Alpha Coverage #96
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This Week’s Alpha Coverage: YouTube Playlist.
Editor’s Pick:
[News] Palantir Technologies Non-GAAP EPS of $0.14 beats by $0.03, revenue of $827.52M beats by $46.28M
U.S. commercial revenue grew 54% year-over-year and government revenue up 45% year-over-year, demonstrating strong adoption across sectors.
Revenue growth accelerated from 30% in Q3 to 36% in Q4. U.S. commercial revenue growth also increased from 54% in Q3 to 64% in Q4.
The Rule of 40 score improved significantly, rising from 68 in Q3 to 81 in Q4, reflecting enhanced profitability and efficiency.
Closed 129 deals of at least $1 million, 58 deals of at least $5 million, and 32 deals of at least $10 million
Closed a record-setting $803 million of U.S. commercial total contract value (“TCV”), up 134% year-over-year and 170% quarter-over-quarter
U.S. commercial remaining deal value (“RDV”) of $1.79 billion, up 99% year-over-year and 47% quarter-over-quarter
Customer count grew 43% year-over-year and 13% quarter-over-quarter
Cash from operations of $460 million, representing a 56% margin
Adjusted free cash flow of $517 million, representing a 63% margin.
Outlook
For Q1 2025, we expect:
Revenue of between $858 - $862 million vs. consensus of $799.36M.
Adjusted income from operations of between $354 - $358 million.
For full year 2025, we expect:
Revenue of between $3.741 - $3.757 billion vs. consensus of $3.53B.
Adjusted income from operations of between $1.551 - $1.567 billion.
Link to Seeking Alpha News Article - Feb. 03, 2025
Link to Seeking Alpha News Article - Feb. 03, 2025
$BTC #Bitcoin
[News] Trump orders creation of U.S. sovereign wealth fund
President Donald Trump has signed an executive order on Monday to establish a U.S. sovereign wealth fund, fulfilling a campaign promise aimed at leveraging national wealth.
Secretary Scott Bessent and Commerce Secretary Howard Lutnick have been tasked with setting the foundation for the fund's creation, which may require a green light from Congress.
The new fund would be developed in the next 12 months, Bessent told reporters at the Oval Office, which also had Trump and Lutnick present.
Link to Seeking Alpha News Article - Feb. 03, 2025
[News] India’s Modi invited to meet with Trump next week, White House official says
U.S. President Donald Trump has invited Indian Prime Minister Narendra Modi to visit the White House next week, a White House official said, hours after a U.S. military plane departed to return deported migrants to the country.
Trump spoke with Modi on Jan. 27, when he discussed immigration and stressed the importance of India buying more American-made security equipment and fair bilateral trading ties.
India, a strategic partner of the United States in its efforts to counter China, is keen to enhance trade relations with the U.S. and make it easier for its citizens to get skilled worker visas.
It is also keen to avoid tariffs that Trump has threatened in the past, citing India’s high tariffs on U.S. products.
The United States is India’s largest trading partner and two-way trade between the two countries surpassed $118 billion in 2023/24, with India posting a trade surplus of $32 billion.
Link to CNBC News Article - Feb. 03, 2025
[News] Centrus Energy to supply uranium to Korea Hydro in 10-year deal
Centrus Energy (NYSE:LEU) +1.5% in early trading Wednesday after it signed a 10-year contract to supply enriched uranium to Korea Hydro & Nuclear Power, the South Korean state-run company said, in a strategic move to diversify the country's nuclear fuel sources away from dependence on Russian supplies.
The deal marks "the first substantial achievement of nuclear cooperation" between the U.S. and South Korea, after the two nations signed a memorandum of understanding to expand alliances in the nuclear power sector, Korea Hydro said.
The U.S., which had exited the nuclear fuel business in the 1990s, has reinitiated its production of low-enriched uranium, with Centrus Energy (NYSE:LEU) the only company approved by the U.S. Nuclear Regulatory Commission to produce enriched uranium since 2021.
Link to Seeking Alpha News Article - Feb. 05, 2025
[News] Amazon advertising business hits $69 billion annual run rate
CEO Andy Jassy outlined the company's focus on custom AI silicon, including Trainium 2 and upcoming Trainium 3 and 4 chips, to enhance the cost efficiency of AI workloads.
AWS achieved $28.8 billion in Q4 revenue, reflecting robust generative AI demand and 19% year-over-year growth.
CFO Brian Olsavsky disclosed that advertising revenue reached $17.3 billion in Q4, growing 18% year-over-year, marking a $69 billion annual run rate.
