Daily Brief TMT/Internet: Palantir Technologies , Hexaware Technologies, Sify Technologies , Amazon.com Inc, Mediatek Inc, MoneyHero , Sailpoint Technologies Holdings, International Business Machines and more

• Introduction to the Odd Lots Podcast with hosts Jill Wiesenthal and Tracy Alloway
• Discussion with guest Sean Sham Sankar, CTO of Palantir, about defense spending and technology
• Focus on the importance of data integration and human decision-making in the defense industry

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• Hexaware Technologies (HEXW IN), an Indian mid-sized global IT services company, aims to raise up to US$1.0 billion. 
• BPEA privatised Hexaware in 2020. In 2021, Carlyle won an auction to acquire a 95.51% stake in Hexaware.
• The bull case rests on sold revenue growth, reducing customer concentration, high utilization, low attrition rates, high customer satisfaction scores and top-tier cash generation.

• Sify Technologies (SIFY US) is planning a Rs. 3,000 crore IPO for its data centre subsidiary, Sify Infinite Spaces, aiming to unlock significant hidden value and realign its market valuation.
• The IPO underscores rapid growth in India’s data centre market, driven by Digital India and 5G, offering a strategic edge with lower capital costs versus global peers.
• Investors can capitalize on a notable valuation arbitrage, as Sify’s data centre arm is vastly undervalued compared to the parent’s market cap, promising long-term upside.

• Amazon faced ~900 Mn FX headwind in 4Q’24 which was ~700 mn higher than assumed.
• For the third consecutive quarters, AWS grew 19% YoY. Ads grew by +18% YoY, and revenues in other segments increased by mostly High Single Digit (HSD) rate.
• I’ll discuss more about AWS later, but let’s talk more about Amazon ex-AWS first.

• 1Q25 outlook is NT$140.8-151.8 billion, up 2-10% QoQ and up 6-14% YoY, with a GM of 47% ± 1.5%, beating consensuses. 
• Smartphone sales are +59% from 4Q24, increasing 14% QoQ but decreasing 1% YoY, attributed to the successful launch of the D9400, with healthy demand for smartphones and subsidy stimulation from China.
• GAI will continue to drive innovative changes in the industry, while MediaTek is evaluating the phenomenon’s effect on resource allocation. 

• This is a follow-up research note on MoneyHero Group, a leading personal finance and digital insurance aggregation platform in Greater Southeast Asia.
• The company delivered a strong Q3 2024 performance, signaling a strategic shift towards efficiency and high-margin products.
• Revenue rose 6% YoY to $20.9M, with personal loans, wealth/investment offerings, and insurance driving significant growth.

• The first software IPO of 2025 is checking all the boxes and is expected to deliver strong returns versus issue price when it debuts on February 13th.
• There are currently two anchor orders on this deal which have each indicated for up to 20% of the offering (AllianceBernstein & Dragoneer Investment Group). 
• The IPO market is “eager and ready” for the technology window to open up. We like the risk-reward profile of this deal at this time. 

• Palantir Technologies Inc. saw a significant surge in its stock price following a robust earnings report that surpassed analyst expectations.
• The company projected full-year 2025 revenue of approximately $3.75 billion, exceeding the $3.54 billion consensus estimate.
• Adjusted operating income is anticipated to be around $1.56 billion, highlighting Palantir’s continued momentum in artificial intelligence and government contracts.

• The potential IPO of Sify Infinite Spaces is likely to have a positive impact on Sify Technologies. 
• The overall market size of data centers in India is huge and Sify Infinite Spaces certainly has the experience and capability to become one of the leaders in this segment.
• Despite attractive market opportunity, there will be some investors that will question the overall valuation levels of Sify Infinite Spaces to justify seeking nearly 30 billion INR in the IPO. 

• Intel CEO position vacant; speculation rises after management shake-up at GF.
• Alibaba’s Qwen model outperforms DeepSeek V3 in new benchmark test.
• Taiwan notebook market set for growth in 4th quarter of 2024; Global economic slowdown impacting Microchip sales.