TMT/Internet Archives | Page 57 of 121 | Smartkarma

• In the first quarter of 2024, Advanced Micro Devices (AMD), under the chairmanship and CEO-ship of Dr.
• Lisa Su, achieved multiple milestones.
• Revenue rose to $5.5 billion, showing both quarter over-quarter and year-over-year growth, while the company’s gross margin expanded by more than 2 percentage points; they also saw enhanced profitability with Data Center and Client segment sales each growing by over 80% year-over-year.

• Based on the Q1 2024 earnings, Corning Incorporated appears to be in a position of growth and profitability.
• With sales close to $3.3 billion and EPS of $0.38, the company exceeds its guidance predictions.
• There was a year-over-year gross margin growth of 160 basis points to 36.8%, and a substantial improvement in free cash flow by $300 million.

• In Q1 2024, Gartner delivered strong profitability and free cash flow, which both surpassed expectations, leading the company to increase its guidance for the year.
• The company proved its resilience in what’s described as a “complex environment”, with contract value growth in the high single digits.
• However, there remain several challenges to face.

• Mastercard Inc.’s Q1 2024 earnings showcased the company’s firm position in the payments sector, underpinned by robust revenue and adjusted net income growth on a non-GAAP, currency-neutral basis.
• The company’s strong results go beyond the uptake in consumer spending, extending to the rapid growth in cross-border volumes.
• There are several factors at play that make Mastercard attractive from an investment standpoint.

• Pinterest reported healthy growth trends with bright prospects, although there are challenges and areas in need of improvement, making an investment thesis mix of cautious optimism and risk mitigation.
• Positively, Pinterest revealed impressive progress in terms of both user engagement and operational efficiency.
• The platform has surpassed 500 million global Monthly Active Users (MAUs) for the first time, increasing by 12%, marking its seventh quarter of consecutive acceleration.

• The Qualcomm Inc. second quarter 2024 earnings focused on recent achievements and future expectations.
• The company reported non-GAAP revenues of $9.4 billion, surpassing its guidance, with chipset business revenues of $8 billion, on the strength of Android smartphones and automotive momentum.
• Underpinned by its technology leadership, Qualcomm expects to continue growing in both the mobile and automotive markets.

• Skyworks Solutions Inc. management shared both encouraging and concerning updates in its recent earnings.
• On the positive side, the company demonstrated solid financial performance in the second fiscal quarter of 2024, including revenue of $1.046 billion, earnings per share of $1.55, and generation of $300 million in operating cash flow.
• The company sees significant opportunities in the edge IoT market with a robust design win pipeline for WiFi 6E and WiFi 7, indicating a possible multiyear upgrade cycle.

• In the latest Q3 2024, the Super Micro Computer management shared about its ongoing growth and mentioned that the strong results reflect the increasing demand for their rack-scale plug and play total ai solutions.
• For the quarter, the firm achieved record-breaking revenues of $3.85 billion, a year-on-year increase of 200% and non-GAAP earnings per share of $6.65, a 308% YoY increase.
• Super Micro anticipates AI growth over many quarters, if not years, based on its financial performance and market trends, which is positive for the firm.

• Zebra Technologies Corporation’s first quarter financial performance for 2024 has been impacted by ongoing softness across many markets and regions.
• Due to this, Zebra has experienced a double-digit decline in sales and profitability.
• However, the company noted a gradual recovery in demand and was encouraged by a surge in large order activity, positively influencing the quarter.

• China’s smartphone market saw growth in 1Q 2024, with increased shipments of OLED panels indicating potential for LG.
• Panasonic’s battery unit received US subsidy but faces weak EV demand, potentially hurting sales.
• Concerns rise as tech giants invest in AI infrastructure, with focus on consolidation, data privacy, and potential misuse of power.

• PayPal Holdings Inc.’s Q1 2024 earnings showcased a solid start for the year with substantial improvements across various sectors of the business, tempered by an understanding of the need for continued retooling and operational changes.
• The company leadership is operating cohesively and the new strategies in place are evidently beginning to make a difference.
• PayPal has maintained steady progress with their three customer groups; large enterprises, small businesses, and consumers, including their subsidiary, Venmo.

