What You Need To Know For Feb 27th

In partnership with

Welcome back! Nvidia put up some solid numbers yesterday, but with shares off slightly, it’s unclear if that’s enough to excite the market.

Let’s get into it.

Earnings Corner 📜 

Trending Up 📈 

Super Micro Computer (SMCI) finally released its delayed financial results for the first half of FY 2025 – on the last day to avoid being delisted from NASDAQ. Auditor BDO stated that the document “presents fairly, in all material respects, the financial position of the Company... in conformity with accounting principles generally accepted.” Mgmt. noted that they have found material weaknesses in their IT systems and accounting practices, which they will work to correct. The stock was up 12.2% at Wednesday’s close

Home Depot (HD) reported earnings that beat estimates. Comparable sales were up 0.8% after 8 straight quarters of decline, due to high interest rates, elevated home prices, and sluggish remodeling activity. Mgmt. believes that consumers will grow used to higher interest rates and stop putting off projects. HD expects 1% comparable sales growth in FY 2025, along with a 2% decline in earnings. The stock was up 3.3%

Lowe’s (LOW) reported earnings that beat estimates. Mgmt. expects slumping sales to improve in 2025, projecting revenue of $83.5B-$84.5B and comparable sales up 0%-1%, alongside EPS of $12.15-$12.40. The stock was up 1.93%

Workday (WDAY) reported earnings that beat estimates, clocking 15% revenue growth. Mgmt. described customer interest in the platform’s suite of AI tools and noted that DOGE may be a tailwind for the firm. Workday has focused on government sales over the last year, and updates to federal software could lead to wider adoption of their services. The stock was up 6.2%

Intuit (INTU) reported earnings that beat estimates, with sales up 17% y/y and EPS up 26%. For Q3, management projected EPS of $10.92 (below expectations of $11.51), but the firm’s sales and FY outlook were in line with estimates. The stock was up 12.6%

Domino’s (DPZ) reported earnings that missed estimates. The stock initially dipped but ended Wednesday up 3.6%

Trending Down 📉 

Hims & Hers Health (HIMS) reported earnings that beat estimates, with revenue of $481MM up 95% y/y (vs. $470MM expected) and EPS of $0.11 (vs. $0.10 expected). Gross margins were lower than expected at 77% (vs. 78.4% estimated). Last Friday, the FDA announced that the shortage of semaglutide injectables (including weight loss drugs like Ozempic) has been resolved. Because of the drugs’ scarcity in 2024, Hims & Hers was permitted to produce its own compounded semaglutide offering. Mgmt. noted that the regulatory change will force the company to withdraw their product by Q2. The stock is down 41% from the FDA’s announcement and 21% from earnings

Nvidia (NVDA) reported earnings that beat estimates, with revenue of $39.33B up 78% y/y (vs. $38.05B expected) and EPS of $0.89 (vs. $0.84 expected). The firm’s annual revenue grew 110%, while gross margins fell to 73% due to elevated spending on new data center products. Mgmt. noted they are making strides in rolling out their new Blackwell chips, with the project recording $11B in revenue during Q4. Nvidia expects $43B in sales in Q1 (vs. $41.78B expected), implying 65% y/y growth. The stock was down 1.49% after hours

Chegg (CHGG) reported earnings that beat estimates, alongside major subscriber losses due to competition from AI. The cheating-centered website announced on Tuesday that it is bringing an antitrust lawsuit against Google, alleging that its AI summaries are using Chegg’s content and diverting traffic away from its page. The stock was down 35.2%

Instacart (CART) reported earnings that beat estimates, with revenue of $883MM (vs. $890MM expected) and EPS of $0.50 (vs. $0.71 expected). Mgmt. also projected soft earnings in Q1, estimating $220MM-$230MM (vs. 237.1MM expected). The stock was down 12.3%, the biggest drop in the company’s history

Stellantis (STLA) reported earnings in line with estimates. Net income was down 70% y/y, as the automotive manufacturer has faced challenges in the U.S. and international markets. Mgmt. hopes to return to growth in 2025. The stock was down 5.3%

Lucid (LCID) reported earnings that beat estimates. Mgmt. also projected a doubling in new car deliveries to 20,000 in 2025. However, the street was spooked by the announcement that CEO Peter Rawlinson will be stepping down. The stock was down 13.6% on the news

Cava (CAVA) reported earnings that beat estimates, with comparable sales up 21% y/y. However, analysts were disappointed by a comparable sales growth projection of only 6%-8% in 2025. The stock was down 9.3%

Bloomin’ Brands (BLMN) reported earnings that missed estimates. The announcement marked the company’s 6^th consecutive quarterly miss. The stock was down 16.8%

Zoom (ZM) reported earnings that beat estimates. The stock was down 5.7%

A Message from Mode Mobile

Today’s Fastest Growing Company Might Surprise You

🚨 No, it's not the publicly traded tech giant you might expect… Meet $MODE, the disruptor turning phones into potential income generators.