Link to Seeking Alpha News Article - Feb. 06, 2025
Link to Seeking Alpha News Article - Feb. 06, 2025
NVDA 0.00%↑ #DeepSeek
[News] US Lawmakers to introduce bill to ban DeepSeek on government devices
Two U.S. House lawmakers plan to introduce legislation Thursday to ban startup DeepSeek’s (DEEPSEEK) chatbot application from government-issued devices over security concerns the app could turn over user data to China’s government.
Josh Gottheimer said in a statement that it has been determined that DeepSeek’s code is “directly linked” to the Chinese Communist Party, and user data can be shared with state-owned China Mobile.
He added that China Mobile, which has ties to the country’s military, has been banned in the U.S. by the Federal Communications Commission.
Link to Seeking Alpha News Article - Feb. 06, 2025
[News] Trump administration orders halt to EV charger installation program
The Trump administration has ordered states to put a stop to build a $5B program to install EV fast chargers on the country’s highways, according to a memo by the National Transportation Highway Safety Administration.
The memo dated Thursday tells state transportation directors that plans approved by the Biden administration are suspended until the U.S. Department of Transportation releases new guidelines this spring.
The Washington Post quoted analytics firm Paren as saying that only 55 charging stations have been installed so far.
States will still receive “reimbursement of existing obligations,” the memo said.
Link to Seeking Alpha News Article - Feb. 07, 2025
BWXT 0.00%↑ OKLO 0.00%↑ SMR 0.00%↑
[Opinion] BWX Technologies: A Competitive Advantage In New Nuclear
McKinsey suggests that electricity needs from data centers will grow from 25 gigawatts in 2024 to over 80 gigawatts by 2030. The total share of U.S. electricity use will increase from 4% to 11%.
Small Modular Reactors promise to be much cheaper and their advanced designs much safer than the large scale nuclear plants we are used to. Many use HALEU fuel, a highly enriched uranium that does not currently have a robust supply chain in the U.S. or any other country. I invested in Centrus Energy (LEU) due to the supply problems with HALEU.
NuScale will likely be successful in its attempt to have its larger SMR safety certified. NuScale will then be able to sell its products, they do have several MOUs from potential customers, but the sales cycle will not be quick, any purchaser will have to get permits to build a nuclear plant and become a licensed nuclear power plant operator. Build time is likely two years, NuScale could have its first plant operational by 2030 if everything goes well, but 2035 is more likely.
Oklo is a long way behind (see earlier Oklo article). Unlike NuScale, their first application was rejected for safety reasons, and they have yet to submit their revised plans. They have guided to H1 2025 as the submission date, giving a likely permit date of 2029 and the start of a commercial operation, probably in the late 2030s. That is five years behind NuScale.
The problem for both Nuscale and Oklo is that the legacy nuclear manufacturers have SMR technology, a complete supply chain including fuel and a history of nuclear operations. When it comes to new nuclear energy, legacy manufacturers are good to go.
BWXT is involved with three SMR projects with the world-leading GE Hitachi, Westinghouse and Rolls-Royce (OTCPK:RYCEY). BWXT is also in the advanced stages of development with its BANR microreactor.
The BWRX-300 is an SMR that appears to be substantially ahead of the field regarding deployment and market acceptance. The SMR developed by GE Hitachi leverages the same design and license of the already certified ESBWR. BWXT has been involved with the BWRX-300 since 2021 and became part of the authorized supply chain for the first SMRs deployed in North America when 4 BWRX-300 go online in Ontario.
The AP300 is an SMR built by Westinghouse, probably the world's most experienced nuclear reactor company. The AP300 is based on the licensed and operating AP1000 that has demonstrated its reliability and safety worldwide.
In December 2024, BWXT was awarded the contract to build key components of the AP300 and AP1000 reactors, including the reactor vessel, heat exchangers and pressure vessels. The AP1000 is already being built in numbers, providing BWXT revenue almost immediately, and it is likely that the AP300 will gain approval next year, which could lead to substantial orders.
NANO Nuclear is the third new nuclear company I am considering; they are focused on delivering Microreactors. Nuclear reactors that fit inside a container and can be delivered by truck to site.
This seemed a new and potentially disruptive concept, but it is not. BWXT was awarded a contract to develop a microreactor in 2020, and last year, the DoD broke ground on the site where the BWXT microreactor BANR will be sited. The site is forecast to go operational in 2026, which will likely be before NNE submit their first application for design approval.
NANO Nuclear has also floated the idea of a space division for their reactors, once again, they are a long way behind as the BWXT Rolls-Royce joint venture is already building such a device.
With concerns about the potential growth of nuclear power and what appears to be an elevated price point, I have decided not to invest in BWX Technologies. It seems like an excellent company with a proven track record, good growth prospects, and a solid financial footing.