• Amazon.com reported robust first quarter financial results in 2024, with revenue of $143.3 billion, a 13% increase year-over-year.
• However, the result excludes the impact of foreign exchange rates, which caused an unfavorable impact that reduced revenue by roughly $700 million.
• The company delivered higher than expected operating income of $15.3 billion, which is a 221% increase from last year, driven primarily by efficiency improvements and better customer experiences.

• ARLO grew the number of paid subscribers faster than expected in the first quarter, but it was the contract extension with Verisure that was the big news of the day
• ARLO and Verisure have had an agreement for five years expiring later this year. The new agreement is through 2029
• The growth in paid subscribers in Q1 puts ARLO on pace to achieve 4 million total paid subscribers by the end of 2024, after hitting 3 million in February 2024

• Cambium Networks (CMBM) reported earnings on May 9 that came in below our expectations (we were the lowest on the Street), mainly due to a delay in FTC approval of 6 GHz spectrum.
• This also hit gross margin, which came in at 22.7%. Company expectations are for a better 2Q24 and 2H24, but with continued challenges in inventory and the move to 6 GHz.
• The company did see a recovery in the enterprise market in 1Q24, but not enough to offset the weakness in 6 GHz. The stock dropped 13% in the aftermarket.

PVA TePla has transitioned from a small seller of industrial systems to a materials technology and metrology solutions company, set to reach c €280m in revenues in FY24. Its increasing exposure to the fast-growing semiconductor industry (more than two-thirds of sales) and high-end materials markets is securing growth, driven by AI, digitisation and e-mobility. The combination of a higher capital intensity in the semiconductor industry and growing end markets bodes well for players like PVA TePla, which are exposed to the fast-growing part of equipment sales like metrology. Despite this, PVA TePla is still largely valued as an industrial company, trading at a significant discount to peers and our DCF.

• Bloomberg reports that Teijin Ltd (3401 JP) wants to sell its 55% stake in Infocom Corp (4348 JP). The rumoured bidders are Sony Corp (6758 JP), Blackstone and KKR. 
• Based on precedents, the offer structure will likely be structured such that Teijin provides an irrevocable NOT to accept but vote in favour of share consolidation at the EGM.
• Bloomberg suggests that Infocom could be valued at JPY200 billion. If this refers to market cap, the tender offer is JPY3,472, a 16.5% premium to the last close.

• AEM (AEM SP) published dismal 1Q24 results and kept its modest guidance for 1H24.
• AEM has announced new customer wins going into FY25 which should improve results materially next year. The sell-side has downgraded estimates aggressively making room for upside surprises next year.
• AEM has seen an implosion in investor confidence because of the inventory issues, and slow orders from its key customer Intel Corp (INTC US). Long-term investors should accumulate here. 

• Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
• Dozens of companies have been able to meet the key Section Transfer requirements on paper for several months but there have been no TOPIX Inclusions announcements in 2024 so far. 
• However, there are some pre-event candidates we believe are worth monitoring as they have previously confirmed their desire to move to the Prime Market.

• Samsung and LG are launching new gaming and AI-focused monitors to take advantage of the recovering market.
• Tata Elxsi is collaborating with Arm on self-driving vehicle solutions, while Saudi fund considers cutting ties with China for US chips and AI.
• Samsung and SK Hynix are competing in the HBM market, driven by demand for high-bandwidth memory solutions. Toyota plans to invest JPY2 trillion in supply chain, EV, and SDV, with Tata making progress in semiconductor manufacturing.

• After the market close on 9 May, Netmarble announced that it plans to sell 2.6% stake in HYBE for 219.9 billion won. 
• The transaction is based on PRS (price return swap) basis. Previous to this deal, Netmarble sold 2.5 million shares (about 6%) of HYBE shares in November 2023. 
• We continue to remain negative on HYBE including on this deal involving Netmarble’s plan to sell additional 2.6% stake in HYBE.

• Shouhui Tech (SHOU HK) is looking to raise around US$200m in its upcoming Hong Kong IPO.
• Shouhui Tech (Shouhui) is an online life and health insurance intermediary service provider in China.
• In this note, we talk about the firm’s historical performance.

