Weekend Update #034
Welcome to Blue Room's Weekend Update. Each week, we're sharing what companies we're researching and the what, the who and the how that we think makes the companies interesting and unique. This roundup is brought to you weekly by a group of interns, creative minds, artists and investors who believe that through best in class investing along with the democratization of financial education we can do great things together. Enjoy, Explore and Share.
Intellia Therepeutics, Inc.
Intellia announced this week the first ever clinical data supporting safety and efficacy of in vivo CRISPR genome editing in humans. Its interim Phase 1 data showed that NTLA-2001 led to dose-dependent mean reductions in serum TTR, with a maximum 96% serum TTR reduction by day 28. Intellia's stock popped 50% on the day of the news, and has since gained 84% over the course of the week, from $88.83 to $163.71.
Tune in to the team's Monday morning bullpen meeting where Jared Fenley presents Intellia and we discuss the magnitude of their progress as well as other biotech companies working on gene-editing solutions.
DocuSign was founded in 2003 by Seattle-based entrepreneur Tom Gonser, who wanted to fundamentally change how business transactions happen. At that time the only available solutions were very complicated. By working directly with customers to understand their specific challenges and needs, Gonser and his team set out to ensure that signing electronically would be easy, legally binding and secure.
Ambarella develops semiconductor systems on chip (SoCs) for video solutions that enable HD and ultra HD compression, image processing and deep neural network processing worldwide. The company’s system-on-a-chip designs integrated HD video processing, image processing, AI computer vision algorithms, audio processing and system functions onto a single chip. Its solutions enable the creation of video content for wearable cameras, automotive cameras, drones, virtual reality cameras, and IP security cameras for professional use and home security monitoring, as well as robotics and industrial application, including identification/authentication cameras, robotic products and sensing cameras. The company sells its products/solutions to ODMs and OEMs through its direct sales force and distributors.
Airbnb, Inc. operates a platform for stays and experiences to guests worldwide. The company’s marketplace model connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms and luxury villas. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.
On Saturday, June 26, Intellia Therapeutics (NASDAQ: NTLA) announced the first-ever clinical data supporting the safety and efficacy of in vivo CRISPR genome editing in humans. This is a landmark achievement that will be dog-eared by many in the scientific and historical communities centuries from now. The implications of this achievement are significant, as in vivo genome therapy has the potential to improve the quality of life for millions and millions of people affected by genetic diseases.
A
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ART = MUSIC
B-SIDE MUSIC FRIDAYS
{ ARE BACK
@MCA
B-Side Music Fridays are a live music series on Friday nights in July and August where Colorado musicians perform in MCA Denver’s rooftop garden. Enjoy an intimate performance from some of the city’s top indie bands while sipping crafted cocktails and relaxing on the best rooftop deck in Denver.
FROM THE GOOD NEWS NETWORK
— BY JUDY COLE —
///
A NEW BIKE & $52,000
>FOR<
Donte Franklin who walks 17 miles to Buffalo Wild Wings in Oklahoma so he can work.
To make it to his shift as a Buffalo Wild Wings cook, Donte Franklin was leaving for work three hours early each day and trekking more than eight miles on foot to arrive on time. At the end of the day, the 20-year-old Oklahoman reversed his journey to walk home.
Franklin credits his amazing work ethic to his late mom, who passed away four years ago. “I really don’t care if it gets tiring. I just have to keep pushing,” Franklin said, “I walk just to make my family proud.”
Whether or not he’s got a guardian angel keeping tabs on him, Franklin’s life recently got an amazing and unexpected lift thanks to a stranger’s random act of kindness.
Michael Lynn was out running errands when he saw a young man—Franklin—walking in the sweltering summer heat. On his way back, he noticed the same young man—still walking—and decided to offer him a ride.
When Lynn learned more about Franklin’s 17-mile work pilgrimage, he couldn’t help but be more than a little awed. He decided to share the details of Franklin’s story on Facebook—where it was quickly shared more than 1,000 times.
One of the people who saw it was Kerri Collins. She and her husband are the driving forces behind a biker charity group called My Riding Buddies Oklahoma and Bikers for Elves (MRBO).
“Anytime I see something posted concerning anybody anywhere in Oklahoma, I immediately jump in and we do whatever we can as a group,” Keri Collins said. “It just touched me that this man is only 20 years old and is walking to two different jobs with nothing in the heat. It opened my heart because kids his age don’t do that.”
In appreciation of his extraordinary efforts, MRBO gifted Franklin with a brand-new bike prior to his next shift. His commute had just gotten a whole lot easier, but Franklin’s good luck was just beginning.