BWXT will remain on my buy list due to its competitive advantage in this industry, if the stock pulls back, it might be a good investment and if the nuclear industry does grow as forecast, it will be an excellent investment. I will keep watching and review the situation in future articles.
Link to Seeking Alpha Opinion Piece - Feb. 05, 2025
News, Facts, Analyst & Market Commentary - Short Reads:
EWW 0.00%↑ EWC 0.00%↑ FXI 0.00%↑
Trump imposes 25% on Canadian, Mexican imports, 10% on Chinese goods
President Donald Trump on Saturday imposed 25% tariffs on most imports from Canada and Mexico and a 10% tariffs on Chinese goods, effective Tuesday.
Energy products from Canada will be assessed a 10% tariff.
In response, the president of Mexico ordered tariffs on U.S. goods, while Canada’s prime minister said the country will impose retaliatory tariffs of 25% on as much as $155 billion on imports from the United States.
China’s government said it will take countermeasures against the United States, including filing a lawsuit with the World Trade Organization to challenge the tariffs.
Ontario will also remove the U.S.-made goods from its government-run liquor stores on Tuesday in response to the tariffs, Ontario Premier Doug Ford said Sunday.
Link to Seeking Alpha News Article - Feb. 01, 2025
Link to Seeking Alpha News Article - Feb. 01, 2025
Link to Seeking Alpha News Article - Feb. 01, 2025
[Newsletter Exclusive] Trump says EU tariffs on the way, UK can be worked out - report
Trump indicated that tariffs on the European Union would "definitely happen."
"They don't take our cars, they don't take our farm products, they take almost nothing, and we take everything from them. Millions of cars, tremendous amounts of food and farm products," Trump told the BBC.
"The UK is out of line. But I'm sure that one, I think that one, can be worked out," Trump said, adding that he has been "getting along very well" with UK Prime Minister Sir Keir Starmer.
Link to Seeking Alpha News Article - Feb. 03, 2025
U.S. to delay tariffs on Mexico after Mexico agrees to deploy 10,000 border troops
The Trump administration will delay imposing tariffs on Mexican goods imported into the U.S. after Mexico on Monday said it will rush thousands of troops to prevent drug trafficking at the border shared by the countries.
Mexico will immediately send 10,000 members of its National Guard to reinforce the border to prevent drug trafficking, particularly fentanyl, to the U.S., Sheinbaum said, outlining the “good conversation” she had with Trump. Meanwhile, the U.S. will work on preventing the trafficking of high-powered weapons to Mexico, she said.
Link to Seeking Alpha News Article - Feb. 03, 2025
U.S. will delay Canada tariffs as countries work on beefing up border security
Canadian Prime Minister Justin Trudeau said Monday the U.S. will pause its plan to impose tariffs on Canada, outlining an agreement to bolster border supervision.
“The proposed tariffs will be put on hold for at least 30 days while we work together on this,” Trudeau said in a statement after his call with U.S. President Donald Trump.
Link to Seeking Alpha News Article - Feb. 03, 2025
[Newsletter Exclusive] U.S. ISM Manufacturing PMI signals expansion in January
ISM Manufacturing PMI for the U.S. expanded in January, the first month of growth after 26 straight months of contraction, the Institute for Supply Management said Monday.
The indexes for employment, prices, production, and supplier deliveries all improved in the first month of the year, while the index for inventories declined. New orders expanded for the third straight month after seven straight months of contraction.
January's reading of 50.9.topped the 49.5 consensus and 49.2 in December.
Link to Seeking Alpha News Article - Feb. 03, 2025
NVDA 0.00%↑ #DeepSeek
Taiwan bans government agencies from using Chinese AI DeepSeek - report
On Monday, Taiwan banned its government agencies from using Chinese AI model DeepSeek, noting it was a security risk, Reuters reported.
Taiwan Premier Cho Jung-tai said during a cabinet meeting that DeepSeek was banned from use in all government agencies "to ensure the country's information security", according to a statement from his office, the report noted.
There were also concerns related to censorship on the Chinese startup's AI service and the risk of data landing in China, according to the report.
Agencies in Italy, South Korea, France, Ireland and other nations have also been looking into use of personal data by DeepSeek, the report added.
Last week, Italy's data protection authority Garante requested information from DeepSeek on the use and storage of personal data. On Thursday, the regulator then ordered the companies that provide the DeepSeek chatbot service to block the AI service in the country after they provided insufficient information, according to a report from Reuters.