• Tower is a pure-play analog semiconductor wafer foundry that manufactures SiGe, MEMS, RF, embedded flash-based memory, analog/mixed-signal, and CMOS image-sensor devices in the US, Israel, and Japan.
• It is serving markets in mobile such as RF High Position analog, as well as in CMOS image sensors, and power management.
• It also added a new fab in Italy in partnership with STMicro that has just started shipping product and whose capacity will continue to ramp over the next two years.

• It’s an exciting 1Q24 result that revenue and GM beat the prior guidance.
• The 2Q24 outlook appears to be better than 1Q24, with revenue expected to increase by 5% to 7% QoQ and GM by 9% to 11%.
• We consider the primary bottleneck is the embargo of EUV machines to China from the Netherlands.

• XPER made further progress on product placement in the first quarter contributing to expecting revenue acceleration heading into the second half of 2024.
• XPER reported first quarter results that included the announcement of a new Japanese TV brand that would begin using TiVo in a line of its TVs
• Over the last couple of quarters XPER has announced several wins for its connected car and media platform segments. These wins have developed into revenue for XPER

• On 8 May, it was mentioned in numerous local media that Naver is under pressure from the Japanese government to sell its stake in LINE.
• One of the reasons behind Japanese government’s efforts to force Naver to sell its stake in LINE is due a major data breach incident in November 2023.
• Based on our current understanding of this situation, the most likely scenario is for Naver to sell about 20-30% stake in A Holdings (the controlling shareholder of LINE) to SoftBank.

• TSMC: Premium Fell and Then Rebounded, Now +15.6%; Can Consider Shorting Again
• ASE: Falls to +12.3%; Wait for Higher Level Before Considering a New Short Again
• ChipMOS: -0.6% Discount; Massing of Short Interest Right Ahead of Earnings

• Q124 revenues of 2.36 billion, $60 million above the guided midpoint, down 5% QoQ and down 3% YoY.
• Current quarter revenue guidance of $2.5 billion representing a ~6% QoQ increase and about the same YoY.
• Share price close to record highs yet CY2024 outlook is tepid while the massive over reliance on China just keeps on going

• ICTK reported excellent book building results. ICTK’s IPO price has been determined at 20,000 won, which is 25% higher than the high end of the IPO price range.
• ICTK is a security company specializing in Internet of Things (IoT) based on physical copy prevention technology called PUF which is a cutting-edge technology during the chip manufacturing process.
• Our base case valuation is implied market cap of 376.8 billion won or target price of 28,694 won, which is 43% higher than the IPO price (20,000 won).

• Local institutions, notably pension funds, are increasingly investing in Samsung SDS, coinciding with the company’s more active investor engagement. This has sparked speculation about Samsung’s strategic motives.
• Timing-Wise, as AI infra demands rise in Samsung Group, conditions for boosting SDS’s performance improve. They monitor Samsung’s moves to drive SDS’s stock upward, considering its reliance on Samsung’s revenue.
• Local pension funds actively adopting overweight positions in Samsung SDS underscore the importance of crafting strategies tailored to overweighting SDS within the broader Samsung Group context.

• Games Global, a promising iGaming content provider and B2B online gaming supplier, set terms for its U.S. IPO. The IPO price is expected to be between $16 and $19/share.
• With the most recent F-1/A, the company may raise ~$114M at the high end of the range at $19/share. Zinnia Limited sells additional 8.5M shares in this offering.   
• Games Global has created an impressive portfolios of iGaming content through a series of successful acquisitions, and I see upside potential vs. IPO price of $17.50 at the midpoint.

• This is a special one-time report on Bentley Systems, an infrastructure engineering software company.
• The company is currently exploring a sale and it presents a mixed but compelling case for potential acquisition.
• Several factors contribute to its attractiveness, balanced by challenges that might influence a buyer’s decision.

• In the first quarter of 2024, SPS Commerce launched a strong start to the year with a 19% increase in revenue, amounting to $149.6 million, along with a corresponding growth in recurring revenue.
• Notably, SPS Commerce capitalized on its position as a leading supplier of supply chain cloud services by intensifying investments in automation, reflecting the trend among supply chain and manufacturing leaders, 74% of whom are planning to invest in supply chain innovation and technology.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• AppFolio, a property management software provider, showcased strong financial results for Q1 2024.
• The company reported a significant 38% year-over-year increase in revenue, which calculated to $187 million for the quarter.
• This substantial growth was primarily due to increases in units and customers, along with upgrades and further adoption of value-added services.

