build AI models. Traders piled into shares of Rent the Runway on Thursday, sending the shares up by more than 220% after the apparel rental firm said it was betting on artificial intelligence tools to power its growth in the current year. Salesforce is in advanced talks to buy Informatica, according to the WSJ. Shares of Taiwan Semiconductor Manufacturing Company rose as much as 3.2% on Monday as President Joe Biden’s administration approved nearly US$12 billion in grants and loans. In Canada, Galaxy closed its upsized US$125 million bought deal financing. Sophic Client OneSoft announced the expansion of its operations to EMEA. The Company also presented at the AI & Technology Hybrid Investor Conference. Sophic Client, UGE International energized the largest rooftop community solar project in Maine. An independent third party valued the project at USD2.5 million, or US$2.62/Watt. The Canadian federal government committed $2.4 billion to AI compute, startups, and safety through Budget 2024.