Link to Seeking Alpha News Article - Feb. 03, 2025
Li-Cycle expands in the EU with an exclusive recycling partnership for its Germany Spoke
Li-Cycle Holdings (NYSE:LICY) has partnered with an additional automotive original equipment manufacturer to recycle lithium-ion battery materials at its Germany Spoke to broaden its commercial footprint in the EU.
This exclusive agreement channels feedstock from a facility producing electric vehicles within the EU to Li-Cycle’s Germany Spoke.
Link to Seeking Alpha News Article - Feb. 03, 2025
[Newsletter Exclusive] AMD projects strong AI and data center growth in 2025 with MI350 launch mid-year
AMD reported Q4 revenue of $7.7 billion, a 24% year-over-year increase, driven by significant growth in data center and client segments. Full-year 2024 revenue reached $25.8 billion, up 14%.
Data center segment revenue grew 69% year-over-year to $3.9 billion in Q4, supported by strong demand for EPYC CPUs and MI300X GPUs. The client segment delivered $2.3 billion in revenue, up 58%, driven by Ryzen desktop processors and AI-enabled notebooks.
The company generated $1.3 billion in cash from operations during Q4, with free cash flow reaching $1.1 billion.
Lisa Su announced MI350 series production will be pulled forward to mid-2025 due to strong customer demand, calling it the "biggest generational leap in AI performance" with a 35x increase in compute performance compared to the prior generation.
AMD expects Q1 2025 revenue of approximately $7.1 billion, slightly down sequentially but up 30% year-over-year.
Vivek Arya, Bank of America Securities: Asked about long-term growth rates for the data center GPU business. Su reiterated confidence in achieving "tens of billions" in revenue over the next few years, supported by a robust product roadmap.
Stacy Rasgon, Bernstein Research: Probed sequential trends in data center GPU revenue. Su clarified that revenue would remain flattish in the first half of 2025, with stronger growth expected in the second half driven by MI350.
Link to Seeking Alpha News Article - Feb. 04, 2025
Link to Seeking Alpha News Article - Feb. 04, 2025
[Newsletter Exclusive] Chipotle targets 315-345 new openings in 2025 with focus on Chipotle lanes
CEO Scott Boatwright highlighted Chipotle's strong performance in 2024, with sales growing 15% to $11.3 billion, driven by a 7.4% comp including over 5% transaction growth. Adjusted diluted EPS grew 24%, and 304 new restaurants were opened, with 257 featuring Chipotle lanes.
Fourth-quarter sales grew over 13% to $2.8 billion, with comp sales increasing 5.4% due to 4% transaction growth.
Digital sales represented 34% of total sales.
CFO Adam Rymer noted that restaurant-level margins declined 60 basis points year-over-year to 24.8%, impacted by higher food costs and generous portion investments.
Chipotle anticipates low- to mid-single-digit annual comp growth in 2025, supported by operational improvements and a strong marketing plan.
The company expects to open 315-345 new restaurants in 2025, with at least 80% including Chipotle lanes. International growth will accelerate, especially in Canada and the Middle East, with ongoing efforts to improve the economic model in Europe.
Danilo Gargiulo, Bernstein: Asked about international growth potential. Boatwright highlighted significant progress in Europe under new leadership and plans for aggressive expansion in the Middle East with Alshaya Group.
Sara Senatore, Bank of America: Asked about food costs and tariffs. CFO Rymer explained that lower-than-expected avocado inflation helped improve Q4 margins and noted that tariff impacts would be managed through supply chain efficiencies.
Link to Seeking Alpha News Article - Feb. 04, 2025
China hits back with tariffs on U.S. coal and LNG, unveils Google probe
U.S. President Donald Trump approved 10% tariffs on Chinese goods on February 1.
China retaliated saying that it would implement a 15% tariff on coal and liquefied natural gas products, as well as a 10% tariff on crude oil, agricultural machinery, and large-displacement cars.
China imposed tariff countermoves will take effect on February 10.
China's reaction was in stark contrast to Canada and Mexico, with the two North American nations showing a willingness to work with Trump.
China’s State Administration for Market Regulation said on Tuesday it is investigating Google (GOOG) on suspicion of violating antitrust laws.
The Chinese government said that U.S. gene sequencing company Illumina (ILMN) and the owner Calvin Klein and Tommy Hilfiger brands— PVH Corp (PVH) would be added to the “unreliable entity list,” restricting their ability to operate in China, according to an NBC News report.
The 10% tariff that President Donald Trump ordered on China was set to go into effect Tuesday.
Trump said he is in ‘no rush’ to talk to the Chinese leader.
