Tech Stocks Are Toast

Markets got clapped yesterday in the midst of tech earnings, Tesla's stock dropped on news of Elon's Twitter acquisition, half of America has had Covid, Robinhood is cutting 9% of its employees, and Delta is expanding flight attendant pay.

Litquidity Capital
April 27, 2022

Together with

Good Morning,

Markets got clapped yesterday in the midst of tech earnings, Tesla's stock dropped on news of Elon's Twitter acquisition, half of America has had Covid, Robinhood is cutting 9% of its employees, and Delta is expanding flight attendant pay.

Big Swinging Decks is back, and today Mark sits down with Mark Lamb and Leslie Lamb from CoinFLEX, BSD's sponsor, to kick off their US launch. Catch the new episode, presented by CoinFLEX.US, on SpotifyApple Music, and YouTube 🤝 

Let's dive in.

Before The Bell

As of 4/26/2022 market close.

If you want to learn more about crypto trading strategies and the world of DeFi, check out our Foot Guns newsletter.

Markets

  • US stocks fell sharply yesterday as investors sold equities on fears of an economic slowdown with all three major averages closing in the red and the Dow hitting a new low for 2022
    • Tech stocks led the decline as investors are pulling-the-plug before companies report, fearing another Netflix situation
    • Cyclical names tied to economic growth also fell yesterday with companies like 3M and UPS trading lower despite better-than-expected earnings results
  • The US 10Y fell below 2.8%, hurting some bank stocks

Earnings

  • Alphabet fell yesterday after missing on top- and bottom-line Q1 numbers, with YouTube ad revenue being particularly weak (CNBC)
  • GE posted better-than-expected Q1 earnings results but shares were pressured after their CEO noted that supply chain demand and inflation were likely to persist into Q2 (TS)
  • Microsoft shares fell 1% AH yesterday despite better-than-expected Q3 revenue and earnings numbers with strong growth from their cloud services segment (CNBC)
  • GM beat on earnings and missed on revenue expectations, but the company raised its FY EPS guidance and announced plans to produce 25%-30% more cars than last year (CNBC)
  • UPS reported stronger-than-expected Q1 earnings, reaffirmed its FY profit forecast, and unveiled plans to double its annual share buybacks to ~$2B (TS)
  • PepsiCo beat estimates on top- and bottom-line Q1 results but cut its FY “core” earnings outlook as they battle inflationary pressures (YHOO)
  • JetBlue fell 11%+ yesterday after slashing its growth plans to 5% (from 15%) to avoid more flight disruptions during peak season (CNBC)
  • Visa shares rose 5%+ AH yesterday after announcing a 17% purchase volume growth on its network as consumers continue to spend despite the impacts of omicron and suspension of operations in Russia (BBG)
  • Chipotle reported stronger-than-expected Q1 earnings and revenue results fueled by consumers' willingness to pay more for their food, as the company raised prices to help offset higher operating costs (CNBC)
  • What we’re watching today: Boeing, Spotify, Harley-Davidson, Meta, PayPal
  • Full calendar here

Headline Roundup

  • Home prices jumped nearly 20% in February, but a slowdown may be coming (CNBC)
  • Delta to pay flight attendants during boarding amid union drive (CNBC)
  • Solar group says US trade probe will cut domestic installations in half (BBG)
  • Tesla stock falls 9%+ in morning trading after Musk’s Twitter deal (CNBC)
  • German Minister says full embargo on Russian oil ‘manageable’ (BBG)
  • European gas jumps by as much as 17% as Russia cuts gas to Poland and Bulgaria in major escalation (BBG)
  • Kevin Hart launches new media venture with $100M investment (NYP)
  • Twitter M&A bankers could split up to $130M in deal fees (BBG)
  • More than half of Americans show signs of prior Covid infection (BBG)
  • Amazon urged to review emergency plans in wake of a deadly tornado (BBG)
  • Canada wants to use seized Russian assets to pay Ukraine victims (BBG)
  • Harvard pledges $100M to redress ties to slavery (WSJ)
  • EU regulator cautions Twitter on content moderation (WSJ)
  • Robinhood cutting ~9% of full-time employees (CNBC)

A Message From Ledger

Are Your Apes Running Wild?

Picture this: You just bought Bored Ape #1289 – you know, the one with the gold teeth and the captain’s hat, iconic – when suddenly, your combo of clumsy fingers and tiny screen come together to accidentally send it off to parts unknown. 

There goes $500,000 down the drain. Whoopsie!

Okay, so that scenario is a bit dramatic. But when you’re dealing with assets worth a cool half a mil, it pays to be careful – and that’s where the new Ledger Nano S Plus comes into play.

This upgraded version of the Ledger Nano S works overtime to give you everything you need to manage your crypto, NFTs, and tokens. 

  • More memory lets you handle over 5,500 digital assets and have up to 100 apps installed simultaneously
  • Larger screen enables a smoother user experience and makes it easier to navigate and verify transactions
  • The Nano S Plus ensures the same level of security than the other Ledger devices and keeps your coins & NFTs offline and protected

Say it with us: I will spare no cost when it comes to securing my crypto, NFTs, and tokens because I don’t want to move into mom’s basement. Again.