Mode saw 32,481% revenue growth, ranking them the #1 software company on Deloitte’s 2023 fastest-growing companies list.

📲 They’re pioneering "Privatized Universal Basic Income" powered by technology — not government, and their EarnPhone, has already helped consumers earn over $325M!

Their pre-IPO offering is live at just $0.26/share – don’t miss it.

Invest Now

*Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
*Please read the offering circular and related risks at invest.modemobile.com.

Today’s Headlines 🍿 

• Going all-in on AI: Meta is in talks to start constructing a $200B AI data center project, per the Information. This comes as the Company is spending $65B on capex in 2025.

  

• Trump’s Gold Card: President Trump is launching a new pathway for residency and citizenship for immigrants willing and able to invest $5mm in the U.S. Dubbed a “gold card,” the new program might replace EB-5 and comes amidst a widespread crackdown on illegal immigration

• Amazon has launched its AI-assisted version of Alexa. The upgrade is years in the making and is anticipated to enable the voice assistant to complete more complicated tasks and engage in more natural, contextual conversations

• AppLovin short seller drama is taking the 2024 stock darling down. Two short reports drove AppLovin down -12% yesterday, -35% from prior all time highs. The claims include allegations that AppLovin violates Google and Apple’s app store terms

• 7-Eleven shares plunged more than 12% after a management buyout collapsed. The proposed acquisition by the founding family failed to secure the financing it needed

• U.S. January new home sales were weak, coming in at 657k vs estimates of 680k, down -10.5% m/m due to high rates, affordability pressures, and storm headwinds

  

   

• Passage of Trump’s “big beautiful bill.” The House passed a budget resolution which includes $4.5T in tax and $2T in spending cuts. Marking a victory for the White House’s ambitious fiscal policy agenda, the bill also boosts military and border security spending by hundreds of billions

• US health officials are evaluating canceling a $590mm contract for bird flu shots that the Biden Administration made with Moderna. This comes in the midst of a record-breaking bird flu outbreak that has driven egg prices higher. Moderna shares fell as much as -6.6%

• Starbucks Layoffs: As part of a major turnaround plan, Starbucks CEO Brian Niccol is cutting 1,100 corporate jobs (~6.8% of corporate headcount). Focused on returning the coffee-chain to its roots, Niccol is removing 13 under-performing drinks, bringing back the self-service bar, ending its open bathroom policy, and investing in reducing wait times

• MrBeast is looking to raise a couple hundred million dollars at a $5B valuation. Yes, the YouTube star is raising money to finance the holding company that owns all of the properties in his business empire

• Bitcoin Bubble popped? The cryptocurrency fell below $85k, a 3-month low, after reaching an all-time high on Trump’s Inauguration. Traders are de-risking from across asset classes, with the S&P posting a multi-day losing streak

• Apple’s Pro-America Pledge. Tim Cook announced that the company will spend upwards of $500B in the U.S. over the next four years. Apple will expand teams and facilities in Michigan, Texas, California, Arizona, Iowa, and elsewhere

• Family offices flock to sponsors. Spun out of Blackstone President Tony James’ family office, Madison River raised a $370mm debut fund. Madison River capitalized on family offices’ selection of private equity as central to their investment strategies

• Altice France Restructures: Altice France and its creditors agreed to slash the company’s debt by ~8B, preserving founder Patrick Drahi’s control of the cable and mobile-phone operator. Drahi aggressively built his empire with years of acquisitions, which left his balance sheet strained as interest rates climbed

• Bolt, a European rival to Uber, is lining up a potential IPO. After earning a €7.4B valuation in 2022, the ride-share business is reportedly working with PJT to target a listing as early as this year

• FTI fallout. A top partner at one of America’s largest public business advisory firms left to start his own venture. Jonathan Orszag was fired in 2023 after disagreements emerged over profit sharing. Now Orszag is poised to poach FTI talent and clients

• NRG and GE Vernova are building 5 Gigawatts of gas plants for “the AI demand supercycle”, with the plants starting up in 2029-2032

M&A Transactions💭 

HealthCare Global Enterprises (NSE: HCG), an Indian company specializing in cancer care services, has entered into a definitive agreement to be acquired for $400.0M by Kohlberg Kravis Roberts. The transaction values the company at $740.74M. EV/EBITDA was 16.6x and EV/Revenue was 2.94x.