Link to Seeking Alpha News Article - Feb. 04, 2025
Link to Seeking Alpha News Article - Feb. 04, 2025
Link to Politico News Article - Feb. 04, 2025
Trump wants Ukraine's rare earth minerals in return for U.S. support
President Donald Trump wants an agreement with Ukraine to access its rare earth minerals in return for the U.S. aiding the country's defense against Russia, saying he wants "equalization" from Kyiv for Washington's "close to $300B" in support.
Rare earths refer to 17 elements used to make key components in cellphones, electric vehicles, wind turbines, and advanced weapons, among others. China currently dominates rare earth production and sales.
Trump indicated that the Ukraine government is willing to make a deal. "We're putting in hundreds of billions of dollars… I want security of the rare earth, and they're willing to do it."
Ukrainian President Volodymyr Zelenskyy in October unveiled his "victory plan" to strengthen Kyiv's defense against Russia, in which he offered western allies access to "natural resources and critical metals worth trillions of dollars," including uranium, titanium, lithium, graphite, and other resources.
Link to Seeking Alpha News Article - Feb. 04, 2025
[Newsletter Exclusive] Enphase Energy targets Q1 2025 revenue of $340M-$380M with expanded domestic content products
CEO Badri Kothandaraman highlighted Q4 2024 revenue of $382.7 million, driven by shipments of approximately 2 million microinverters and 152 megawatt-hours of batteries. Free cash flow for the quarter reached $159 million.
CFO Mandy Yang reported non-GAAP diluted EPS of $0.94 for Q4, compared to $0.65 in Q3. Free cash flow was $159.2 million, and the company repurchased shares worth $199.7 million in Q4.
Q4 revenues in the U.S., the company's biggest market, rose 6% due to higher microinverter sales, and Enphase (NASDAQ:ENPH) said it is generally seeing stable demand in the U.S. both in and out of California, but revenues in Europe fell by ~25% with a further softening in European demand.
For Q1 2025, Enphase (ENPH) guided for revenues of $340M-$380M, well above $337.5M analyst consensus estimate, including shipments of 150-170 MWh of IQ Batteries, which are used to store excess solar energy for later use, as well as ~$50M of safe harbor revenue, which are any sales made to customers who plan to install the inventory over more than a year.
The inclusion of safe harbor revenue in Q1 guidance "may be frowned upon as the Street fully digests it," GLJ Research analyst Gordon Johnson said.
Colin Rusch, Oppenheimer, asked about battery storage volume growth in 2025. CEO Kothandaraman highlighted plans for sequential growth, driven by the third-generation battery in Europe and the upcoming fourth-generation battery in the U.S.
Link to Seeking Alpha News Article - Feb. 04, 2025
Link to Seeking Alpha News Article - Feb. 05, 2025
[Newsletter Exclusive] Uber sees 17%-21% gross bookings growth in Q1 2025 with strong mobility and delivery momentum
Uber reported 21% year-over-year gross bookings growth in Q4 2024, marking the fourth quarter in five with at least 20% growth. Adjusted EBITDA grew 60% year-over-year.
Uber Eats added 1 million active merchants, a 16% increase year-over-year.
The Uber One membership program, who spend three times more than non-members, grew by 5 million members during the quarter, reaching a total of 30 million, a 60% increase year-over-year.
On the company’s earnings call, CEO Dara Khosrowshahi acknowledged the currency risk, especially for operations in Argentina, Mexico, and Brazil, three of the top 20 countries Uber (NYSE:UBER) operates in. But while the company will feel its impact on the top-line, the bottom-line is insulated from currency fluctuations as drivers and merchants are paid in local currencies, creating a natural hedge.
“So the way we sort of operate the company is that we will take FX on the top-line, but as a management team, we do our best to absorb those impacts in the profit line, whether they be favorable or headwinds to us to kind of continue to drive the consistent margin expansion story that you've seen over the last couple of years,” he added.
On autonomous vehicles, Khosrowshahi discussed advancements, noting a focus on partnerships like Waymo. He said commercialization will take longer but stressed Uber’s role as an indispensable partner for AV players. The Austin rollout with Waymo is set to launch in March 2025.
Khosrowshahi projected Q1 2025 gross bookings growth of 17%-21% in constant currency, with continued profit expansion.
Link to Seeking Alpha News Article - Feb. 05, 2025
Link to Seeking Alpha News Article - Feb. 05, 2025
Link to Seeking Alpha News Article - Feb. 05, 2025
[Newsletter Exclusive] Qualcomm targets $22B in non-handset revenues by 2029 with AI and automotive growth
For the quarter ended December 29, Qualcomm reported first quarter adjusted earnings of $3.41, which crushed the estimate of $2.97. Revenue for the quarter totaled $11.67B, a year-over-year increase of 18%, which was $770M more than the estimate of $10.9B.