Inspired by the young man’s grit and determination, a GoFundMe page was set up in his name so he could buy a car. So far, close to $52,000 has been raised.
Franklin, who’s studying to be a welder, doesn’t have a driver’s license yet. While he plans to purchase a car eventually, in the meantime, he’ll be using the funds to help his family and taking his bike to work.
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HAPPY
Independence
DAY
The Original Declaration of Independence, NATIONAL ARCHIVES
On July 2nd, the Continental Congress voted in favor of Lee’s resolution for independence in a near-unanimous vote (the New York delegation abstained, but later voted affirmatively). On that day, John Adams wrote to his wife Abigail that July 2 “will be celebrated, by succeeding Generations, as the great anniversary Festival” and that the celebration should include “Pomp and Parade…Games, Sports, Guns, Bells, Bonfires and Illuminations from one End of this Continent to the other.”
On July 4th, the Continental Congress formally adopted the Declaration of Independence, which had been written largely by Jefferson. Though the vote for actual independence took place on July 2nd, from then on the 4th became the day that was celebrated as the birth of American independence.
John Adams believed that July 2nd was the correct date on which to celebrate the birth of American independence, and would reportedly turn down invitations to appear at July 4th events.
ALSO INTERESTING….
Adams and Thomas Jefferson both died on July 4, 1826—the 50th anniversary of the adoption of the Declaration of Independence.
Fourth of July Fireworks
Hello! My name is Maxwell McIntosh, a summer intern here at Blue Room from Jersey City, New Jersey. I am a rising senior at Dartmouth College where I am studying Film modified with Human-Centered Design. I chose my major because it provides me with the opportunity to problem solve in creative ways and encourages students to work in collaborative environments. Additionally, there is an emphasis on conducting pertinent research that has led to my interest in investment banking and Blue Room.
Outside of the classroom, I am a cornerback on Dartmouth’s Football team and a host of a podcast called The Garden Radio with two of my classmates. I am also a mentor at SAY, the Stuttering Association for the Young, where we conduct an eight-week arts program that culminates with group theater performances. In my free time I enjoy 3D Printing. I am an advocate of the technology and I am excited to see how it will continue to integrate into our daily lives in the near future.
It is an honor to be able to intern at Blue Room this summer because their core beliefs align closely with my own. The philanthropic arm of Blue Room, Togetherism, does an amazing job of using our platform to give back to those in need within our communities and I am excited to learn how I can contribute. Additionally, Blue Room’s emphasis on the arts and their initiative to help local artists is unique for an investment company and attracted me to want to join the team. Finally, the strong emphasis on researching companies with a fine tooth comb and going the extra mile to give yourself an edge is a challenge I am excited to take on as I conduct my research on Roku, a leader in the content streaming industry. I am thankful for the opportunity to be a part of Blue Room, and hope to be an asset to the team throughout the summer.
P L E A S E E N J O Y T H E
—WEEKLY—
company updates
from the BR intern team.
Caroline Burnham
Ticker: ALLO
Name: Allogene Therapeutics
Number of Shares Outstanding: 141.54M
Market Capitalization: $3.739B
Stock Price History:
June 21: $25.14
June 22: $23.95
June 23: $23.49
June 24: $24.16
June 25: $24.18
June 28: $25.55
June 29: $25.19
June 30: $26.08
July 1: $26.55
July 2: $26.28
Allogene Therapeutics Executive Summary (7/1/21)
Allogene Therapeutics is a biotechnology company based in South San Francisco, California. The company focuses on researching, developing, manufacturing and commercializing allogeneic CAR T cell treatments for different types of cancers. Allogene Therapeutics utilizes its allogeneic chimeric antigen receptor T cell (AlloCAR TTM) therapy in developing its pipeline. Currently, Allogene Therapeutics is managing several programs in various stages of preclinical study or clinical trial, namely ALLO-501, ALLO-501A, ALLO-715, ALLO-715 + nirogacestat, ALLO-605, ALLO-316, ALLO-819, DLL3 and ALLO-647. These programs target hematological malignancies, solid tumors and lymphodepletion.
The main premise of Allogene Therapeutics is to develop allogeneic CAR T therapies for cancer. Currently, the FDA has approved only autologous CAR T therapies. This means that the CAR T cells are created using the patient’s own T cells, which, while effective, is an extremely costly and somewhat unreliable process. This is due to lengthy vein-to-vein time, variable potency, high potential for manufacturing failures and high production costs. In contrast, allogeneic CAR T therapies come from a healthy donor’s cells and are manufactured to be available to patients off-the-shelf. Allogeneic CAR T therapies would allow Allogene Therapeutics to provide increased availability and access, faster speed to patients, enhanced cell consistency and potency, and streamlined manufacturing and cost efficiencies.
