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Trader's Diary

Economic calendar

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Definition of terms:
Earnings

Earnings

refer to the profits or net income generated by a company during a specific period.

  • Earnings are a measure of a company's financial performance and are often reported on a quarterly or annual basis.

  • Positive earnings indicate that a company has made a profit, while negative earnings indicate a loss.

  • Earnings can be influenced by various factors, such as revenue, expenses, taxes, and other financial activities.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Actual

Actual refers to the real or current value or result of something. In the context of IPOs, actual can refer to the actual price or number of shares sold in the IPO, as opposed to the estimated price or number of shares.

Estimate

Estimate refers to a prediction or approximation of something, such as the expected price or number of shares in an IPO. Estimates are often made by investment banks and analysts based on market demand and other factors.

Difference

Difference refers to the numerical or percentage variance between two values. In the context of IPOs, difference can refer to the variance between the estimated and actual price or number of shares sold in the IPO.

Percent

Percent refers to a fraction of 100, often used to express a proportion or rate. In the context of IPOs, percent can be used to express the difference between the estimated and actual price or number of shares sold as a percentage of the estimated value.

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IPOs

IPOs (Initial Public Offerings):

An IPO occurs when a private company sells its stock to the public for the first time to raise capital or money.

The money raised from an IPO can be used for various purposes, such as paying down debt, investing in the company's long-term health, research and development, expanding into new product lines, or purchasing fixed assets.

During the IPO process, the equity shares of private investors

convert into publicly owned shares of the new entity, and early investors may sell their stock once the company's shares begin trading.

The chief benefit of an IPO is to help the company raise money and gain access to the capital markets, allowing for expansion and increasing credibility.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Name

The name is the official name of the company whose shares are being offered in the IPO.

Exchange

The exchange is the stock exchange where the company's shares are listed and traded. Examples of stock exchanges include the New York Stock Exchange (NYSE) and the Nasdaq.

Currency

The currency is the type of currency in which the company's shares are priced and traded. This can vary depending on the country and stock exchange where the company is listed.

Start date

The start date is the date on which the company's shares begin trading on the stock exchange after the IPO.

Offer price

The offer price is the price at which the company's shares are initially offered to the public in the IPO. This price is set by the company and its underwriters based on market demand and other factors.

Shares

Shares refer to the units of ownership in the company that are being offered to the public in the IPO. These shares can be bought and sold on the stock exchange after the IPO.

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Splits

Splits (Stock Splits):

A stock split occurs when a company increases the number of its outstanding shares of stock to boost the stock's liquidity.

In a stock split, the number of shares outstanding increases by a specific multiple, but the total dollar value of all shares remains the same.

Companies often choose to split their stock to lower its trading price to a more comfortable range for most investors and increase the liquidity of trading in its shares.

For example, if a company decides to split its stock 2-for-1, the number of shares outstanding would double, while the share price would be halved.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Split date

The split date refers to the date on which the stock split takes effect. It is the date when the new shares resulting from the split are distributed to existing shareholders. Optionable

Optionable refers to whether the stock is eligible to be used as an underlying asset for options contracts. If a stock is optionable, it means that options can be traded on that stock.

Old shares

Old shares refer to the existing shares of a company before a stock split takes place. These are the shares that will be exchanged for the new shares resulting from the split.

New shares

New shares are the additional shares that are issued to existing shareholders as a result of a stock split. The number of new shares is determined by the split ratio, such as 2-for-1 or 3-for-2, where shareholders receive a certain number of new shares for each old share they own.

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The progress of Google's largest acquisition of Wiz

Date: 17.7.2024

Being an investor with an eye on the technology sector, I was very intrigued by the news of Alphabet's potential acquisition of cybersecurity startup Wiz. If completed, this would mark the largest acquisition in Alphabet's history and would surpass its previous record with Motorola. In today's note, we'll go over my thoughts and analysis on how this deal could affect Alphabet's position in the technology stock market, as well as my investment strategy.

The significance of the acquisition

 

The acquisition of Wiz, a fast-growing cybersecurity firm known for its cloud computing security solutions, represents a significant strategic expansion for Alphabet, particularly in terms of its Google Cloud services. Cybersecurity is increasingly important as businesses around the world accelerate their transition to cloud platforms. This deal could greatly strengthen Google's offering, making its cloud services more attractive in a market dominated by competitors such as Microsoft and Amazon.

