Daily Brief United States: AppLovin , Echostar Corp A, Legence, Automatic Data Processing, Mattel Inc, OpenAI, Klarna Group, Tether, Via Transportation, Host Hotels & Resorts and more

• There are 3 constituent changes for the S&P 500 INDEX (SPX INDEX) in September. There are capping changes for the Select Sector indices and the Equal Weight Index too.
• The round-trip trade is US$19.6bn with a big chunk from the Equal Weight Index, Technology Select Sector SPDR (XLK US) and Communication Services Select Sector SPDR Fund (XLC US). 
• The largest flows are expected in AppLovin (APP), Robinhood Markets (HOOD), Trade Desk (TTD), NVIDIA (NVDA), Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT US), Exxon Mobil (XOM) and Chevron (CVX).

• AT&T paid $22.7 billion for Spectrum from SATS, a third of their portfolio
• Yummy Century Stocks discusses the significance of the Spectrum sale and the value trapped in SATS and DISH
• Yummy Century Stocks estimated the value of the Spectrum to be around $8 billion, slightly higher than what AT&T paid

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• The wide $25-$29 range allows for valuation discussion amongst investors and the company. 
• From 2021 to 2024, their revenues grew at a 39% CAGR and have a $2.8b backlog, however debt overhang remains a concern. 
• We believe price sensitivity is likely to play a factor and a muted opening is potentially on deck.

• Automatic Data Processing, Inc. (ADP) reported strong financial results for the fourth quarter of fiscal 2025, characterized by a solid revenue increase and expansions in both margin and earnings per share (EPS).
• Revenue growth for the fourth quarter was reported at 8%, with an adjusted EBIT margin expansion of 40 basis points, while adjusted EPS increased by 8%.
• For the entire fiscal year, the company achieved 7% revenue growth, a 50 basis point rise in EBIT margin, and a 9% increase in adjusted EPS.

• Mattel, Inc. reported its second quarter 2025 financial results, showcasing a mixed performance characterized by specific strengths and challenges.
• Overall, net sales decreased by 6% as compared to the previous year, both in reported terms and constant currency.
• However, the company demonstrated operational efficiency by expanding its adjusted gross margin by 200 basis points to 51.2% and maintaining its adjusted earnings per share at $0.19, consistent with the last year.

• Token costs no longer drop meaningfully with scale, and inference remains a fixed, expensive burden.
• Rather than delivering major performance gains, GPT-5 appears to be a cost-routing shell, underperforming in several benchmarks.
• With $115B in projected losses and hardly any visible scale-based leverage, OpenAI’s only path forward is monetisation.

• Klarna’s IPO issue price of USD40 implies a market capitalisation of USD15.1bn and, according to financial press reports, the IPO was twenty-five times over-subscribed
• The Klarna IPO valuation metrics, versus its peers, still serves to highlight Affirm’s very stretched valuation and we stand by our Affirm sell rating
• On the positive side, we highlight PayPal as also the best value play of the major BNPL participants; we also like PagSeguro and Nexi

• Shows cointegration with traditional gold assets but trades 24/7, on-chain
• Plays into the growing interest in on-chain real world assets (RWAs)
• For on-chain portfolios, a small XAUt sleeve can cut volatility and drawdowns.

• According to our sources, the deal is multiple-times oversubscribed, with strong participation from long-only investors and continued one-on-one conversions.
• They currently have 689 customers but believe they have a serviceable customer total of more than 63,000.
• The platform is scalable and the “land-and-expand” strategy has been effective with a CAGR of 50% in the last four years.

Key points (machine generated)

• Host Hotels & Resorts, Inc. is the largest publicly traded hotel REIT with 43,000 rooms across 81 properties.
• The company faces challenges from a broken business model, reflected in its discount to net asset value and market expectations.
• There is potential for a 40-80% upside by restructuring assets into coherent portfolios to attract better buyers.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.