Daily BriefsTMT/Internet

TMT: Apple Inc, Appier Group Inc, Meta Platforms (Facebook), Delhivery, Coupang, Mindtree Ltd, Palantir Technologies Inc, Canon Inc, Hon Hai Precision Industry and more

In today’s briefing:

  • AAPL and MSFT Support Breaks that Would Implode the US Cycle
  • Appier – Explosive US Growth
  • FB: “Planning to Slow the Pace of Our Investments” In the Metaverse.
  • Delhivery IPO: Peer Comparison and Valuation
  • Coupang: Four Major Factors to Drive Higher Profit Margins in 2022
  • Aristotle Capital Management Global Equity 1Q 2022 Commentary
  • Mindtree-LTI: Merger Announced to Form India’s 5th Largest IT Services Player
  • Palantir 1Q22 Earnings: War Supposedly Good for Business?
  • Canon (7751) – Buyback Looks Small But Shareholder Structure Matters
  • Hon Hai (2317.TT): 1Q22 Preview/2Q22 Outlook- For 2022, It Could Be the Lowest Revenue in 2Q22.

AAPL and MSFT Support Breaks that Would Implode the US Cycle

By Thomas Schroeder

  • Apple and Microsoft are pressing on pivotal supports that would weigh on the US equity cycle after the April 26 red flag for defensives and resource stocks to sell off.
  • Mounting to break AAPL and MSFT key supports at 150 and 270 that would inflection the SPX cycle further given the SPX is flirting with a key break below 4,100/4,030.
  • AAPL and MSFT support breaks target AAPL 120 and MSFT 220.

Appier – Explosive US Growth

By Mio Kato

  • When we reviewed Appier’s 2021 results we rambled on about the US for about half of our note discussing explosive growth potential. 
  • We said that while Appier touted a >50% QoQ growth rate in the US we suspected it was actually closer to 100%. 
  • In 1Q it accelerated to >180% QoQ growth prompting the sell side to go all surprised Pikachu.

FB: “Planning to Slow the Pace of Our Investments” In the Metaverse.

By Investment Talk

  • Meta Platforms surprised investors in Q1 but not because the quarter was outstanding. Rather, it wasn’t as bad as some had assumed.
  • In an unusual turn of events, Zuckerberg’s earnings call appearance resulted in whispering sweet nothings into investors’ ears
  • However great that might be, the quarter provided no conclusive update on the loss of signal from Apple’s iOS updates, with management offering on-platform messaging/commerce as a potential sidestep

Delhivery IPO: Peer Comparison and Valuation

By Shifara Samsudeen, ACMA, CGMA

  • Delhivery (1058656D IN) IPO will run from 11-13th May. The company plans to raise INR52.35bn (US$680m) through the issuance of a mix of new shares and OFS by existing shareholders.
  • At the indicative IPO price range of INR462-487 per share, Delhivery will have a market capitalisation of INR334.7-352.8bn and a post-money EV of INR294.8-312.9bn.
  • Delhivery plans to use the IPO proceeds for funding organic growth initiatives such as building scale and expanding network infrastructure as well as for funding inorganic growth.

Coupang: Four Major Factors to Drive Higher Profit Margins in 2022

By Douglas Kim

  • We have been Bearish on Coupang since 12 May 2021. Now we are turning Positive since we believe the valuations have become a lot more attractive. 
  • We highlight four major factors that could result in higher profit margins for Coupang in 2022 including competitors exiting early dawn service, lower COVID and EATS related costs. 
  • Our base case valuation of Coupang is implied market cap of $24.9 billion and target price of $14.1 per share, representing 32% upside from current levels.

Aristotle Capital Management Global Equity 1Q 2022 Commentary

By Fund Newsletters

  • For the first quarter of 2022, Aristotle Capital’s Global Equity Composite posted a total U.S.
  • dollar return of -9.19% gross of fees (-9.28% net of fees) The company is an independent/employee-owned investment management organization that specializes in equity and fixed income portfolio management.

Mindtree-LTI: Merger Announced to Form India’s 5th Largest IT Services Player

By Janaghan Jeyakumar, CFA


Palantir 1Q22 Earnings: War Supposedly Good for Business?

By Aaron Gabin

  • Revenue growth ex-SPAC decelerated to 19% this quarter, 11% below consensus.
  • 1Q22 20% operating margins vs. consensus 27% margins as the company invests to reaccelerate growth in 2H from rising government contracts due to war.
  • Alex Karp warns that nuclear war in Ukraine is being dramatically underestimated.

Canon (7751) – Buyback Looks Small But Shareholder Structure Matters

By Travis Lundy

  • Canon Inc (7751 JP) on Monday announced a share buyback programme.
  • It isn’t very big. But it bears consideration because of other things going on. 
  • Shareholder structure is of much more importance than many investors appreciate. Here even more so.

Hon Hai (2317.TT): 1Q22 Preview/2Q22 Outlook- For 2022, It Could Be the Lowest Revenue in 2Q22.

By Patrick Liao

  • Hon Hai’s revenue was NT$1,408bn in 1Q22. We expect the OPM and EPS would be ~2.2% and ~NT$2.18 in 1Q22.
  • It’s a gradually increase for end-product shipment in 2021, but we think it might be followed by a slower season in 2Q22.
  • Hon Hai’s target is to address the profit in 2022. For 2022, we believe it could be the lowest revenue in 2Q22.

Before it’s here, it’s on Smartkarma