Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Netflix delivered a mixed set of results for the last quarter.</li><li>The company surpassed its own expectations with respect to subscriber growth and added 7.66 million net new subscribers in Q4, higher than its own forecast of 4.5 million additions.</li><li>The company ended 2022 with 230.75 million worldwide, surpassing its previous target of 227.59 million, implying a 4% subscriber growth.</li></ul>

Netflix delivered a mixed set of results for the last quarter.The company surpassed its own expectations with respect to subscriber growth and added 7.66 million net new subscribers in Q4, higher than its own forecast of 4.5 million additions.The company ended 2022 with 230.75 million worldwide, surpassing its previous target of 227.59 million, implying a 4% subscriber growth.

Netflix Inc: Continued Subscriber Growth & Other Drivers

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

<ul>
<li>Netflix is now up 50% from its lows on hope that advertising and paid sharing drive a revenue reacceleration and multiple rerating. Part B has happened.</li>
<li>Advertising uptake will be slow. But consensus has 55M incremental ad-subs (20% of the total) and $8B in revenue assumed in 2025! </li>
<li>Netflix intends on keeping content spending flat for the next few years, raising the importance of its hit rate - which has not been Netflix's forte.</li>
</ul>


Netflix is now up 50% from its lows on hope that advertising and paid sharing drive a revenue reacceleration and multiple rerating. Part B has happened.
Advertising uptake will be slow. But consensus has 55M incremental ad-subs (20% of the total) and $8B in revenue assumed in 2025! 
Netflix intends on keeping content spending flat for the next few years, raising the importance of its hit rate - which has not been Netflix's forte.


Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>IQIYI aims to raise around US$500m via a follow-on ADS offering.</li>
<li>While the company hasn’t stated its use of proceeds, it will probably use most of it to redeem convertible notes</li>
<li>In this note, we will talk about the deal dynamics and  run the deal through our ECM framework.</li>
</ul>


IQIYI aims to raise around US$500m via a follow-on ADS offering.
While the company hasn’t stated its use of proceeds, it will probably use most of it to redeem convertible notes
In this note, we will talk about the deal dynamics and  run the deal through our ECM framework.


IQIYI Follow-On Offering - Might Be Expected but Its Track Record Is...

<ul>
<li>Multiple negative data points have come out reflecting limited initial uptake for Netflix's ad-based tier.</li>
<li>(We think) Netflix lack of AVOD uptake is due to it being fully saturated in its major markets wheras competing services starting from scratch have higher AVOD uptake.</li>
<li>Lack of incremental subs from AVOD points towards a weaker than expected 4Q22 and downside to guidance...not good for a stock that has ripped since 2Q22 earnings.</li>
</ul>


Multiple negative data points have come out reflecting limited initial uptake for Netflix's ad-based tier.
(We think) Netflix lack of AVOD uptake is due to it being fully saturated in its major markets wheras competing services starting from scratch have higher AVOD uptake.
Lack of incremental subs from AVOD points towards a weaker than expected 4Q22 and downside to guidance...not good for a stock that has ripped since 2Q22 earnings.


Greater China Equity Long/Short Analyst

Eric Chen

<ul>
<li>Iqiyi's 3Q results released on Tuesday disappointed markets due to dim growth despite  sustained profitability for the third quarter in a row.</li>
<li>"Iconic" turnaround actually put IQ on firmer footing almost on all counts compared to one year ago.</li>
<li>Stabilizing cost base, strong operating leverage potential and troughs in business and macro cycle spell for compelling asymmetrical payoff - limited downside VS. multi-fold upside.</li>
</ul>


Iqiyi's 3Q results released on Tuesday disappointed markets due to dim growth despite  sustained profitability for the third quarter in a row.
"Iconic" turnaround actually put IQ on firmer footing almost on all counts compared to one year ago.
Stabilizing cost base, strong operating leverage potential and troughs in business and macro cycle spell for compelling asymmetrical payoff - limited downside VS. multi-fold upside.


Iqiyi (IQ US): Compelling Asymmetrical Payoff

United States

Netflix Inc. is an Internet subscription service for watching tv shows and movies. Subscribers can instantly watch unlimited TV shows and movies streamed over the Internet to their TVs, computers and mobile devices and in the United States, subscribers can receive standard definition DVDs and Blu-ray Discs delivered to their homes.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Netflix Inc (NFLX US)

Netflix Inc: Continued Subscriber Growth & Other Drivers

Netflix delivered a mixed set of results for the last quarter. The company surpassed its own expectations with respect to subscriber growth and...

Baptista Research

Netflix 4Q22: Priced for Perfection

Netflix is up 50% from its lows based on investors pricing in a successful ad tier and a churnless paid sharing crackdown. Bulls point to $400, we...

Aaron Gabin

IQIYI Follow-On Offering - Might Be Expected but Its Track Record Is...

iQIYI aims to raise around US$500m via a follow-on ADS offering. While the deal might be expected, the stock's longer term track record doesn't...

Sumeet Singh

Netflix AVOD Not Chill

We think Netflix's lack of AVOD uptake is due to full saturation, and unless paired with cracking down on passwords, will not generate incremental...

Aaron Gabin

Iqiyi (IQ US): Compelling Asymmetrical Payoff

Despite disappointed topline for 3Q, "iconic" turnaround put IQ on firmer footing for the long term. Current valuation offers compelling...

Eric Chen

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)