Handset revenue for the quarter increased 13% year over year to $7.5B, while Automotive increased 61% to $961M and IoT jumped 36% to $1.55B.
Cristiano Amon, Qualcomm’s CEO emphasized the company's commitment to achieving $22 billion in non-handset revenues by 2029.
Amon noted strong traction for the Snapdragon 8 Elite platform, powering the Samsung Galaxy S25 series globally and driving AI integration in handsets. Design wins in PCs have exceeded 80 and are targeted to surpass 100 by 2026.
Amon underscored the edge AI opportunity, stating the shift to on-device AI inference is poised to drive adoption across industries.
For the quarter ending in March, Qualcomm projected adjusted earnings per share ranging from $2.70 to $2.90, with a midpoint of $2.80 well above the consensus of $2.69. Revenue is expected to range from $10.3B to $11.2B, with a midpoint of $10.75B once again topping the $10.35B estimate.
Link to Seeking Alpha News Article - Feb. 05, 2025
Link to Seeking Alpha News Article - Feb. 05, 2025
[Newsletter Exclusive] Arm Holdings projects Q4 revenue growth of 32% driven by strong AI demand
Adjusted EPS for Q3 came in at $0.34, matching analysts' estimates. Revenue of $983 million exceeded the consensus estimate of $948 million.
CEO Rene Haas pointed to adoption of Armv9 and CSS technologies as key growth drivers across end markets, including smartphones, data centers, and IoT. He cited MediaTek's Dimensity 9400 SoC and flagship smartphones from Oppo and Vivo as examples of successful product deployment.
Arm is also gaining market share in the data center with deployments such as AWS Graviton, Microsoft Cobalt, Google Axion, and NVIDIA's Grace chips. AWS reported that over 50% of its new CPU capacity installed in the past two years utilizes Graviton.
Arm provided Q4 revenue guidance of $1.175 billion to $1.275 billion, implying year-on-year growth of 32% at the midpoint.
For fiscal year 2025, Arm increased its revenue guidance midpoint to approximately $4 billion, representing 24% year-on-year growth.
Non-GAAP EPS guidance for Q4 is set between $0.48 and $0.56, with full-year EPS expected to range from $1.56 to $1.64.
CEO Rene Haas explained that Arm is positioned as the CPU of choice for Stargate and highlighted the potential for AI workloads across Arm's compute platform.
Link to Seeking Alpha News Article - Feb. 05, 2025
Apple dips after China mulls potential probe on App Store fees - report
The antitrust watchdog has been reviewing the iPhone maker's policies, which include charging up to 30% on in-app spending and restricting external payment services and stores. The agency's officials have discussed the matter with Apple executives and app developers since last year, the report added.
Link to Seeking Alpha News Article - Feb. 05, 2025
Tesla fell to its lowest level of 2025 amid concerns over sales in Europe
During January, Tesla's (NASDAQ:TSLA) sales in Germany plunged 59.5% year-over-year to 1,277 vehicles, while Sweden, Norway, Denmark, and the Netherlands all saw drops of more than 40%.
Notably, Tesla (TSLA) faced a tough comparison in January to last year when a new Model 3 was launched.
It is also probable that some EV buyers are waiting for the refreshed 2025 Model Y (Juniper) to be introduced before making a purchase.
Aside from the Model Y wildcard, some industry insiders have also warned that Elon Musk's strong opinions on German politics, the European Union, and immigration policies could also be a factor to some degree in the weakening sales trends on the continent. The next several months of deliveries reports from Europe could reveal whether there is some backlash from potential EV buyers.
Link to Seeking Alpha News Article - Feb. 05, 2025
[Newsletter Exclusive] Rithm Capital targets 20% ROE in Q4 2024 amid strategic growth initiatives
Rithm Capital reported Q4 GAAP net income of $263 million and earnings available for distribution of $316 million. The company maintained a consistent $0.25 per share dividend with a yield of 9.2%.
Michael Nierenberg, Chairman, CEO, and President announced plans to launch a global energy infrastructure platform with Scale Capital Partners within the next 30 days, aimed at supplying power to data centers globally.
Link to Seeking Alpha News Article - Feb. 06, 2025
[Newsletter Exclusive] Monolithic Power Systems projects automotive and communication growth in 2025 amid new product ramps
Q4 2024 revenue of $621.7 million exceeded analysts' estimates of $608.1 million. Adjusted EPS of $4.08 surpassed the $3.98 estimate.
