In today’s briefing:
- Job Hunting App Operator’s Earnings Fall Despite End to National Security Probe
- Volume, Call Options, Tencent, and China Overseas
- Liquidity Risk Short Candidates: Luminar Tech, Asana, Appian, Oak Street Health
- Snowflake FY3Q23 Earnings: Stabilizing Growth in FY2024
- Zoom Video Communications: Product Updates & Other Developments
- HuffPost Investor, Binance Join US$15.5M Series A+ Round of Fraud Detection Startup FrankieOne
- Dell Technologies: Major Drivers
- Expect Bigtincan To Reject SQN’s Proposal
- Applied Materials: Key Drivers
- Analog Devices Inc: New SPoE PESE & PD Solutions & Other Drivers
Job Hunting App Operator’s Earnings Fall Despite End to National Security Probe
- The operator of Chinese recruitment app Boss Zhipin reported drops in third-quarter revenue and profit after restarting new user registrations following a nearly one-year suspension as part of a national security probe.
- During the three months through September, Nasdaq-listed Kanzhun Ltd.logged a net profit of 211.7 million yuan ($29.8 million), representing a year-on-year drop of 26%
- The firm generated about 99% of its revenue, or 1.16 billion yuan, from sales of recruitment services to corporate clients — a 2.7% year-on-year decrease.
Volume, Call Options, Tencent, and China Overseas
- Volume picked up on Tuesday, 29th November, just slightly below the 15th November volume, the previous buying climax.
- Wednesday’s Volume fell 10% with new price highs.
- The erratic rather than trending Volume without capitulation volume on the 31st October price lows are hallmarks of a bear market rally.
Liquidity Risk Short Candidates: Luminar Tech, Asana, Appian, Oak Street Health
- Liquidity shorts can be great short candidates. The key characteristic is that the company may not be viable, economically, given their cash flows and cash requirements.
- Liquidity shorts have built-in catalysts, have moderate to higher betas, and can have strong down moves if a crisis develops. They can go bankrupt, pushing the stock price near zero.
- Today we are flagging Luminar Tech, Asana, Appian, Oak Street Health
Snowflake FY3Q23 Earnings: Stabilizing Growth in FY2024
- Snowflake guided below consensus for 4Q2023 revenue growth on a mix of macro conservatism and a quirky point that more vacation travel will reduce the amount of workloads run.
- Margins continue to beat to the upside and management is guiding FY2024 FCF marginst to 23%, just 2pts below the LT guidance.
- Very conservative management team also guided for a stabilization in revenue growth for FY2024 at 47%, a bit below consensus, but better than feared given the earnings reports recently.
Zoom Video Communications: Product Updates & Other Developments
- Zoom Video Communications delivered a decent quarter and managed an all-around beat.
- From a product perspective, the company had robust growth in Zoom Phone, along with contributions from Zoom Rooms and other products.
- Zoom Video Communications has recently announced a wide range of updates in different business units like Zoom IQ for sales, Zoom Events, Zoom Spaces, Zoom Contact Centre, and Zoom One.
HuffPost Investor, Binance Join US$15.5M Series A+ Round of Fraud Detection Startup FrankieOne
- FrankieOne, a global platform connecting customers to multiple identity verification and fraud detection vendors via one API, has added US$15.5 million to its Series A+ round.
The new tranche will allow FrankieOne to expand its business across Asia Pacific and North America.
Founded in 2019 by Simon Costello and Aaron Chipper, FrankieOne is an identity and fraud detection engine helping companies onboard and protect their customers.
Dell Technologies: Major Drivers
- After announcing a weak outlook in the last quarter and causing its stock price to plummet, Dell has shown a decent recovery.
- Its stock price has continued to recover after the company delivered an all-around beat in a challenging demand environment.
- Overall, we remain neutral on Dell and give it a ‘Hold’ rating with a revised target price.
Expect Bigtincan To Reject SQN’s Proposal
- Software provider Bigtincan Holdings Ltd (BTH AU) has announced an indicative proposal, by way of Scheme, from PE outfit SQN Investors at A$0.80/share, a 17.6% premium to last close.
- Due diligence has not yet been afforded. SQN currently holds a 13.6% stake.
- BTH also highlighted it has had preliminary discussions with other interested parties. Expect BTH’s board not to engage with SQN at this price.
Applied Materials: Key Drivers
- Applied Materials delivered a strong quarterly performance and managed to surpass Wall Street expectations in terms of revenues as well as earnings.
- Demand remains very high in cutting-edge foundry/logic, with customers vying for leadership and driving significant technological inflections that decide their respective competitive positions.
- AMAT should have a strong resilience because of their substantial backlog, expanding service business, and strong customer demand for their leading technologies that support significant technological inflection points.
Analog Devices Inc: New SPoE PESE & PD Solutions & Other Drivers
- Analog Devices delivered another all-around beat in the recent quarterly result.
- In Communications, Analog Devices expanded its 5G radio systems leadership with its transceiver portfolio, winning some additional share at key suppliers.
- We provide the stock of Analog Devices with a ‘Hold’ rating with a revision in the target price.
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