In today’s briefing:
- Nikkei 225 Index Rebalance: Rohm (6963) To Replace NTT Data Group (9613)
- [Quiddity Index] Nikkei 225 Boots NTT Data (9613) Early, Rohm (6963) IN 3 July; $3.8bn a Side
- Last Week in Event SPACE: Shin Kong/Taishin, Santos, NTT Data, ENN Energy, Mitsui Matsushima
- Okta Inc.: Its Strength In the Public Sector Is One Of Its Biggest Catalysts!
- Asana Inc.: AI Studio Expansion & Customer Adoption to Potentially Converting AI Into A Substantial Revenue Source!
- Digital Turbine: Expansion of Device Footprint
- Onto Innovation: Is The Advanced Packaging & AI Compute Growth Here To Stay?
- Warner Bros. Discovery’s Bold Split Could Be a Game-Changer—Streaming
Nikkei 225 Index Rebalance: Rohm (6963) To Replace NTT Data Group (9613)
- Following the results of NTT (9432 JP)‘s tender offer for NTT Data Corp (9613 JP), NTT Data will be deleted from the Nikkei 225 (NKY INDEX).
- ROHM Co Ltd (6963 JP) will be added to the Nikkei 225 (NKY INDEX) at the close on 3 July. The stock is up a fair bit from its lows.
- Nearly all the NTT Data Corp shares not tendered will be held by passives and there will be selling in the stock as index providers move the float lower/delete.
[Quiddity Index] Nikkei 225 Boots NTT Data (9613) Early, Rohm (6963) IN 3 July; $3.8bn a Side
- Today the results of the NTT Data Corp (9613 JP) Tender Offer came out. NTT has 81.75%. I warned of lack of liquidity at that level yesterday here.
- Yesterday I proposed that ROHM Co Ltd (6963 JP) would replace NTT Data in the Nikkei 225 and that the likely timing was the last couple of days of August.
- Today, the Nikkei used the June 2020 rule change to announce NTT Data’s near-term deletion. Rohm goes in 3 July. 7.5x ADV to buy. $3.8bn a side to trade.
Last Week in Event SPACE: Shin Kong/Taishin, Santos, NTT Data, ENN Energy, Mitsui Matsushima
- Taishin Financial (2887 TT) is cheap to peers. Shin Kong Financial (2888 TT) is cheap vs Taishin. Long Shin Kong. Long Taishin vs Peers. Long Shin Kong vs Taishin Peers.
- Abu Dhabi makes a big, bold bet on Santos Ltd (STO AU). However FIRB will have the last word on whether the deal goes through.
- If the results show NTT owns >80% of NTT Data (9613 JP), buy a lot for a potential squeeze. If the results show NTT owns 68-70%, you can probably ignore.
Okta Inc.: Its Strength In the Public Sector Is One Of Its Biggest Catalysts!
- Okta, Inc. has provided a mixed yet insightful picture of its progress and challenges from its latest earnings results.
- On the positive side, the company has reported robust financial indicators for the first quarter of fiscal year 2026, including record operating profitability and strong cash flows.
- These financials showcase Okta’s capability to efficiently manage costs and drive profitability despite a generally cautious economic environment.
Asana Inc.: AI Studio Expansion & Customer Adoption to Potentially Converting AI Into A Substantial Revenue Source!
- Asana’s latest financial results for the first quarter of fiscal year 2026 illustrate a mix of achievements and challenges.
- The company has achieved a significant milestone by reaching non-GAAP profitability for the first time, boasting a non-GAAP operating margin of 4%, an improvement from a 9% operating loss margin in the prior year.
- This was facilitated by stronger-than-expected revenue of $187.3 million, which represents a 9% yearover-year increase, surpassing initial guidance.
Digital Turbine: Expansion of Device Footprint
- Digital Turbine, Inc.’s latest financial results demonstrate a blend of positive developments and ongoing challenges.
- For the fiscal fourth quarter ending March 2025, the company returned to year-over-year growth, generating $119.1 million in revenue and $20.5 million in EBITDA, with a non-GAAP earnings per share of $0.10.
- This marks a 6% increase in revenue compared to the previous year and a significant 66% rise in year-over-year EBITDA.
Onto Innovation: Is The Advanced Packaging & AI Compute Growth Here To Stay?
- Onto Innovation recently announced its financial results for the first quarter of 2025, marking a significant revenue record of $267 million, driven by advancements in AI compute engines and increased investments in cloud and enterprise servers.
- However, the company is grappling with tariff impacts due to policies enacted by the U.S. administration.
- Nearly all Onto’s products are manufactured in the United States, exposing the company to higher costs from tariffs and potential retaliatory tariffs from other countries.
Warner Bros. Discovery’s Bold Split Could Be a Game-Changer—Streaming
- Warner Bros. Discovery (WBD) reported first quarter financial results for 2025, highlighting significant strides in its streaming and content services as well as providing insight into its strategic vision for growth.
- The company emphasized its commitment to high-quality storytelling and global reach, which it sees as key drivers in its business growth.
- For the period, Warner Bros. Discovery continued its momentum in the streaming domain, adding more than 5 million subscribers, resulting in a total of over 22 million new subscribers over the past year.
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