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>Salesforce, a prominent leader in customer relationship management (CRM) solutions, disclosed its fiscal 2025 second-quarter financial results, articulating significant developments and prospects, particularly in AI (artificial intelligence).</li><li>The earnings call, spearheaded by Salesforce executives including Chair and CEO Marc Benioff, illustrated both promising highlights and some challenges that investors need to consider.</li><li>Positively, Salesforce reported a robust quarter with revenue marking $9.33 billion, representing an 8% increase year-over-year and adjusting for currency fluctuations, a growth of 9%.</li></ul>

Salesforce, a prominent leader in customer relationship management (CRM) solutions, disclosed its fiscal 2025 second-quarter financial results, articulating significant developments and prospects, particularly in AI (artificial intelligence).The earnings call, spearheaded by Salesforce executives including Chair and CEO Marc Benioff, illustrated both promising highlights and some challenges that investors need to consider.Positively, Salesforce reported a robust quarter with revenue marking $9.33 billion, representing an 8% increase year-over-year and adjusting for currency fluctuations, a growth of 9%.

salesforce.com Inc: Enhanced Product Offerings and Vertical Integration Driving Our Optimism!

External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

<ul><li>Salesforce's stock price has declined by 21% to $214 after slightly lowering guidance for the year, presenting a potential buying opportunity for investors.</li><li>The company is facing challenges in a more cautious post-Covid buying environment, but recent changes to the go-to-market organization are expected to drive productivity improvements in the future.</li><li>Despite these challenges, Salesforce's core business remains strong, with potential for the stock to compound at 15-24% over the next five years, offering a mid-point IRR of 20% with conservative assumptions.</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Salesforce's stock price has declined by 21% to $214 after slightly lowering guidance for the year, presenting a potential buying opportunity for investors.The company is facing challenges in a more cautious post-Covid buying environment, but recent changes to the go-to-market organization are expected to drive productivity improvements in the future.Despite these challenges, Salesforce's core business remains strong, with potential for the stock to compound at 15-24% over the next five years, offering a mid-point IRR of 20% with conservative assumptions.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Salesforce Inc (CRM) - Thursday, May 30, 2024

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>S&amp;P DJI have started a market consultation to change the index weighting methodology for the Select Sector Indices to reduce concentration and avoid reverse turnover.</li>
<li>There is US$281bn tracking the Select Sector Indices from the SPDR ETFs. The market consultation will have a larger impact on indices where there is a high degree of concentration.</li>
<li>The largest inflows are expected in <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple</a>, <a href="https://www.smartkarma.com/entities/conocophillips" target="_blank" data-smartkarma-citation="entities:18090:1" rel="noopener">Conocophillips</a>, <a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com</a> and <a href="https://www.smartkarma.com/entities/netflix-inc" target="_blank" data-smartkarma-citation="entities:20451:1" rel="noopener">Netflix</a> while the largest outflows will be from <a href="https://www.smartkarma.com/entities/microsoft-corp" target="_blank" data-smartkarma-citation="entities:15273:1" rel="noopener">Microsoft</a>, <a href="https://www.smartkarma.com/entities/nvidia-corp" target="_blank" data-smartkarma-citation="entities:5891:1" rel="noopener">NVIDIA</a>, <a href="https://www.smartkarma.com/entities/chevron-corp" target="_blank" data-smartkarma-citation="entities:11091:1" rel="noopener">Chevron</a>, <a href="https://www.smartkarma.com/entities/procter-gamble-co" target="_blank" data-smartkarma-citation="entities:978:1" rel="noopener">Procter &amp; Gamble</a>, <a href="https://www.smartkarma.com/entities/exxon-mobil-corp" target="_blank" data-smartkarma-citation="entities:811:1" rel="noopener">Exxon Mobil</a>, <a href="https://www.smartkarma.com/entities/costco-wholesale-corp" target="_blank" data-smartkarma-citation="entities:18404:1" rel="noopener">Costco Wholesale</a> and <a href="https://www.smartkarma.com/entities/meta-platforms-inc-class-a-facebook" target="_blank" data-smartkarma-citation="entities:665:1" rel="noopener">Meta Platforms</a>.</li>
</ul>


S&amp;P DJI have started a market consultation to change the index weighting methodology for the Select Sector Indices to reduce concentration and avoid reverse turnover.
There is US$281bn tracking the Select Sector Indices from the SPDR ETFs. The market consultation will have a larger impact on indices where there is a high degree of concentration.
The largest inflows are expected in Apple, Conocophillips, Amazon.com and Netflix while the largest outflows will be from Microsoft, NVIDIA, Chevron, Procter &amp; Gamble, Exxon Mobil, Costco Wholesale and Meta Platforms.