• Lattice Semiconductor Corporation witnessed a dip in its Q1 ’24 results due to softening demand across most of its segments and end customers reducing their inventory levels.
• Sequentially, the Industrial and Automotive segment was down by 25%, while the Communications and Computing segment declined by 7%.
• Even Computing performance was affected by weaker demand in the Communications segment.

• Operating profit: FY3/24 OP was 529 billion yen (+4.9% YoY) vs analyst estimates of 537 billion (1.5% miss)
• FY3/25 Operating guidance is 400 billion yen, significantly below analyst expectations of 480 billions (-16% miss).
• The initial market reaction may be negative, we would use that as an opportunity to buy into the stock for the cyclical upturn in FY3/26.

• STAR 50 Index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
• In my last insight (link), I discussed how the rankings had to be monitored closely before finalizing the index change expectations for the June 2024 index rebal event.
• Now that the reference period is complete, I have discussed my final expectations for the June 2024 review. The official index changes will be announced later this month.

• Taiwan Tech Rallies Along With Rebound In Global Tech; Hon Hai, Asustek Top Gainers; KYEC a Top Loser After Announcing China Market Divestment
• PC Monitor: The Next Version of MSFT CoPilot Will Be the Killer App for a Global AI PC Upgrade Cycle 
• ASMedia GDR Early Look – Momentum Has Been Strong, and Raising Would Grow Its Cash Base Almost 6x 

• Silicon Motion’s lQ24 results confirmed the company’s end-demand strength as implied by previous Samsung and SK Hynix management commentary re: solid state memory.
• Management has increased 2024E guidance, citing rising ASPs and strong demand due to its memory controller products’ usage in edge AI applications such as AI PCs and AI smartphones.
• The street upgraded target prices across the board after the results; however we note the stock remains below its past acquistion offer price by Maxlinear and we see further upside.

• Quint Digital (QUINT IN) announces alterations to its MoA, changing its name and expanding its digital ventures, including joint ventures and acquisitions.
• Quintype Technologies India Limited’s impressive growth and the acquisition of Lee Enterprises (LEE US) highlight Quint Digital’s ambitions and potential.
• Despite debt concerns, Quint Digital’s strategic investments in digital media and technology position it for substantial growth, potentially reshaping the digital publishing landscape.

• 1Q24 revenue and GM are in line, but operating income at 24.3% was 1% below consensus.
• GlobalWafers anticipates revenue in 2024 will likely be similar to 2023, which means 1H24 revenue could account for 45% of the 2024 yearly revenue.
• The planned dividend payout for 2024 is NT$19.0, with NT$8.0 from 1H23 and NT$11 from 2H23. 

• The 2Q24 revenue outlook is NT$24.4-25.5bn, which was below Bloomberg consensuses NTD$26.45bn. 
• The company sees more aggressive stocking for TVs in 2Q24, but smartphone demand is soft in 2Q24.  
• The dividend payout rate has been maintained at 80-85% over the past few years, with no significant changes expected.  

• Novatek reported 1Q24 results yesterday after the Taiwan close; gross margin came in ahead of guidance and revenue was in-line.
• Nevertheless, the company’s forward color regarding end market display applications demand in 2Q24 and 2024 was relatively muted.
• Given the stock is at all-time highs and up about 25% since early February, we see the stock at risk of selling in the near-term. We rate Novatek as Underperform.

• Gaia reported strong 1Q24 results, with revenue of $21.7 million (up 11%), 33,000 net member additions for a total membership count of 839,000 (all-time high), and strong operating cash flow of $5.9 million.
• International revenue growth was particularly strong at 20.4%, compared with respectable US growth of 3.7%.
• Member acquisition costs decreased 10%, partly as a result of a focus on direct-to-paid marketing campaigns, whereby free trial periods are replaced by special incentives to lock in longer-term membership commitments at attractive rates. This also fueled healthy deferred revenue growth of $2.0 million during the quarter.