Recent news from Allogene Therapeutics is highlighted by the announcement of FDA’s placement of ALLO-605, the first TurboCARTM T cell therapy, on the fast track. This solidifies Allogene Therapeutic’s position in an area of unmet need as well as accelerates its review process, potentially allowing for a faster arrival on the market.
Jackson Blaufeld
Ticker: QCOM
Name: Qualcomm, Inc.
Number of Shares Outstanding: 1.13 B
Market Capitalization: 159.307 B
Stock Price History:
June 22: $135.08
June 23: $135.52
June 24: $137.92
June 25: $137.65
June 28: $139.72
June 29: $142.62
June 30: $142.93
July 1: $140.80
July 2: $142.58
Qualcomm, Inc. Executive Summary (7/1/2021)
Qualcomm, Inc. is a global leader in the semiconductor industry, headquartered in San Diego, California. Qualcomm specializes in the development and commercialization of technologies for the wireless industry. This group of engineers, scientists and business strategists are focused on inventing breakthrough technologies that transform how the world connects, computes and communicates. Qualcomm’s products are used in mobile devices and have been a key factor in the growth of smartphones. Qualcomm has three segments in which it is organized. Business is mainly conducted through the CDMA Technologies and the technology licensing businesses. WIthin these two segments, software is developed and supplied, licenses are granted and rights to intellectual property are provided. Qualcomm utilizes its technology in self-driving cars, Artificial Intelligence, Virtual Reality, cameras and more. Through Qualcomm’s technology, connecting people, communities and industries can be done in ways we have never seen.
In recent news, Qualcomm announced that they have appointed Cristiano Amon as their new president and chief executive officer as of July 1, 2021. Amon has been at Qualcomm since 1995, when he was first hired as an engineer. Since then, he has held several leadership positions on the business and technical side of the company. Amon said, “Our focus has always been on developing leading technologies that make a difference, and you can be sure that will never change.” He added, “We will remain focused on our vision of creating a world where everyone and everything is intelligently connected.”
Uri Bonilla
Ticker WDAY
Name: Workday
Number of shares outstanding: 189 million
Market Capitalization: $57.82 billion
Stock Price History:
June 21, 2021 236.93
June 22, 2021 238.97
June 23, 2021 238.69
June 24, 2021 241.71
June 25, 2021 243.00
June 28, 2021 242.91
June 29, 2021 246.39
June 30, 2021 238.74
July 1, 2021 235.51
July 2, 2021 238.30
Workday Inc, Executive Summary (7/1/2021)
Workday is a leading provider in cloud applications for human resources and financial professionals serving more than 8,000 organizations. Workday provides organizations with software-as-a-service solutions to facilitate and navigate complex challenges in the business setting. The company’s services facilitate the management of finances in a constantly evolving environment. Workday’s innovative suite combines finance, human resources, planning and analytics into one suite which allows Workday’s products to cater to a wide array of businesses and access several industries, from mid-sized companies to over 45%of Fortune 500 companies. Workday follows a core set of values: Employees first, customer service second, innovation third, followed by integrity, fun and profitability. Recently, Workday’s share price has taken a stumble. In the past few trading days, WDAY share prices have fallen from $246.40 on June 29 to $233.90 as of July 1, a change of 5.07%. The drop in share price could be related to many individual factors, including the recent release of Fiscal 2022 First Quarter Financial Results last month. Despite not posting a single quarter profit since its inception in 2005, Workday has continued to consistently grow. Recent Fiscal 2022 First Quarter Financial Results indicate that Workday increased its revenues 15.4% since last year to a total of $1.175 billion in revenue. Furthermore, it reported non-GAAP earnings of 87 cents per share, which outpaced estimates by 19.7%. Its business thesis is simple: Reinvest all earnings back into the company to stimulate growth, with the end goal of continued growth and market share acquisition. In recent news, Workday continues to demonstrate their aspiration for growth. On June 8, Workday announced the intent to introduce Workday Payroll for Australia and Workday Payroll for Germany.
Aidan Fetterly
Ticker: TTWO
Name: Take-Two Interactive Software, Inc.
