In today’s briefing:
- Zomato Placement – Opportunistic Selldown, Momentum Hasn’t Been the Greatest
- Apna Tearsheet – LinkedIn for the Masses
- Tesla Inc.: Capacity Expansion
- International Business Machines (IBM): The Databand Acquisition & Other Drivers
- Netflix Inc.: Ad-Supported Subscription To Counter Subscriber Losses & Other Developments
Zomato Placement – Opportunistic Selldown, Momentum Hasn’t Been the Greatest
- Uber (UBER US) is looking to raise US$420m in its share sale in Zomato (ZOMATO IN). The selldown will be a clean-up sale.
- Uber had earlier inherited its stake in Zomato in 2020 when it sold UberEats India to the latter.
- We had earlier flagged the possibility of a selldown given that most of Zomato’s investors would come off their respective one-year lockups.
Apna Tearsheet – LinkedIn for the Masses
- Apna (1826169D IN) ‘s is India leading networking and jobs platform primarily targeted towards the +250 million grey and blue collared workers, who usually are not on Linkedin.
- Channel feedback is mixed, Apna is not the only platform of choice. Community initiatives and vernacular interface are key differentiators along with simplicity.
- Profitability could remain a challenge, Monetisation is work in progress. The model is interesting, but making money off the bottom of the pyramid has never been easy.
Tesla Inc.: Capacity Expansion
- Tesla had been in the process of carrying out upgrades which resulted in a lengthy shutdown of its Shanghai factory.
- The company faced its fair share of challenges but had a highly resilient quarter and managed to produce an all-around beat.
- The most significant accomplishment was setting production records in Shanghai and Fremont in June.
International Business Machines (IBM): The Databand Acquisition & Other Drivers
- As a legacy tech company, IBM may have seen a slowdown in its growth trajectory but its acquisition-led growth approach continues to work.
- With this performance, the company is maintaining its model of mid-single-digit revenue growth and a double-digit performance in IBM Consulting.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Netflix Inc.: Ad-Supported Subscription To Counter Subscriber Losses & Other Developments
- Netflix has had a bad 2022 so far.
- The company continued with its trajectory of subscriber losses in the most recent quarter and lost another million subscribers.
- Given the current uncertainty levels, we give Netflix a ‘Hold’ rating with a revised target price.
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