• Pureprofile Ltd (ASX:PPL) is a data analytics and consumer insights company underpinned by proprietary technology, servicing business decision makers in brands and media companies as well as market researchers.
• Pureprofile reported a 6% increase in Q3 FY24 revenue to $10.9m and a 49% decline in Q3 EBITDA to $0.5m versus the previous corresponding period (pcp).
• Q3 is seasonally the weakest quarter for PPL and EBITDA was affected, in part, by the change in executive remuneration policy to cash-based payments.

• We believe total revenue will grow by 7% YoY in 1Q24 and faster in the remaining three quarters of 2024.
• We believe EPS will grow by 41% to HK$3.80, which is higher than the market consensus.
• The stock has risen by 26% since our last Buy rating, but there is still an upside of 9% till the end of 2024.

• Asmedia Technology (5269 TT) is looking to raise up to US$333m in its upcoming global depository receipts (GDRs) offering.
• ASMedia recently announced its board’s resolution to offer between 4.3-5.3m shares in the form of GDRs, with the proceeds geared towards purchasing raw materials and machinery, R&D and working capital.
• Similar to previous GDR listings, the deal is a long drawn out process with the firm required to jump through a number of board/shareholder/regulatory approval loops.

• Samsung SDI exhibits confidence in future growth and innovation by increasing investments despite weak 1Q24 results.
• UnaBiz boosts Sigfox 0G Technology by reducing device energy usage by up to 18 times, enhancing efficiency.
• Sharp considers establishing a display plant in India, potentially boosting the country’s electronics manufacturing sector.

• With the review period complete, we forecast 3 changes for the SSE STAR50 (STAR50 INDEX) in June. All changes are migrations from/to the STAR 100 Index.
• One way turnover is estimated at 3.4% resulting in a one-way trade of CNY 4.5bn (US$630m). There is a lot to trade from passive trackers, especially on the inclusions.
• The potential adds have outperformed the potential deletions by ~18% over the last month with Hangzhou EZVIZ Network (688475 CH) and APT Medical (688617 CH) moving higher.

• The review period for the June rebalance ended 30 April. We expect the changes to be announced 31 May with the implementation taking place after the close on 14 June.
• We forecast 9 changes for the index, including migrations between the STAR 100 Index and the SSE STAR50 (STAR50 INDEX).
• The outright inclusions have outperformed the outright deletions by 9% over the last month and by 20% over the last 3 months.

• Perficient Inc (PRFT US) agreed to be acquired by EQT, for $76/share in cash, 75% premium, 51% premium to 30-day VWAP, and c. $3 billion EV.
• I understand EQT has opted to present an offer that the Board could not refuse, on both EV/Fwd EBITDA and Fwd P/E basis.
• Spread is 3.6%/6.2% (gross/annualised, assuming settlement by 16 December). Long.

• Atlassian Corporation Plc, leading software and services provider, recently marked their Q3 of Fiscal Year 2024 earnings call, reporting significant growth in their Cloud customer base and paid seats, among other financial milestones.
• However, they also made the announcement of the stepping down of co-CEO, Scott Farquhar, by August 31, 2024.
• The growth in the Cloud customer base was highlighted as a result of the winding down of support for Server operations three and a half years ago, which yielded three times the increase in paid seats in the Cloud.

• The Q3 2023 results released by Juniper Networks, Inc. showed a better-than-expected performance with significant profitability.
• Even in a challenging macro environment, the company was able to achieve total revenue of $1.398 billion and non-GAAP earnings per share of $0.60.
• The company anticipates that it will continue to perform well due to the increasing demands from customers for AIOps and software automation tools, which aim to improve network operations and reduce overhead costs.

• The Q1 2022 earnings reveal insights into the performance of Check Point Software Technologies.
• The company made some forward-looking statements related to its fiscal year 2022.
• Golan reported that its earnings per share (EPS) for the first quarter grew by 13% year-on-year to reach $2.04, with a net income of $235 million marking an 8% increase year over year.

• Western Digital performed exceptionally well in the third quarter of the fiscal year 2024, with revenue of $3.5 billion, a non-GAAP gross margin of 29.3%, and non-GAAP earnings per share of $0.63, surpassing market expectations.
• The company’s performance was bolstered by a diversified portfolio spanning multiple end markets, coupled with structural changes to its businesses enhancing its earning potential and ability to minimize business cycles.
• It was also able to leverage a constrained supply environment for higher earnings per share.