Number of Shares Outstanding: 116.17M
Market Capitalization: $20.50B
Stock Price History:
June 21: $173.47
June 22: $174.23
June 23: $171.88
June 24: $175.06
June 25: $173.82
June 28: $178.09
June 29: $178.19
June 30: $177.02
July 1: $178.97
July 2: $177.30
Take-Two Interactive Software, Inc. is an interactive entertainment and video game developer headquartered in New York, New York. Comprising five production labels, most notably Rockstar Games and 2K, Take-Two is known for its groundbreaking action-adventure, sports-simulation and role-playing products. Through award winning and record breaking legacy titles such as Grand Theft Auto and Red Dead Redemption as well as high-traffic, yearly releases such as NBA 2K, Take-Two has cemented itself as a pillar of the video game industry and holds substantial market share. At its core, Take-Two fundamentally endeavors to be the most creative, innovative and efficient company in the interactive entertainment industry. In recent weeks, Take-Two announced the acquisitions of mobile game developer Nordeus and video-based, facial animation firm Dynamixyz. The purchase of privately-held Nordeus, announced one June 6, represents an active attempt by the firm to enhance its mobile gaming portfolio which currently includes several titles from labels Social Point and PlayDots. Nordeus was acquired for $378 million, and brings its Top Eleven soccer management game with over 240 million active users to Take-Two. Announced on July 1, Take-Two's acquisition of Dynamixyz, a company who had previously partnered with the Take-Two on titles such as Read Dead Redemption 2 and NBA 2K21, brings in an industry-leading suite of proprietary motion-capture, facial-analysis and 3D processing technology to enhance future product offerings. As of writing, the financial terms of the deal have not been disclosed.
Melanie Gong
Ticker: CMCSA
Name: Comcast Corporation
Number of Shares Outstanding: 4.59B
Market Capitalization: $259.19B
Stock Price History:
June 21: $57.28
June 22: $57.63
June 23: $55.48
June 24: $56.06
June 25: $56.42
June 28: $56.10
June 29: $56.54
June 30: $57.02
July 1: $57.75
July 2: $58.21
Comcast Corporation Executive Summary (7/01/21)
Comcast Corporation is a media, entertainment and communications company providing video, internet and phone services. The company was founded by Ralph J. Roberts in 1963 and is headquartered in Philadelphia, Pennsylvania. Segments Comcast operates include Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, Theme Parks and Sky. The Cable Communications segment provides video, Internet, voice and security services through Xfinity. The Cable Networks segment consists of national and international cable networks, regional sports, news networks and cable television studio production operations. The Broadcast Television segment includes NBC and Telemundo broadcast networks. The Filmed Entertainment segment is involved in the production, acquisition, marketing and distribution of filmed entertainment. The Theme Parks segment manages Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan. Finally, the Sky segment consists of Sky, one of Europe's largest B2C entertainment companies providing video, internet, voice and wireless phone services.
On June 30, 2021, Comcast announced its 10-year, $102.8 million contract with the United States Defense Information Systems Agency, which provides enterprise network and IT infrastructure to the U.S. Department of Defense. Comcast will provide Ethernet services to enhance connectivity and improve network performance while managing the overall cost through the Agency’s Defense Information Systems Network. The states this contract will be covering include Maryland, Washington, D.C., Virginia, West Virginia, Ohio, and Kentucky.
Elias Haynes
Ticker: RGLD
Name: Royal Gold
Number of Shares Outstanding: 65.61M
Market Capitalization: 7.67B
Stock Price History:
June 21, 2021: $110.23
June 22, 2021: $110.90
June 23, 2021: $110.18
June 24, 2021: $111.97
June 25, 2021: $112.40
June 28, 2021: $113.00
June 29, 2021: $114.02
June 30, 2021: $114.10
July 1, 2021: $114.53
July 2, 2021: $116.94
Royal Gold, Inc Executive Summary (07/01/2021)
Royal Gold is a Denver-based company focused on acquiring and managing precious metals royalties and streams that seeks to provide investors exposure to precious metals with lower levels of risk. Royal Gold owns interests in 187 properties on five continents, including interests in 41 production stage mines and 16 development stage projects. Managed by a team with extensive experience in the mining industry, Royal Gold has a longstanding reputation for diligence that has rendered it among the three largest precious metal streaming and royalty companies—which together control approximately 80% of the total value of streaming and royalty contracts. Royal Gold has established itself as a partner of choice for mining operators and a frontrunner in a space offering alternative forms of financing to mining companies. Royal Gold also adheres to sound ESG practices, taking time to contribute to the environment and local communities.