 

Wiz's impressive client list, which includes 40% of Fortune 100 companies and big names such as BMW, Slack and Salesforce, further underlines the strategic value of this acquisition. Their expertise, combined with Alphabet's resources, could lead to an expansion of security features that would differentiate Google Cloud from its competitors.

 

Regulatory considerations

 

One cannot overlook the potential regulatory hurdles this deal could face under a Biden administration that is vigilant in its antitrust scrutiny of tech giants. However, there is a possibility that the antitrust environment could become more lenient if there is a change in presidential administration. Such changes could foster a more favourable environment for large technology acquisitions, which would affect my long-term investment outlook for Alphabet and the technology sector as a whole.

 

Financial implications

 

From an investment perspective, the financial health and valuation metrics of this transaction are key. Wiz's valuation has nearly doubled from $12 billion in the last funding round to Alphabet's current offering of $23 billion. This premium indicates a strong belief in Wiz's potential to support continued growth in Alphabet's cybersecurity and cloud services segments.

 

Investment strategy

 

Given the potential for this acquisition to strengthen Alphabet's position in the cybersecurity and cloud computing segments, I am inclined to keep a close eye on Alphabet's stock and potentially increase my stake should a correction occur, allowing me to buy in at a more favourable price. The strategic fit and the market growth opportunities it presents could make Alphabet a more attractive investment in the technology sector. In addition, I will monitor regulatory developments as they could impact market dynamics and the feasibility of a transaction.

 

Conclusion

 

In conclusion, Alphabet's proposed acquisition of Wiz appears to be a bold move to secure a stronger position in the competitive cloud computing market. For an investor, the completion of this transaction could be a significant factor that will determine Alphabet's future growth trajectory and market position. Given the broader regulatory and competitive environment, I remain optimistic but cautious. As always, I will continue to evaluate evolving market conditions and adjust my investment decisions accordingly.

Date: 5.2.2025
AMD Slips After Earnings Report

For us investors following the semiconductor sector, today was very significant. AMD announced its results for the fourth quarter of 2024, beating expectations in terms of both sales and profit. Nevertheless, the shares fell by more than 9% after the end of regular trading hours.* This decline subsequently raised questions that I also dealt with. Is this an overreaction of the market, or is it a legitimate warning sign?

Date: 29.1.2025
ASML Exceeds Expectations: A Buying Opportunity?

Today's trading day was very interesting for me as I focused on the results of ASML, a leading player in chip manufacturing equipment, which published its results for the fourth quarter. ASML reported orders worth €7.09 billion, well above expectations. This order intake is a significant indicator that the demand for advanced equipment, driven by the growth of the AI field, remains strong.

Date: 22.1.2025
A New Dawn for AI Investment in the US

Yesterday, I witnessed a groundbreaking shift in the investment landscape as President Donald Trump unveiled Stargate, up to $500 billion private sector initiative designed to revolutionize artificial intelligence (AI) infrastructure in the United States. This announcement, featuring major players like Oracle, OpenAI, and SoftBank, caught my attention as a significant moment in the AI race, promising opportunities for investors like me.

Date: 15.1.2025
Nvidia’s Push into Health Care with AI

As I analyze the latest moves in the tech sector, Nvidia Corp. (NASDAQ: NVDA) has once again captured my attention with its ambitious expansion into health care. The company, known for its dominance in AI-focused chips, announced partnerships with industry giants Illumina Inc. and the Mayo Clinic, signaling a strategic push to revolutionize the $10 trillion global health-care market. This development is a clear indicator of Nvidia’s efforts to diversify beyond its core market of AI infrastructure for data centers.

Date: 8.1.2025
Microsoft’s AI Investment Signals a Bold Future

News about Microsoft Corp. (NASDAQ: MSFT) investing $80 billion in data center expansion this fiscal year has caught my attention as both a tech enthusiast and an investor. This staggering figure, more than 50% of which will be spent in the US by June 2025, underscores the immense capital demands of artificial intelligence – a sector that’s rapidly redefining the global tech landscape.

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