• When this deal was announced, it was light. But the timing, JSR influence, large-ish float, ensured FUD would make this trade wide. It traded wider.
• 15wks ago, Shinko had much-underperformed peer Ibiden, meaning downside gap risk from undisturbed was negative as spreads were wide. I reco’d a buy. Then 8wks ago, recommended taking profits.
• Shinko had outperformed Ibiden, gross spreads had narrowed 5+% on JSR approval. Spreads are now 3.6% wider than at narrowest, but gap risk has widened as Shinko outperforms, Ibiden.

• A-Shares only two days of the week and were up small Monday and Tuesday. H-shares took a breather Wednesday after trailing A-shares, then rallied hard on Thursday and Friday. 
• Net SOUTHBOUND buying was +HK6.0bn. Net buys every day and now 22 days straight, but buying still appears foreign-led price-taking action. 
• The only big news this week in China/HK was probably the Politburo’s new stance of trying to do more for the mainland property market, concentrating on unsold homes. 

• I have received several questions from readers on Ascendent’s binding proposal for Hollysys Automation Technologies (HOLI US) in the context of the current gross spread of 12.1%. 
• The questions primarily concerned the Capital Forum article, NSR approvals, timelines, auditor resignation and deal break risks. 
• Most of the questions concerned regulatory approval risk. The delay in closing is mainly procedural (government red tape) rather than an indication that regulators will block the deal. 

• Q124 revenues of $3.79 billion, pretty much flat sequentially both QoQ and YoY, and also marginally better than guidance.
• Looking ahead, the company forecasted Q224 revenues $3.8 billion, i.e. flat QoQ. Still no full year 2024 outlook
• Technology transitions such as GAA, Backside Power, molybdenum replacing tungsten & the rise of generative AI will all be growth drivers in 2025 & beyond 

• In 1Q24, it was reported that the revenue growth was -3.35% QoQ, slightly exceeding our expectation of a 5% QoQ decline.
• For 2Q24, revenue is expected to grow, but the increase is projected to be less than 5% QoQ.  
• NVIDIA revenue in KYEC is forecasted to reach 15% by the end of 2024F, up from about 2% in 2023, driven by the increasing demand for AI.

• TBO Tek (0395045D IN) is looking to raise approximately US$200m in its upcoming India IPO.
• TBO Tek is a global travel distribution platform. Its two-sided technology platform serves companies involved in the travel industry such as hotels, airlines, travel agencies and travel management companies.
• In this note, we provide a summary of its RHP updates and share our quick thoughts on valuation.

• Following Exxon Mobil (XOM US)‘s acquisition of Pioneer Natural Resources (PXD), Vistra (VST US) will be added to the S&P 500 INDEX (SPX INDEX) at the close on 7 May.
• Marathon Digital Holdings (MARA US) is an add to the S&P SmallCap 600 Index and the stock could move higher till implementation.
• Marathon Digital Holdings (MARA US) stock has underperformed its close peers this year and the ratio of Marathon Digital Holdings stock price to Bitcoin (XBTUSD CURNCY) is near the lows.

• Alphabet Inc. reported a strong first quarter in 2024, fueled by robust performance from its search engine, YouTube, and cloud businesses.
• The company’s annual revenue grew from $100 billion to over $300 billion in six years.
• It predicts that YouTube and Cloud will reach a combined annual run rate of more than $100 billion by the end of 2024.

• Intel Corporation has exhibited sturdy Q1 outcomes, with revenue delivery being on par and the Earnings Per Share (EPS) exceeding the set guidance.
• This demonstrates the company’s growth in revenue generation and effective cost management strategy.
• However, the trends for the first half of the year were moderately weaker than originally forecasted, triggered by some near-term supply constraints.

• KLA Corporation reported its Q1 2024 earnings call, where its performance indicates a blend of promising and challenging factors.
• The company’s revenues for the quarter noted a solid $2.36 billion, surpassing its guidance range midpoint.
• Further, its exit from the flat panel business contributed to elevated EPS results on both non-GAAP and GAAP fronts, surpassing the adjusted midpoint guidance issued on March 18.

