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- 🏆 ARM Has Launched
🏆 ARM Has Launched
Hi! In today's newsletter: 1) ARM IPO, 2) The Google Monopoly Trial, 3) Adobe's Earnings, and more!
Carbon Finance
September 15, 2023
Happy Friday!
Hope you all had a great week and are looking forward to the weekend.
In today’s newsletter:
🦾 The Biggest IPO of the Year
👨⚖️ The Google Antitrust Trial
🎨 Adobe’s Earnings Visualized
Let’s dive right in!
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🦾 The Biggest IPO of the Year
ARM, the British chip designer owned by SoftBank, recently launched its shares on the Nasdaq, making it the biggest IPO of the year. The company's strong debut gave the chip designer a valuation of $67.9B and signals a potential resurgence in the IPO market that has been sluggish for nearly two years. This positive performance could pave the way for other tech companies to go public.
ARM's designs are pivotal in the tech industry, especially with the rise of artificial intelligence. However, the company’s performance over the next few quarters is definitely one to watch, given that 2/3rds of IPOs underperform the market three years after going public.
👨⚖️ The Google Antitrust Trial
On Tuesday, the U.S. Justice Department initiated a significant antitrust trial against Google, accusing the tech giant of using large payments to maintain its dominance in internet search.
The Justice Department argues that Google's agreements with companies like Apple and Samsung to make its search engine the default option have illegally sustained its monopoly. Google believes that it competes fairly for these contracts and that users can easily change default settings.
One thing that’s definitely interesting to note is that several of Google’s defense team previously worked on the government’s side during the landmark Microsoft antitrust case decades ago. The trial is scheduled to go through mid-November.
🎨 Adobe’s Earnings
Adobe reported slightly better earnings than expected, with Q3 revenue of $4.9B, a 10% increase from the previous year. This surpassed both the company's guidance and the Street's forecast. The company's Digital Media segment saw an 11% revenue increase, while the Digital Experience segment grew by 10%.
This week, Adobe launched a new AI-powered Creative Cloud release, integrating generative AI capabilities into apps like Photoshop and Illustrator. This release also introduces Adobe Express Premium and the Adobe Firefly web application, enhancing user creativity with AI-driven features.
Adobe also announced a pricing update for Creative Cloud subscriptions, reflecting the added value of the new AI features, effective from November 1, 2023.
🔥 Inflation Rises. In August, inflation saw its largest monthly rise this year, with the CPI increasing by 0.6%, driven by higher energy prices and housing costs. Core inflation, which excludes food and energy, rose by 0.3%. [CNBC]
🍎 New Apple Products. Apple $AAPL introduced the iPhone 15 series, new Apple Watches with innovative features, and emphasized sustainability, with the iPhone 15 maintaining most of its pricing except for the Max variant. [YF]
🚙 More F-150s. Ford $F plans to double its hybrid F-150 production despite slower electric vehicle sales, aiming for the hybrid model to constitute about 20% of U.S. sales in 2024. [CNBC]
👟 Birkenstock IPO. Birkenstock has filed for an IPO on the NYSE, potentially valuing the company at over $8B, following its significant growth in recent years. [F]
👨💼 BP CEO Resigns. BP's CEO, Bernard Looney, has resigned over incomplete disclosures about past relationships with colleagues, with CFO Murray Auchincloss stepping in temporarily. [ABC]
🚧 Citi Restructure. Citigroup $C is undergoing a major reorganization, removing a management layer and expecting job cuts, to simplify operations and give CEO Jane Fraser more direct oversight. [R]
Notable Companies Reporting Earnings Next Week:
Tuesday:
AutoZone ($AZO), CoPart ($CPRT)
Wednesday:
FedEx ($FDX), General Mills ($GIS)
Thursday:
Darden ($DRI), FactSet ($FDS)
All of the companies that are reporting earnings this week can be viewed here.
Major Trades Published 9/11 - 9/14
Buys
Asana ($ASAN)
Insider: Dustin Moskovitz
# of Shares Purchased: 80,000
$ Amount: $1,631,200
SEC Forms: [1]
Sells
Nvidia ($NVDA)
Airbnb ($ABNB)
Insider: Brian Chesky (CEO)
# of Shares Sold: 150,000
$ Amount: $22,509,300
SEC Forms: [1]
Automatic Data Processing ($ADP)
Insider: Carlos Rodriguez (Executive Chair)
# of Shares Sold: 52,254
$ Amount: $12,955,404
SEC Forms: [1]
Doordash ($DASH)
Insider: Tony Xu (CEO)
# of Shares Sold: 132,300
$ Amount: $11,025,357
SEC Forms: [1]
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