More recently, Royal Gold (RGLD), whose stock is closely and unsurprisingly tied to the price of gold, took a significant hit on June 16 likely as a result of statements released by the Federal Reserve indicating future interest rate increases—ultimately dropping to $109 per share on June 18 (-11.5%). The stock has since bounced back slightly to approximately $114 per share as Royal Gold’s ex-dividend date (June 30) drew nearer, as well as following news of its recent $100 million gold stream acquisition of NX Gold Mine in Brazil. The deal offers gold revenue, immediate cash flow, a large land package with significant exploration potential, underutilized installed processing capacity, and 25% of the gold produced from the NX Gold Mine until the delivery of 93,000 ounces (and 10% thereafter).
Joe Kramer
Ticker: VIAC
Name: ViacomCBS Inc.
Number of Shares Outstanding: 650.59M
Market Capitalization: $29.182B
Weekly Stock Price History
June 21, 2021 $40.96
June 22, 2021 $40.75
June 23, 2021 $41.84
June 24, 2021 $42.87
June 25, 2021 $43.82
June 28, 2021 $46.00
June 29, 2021 $44.63
June 30, 2021 $45.20
July 01, 2021 $44.95
July 02, 2021 $44.16
ViacomCBS inc. Executive Summary (7/01/21)
After an initial merger in 2000, Viacom and CBS separated in 2006, and merged again in 2019. ViacomCBS Inc. is a global media and entertainment company that offers premium experiences and content for audiences around the world. Its portfolio includes CBS, SHOWTIME, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Smithsonian Channel, Paramount+ (formerly CBS All Access) and Pluto TV, among others. It operates through three primary segments: TV Entertainment, Cable Networks, and Filmed Entertainment. TV Entertainment and Cable Networks account for approximately 90% of consolidated revenues, with Filmed Entertainment rounding out the remaining 10%. These segments generate revenue mainly from advertising sales, content licensing and distribution, affiliate revenues and from the release and distribution of films.
Over the past few months there’s been a great deal of movement of the price of VIAC caused by a few major events. From February to late March, the price rose from $52.33 to a 52-week high of $100.34, a 91.7% increase.This jump was after quarterly earnings were reported but was primarily in response to the launching of Paramount+. The day after the 52-week high there was a 9% drop following ViacomCBS’s $3 billion stock sale to finance its streaming operations. The price may have remained in that range had Bill Hwang and Archegos Capital not taken large derivative positions that were long VIAC. The banks through which they took these positions required them to post more collateral after VIAC dropped, forcing them to close out their positions in VIAC in large block trades. This led to a massive drop in the price of VIAC, down 55% in a week. Since then, VIAC has sat in the ~$40 range. It’s made some progress (+12%) in the past week thanks to rumors of a merger between ViacomCBS and Comcast, as well as a good performance at the box office this past weekend. If the merger were to take place, it would be beneficial to both Comcast and ViacomCBS, as Peacock and Paramount+ - and Universal Pictures and Paramount Pictures would have significantly more resources to work with.
Lexi Linafelter
Ticker: PYPL
Name: PayPal Holdings Inc.
Number of Shares Outstanding: 1.17B
Market Capitalization: $343.91B
Weekly Stock Price History:
June 21, 2021 $283.10
June 22, 2021 $286.75
June 23, 2021 $288.12
June 24, 2021 $293.21
June 25, 2021 $289.60
June 28, 2021 $293.65
June 29, 2021 $292.76
June 30, 2021 $291.48
July 01, 2021 $289.00
July 02, 2021 $290.24
PayPal Holdings Inc. is an international financial technology and payment processing company headquartered in San Jose, California. Its payment solutions allow customers to both send and receive payments through a global network that connects merchants and consumers with 305 million active accounts across more than 200 markets. PayPal is committed to secure, timely and easy-to-use payment services, and operates through subsidiaries including Gopay, Braintree (Venmo), Xoom, Hyperwallet, Simility, CyActive, FraudSciences and Honey to foster a positive consumer and merchant experience. PayPal primarily earns revenues through charging fees for completing payment transitions and other payment-related services that are typically based on the volume of activity on the Payments Platform. In recent news, PayPal announced this week that beginning July 20, 2021, Venmo will allow users to sell products and services through personal accounts, for a fee. The previous rules prohibited users from receiving money for business transactions through personal Venmo profiles and violation of this rule resulted in immediate account suspension. PayPal also announced that they will soon be launching in-store card reading technologies in the U.S. called Zettle, after subsidiary iZettle, a company specializing in developing payment systems technologies acquired in September 2018. This is an effort by Paypal to make a further impact in the in-store market, and challenge companies such as Square that already have a strong small business, in-person market presence.
Ticker: SQ
Name: Square, Inc.