Select Sector Indices - HUGE Impact of Proposed Constituent Weighting Changes

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nvidia-corp" target="_blank" data-smartkarma-citation="entities:5891:1" rel="noopener">NVIDIA Corp (NVDA US)</a> and <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple (AAPL US)</a> switched positions in June setting off huge flows. Those flows could reverse in September if the current index methodology is used.</li>
<li>To avoid frequent reverse turnover, S&amp;P DJI have started a market consultation to change the index weighting methodology. We believe feedback will be positive and the proposals will be approved.</li>
<li>
<a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple (AAPL US)</a> will have inflows in September while there will be outflows from <a href="https://www.smartkarma.com/entities/microsoft-corp" target="_blank" data-smartkarma-citation="entities:15273:1" rel="noopener">Microsoft Corp (MSFT US)</a> and <a href="https://www.smartkarma.com/entities/nvidia-corp" target="_blank" data-smartkarma-citation="entities:5891:1" rel="noopener">NVIDIA Corp (NVDA US)</a>. </li>
</ul>



NVIDIA Corp (NVDA US) and Apple (AAPL US) switched positions in June setting off huge flows. Those flows could reverse in September if the current index methodology is used.
To avoid frequent reverse turnover, S&amp;P DJI have started a market consultation to change the index weighting methodology. We believe feedback will be positive and the proposals will be approved.

Apple (AAPL US) will have inflows in September while there will be outflows from Microsoft Corp (MSFT US) and NVIDIA Corp (NVDA US). 


Technology Select Sector Index (XLK US): Market Consultation to Avoid Reverse Turnover (NVDA/AAPL)

<ul>
<li>The <a href="https://www.smartkarma.com/entities/technology-select-sector-spdr" target="_blank" data-smartkarma-citation="entities:27543:1" rel="noopener">Technology Select Sector SPDR (XLK US)</a> ETF tracks the Technology Select Sector Index and has an AUM of over US$65bn.</li>
<li>The recent drop in <a href="https://www.smartkarma.com/entities/nvidia-corp" target="_blank" data-smartkarma-citation="entities:5891:1" rel="noopener">NVIDIA Corp (NVDA US)</a> has taken its market cap and free float market cap lower than <a href="https://www.smartkarma.com/entities/microsoft-corp" target="_blank" data-smartkarma-citation="entities:15273:1" rel="noopener">Microsoft Corp (MSFT US)</a> and <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple (AAPL US)</a>. </li>
<li>If that continues to be the case on 13 September, there will be huge outflows for <a href="https://www.smartkarma.com/entities/nvidia-corp" target="_blank" data-smartkarma-citation="entities:5891:1" rel="noopener">NVIDIA (NVDA)</a> and huge inflows for <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple (AAPL)</a> at the close on 20 September.</li>
</ul>


The Technology Select Sector SPDR (XLK US) ETF tracks the Technology Select Sector Index and has an AUM of over US$65bn.
The recent drop in NVIDIA Corp (NVDA US) has taken its market cap and free float market cap lower than Microsoft Corp (MSFT US) and Apple (AAPL US). 
If that continues to be the case on 13 September, there will be huge outflows for NVIDIA (NVDA) and huge inflows for Apple (AAPL) at the close on 20 September.


Technology Select Sector Index (XLK US): Reversing the Huge Flows from June

United States

salesforce.com, inc. provides software on demand. The Company supplies a customer relationship management service to businesses worldwide providing a technology platform for customers and developers to build and run business applications. Clients use salesforce.com to manage their customer, sales and operational data.

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

Salesforce.Com Inc (CRM US)

salesforce.com Inc: Enhanced Product Offerings and Vertical Integration Driving Our Optimism!

Salesforce, a prominent leader in customer relationship management (CRM) solutions, disclosed its fiscal 2025 second-quarter financial results,...

Baptista Research

Salesforce Inc (CRM) - Thursday, May 30, 2024

Salesforce's stock price has declined by 21% to $214 after slightly lowering guidance for the year, presenting a potential buying opportunity for...

Value Investors Club (VIC)

Select Sector Indices - HUGE Impact of Proposed Constituent Weighting Changes

The market consultation to change the index weighting methodology will set off a US$28bn trade in Sep. Inflows to Apple, Conocophillips, Amazon.com...

Brian Freitas

Technology Select Sector Index (XLK US): Market Consultation to Avoid Reverse Turnover (NVDA/AAPL)

To reduce reverse turnover, SnP have started a consultation to change the index weighting methodology. Passives will need to buy US$7bn in Apple...

Brian Freitas

Technology Select Sector Index (XLK US): Reversing the Huge Flows from June

NVIDIA has dropped relative to MSFT and AAPL in the last 6 weeks. That could lead to big selling in NVDA and big buying in AAPL from the XLK ETF in...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)