• Microsoft’s Fiscal Year 2024 Third Quarter Earnings revealed that Microsoft continues to leverage and further deploy artificial intelligence (AI) initiatives and solutions through its cloud ecosystem.
• It underscores Microsoft’s strategic direction in intensifying its capabilities in artificial intelligence and cloud infrastructures based on market needs, with Satya Nadella, Chairman and Chief Executive Officer of Microsoft, pointing out the continuing success of Microsoft Cloud surpassing $35 billion in revenue, a growth of 23%.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• T-Mobile US has demonstrated impressive performance in its Q1 2024 earnings, showing continuous growth and advancing its guidance for the year.
• A key highlight is that the company’s postpaid phone net additions are consistent with the same period last year, even as the industry’s net adds have reduced by a double-digit percentage.
• This shows that T-Mobile’s best network value proposition is popular among customers, as evidenced by the growth in postpaid phone gross adds over the past four quarters and record-low Q1 postpaid phone churn.

• We continue to view the latest pullback as healthy/normal within the ongoing bull market, and it is quite possible that the lows have been established on MSCI ACWI (ACWI-US).
• Upgrading EM to Market Weight; MSCI Emerging Markets, China (shanghai Composite) and Hong Kong (Hang Seng) Still Bottoming; we discussed buying in our February 23, 2024 Int’l Compass
• Commodities all appear to be rolling over near resistance, which is what we discussed to watch for in our April 18, 2024 Int’l Compass. This has bullish implications for ACWI

• Darktrace shares rallied ~64% in 2024 after the company raised FY24 revenue, adj. EBITDA guidance and Thoma Bravo offered 620 pence/share in cash to take Darktrace private.
• The acquisition is expected to complete during 3Q or 4Q of 2024. The cybersecurity unicorn has delivered revenue growth at scale coupled with solid profitability and cash flow generation.
• I maintained a bullish view on the undervalued stock and initiated coverage of Darktrace on January 11, 2023, with a 497p price target as steep discount was unjustified.

• Teradyne, Inc delivered first quarter 2024 financial results that exceeded its revenue, gross margin and earnings guidance ranges, led by stronger than projected performance in Memory and System on a Chip (SOC) driven primarily by AI applications.
• Teradyne capitalized on the impact of AI in networking as well as in Edge AI applications like Advanced Driver Assistance Systems (ADAS), with AI applications driving over 40% of memory shipments in Q1.
• Nonetheless, the mobile sector was weaker than expected for the same period, but the company’s Robotics business met its plan for a third consecutive quarter.

• Xiao-I (NASDAQ: AIXI) is leveraging its experience as a chatbot provider to establish itself as a provider of AI models, principally in China.
• The company is focused on commercializing products in the consumer, marketing, and banking sectors in 2024 and exploring international expansion opportunities.
• The company is competing with some of the most successful companies in China for mindshare in AI markets.

• Tyler Technologies’ Q1 2024 results started the year on a positive note, surpassing key metrics expectations including revenues, earnings, operating margin, and cash flow.
• Recurring revenues grew nearly 9% and comprised 84% of total revenues.
• The company also saw robust public sector demand supported by healthy budgets.

• EB is continuing with its efforts to become a marketplace for events after reporting more than 24 million tickets were sold in the first quarter.
• EB has been trying to win back paid creators after many left the platform last year due to higher costs for events on EB’s marketplace
• While revenue was in line with consensus estimates, EB reported its third consecutive quarter with gross margin above 70 percent

• Cognyte Software provides mission-critical software for intelligence and law enforcement globally
• Trades at around 1.4x NTM Sales, down over 75% from spin-off price but has growth potential
• Operates in a grey zone at times, refusing to sell to certain countries but serving democratic governments with analytic tools for investigative and threat intelligence.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

1Spatial’s FY24 results reflected robust momentum for the enterprise business and continued improvement in the revenue mix, with investment in growth suppressing margin and cash generation. This investment phase will continue in FY25 to lay the foundation for transformational growth from 1Streetworks and in the US in the coming years. Our scenario analysis indicates the upside from successful execution is significant, with further wins for 1Streetworks and in the US being the key catalysts for more rapid, operationally geared growth to be priced in.

