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Nvidia Is the Stock Market
US Q1 payroll numbers are likely to be revised down, Nvidia’s stock continues to defy gravity after stellar earnings, the SEC is taking on PE and hedge funds, Juul is cutting 30% of its staff, Big Tech is bracing for new EU regulations, BRICS are inviting the Saudis to join, and Nike’s stock fell for a 10th straight day.
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Good Morning,
US Q1 payroll numbers are likely to be revised down, Nvidia’s stock continues to defy gravity after stellar earnings, the SEC is taking on PE and hedge funds, Juul is cutting 30% of its staff, Big Tech is bracing for new EU regulations, BRICS are inviting the Saudis to join, and Nike’s stock fell for a 10th straight day.
Looking for a zero-sugar hydration mix to get you through a scorching hot August? Check out today’s sponsor, LMNT.
Let’s dive in.
Before The Bell
As of 8/23/2023 market close.
Markets
US stocks surged higher, led by tech stocks, as investors eagerly awaited Nvidia’s earnings yesterday
The Nasdaq led indices with an increase of 1.6%
Asian stocks closed mixed, as Shanghai’s SSE and Shenzhen’s SZI dropped, while Japan’s Nikkei and Hong Kong’s HSI edged higher
Earnings
Nvidia shares surged ~8% after beating Q2 earnings and revenue expectations as well as raising Q3 forecasts; the chipmaker forecast sales growth of 170% YoY in the current quarter (CNBC)
Snowflake stock rose 4% after beating Q2 non-GAAP earnings and revenue expectations (BRRN)
Foot Locker stock plunged ~30% after missing analyst Q2 adjusted earnings expectations, missing on revenue, and slashing its full-year guidance; sales declined 9.9% YoY due to ‘consumer softness’ (CNBC)
Kohl’s stock rose 5% after heavily beating Q2 earnings expectations, while slightly missing on revenue; net sales fell 4.8% YoY (BRRN)
Peloton shares plunged 23% after posting a much larger-than-expected Q4 loss and a decline in subscribers that it attributes to seasonality and its bike seat recall (CNBC)
What we're watching this week:
Today: Dollar Tree, TD Bank Group, Intuit, Workday, Affirm
Full calendar here
Headline Roundup
US Q1 payrolls were likely 306k lower than previously estimated (BBG)
Eurozone’s worsening downturn fuels bets on ECB September pause (BBG)
Investors are finally making money on bonds and CDs (WSJ)
SEC takes on private equity, hedge funds (WSJ)
Juul will cut 30% of staff (WSJ)
Big Tech braces for EU Digital Services Act regulations (RT)
Nvidia’s stock surge pushes CEO’s fortune as high as $46B (BBG)
BRICS set to invite Saudi membership in bid for greater clout (BBG)
European gas prices slump as risk of Australian strike recedes (BBG)
Cboe CEO says firm can go after deals in open jurisdictions (BBG)
Nike falls for record 10th straight day on Foot Locker woes, China slowdown hit (CNBC)
Long Jim Cramer ETF will close after attracting just $1.3M (BBG)
Trudeau’s oil pipeline at risk of more delays with route change (BBG)
New Boeing 737 MAX supplier defect to delay aircraft deliveries (RT)
‘India is on the moon’: Chandrayaan-3 spacecraft lands on lunar south pole (WSJ)
CVS pushes into making cheaper versions of complex drugs with new discount Humira (CNBC)
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Deal Flow
M&A / Investments
Steel distributor Esmark dropped its $7.8B bid for United States Steel Corp. due to union support for Cleveland-Cliffs’ rival bid (BBG)
DOJ raised concerns about Texas energy company Vistra’s $6.3B acquisition of Energy Harbor assets, stating that it could substantially reduce competition (UD)
Tech PE firm Thoma Bravo closed its $2.3B all-cash acquisition of software firm ForgeRock (RT)
NextGen Healthcare, a healthcare software vendor with a ~$1.2B market cap, is exploring options including a sale (RT)
China’s Shandong Weigao Group Medical Polymer is exploring a sale of its $1B health products business Argon (BBG)