Safe Harbor Marinas, operator of a waterfront lifestyle firm, entered into a definitive agreement to be acquired for $5.65B by Blackstone. EV/Revenue was 64.2x. Lazard advised on the sale.

National Grid Renewables, a subsidiary of National Grid (LON: NG) that provides renewable electricity generation services, has entered into a definitive agreement to be acquired for $1.735B by Brookfield Asset Management (TSE: BAM).

Moser Energy Systems, manufacturer of industrial natural gas power generators, was acquired for $220.0M by Atlas Energy Solutions (NYS: AESI). Tudor, Pickering Holt & Company Securities advised on the sale.

IDRx, developer of oncology-based precision therapies, was acquired for $1.0B by GSK (LON: GSK). Centerview Partners and Leerink Partners advised on the sale.

Canadian North, provider of air transportation services, has reached a definitive agreement to be acquired for $143.11M by Exchange Income (TSE: EIF).

Bridge Investment Group Holdings (NYS: BRDG), a vertically integrated investment manager, reached a definitive agreement to be acquired for $1.962B by Apollo Global Management (NYS: APO). EV/EBITDA was 43.34x and EV/Revenue was 4.76x. J.P. Morgan and Lazard advised on the sale.

Tendam, manufacturer and retailer of apparel, was acquired for $706.96M by Multiply Group PJSC (ADS: MULTIPLY). The transaction values the company at $1.04B. EV/EBITDA was 2.83x and EV/Revenue was 0.69x.

Schibsted Media reached a definitive agreement to acquire The Telia TV and Media Business of Telia Company for $602.02M.

Thermo Fisher Scientific (NYS: TMO) reached a definitive agreement to acquire The Purification and Filtration Business Unit of Solventum (NYS: SOLV) for $4.1B. J.P. Morgan, Morgan Stanley, and Perella Weinberg Partners advised on the sale.

Sertifi, developer of contract management software, was acquired for $330.0M by Flywire (NAS: FLYW). EV/Revenue was 17.55x.

The Car Was Business Unit of Driven Brands has entered into a definitive agreement to be acquired for $385.0M by Magnolia Wash Holdings. William Blair & Company advised on the sale.

Contentserv, developer of software applications, reached a definitive agreement to be acquired for $$229.02M by Dassault Systems (PAR: DSY).

Anaqua, developer of intellectual property management software, was acquired for $2.5B by Nordic Capital. EV/Revenue was 12.49x. Jefferies advised on the sale.

Horizon Quantum, developer of computer programming tools, has reached a definitive agreement to be acquired for $500.0M by dMY Squared Technology Group.

Private Placement Transactions💭 

NinjaOne, developer of a cloud-based platform, raised $500.0M of venture funding led by CapitalG and ICONIQ Growth at a pre-money valuation of $4.5B.

Just Salad, operator of a salad concept restaurant chain, raised $200.0M of venture funding led by Wellington Management at a pre-money valuation of $800.0M.

Quantum Machines, developer of quantum control systems, raised $170.0M of Series C venture funding led by PSG at a pre-money valuation of $530.0M.

Eikon Therapeutics, operator of a drug discovery and development platform, raised $351.0M of Series D venture funding led by Foresite Capital, Lux Capital, and The Column Group.

Odds of the Day 🍒 

Kalshi traders are betting on how far DOGE will go.

New Traders on Kalshi receive a $20 bonus of trading credit when depositing $100+ with the code “HYH”.

Noteworthy Chart 🧭

Meme Cleanser 😆 

Finance Merch Referrals ☕️ 

Until next time!

Housekeeping Items:

Our Weekly Poll:

Finance Jobs: Looking for a job in Finance? Join Buyside Hub to access the Job Board for free.

Recruit for Private Equity: Check out Peak Frameworks through us, the Private Equity Course that has placed thousands of students into elite private equity shops.

Join beehiiv: Looking to start your own newsletter? Join beehiiv through us and you’ll get 30 days free and 3 months of a 20% discount.

Obviously, none of this constitutes financial advice.