• Wrkr Ltd (ASX:WRK) offers compliance solutions for Australian superannuation contributions and payroll including member onboarding, super payments, messaging and employee validation.
• WRK has reported a record quarterly cash receipt in Q3 FY24, +76% on the previous corresponding period (pcp) and +46% on Q2 FY24, boosted by a first-time contribution from Hong Kong, Link milestone payments relating to the Superannuation Clearing House (SCH) and the timing of client payments (from Q2 into Q3).
• Operating cash flow as a result was +$465k for the quarter, also the highest on record.

• Weibo (9898 HK) is an inexpensive profitable large social media company in China
• Weibo generates a large cash flow which it uses to pay a 9% dividend yield
• Weibo has synergies with Alibaba’s core e-commerce business and fits well within its other media company ecosystem

• Qualcomm’s latest earnings came in at the high end of guidance with automotive revenue surging and mobile steady. We analyze QCOM results’ key implications for Mediatek.
• Qualcomm’s 2024E global handset market volume guidance remained unchanged vs. last quarter; however we believe Mediatek may have taken some market share in CY1Q24.
• Qualcomm confirmed Mediatek’s view regarding high-end phone demand strength right now, with AI capabilities the likely driver. Combining QCOM + Mediatek color suggests an AI-driven handset upgrade cycle ahead.

• Geopolitical shifts are impacting Taiwanese businesses in China, leading to strategic adjustments and shifts in orders to specialty IC foundries.
• CHPT anticipates a surge in probe card orders in the second half of 2024, while SK Hynix expects high demand for HBM in 2025 with production nearly sold out.
• Meredot’s technology allows for micromobility vehicles and robots to charge wirelessly simultaneously, while Taiwan’s Compal will have its first foreign CEO in the electronics industry.

• On 2 May, Jusung Engineering (036930 KS) announced an equity spin-off as well as a physical division split.
• We are negative on this combination of equity spin-off and physical division split of Jusung Engineering. 
• After the two units are listed on 6 December 2024, it is likely that the semiconductor unit (Jusung Engineering Co) will rise while Jusung Holdings Co is likely to decline.

• Lam Research Corporation delivered a strong start to 2024, with the Q1 earnings surpassing the midpoint of their guidance.
• Although the business environment prospers as predicted, the company acknowledges ongoing risks and uncertainties reflected in SEC public filings.
• The quarter witnessed stability in Lam’s overcall 2024 revenue profile, with spending mainly driven by lithography shipments into China and enduring investment in domestic China.

• Meta Platforms Inc.’s Q1 shows strong headway with an increase in both product momentum and business performance reaching an estimated 3.2 billion active users per day, showcasing healthy growth particularly in the US market.
• The performance of the associated messaging app, WhatsApp, has been highlighted, reporting a steady increase in daily active users and message sends in the US. Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• Fiserv has started the year on a high note.
• This promising start was partly due to strong financial performances characterised by a 19% rise in adjusted earnings per share and a 7% increase in adjusted revenue growth.
• Remarkably, this positive performance enabled the company to lift their adjusted earnings per share outlook to a range of $8.60 – $8.75 from the former range of $8.55 – $8.70, signalling anticipated growth of 14% to 16%.

• International Business Machines Corporation’s Q1 2024 earnings demonstrated the company’s solid performance with good financial results across revenue and cash flow.
• These results indicate the quality of the company’s portfolio and its hybrid cloud and AI strategy.
• The software division performed well, with infrastructure showing strength.

• ServiceNow had a strong first quarter in 2024, outperforming guidance on all top-line and profitability metrics.
• The company’s subscription revenue grew by 24.5% year-over-year on a constant currency basis.
• Current remaining performance obligations (CRPO) rose by 21% year over-year in constant currency, which was above the company’s guidance.

• Spotify’s first-quarter 2024 earnings were marked by strong growth and a shift towards monetization and efficiency in operations.
• The company demonstrated solid performance with robust revenue growth, ongoing expansion in gross margin, and the most significant operating income to date.
• Spotify’s continued focus on increasing revenue while improving the bottom line resulted in an encouraging quarterly performance that exceeded expectations.