Number of Shares Outstanding: 392M
Market Capitalization: $113.33B
Weekly Stock Price History:
June 21, 2021 $233.89
June 22, 2021 $235.97
June 23, 2021 $238.70
June 24, 2021 $244.15
June 25, 2021 $239.94
June 28, 2021 $246.60
June 29, 2021 $248.87
June 30, 2021 $243.80
July 01, 2021 $241.85
July 02, 2021 $241.08
Square, Inc. is an American financial services and digital payments company based in San Francisco, California. The company was founded in 2009 by Jack Dorsey and Jim McKelvey and launched its first platform in 2010. Square, Inc. revolutionized payments in 2009 with Square Reader, making it possible for anyone to accept payments using a smartphone or tablet. Today, they build tools to empower small businesses and individuals to participate in the economy. Sellers use Square to reach buyers online and in-person, manage their business and access financing. Also, individuals use the Cash App platform to spend, store and invest money. Square has offices in the United States, Canada, Japan, Australia, Ireland, Spain and the UK. Square earns revenue primarily through its P2P Cash App service; for consumers, transferring funds using the basic version of the platform is free, while for businesses, Square charges a 2.75% fee for every eligible transaction. In the first quarter of 2021, Square’s gross profit grew 79% year over year to $964 million, Cash App revenue specifically coming in at $495 million (a 171% increase year over year). This is in large part due to Square’s peer-to-peer competitive service to Venmo that began offering customers to instantly send Bitcoin for free. The company expects its gross profit to have grown by more than 135% in the second quarter for its seller ecosystem and by approximately 130% year over year for its Cash App.
Maxwell McIntosh
Ticker: ROKU
Name: Roku
Number of Shares Outstanding: 115.2 M
Market Capitalization: $57.682B
Weekly Stock Price History:
June 21, 2021: $382.73
June 22, 2021: $403.50
June 23, 2021: $421.70
June 24, 2021: $423.58
June 25, 2021: $430.94
June 28, 2021: $440.33
June 29, 2021: $440.48
June 30, 2021: $459.25
July 1, 2021: $435.67
July 2, 2021: $430.32
Roku Executive Summary (7/01/21)
After initially going public in 2017, Roku has ascended to becoming one of the leaders in the streaming industry. As consumers around the world decide to “Cut the Cord'' and move from traditional cable offerings, Roku aims to capture these audiences with their seamless streaming options. The company’s business is driven by its strong partnerships with Netflix, Amazon, Hulu and most recently Apple, which provide the platform with original content. As well as companies such as, TCL, Hisense and JVC, which have agreed to integrate the Roku Operating System into their hardware and sell branded Roku TVs. Additionally, after their acquisition of Dataxu in November 2019, Roku is focusing a portion of its business on utilizing targeted advertisements to drive revenue. Dataxu’s software allows for artificial intelligence to recognize the viewing patterns of consumers and recommend advertisements that are most applicable to their situation.
Roku’s stock has experienced a bullish move over the course of the last month gaining 25% of its current stock price within that time period. There have been several events fueling this move, beginning with the rumored acquisition of Roku by Comcast. Although it is unlikely this acquisition occurs, the possibility has led to speculation amongst investors. Additionally, Roku has pledged to invest a billion dollars into bringing original content to its platform and more specifically The Roku Channel. This would place Roku in direct competition with its partners – Netflix, Amazon and Hulu, among others – but allow it to manufacture an additional stream of revenue. Just this week, The Demi Lovato Show premiered on The Roku Channel as “the first of more than a dozen Roku® Originals programs,” according to the company’s most recent press release. This may lead to an increase in interest in the company and the possibility of greater financial prospects in the near future.
Mary Kate McIntyre
Ticker: NVDA
Name: Nvidia Corporation
Number of Shares Outstanding: 623M
Market Capitalization: $504.645B
Stock Price History :
June 21, 2021: $737.09
June 22, 2021: $755.47
June 23, 2021: $762.29
June 24, 2021: $768.22
June 25, 2021: $761.24
June 28, 2021: $799.40
June 29, 2021: $801.07
June 30, 2021: $800.10
July 1, 2021: $809.12
July 2, 2021: $819.48
NVIDIA Corporation Executive Summary (7/01/21)
Nvidia Corporation is a visual computing company that operates in two segments: Graphics, with GPU products and streaming services for gaming, enterprise design and automotive platforms; and Compute & Networking, which includes systems for AI, HPC and accelerated computing. Nvidia sells products in the gaming, professional visualization, data center and automotive markets. In September 2020, NVIDIA announced its proposed acquisition of Arm Ltd, a British semiconductor company that licenses its processor core designs and architecture for microchips, in a transaction valued at $40 billion. The deal has some antitrust obstacles to overcome from national security reviews by U.K. authorities, and clearance from the U.S. and China. This Monday, June 28, three of Arm’s biggest customers, including Broadcom, Media Tek and Marvell Technologies, voiced their support of the deal, significantly raising the outlook of successful acquisition, estimated to close in the first quarter of calendar year 2022. The acquisition of Arm has huge potential for growth opportunities in AI, supporting innovations in healthcare, life sciences, robotics, self-driving cars and other fields. The national security review report is due July 30, 2021. Additionally, the recently proposed four-for-one stock split, which aims to make the shares more accessible to both investors and employees, will go into effect at the opening of trading on July 20.