CEO Michael Hsing highlighted that Monolithic Power Systems achieved its 13th consecutive year of growth.
MPS launched several new products, including a silicon carbide inverter for high-powered clean energy applications.
CFO Bernie Blegen announced a 25% increase in the quarterly dividend to $1.56 per share and highlighted a new $500 million three-year share repurchase program authorized by the Board of Directors.
Blegen emphasized the company's transformation "from being a chip-only semiconductor supplier to a full-service silicon-based solutions provider." He also noted that MPS returned 86% of its free cash flow to shareholders over the past three years.
Tore Svanberg, Stifel: Asked about Q1 2025 segment dynamics. CFO Bernie Blegen indicated automotive and communications would drive most growth, supported by delayed design wins now ramping. He noted enterprise data as "likely to be flattish."
Link to Seeking Alpha News Article - Feb. 06, 2025
[Newsletter Exclusive] Pinterest targets 15%-17% Q1 2025 revenue growth with focus on AI and Performance+
Adjusted EBITDA for Q4 was $471 million, with a margin of 41%, reflecting a 320 basis point increase. Free cash flow for 2024 grew 55% to $940 million.
The company repurchased $600 million in shares during 2024, reducing the fully diluted share count by approximately 1.7%.
Brian Nowak, Morgan Stanley: Asked about AI's role in driving platform improvements. Ready highlighted advancements in AI-driven relevance and Performance+, which simplifies campaign setup and improves ROI.
Mark Kelly, Stifel: Inquired about third-party partnerships. Ready noted the expansion of Amazon Ads to Canada and Mexico and the growing role of international partnerships in filling auction gaps.
Q1 2025 revenue is expected to range between $837 million and $852 million, representing 13%-15% growth year-over-year (15%-17% on a constant currency basis). Adjusted EBITDA is projected between $155 million and $170 million.
Link to Seeking Alpha News Article - Feb. 06, 2025
Link to Seeking Alpha News Article - Feb. 06, 2025
Arm withdraws Qualcomm license breach notice
Arm Holdings (NASDAQ:ARM) has withdrawn a threat to terminate an architecture license agreement with Qualcomm (NASDAQ:QCOM), Qualcomm’s chief executive officer Cristiano Amon said in a post-earnings conference call on Wednesday.
Link to Seeking Alpha News Article - Feb. 06, 2025
NVDA 0.00%↑ #DeepSeek
DeepSeek being blocked by South Korean ministries on security risk - report
The South Korean industry ministry has temporarily blocked staff from accessing Chinese AI model DeepSeek (DEEPSEEK) citing security risk, Reuters reported.
The government issued a notice on Tuesday directing ministries and agencies to apply caution about using AI services including DeepSeek and ChatGPT at work, the report added, citing ministry officials.
Government-operated Korea Hydro & Nuclear Power said it had blocked use of AI services, including DeepSeek earlier this month. The defense ministry has also blocked access to DeepSeek on its computers, which are for military use, the report noted.
The country's foreign ministry also halted access to the Chinese startup's AI service in computers that connect to external networks, the report added citing Yonhap News Agency.
It was not clear if the ministries had taken any actions against ChatGPT, developed by Microsoft (MSFT)-backed OpenAI.
Earlier this week, the news agency reported that South Korea's Personal Information Protection Commission plans to ask DeepSeek about how the personal information of users is managed.
The ban in South Korea comes on the heels of Taiwan and Australia banning DeepSeek from all government devices over security concerns.
Last week, Italy's regulator ordered the companies that provide the DeepSeek chatbot service to block the AI service in the country after they provided insufficient information on the use and storage of personal data, according to a report from Reuters.
Link to Seeking Alpha News Article - Feb. 06, 2025
NVDA 0.00%↑ #DeepSeek
DeepSeek chatbot to be banned on Canadian gov't devices: report
The generative artificial intelligence chatbot created by Chinese AI company DeepSeek (DEEPSEEK) will be banned on Canadian government devices, Bloomberg reported.
Shared Services Canada, the government agency in charge of Canada's information technology network, has already banned the app.
Link to Seeking Alpha News Article - Feb. 07, 2025
Uber gains as Bill Ackman discloses stake
Ackman's Pershing Square began purchasing UBER shares early last month and owns 30.3 million shares, he said in a posting on X.
"We believe that Uber is one of the best managed and highest quality businesses in the world," Ackman wrote on X. "Remarkably, it can still be purchased at a massive discount to its intrinsic value. This favorable combination of attributes is extremely rare, particularly for a large-cap company."
