US Equities Digest (Monday, 15 July 2024)
Find updates of the following companies in the news in today's post: Alphabet Inc, Amazon Inc, Apple Inc, BlackRock Inc, Goldman Sachs Group Inc, Nvidia Corporation, PayPal Holdings Inc, Sea Ltd, Solaredge Technologies Inc, TSMC Ltd, Tesla Inc, and Yandex NV:
Alphabet Inc (NASDAQ: GOOG, NASDAQ: GOOGL)
15 Jul 2024: Google parent Alphabet is in advanced negotiations to acquire cybersecurity startup Wiz for approximately US$23 billion, potentially marking its largest acquisition ever. The deal, primarily funded in cash, would highlight Alphabet's rare move towards a mega-deal amid increased regulatory scrutiny, and reflects a broader uptick in technology sector mergers and acquisitions this year.
Amazon Inc (NASDAQ: AMZN)
15 Jul 2024: Shoppers are projected to spend around US$14 billion during Amazon's Prime Day event this week, a 10.5% increase from last year's sales, according to Adobe Analytics. Prime Day, which has transformed July into a major shopping season, particularly for back-to-school items, sees Amazon competing with rivals like Walmart (NYSE: WMT) and Target (NYSE: TGT) offering significant discounts.
Apple Inc (NASDAQ: AAPL)
15 Jul 2024: Apple's sales in India surged 33% to nearly US$8 billion in the year through March, with iPhones making up over half of this total, according to Bloomberg News. The company has also produced US$14 billion worth of iPhones in India in the last fiscal year, primarily at the Sriperumbudur plant near Chennai.
BlackRock Inc (NYSE: BLK)
15 Jul 2024: BlackRock attracted US$51 billion to its long-term investment funds in the second quarter, reaching a record US$10.6 trillion in assets. Despite missing the analysts' average net flow estimate of US$86 billion, the company saw substantial inflows into ETFs and fixed-income funds, driven by private markets and retail active fixed income, while also achieving a 12% rise in adjusted net income per share to US$10.36, and an 8% revenue increase to US$4.8 billion.
Goldman Sachs Group Inc (NYSE: GS)
15 Jul 2024: Goldman Sachs has appointed Sudarshan Ramakrishnan and Devarajan Nambakam as co-heads of investment banking in India to drive growth and deepen client relationships. Additionally, Sunil Khaitan joins as head of financing, and Kamna Sahni will join as an executive director in Mumbai, while Jacky Leung becomes head of Hong Kong coverage.
15 Jul 2024: Goldman Sachs’ profit more than doubled to US$3.04 billion in the second quarter, driven by debt underwriting and fixed-income trading, though results dipped from a record first quarter. The bank saw a 21% rise in investment banking fees and a 27% increase in asset and wealth management revenue, with CEO David Solomon highlighting strong year-on-year growth; however, Goldman also took a US$58 million charge on the General Motors (NYSE: GM) credit card business as it prepares to exit the partnership.
Nvidia Corporation (NASDAQ: NVDA)
15 Jul 2024: The French competition authority confirmed an ongoing investigation into Nvidia for alleged anti-competitive practices, with potential charges pending the investigation's outcome. President Benoit Coeure indicated that Nvidia would be charged "if the investigation is fruitful," following earlier reports from Reuters about the anticipated charges.
PayPal Holdings Inc (NASDAQ: PYPL)
15 Jul 2024: Poland's antitrust and consumer protection authority fined PayPal Europe 106.6 million zlotys (US$27.3 million) for not clearly defining activities that could incur penalties in its contractual clauses, leading to potential consumer misunderstandings. The authority stated that PayPal's vague terms allow the company to arbitrarily decide and penalise prohibited actions, such as blocking account funds, and PayPal has the option to appeal this decision in court.
Sea Ltd (NYSE: SE)
15 Jul 2024: Sea Ltd has appointed Natalia Goh as the new CEO of its Singapore digital bank, MariBank, replacing Zheng Yu Dong who will become an adviser. Ms Goh, formerly the COO of rival Trust Bank, brings extensive experience in digital banking as MariBank competes in the rapidly growing South-east Asian market.
Solaredge Technologies Inc (NASDAQ: SEDG)
15 Jul 2024: SolarEdge Technologies announced that it will lay off 400 employees, including 200 in Israel, to restore profitability and ensure financial stability amidst a market downturn and excess inventory issues. This reduction, affecting all departments, follows the company's January decision to cut about 16% of its global workforce after reporting a net loss of US$157 million in the first quarter, its third consecutive quarterly loss.
Taiwan Semiconductor Manufacturing Company Ltd (NYSE: TSM)
15 Jul 2024: Taiwan Semiconductor Manufacturing Company (TSMC), a leading producer of advanced chips for AI applications, is projected to report a 30% rise in second-quarter profit due to increased demand. The company's shares have surged, driving the broader Taiwan market to record highs, and its net profit for the quarter is estimated to be T$236.1 billion (US$7.25 billion).
Tesla Inc (NASDAQ: TSLA)
15 Jul 2024: U.S. technology firm InterDigital and a patent licensing platform succeeded in having Tesla's lawsuit dismissed by the London High Court, where Tesla sought a patent licence for its upcoming 5G vehicles in the UK. While the court rejected Tesla's request for a licence on fair, reasonable and non-discriminatory (FRAND) terms, it allowed Tesla's challenge to revoke three of InterDigital's patents to proceed.
Yandex NV (NASDAQ: YNDX)
15 Jul 2024: A Russian consortium has acquired the majority of Yandex's businesses in a US$5.4 billion deal, ending foreign ownership and tightening Kremlin control over Russia's internet. Yandex NV, the Dutch parent company, sold its remaining 28% stake for US$2.8 billion in cash and 162.5 million shares, while retaining four AI-focused businesses under the Nebius Group name.
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