Naia Morse
Ticker: LULU
Name: lululemon athletica, inc.
Market Capitalization: 49.224 billion
Shares Outstanding: 124.95 million
Stock Price History:
June 21: $352.29
June 22: $360.09
June 23: $358.26
June 24: $362.84
June 25: $365.00
June 28: $365.06
June 29: $363.79
June 30: $366.34
July 1: $363.79
July 2: $368.47
lululemon athletica, inc. Update (7/1/21)
lululemon athletica, inc. is a leading athletic apparel company for yoga, running, training and other athletics with more than 500 company-operated stores in 17 countries. Back during the second quarter of 2020, lululemon completed its first acquisition, Curiouser Products Inc., with the purchase of MIRROR. MIRROR is an in-home fitness company with an interactive workout platform that features live and on-demand classes. This acquisition outstandingly expanded its digital sweatlife offerings and brought immersive and personalized in-home sweat and mindfulness content to new and existing lululemon guests throughout the COVID-19 pandemic. Due to the shift towards online shopping from the COVID-19 pandemic, MIRROR served as an acquisition to direct customers to lululemon. As a result, lululemon doubled its e-commerce business this past fiscal year (F2020), sooner than it projected (F2023) in its agenda. With its commitment to last October’s initial Impact Agenda, more sustainable and environmentally responsible athletic apparel and accessories should be on the rise.
Kendall Smart
Ticker: MAC
Name: Macerich
Number of Shares Outstanding: 206.52M
Market Capitalization: 3.83B
Stock Price History:
June 21, 2021: $17.77
June 22, 2021: $17.71
June 23, 2021 $18.19
June 24, 2021: $18.38
June 25, 2021: $18.43
June 28, 2021: $18.49
June 29, 2021: $18.36
June 30, 2021: $18.25
July 1, 2021: $18.50
July 2, 2021: $18.70
Macerich: Executive Summary (7/1/21)
Macerich is a self-administered and self-managed REIT (Real Estate Investment Trust) and is the third largest owner, operator and developer of major retail shopping centers in the United States. They have 52 regional and/or community shopping centers located in densely populated areas, focusing where consumers with plenty of disposable income congregate. With over 50 million square feet of retail space and 172 anchor tenants, Macerich properties are dominant in California, the Pacific Northwest, Arizona, Chicago, Metro New York and Washington DC.
Recently, Macerich has been focusing on combating the effects of the COVID-19 pandemic on the retail industry, and claims they are well positioned to benefit in a post-pandemic environment despite an increase in retail bankruptcies over the past year; 147 new stores have opened during 2020 (875,000 square feet), and only eight stores have failed to complete pre-COVID plans (25,000 square feet). On May 20, Macerich announced that it would be replacing the Nordstrom department store, which closed due to the pandemic last summer, with the first SCHEELS in Arizona. This store will be a 220,000-square-foot property in the Chandler Fashion Center with two levels, and will have entertainment attractions and shops for a wide variety of consumers, along with a 16,000-gallon aquarium, wildlife mountain, restaurant and candy shop. Ed Coppola, the president of Macerich, states “Nordstrom’s closure during the pandemic presented a unique opportunity for the shopping center, the community, and our investors. We moved quickly and were able to announce SCHEELS within a week after acquiring the building, a testament to the superior quality of our retail properties. SCHEELS is the best-in-class sporting goods retailer and we are very pleased that they have chosen to open the first story in Arizona at Chandler Fashion Center.”
David Kogan
Ticker: NXPI
Name: NXP Semiconductors
Number of Shares Outstanding: 275M
Market Capitalization: 56B
Stock Price History:
June 21, 2021 $198.46
June 22, 2021 $197.40
June 23, 2021 $199.15
June 24, 2021 $203.83
June 25, 2021 $204.17
June 28, 2021 $206.18
June 29, 2021 $207.70
June 30, 2021 $205.72
July 1, 2021 $202.25
July 2, 2021 $202.73
Company Profile:
NXP Semiconductors is a global semiconductor company and a long-standing supplier in the industry. In addition to supplying chips, NXP manufactures and designs its own multichip modules, electronic products and software for its chips. The company is a combined portfolio of intellectual property, deep application knowledge, process technology and manufacturing expertise in cryptography, high-speed interface, radio frequency, mixed-signal analog-digital, power management, digital signal processing and embedded system design. End-market applications include automotives, industrial and Internet of things, mobile and communication infrastructure.
