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Mid Tech Earnings
'Earnings Super Bowl' week continues on as as early Big Tech earnings came in mixed. Elsewhere, Spirit is abandoning its low-fare strategy, wealthy investors are driving record gold demand, and Intel is laying off thousands.
Litquidity Capital
July 31, 2024
Together with
Good Morning,
'Earnings Super Bowl' week continues on as early Big Tech earnings came in mixed. Elsewhere, Spirit is abandoning its low-fare strategy, wealthy investors are driving record gold demand, and Intel is laying off thousands.
Invest in private market investments alongside Wall Street veterans with today's sponsor, 10 East.
Let’s dive in.
Before The Bell
As of 07/30/2024 market close.
Markets
US stocks slipped yesterday as investors digested a mixed bag of Big Tech earnings
Earnings
Microsoft beat Q4 EPS and revenue estimates but disappointed on cloud revenue and forecast, causing shares to fall 3% AH (CNBC)
AMD shares rose 7% after beating Q2 EPS estimates and raising FY sales forecasts thanks to continued growth in AI chip sales (CNBC)
Starbucks missed Q3 revenue estimates but met on EPS as its cost efficiency strategy helped offset a consumer spending decline (CNBC)
PayPal jumped 9% after reporting a Q2 beat-and-raise thanks to strength in its checkout business and easing competition concerns (RT)
P&G fell 5% despite beating Q4 EPS estimates due to disappointing revenue from low demand in China (CNBC)
What we're watching this week:
Today: Meta, Qualcomm, Boeing
Thursday: Apple, Amazon, Intel, Coinbase
Friday: ExxonMobil, Chevron
Full calendar here
Headline Roundup
US national debt topped $35T for the first time ever (NYT)
US job openings held steady defying recent slowdown trend (BBG)
Eurozone GDP grew 0.3% in Q2, but Germany contracted (CNBC)
Bond investors are piling into steepener bets (RT)
Hedge funds covered nearly all short yen bets of the last year (RT)
US accounting firms are rethinking global operations (FT)
UK regulators called out BDO and Mazars over audit quality (FT)
Wealthy investors are driving record demand for gold (FT)
Nvidia is down 25% from its peak (FRB)
JPMorgan named new co-heads of global shareholder engagement (RT)
Buffett cut his Bank of America stake by $3B (RT)
Intel will lay off thousands (BBG)
Match will cut 6% of staff amid activist investors pressure (RT)
Meta settled for $1.4B in privacy case with Texas (WSJ)
Spirit is abandoning its low-fare strategy (CNBC)
Kamala Harris is polling better than Trump in swing states (BBG)
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Deal Flow
M&A / Investments
$5.6B-listed cybersecurity firm Tenable is exploring a sale after receiving takeover interest (BBG)
Vista Outdoor is now exploring a sale of its outdoor sporting gear business Revelyst (RT)
Ex-Warner Music chair Edgar Bronfman Jr. is in talks to bid for Paramount Global parent National Amusements (AX)
Blackstone is in early-stage talks to acquire REIT Retail Opportunity Investments, which has a $2B market cap (RT)
Private credit giant HPS Investment Partners will acquire Chorus Aviation's regional-aircraft leasing business for $1.4B, including debt (BBG)
Indigenous communities will acquire a 5.3% stake in pipeline operator TC Energy's Canadian natural gas pipeline system for $722M (RT)
Canva will acquire image generation startup Leonardo.ai (BBG)
AI finance firm Pagaya Technologies agreed to buy ML-enabled asset manager Theorem Technology (BBG)
Viaro Energy agreed to buy North Sea gas field assets from Shell and Exxon (BBG)
AXA IM agreed to acquire a 20% stake in $8.3B AUM infrastructure lender Rivage Investment (BBG)
EQT is exploring a sale of the US operations of Spanish amusement park operator Parques Reunidos (RT)
VC
Fertility tracking app Flo Health raised a $200M Series C at a $1B+ valuation led by General Atlantic (TC)
Gradient AI, an AI solutions for insurance firms, raised a $56.1M Series C led by Centana Growth Partners (BW)
Type One Energy, a startup building a fusion reactor, raised a $53.5M seed extension led by Breakthrough Energy Ventures (TC)
Rhombus, a cloud-based physical security company, raised a $45M Series C led by NightDragon (PRN)
FAYE, a travel insurance startup, raised a $31M Series B led by Portage (TC)
Axiad, an identity-first enabler of the zero-trust enterprise, raised a $25M round from Invictus Growth Partners (FN)
Perchwell, a modern data and workflow platform for residential real estate, raised a $25M Series B led by Lux Capital (FN)
Credo AI, an AI governance SaaS, raised $21M from CrimsoNox Capital, Mozilla Ventures, and FPV Ventures (BW)
Intelmatix, an AI startup for MENA businesses, raised a $20M Series A led by Shorooq Partners (TC)
Lineaje, a software supply chain security management platform, raised a $20M Series A led by Prosperity7, Neotribe, and Hitachi Ventures (BW)
Carbon accounting software startup Tset raised a $13.9M Series A from Carbon Removal Partners, Brose Ventures, and Ingenics (EU)
Monto, an AI connector for ERP systems, raised a $9M seed round led by Scale Venture Partners (FN)
Powder, a startup providing AI agents for precise document analysis, raised a $5M seed round from Litquidity, YC, General Catalyst, and others (FN)
FranShares, a platform for users to invest in franchises, raised a $4.2M seed round led by Chicago Ventures (TC)
IPO / Direct Listings / Issuances / Block Trades
Debt
Bankruptcy / Restructuring / Distressed
A group of bondholders of Europe’s largest debt collector Intrum will seek to block its $5.8B restructuring (FT)
Vista Equity Partners will hand control of software edtech Pluralsight to a group of the private credit lenders to cut ~$1.3B in debt (WSJ)
Australian airline Rex is set to fall into administration as soon as today (BBG)
A subsidiary of Chinese solar firm Akcome filed for bankruptcy (RT)
Fundraising
Crypto Corner
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