Deal Flow

M&A / Investments

  • UK consumer company Reckitt Benckiser has begun a sale process for its infant nutrition business, which sells brands including Enfamil, at a potential $10B valuation (BBG)
  • Indian software services company Wipro agreed to buy SAP consulting firm Rizing Intermediate for $540M (BBG)
  • Real estate firm Dexus is nearing a deal to acquire AMP’s Australian real estate and infrastructure arm, which could be valued at ~$216M (BBG)

VC

  • Clean code platform SonarSource raised a $412M round at a $4.7B valuation led by Advent International and General Catalyst (BW)
  • Harness, a software delivery platform, raised a $230M Series D at a $3.7B valuation led by Norwest Venture Partners (PRN)
  • Retail tech startup Upside raised $165M in funding at a $1.5B valuation led by General Catalyst which included a $65M equity round and a $100M debt facility (BW)
  • Chinese ride-hailing service OnTime raised a $153M Series A led by Guangzhou Automobile Group (TC)
  • Chip-to-chip optical connectivity startup Ayar Labs raised a $130M Series C led by Boardman Bay Capital Management (BW)
  • Cricket NFT platform Rario raised a $120M Series A led by Dream Capital (BW)
  • Qualified, a B2B pipeline generation platform, raised a $95M Series C led by Sapphire (BW)
  • Contact center automation startup Replicant raised a $78M Series B led by Stripes (PRN)
  • RelationalAI, a startup helping companies create intelligent data apps via a proprietary relational graph knowledge system, raised a $75M Series B led by Tiger Global (BW)
  • Pheast Therapeutics, a startup developing novel checkpoint therapies to fight cancer, raised a $76M Series A led by Catalio Capital Management and ARCH Venture Partners (PRN)
  • Japanese medtech company AI Medical Service raised a $70M Series C led by SoftBank Vision Fund 2 (PRN)
  • Web3 exchange infrastructure startup 0x Labs raised a $70M Series B led by Greylock (BW)
  • Research and product AI lab Adept raised a $65M Series A led by Greylock and Addition (BW)
  • Warehouse robot developer Rapyuta Robotics raised a $51M Series C led by Goldman Sachs (BW)
  • Podcast recording platform Riverside raised a $45M Series B led by Oren Zeev (TC)
  • QuotaPath, a commissions tracking and automation startup for sales and revenue teams, raised a $41M Series B led by Tribe Capital (BW)
  • Autonomous electric plane startup Pyka raised a $37M Series A led by Piva Capital and Prelude Ventures (TC)
  • Digital health startup Waltz Health raised a $35.4M Series A led by GV (BW)
  • Verana Networks, a developer of 5G radio access networks, raised a $28M Series B led by DC Investment Partners (PRN)
  • X Bow Systems, a startup creating 3D printed rocket engines, raised a $27M Series A led by Crosslink Capital and Razor Edge Ventures (PRN)
  • Lifestyle-focused neobank Cogni raised a $23M round led by Hanwha Asset Management and CaplinFO (TC)
  • Baseten, a startup making it easier to build machine learning applications, raised a $20M round led by Greylock and South Park Commons Fund (TC)
  • Adranos, an Indiana-based rocket motor manufacturer, raised a $20M Series A led by Impala Asset Management (BW)
  • RF semiconductor startup QuantalRF raised a $15M Series C led by Dara Capital and Metellus AG (PRN)
  • Contact center analytics startup Loris raised a $12M Series A led by Bow Capital and ServiceNow (TC)
  • South 8 Technologies, a lithium ion battery startup, raised a $12M Series A led by Anzu Partners (BW)
  • Crafty, a startup centralizing food and beverage supply services, raised a $10M Series A led by Tribeca Venture Partners (PRN)
  • InZiv, a startup aiming to make microLED displays more accessible to consumers, raised a $10M Series A-1 led by BlueRed Partners (PRN)
  • Smartphone-based biometrics startup OwnID raised a $6.2M seed round led by Mayfield (TC)
  • Tonic, a startup building a DEX on the NEAR Protocol, raised a $5M round led by Electric Capital and Move (PRN)

IPO / Direct Listings / Issuances / Block Trades

  • Emirates Central Cooling Systems has picked Moelis & Co. to work on its IPO which is planned for later this year (BBG)

Fundraising

  • Left Lane Capital, a NY-based VC firm, closed a $1.4B second fund to invest in internet and consumer tech startups (PRN)
  • New crypto firm Asymmetric seeks to raise $1B from the founders of a16z, Solana, and more to back the firm’s first fund (TBC)
  • Flare Capital Partners, a healthcare VC firm, raised a $350M Fund III (BW)
  • Ansa Capital, a new venture fund focused on emerging growth stage companies, raised $100M for its debut fund (BW)

Crypto Corner

  • MicroStrategy to offer employees bitcoin retirement plans (DC)
  • Ex-Jefferies execs launch crypto exchange for institutional traders (TBC)

Exec's Picks

  • LEX - LEX IPOs buildings so you can get in the game. By taking buildings public, LEX has created a way for you to invest in marquee commercial real estate. Build a portfolio by picking the buildings you want to invest in. Each building gets a ticker and trades like your other stocks. Sign up for free and get a $50 bonus when you deposit at least $500.

Big Swinging Decks Podcast

🚨Big Swinging Decks is back🚨

With the launch of CoinFLEX in the U.S. this week, Mark sits down with Mark Lamb (Co-Founder & CEO) and Leslie Lamb (CMO) to learn more about BSD’s innovative sponsor.

Listen to Mark and Leslie discuss how their personal stories have evolved through the creation of CoinFLEX, plus learn about all of the unique offerings coming to the States!

Catch the latest episode of our Big Swinging Decks podcast, presented by CoinFLEX.US, on SpotifyApple Music, and YouTube 🤝 

The Hiring Block

If you're looking to break into finance, lateral, or move out, check out our job board on Pallet, where we curate highly relevant roles for you. We've got 40+ jobs spanning IB, S&T, VC, tech, private equity, DeFi, crypto, CorpDev and more. We sift through all the noise on LinkedIn, Indeed, Monster, etc. so you don't have to.

Meme Cleanser

Catch the latest episode of our Big Swinging Decks podcast, presented by CoinFLEX.US, on SpotifyApple Music, and YouTube 🤝 

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