On June 28, 2021, NXP announced successfully using GaN (Gallium Nitride) technology for Multichip modules for energy efficient mobile networks. NXP combines several technologies together to create lighter and more efficient radios that also consume less power, which is vital to supporting upcoming 5G infrastructure. The increase in efficiency is 8% over the last generation of NXP radio module technology.
Alex Chang
Ticker: TTCF
Name: Tattooed Chef, Inc.
Number of Shares Outstanding: 81.94M
Market Capitalization: 1.717B
Stock Price History:
June 21, 2021: $20.12
June 22, 2021: $20.03
June 23, 2021: $20,15
June 24, 2021: $20.16
June 25, 2021: $20.00
June 28, 2021: $20.25
June 29, 2021: $21.03
June 30, 2021: $21.45
July 1, 2021: $21.40
July 2, 2021: $20.96
Tattooed Chef, Inc. Executive Summary (7/1/2021)
Tattooed Chef, Inc. is a leading plant-based food company with a wide range of sustainably sourced innovative products. Their diverse product portfolio includes ready-to-cook bowls, zucchini spirals, riced cauliflower, acai and smoothie bowls, Mexican-style street corn, and cauliflower pizza crust, all available in the frozen food sections of many leading national food retailers across the country. Their tagline of providing food to “People Who Give a Crop” embodies their goal of providing nutritious, fresh, high-quality food to promote wellness for people and for the planet. With full ownership over their farming and production operations pipeline (farm-to-table), and a commitment to meeting the various new and developing diets and busy lifestyles of a growing number of customers looking for sustainably-sourced plant-based food, Tattooed Chef has emerged as a potential challenger to traditional plant-based food providers such as Beyond Meat and Impossible Foods. Following the well-received news of Tattooed Chef’s acquisition of New Mexico Food Distributors on May 18 of this year, seen as a manifestation of TTCF’s strategy of providing as wide a range of products as possible, TTCF stock rose as high as $22.34 on May 31. Though the stock is heavily shorted, with a short percentage of float (as of June 15) as high as 24.83%, expect TTCF to continue to promote its brand among its stated target demographics of millennials and Gen Z and to make a name for itself as a premier company in a growing sector of the food industry.
Logan Chang
Ticker: ATVI
Name: Activision Blizzard, Inc.
Number of Shares Outstanding: 777.02M
Market Capitalization: $72.775B
Stock Price History:
June 21: $91.82
June 22: $91.88
June 23: $90.79
June 24: $92.51
June 25: $92.26
June 28: $95.40
June 29: $95.61
June 30: $95.73
July 1: $93.90
July 2: $94.27
Activision Blizzard, Inc. Executive Summary (7/1/21)
Activision Blizzard Inc. is a digital entertainment company known for producing video game franchises like Call of Duty, World of Warcraft and Candy Crush. The company operates in three segments: Activision Publishing, known for producing Call of Duty; Blizzard Entertainment, known for creating World of Warcraft and Overwatch; and King Digital Entertainment, known for the hit-mobile franchise Candy Crush. Although Activision Blizzard continues to profit from releasing new premium full-games, like Call of Duty: Modern Warfare and World of Warcraft: Shadowlands, its inherent business model has begun to evolve. Increasingly, Activision Blizzard has placed a greater focus on deepening player investment in its games with more frequent downloadable in-game content updates, free-to-play offerings and expanding compatible devices to mobile smartphones. The recurrent incremental release of content not only provides additional high-margin revenues but also increases player engagement, as opposed to the traditional “seasonality” of the video game industry driven by the timing of new premium full-game releases. In the second half of 2021, Activision Blizzard expects to deliver ongoing content for its various franchises. This includes continued in-game content releases for Call of Duty: Black Ops Cold War—which includes seasonal content updates for Call of Duty: Warzone and Call of Duty: Mobile—along with content updates for World of Warcraft, expansion packs and content updates for Hearthstone, and an ongoing focus on the Candy Crush franchise. Activision Blizzard also looks to improve their standing in the mobile gaming industry with the anticipated releases of Crash Bandicoot: On the Run! and Diablo Immortal.
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