Sovereign wealth fund Qatar Investment Authority will invest $1B into Reliance Retail at a $100B valuation as India’s largest retail chain looks to expand its operations (TC)
Synopsys, a US software firm for semiconductor design, completed an acquisition of technology company PikeTec at a valuation of over $200M (BBG)
American technology firm Parsons will acquire cybertech company Sealing Technologies in a $200M deal (MS)
Boise Cascade, a wood products manufacturer, will buy doors and millwork distributor Brockway-Smith for $172M (MW)
Saudi Arabia's Jadwa Investment acquired a 35% stake in Kuwait's Gissah Perfumes Company, which is set to IPO in Riyadh (RT)
VC
Axiom Space, a Houston-based provider of human spaceflight services, raised a $350M Series C led by Aljazira Capital and Boryung Co (FN)
Cellares, a San Francisco-based integrated development and manufacturing organization dedicated to clinical and industrial-scale cell therapy manufacturing, raised a $255M Series C led by Koch Disruptive Technologies (FN)
Rapport Therapeutics, a Boston and San Diego-based clinical-stage biotech company, raised a $150M Series B led by Cormorant Asset Management (FN)
SpyCloud, an Austin, TX-based company that specializes in identity analytics, raised a $110M funding round led by Riverwood Capital (FN)
Gympass, the leading corporate wellness platform, raised an $85M Series F at a $2.4B valuation led by EQT Growth (PRN)
Electric Era Technologies, a Seattle-based company that specializes on EV fast-charging infrastructure, raised $11.5M in a Series A led by HSBC Asset Management (FN)
FlashIntel, a Singapore-based Go-to-Market intelligence platform provider, raised $10M in seed and angel funding from Celtic House Venture Partners, Uphonest Capital, and others (FN)
Modyfi, an LA-based provider of an AI-native design platform and image editor, raised a $7M seed round led by NEA (FN)
Novig, a New York-based provider of a commission-free sports betting exchange, raised a $6.4M seed round led by Lux Capital (FN)
Brainlogic AI, a Montevideo-based tech company advancing Zapia, raised a $5M funding round led by Factory HQ (FN)
Kombai, a Pune, India-based startup advancing frontend devtools, raised a $4.5M seed found led by Stellaris Venture Partners and Foundation Capital (FN)
Jellatech, a Raleigh, NC-based biotech company developing a platform to produce complex proteins, raised a $3.5M seed found led by byFounders (FN)
Wootz.work, an Indian startup that has developed a sourcing platform for custom engineering equipment and solutions, raised ~$3.5M in a seed round led by Matrix Partners India and Nexus Venture Partners (FN)
Aircon, a Dallas, TX-based provider of gateway-as-a-service in the air cargo industry, raised a $3.3M seed round led by Underscore VC (FN)
Creatively Focused, an educator-driven tech company, raised a $3M seed found led by York IE (FN)
Lex, an AI-powered writing tool, raised a $2.75M seed round led by True Ventures (TC)
IPO / Direct Listings / Issuances / Block Trades
SPAC
SoftBank-backed digital mortgage lender Better is set to go public on the Nasdaq today through its merger with Aurora Acquisition Corp. at a $6.9B pre-transaction equity valuation (FT)
Debt
Private credit lenders including HPS Investment Partners, Neuberger Berman, and Stone Point Capital will provide a $574M loan to help fund PE firm Thomas H. Lee Partners LP’s acquisition of a majority stake in Standish Management (BBG)
Bankruptcy / Restructuring
Fundraising
Apollo Global Management is seeking to raise debt and equity through a variety of multibillion dollar vehicles to help fund the growth of Atlas SP, the securitization business it bought from Credit Suisse (BBG)
Crypto Corner
Exec’s Picks
Matt Levine’s Money Stuff from earlier this week gave a comical breakdown of Exec Sum editor Jack Raines’s satirical Soho House post.
Planet Money published an interesting podcast episode discussing why Americans don’t use their vacation days.
Katie Gatti Tassin wrote about whether or not it’s feminist for women to get rich.
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