Link to Seeking Alpha News Article - Feb. 07, 2025
#EADSF #EADSY #Airbus
Airbus postpones plans for new hydrogen aircraft beyond 2035
The airplane manufacturer had told the Financial Times earlier this week that “2035 remains the ambition” for the aircraft after European airlines scaled back their ambitions for hydrogen’s role in reaching net zero by 2050.
Airbus (OTCPK:EADSF) (OTCPK:EADSY) did not provide a new timeline for the project, but the Force Ouvriere union said staff had been told that the technology was running 5-10 years behind the pace needed to support the original 2035 target.
The union also said Airbus (OTCPK:EADSF) (OTCPK:EADSY) had indicated it would cut the budget dedicated to its hydrogen initiatives by 25% and planned to shut down plans to test hydrogen fuel cell engines on a modified A380 superjumbo, FT reported.
The company said it remained "committed to [its] goal of bringing a commercially viable, hydrogen-powered aircraft to market," but recent developments "indicate that progress on key enablers, particularly the availability of hydrogen produced from renewable energy sources at scale, is slower than anticipated."
Link to Seeking Alpha News Article - Feb. 07, 2025
Netflix is racing to secure F1 tournament rights in the U.S. - reports
Netflix (NASDAQ:NFLX) is looking to win streaming rights to the Formula One (NASDAQ:FWONA) tournament in the U.S. and has entered a bidding race, multiple media outlets reported Friday, making further headway into the world of live sports and events.
The move builds on its current strategy of broadcasting major sports events live after having secured rights for the Women's FIFA World Cup for an undisclosed amount and the Christmas NFL games for a whopping $150M. It also has a 10-year deal in place for streaming WWE RAW.
The rights for the racing tournament are currently held by Disney's (NYSE:DIS) ESPN, whose contract finishes at the end of this season.
Link to Seeking Alpha News Article - Feb. 07, 2025
EU proposes reduction in import tariff on U.S. vehicles - report
To avert a costly trade war with the U.S., the European Union will reportedly offer a reduction in its import tax on U.S. vehicles to more closely align with the 2.5% charged by the U.S., according to the Financial Times.
The EU currently slaps a 10% tax on cars imported into the continent from the U.S.
“We can try to have a deal before escalating costs and tariffs,” said Bernd Lange, head of the European Parliament’s trade committee to the Financial Times. “The bloc would offer to buy more liquefied natural gas and military equipment from the US, plus also look to lower tariffs for cars,” he added.
Link to Seeking Alpha News Article - Feb. 07, 2025
Opinion Pieces - Facts & Opinions - Long Reads:
Crispr Therapeutics: Why I've Become Even More Bullish (Rating Upgrade)
For Casgevy, their first and only approved treatment that is led by Vertex, they have made progress in developing authorized treatment centers (ATCs) – increasing the number from 35 in mid-October to over 50 by the end of the year – and in dosing patients. When I last reported, around 20 patients had had their cells collected, and this has increased to over 50 by the end of the year. Though these numbers were lower than expected, this still marks solid progress.
To date, a total of 8 jurisdictions have approved Casgevy for the treatment of SCD/TDT in adults. Recently, the Kingdom of Saudi Arabia – a large market for Casgevy given the high prevalence of SCD there – approved the treatment. Reimbursement agreements continue to be signed, most recently in the UK for the treatment of SCD, which followed the reimbursement agreement for TDT in August 2024.
Crispr also recently announced several updates in their drug pipeline. From their most recent mid-January update, they are leading 5 clinical programs and 10 preclinical programs – and they expect to reach significant milestones in 2025.
Link to Seeking Alpha Opinion Piece - Feb. 05, 2025
Redwire: More Fundamental Support For Space Growth
Redwire’s products include, power generation, antennas, deployable solutions, star trackers and camera systems with an estimated 5-year addressable market of $100 billion to $140 billion for the first focus area. In the second focus area, the company can provide microgravity payloads and in-space manufacturing capabilities with a 5-year TAM of $5 billion to $10 billion while multinational missions have an addressable market of $10 billion to $20 billion.
In January 2025, the company announced the acquisition of Edge Autonomy which provides UAS (uncrewed airborne system) technology. The deal is valued at $925 million, financed through $150 million in cash and $775 million in shares of Redwire. The acquisition is significant for Redwire as it pushes the company towards pro forma adjusted EBITDA of $70 million to $105 million in 2025.
For free cash flow, the expectation is that 2024 could be significantly worse than the break-even previously modeled, but 2025 and 2026 should be significantly better, leading to FCF generation increasing 90% from $40.5 million to $77.3 million.
Link to Seeking Alpha Opinion Piece - Feb. 07, 2025
Disclosure: We own positions in some/all of the tickers mentioned in this article.
