Trendi

Shein moving IPO to London

- Shein is a fast-fashion giant that was founded in China but is now based in Singapore

- It is considering switching its IPO from New York to London due to regulatory hurdles and scrutiny over its supply chain and ties to China

- It is seeking a valuation of $80 billion to $90 billion and could be one of London's biggest ever listings

- It has a loyal customer base, especially among Gen Z, and has outperformed its rivals during the pandemic with its low prices and fast delivery

EU's GRANOLAS

- Granolas is an acronym coined by Goldman Sachs for 11 European stocks that are internationally exposed, quality growth compounders with strong balance sheets and dividends

- They are: GSK, Roche, ASML, Nestle, Novartis, Novo Nordisk, L'Oreal, LVMH, AstraZeneca, SAP and Sanofi

- They account for almost a quarter of the Stoxx 600 market cap and have dominated the European market performance in the past year

- They have also outperformed the US Magnificent Seven tech giants over the past two years on a risk-adjusted basis

- They are diversified across healthcare, consumer staples and tech sectors and have solid earnings growth prospects

The Streaming Market

- The streaming market consists of video-on-demand (VOD) and music streaming services that deliver content over the internet

- The global streaming market size was valued at $455.45 billion in 2020 and is projected to grow at a CAGR of 19.3% from 2021 to 2030

- The US is the largest streaming market in the world, accounting for nearly 58 billion U.S. dollars of VOD revenue and more than 14.2 billion U.S. dollars of music streaming revenue in 2020

- The streaming market is highly competitive and fragmented, with many players vying for subscribers and content

- Some of the leading streaming platforms are Netflix, Disney+, Amazon Prime Video, Hulu, Spotify, Apple Music, YouTube Music and Pandora

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Expedia’s Earnings/Forecast: Expedia Group reported annual revenues of $13 billion, aligning with forecasts, and anticipates a revenue increase to $14 billion in 2024. Despite a recent dip in share price, earnings per share (EPS) are expected to surge to $9.261. The travel industry’s rebound post-pandemic is a driving force behind this growth, with Expedia poised to capitalize on the renewed wanderlust of consumers.

Krispy Kreme’s Performance: Krispy Kreme exhibited a robust performance with an 11.4% increase in net revenue to $450.9 million. Organic revenue growth stood at 13.2%, showcasing the company’s effective expansion strategy. However, operating income experienced a downturn, reflecting the costs associated with global expansion efforts2. Innovative product offerings and strategic market penetration fuel Krispy Kreme’s growth trajectory.

Top 5 Largest Private Unicorn Companies: The leading unicorns, based on valuation, are ByteDance ($225 billion), SpaceX ($150 billion), SHEIN ($66 billion), Stripe ($50 billion), and Databricks ($43 billion)3. These companies have disrupted traditional markets with technological advancements and innovative business models, contributing to their massive valuations.

Market Impact and Consumer Trends: The success of these companies reflects a broader trend toward digitalization and market disruption. Consumers benefit from enhanced services and products, while markets experience increased competition and innovation. The trend will likely persist as these companies expand their influence and drive industry standards.

Economic Implications: Investing in these sectors offers the potential for significant returns as they are at the forefront of technological innovation and consumer trends. These companies' revenue and market cap growth indicate a strong potential for continued expansion and profitability.

Growth Potential: The large players in these spaces have demonstrated remarkable resilience and adaptability, suggesting their growth potential remains high. Their ability to innovate and capture market share is a testament to their long-term viability and influence on global markets.

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Piracy growth: Internet piracy is surging as users seek free and convenient access to digital content amid the proliferation of streaming services. Piracy sites received 141 billion visits in 2020, a 13% increase from 20191. Piracy harms the economy, the creators, and the consumers, reducing revenue, jobs, and innovation. Piracy also exposes users to malware, fraud, and legal risks.

LVMH portfolio size: LVMH is the world’s largest luxury goods group, with 75 prestigious brands in various sectors, such as fashion, jewelry, perfumes, and wines. LVMH’s revenue in 2020 was 44.7 billion euros, a 17% decline from 2019 due to the COVID-19 pandemic. However, LVMH’s revenue in 2021 was 86.2 billion euros, a 93% increase from 2020, as the luxury market recovered strongly. LVMH’s market cap as of February 9, 2024, was 403.6 billion euros.

Fair Issac Corp performance: Fair Issac Corp (FICO) is a leading provider of analytics software and credit scores. FICO’s revenue in 2020 was 1.2 billion dollars, a 7% increase from 2019. FICO’s revenue in 2021 was 1.5 billion dollars, a 25% increase from 2020. FICO’s revenue in the first quarter of 2022 was 382 million dollars, a 14% increase from the same quarter of 20216. FICO’s market cap as of February 9, 2024, was 32.7 billion dollars.

These three topics are related to the trends of digital transformation, consumer behavior, and data analytics, which are likely to continue and shape the future of various industries and markets. Investors, businesses, and consumers should consider these trends and their implications.

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This podcast explores three trends worth investing in for the future: the JOLTs report, airport stocks, and dating stocks. The JOLTs report shows the demand and supply of workers in the US labor market and reveals a paradox of high job openings, low hires, and high quits. This indicates a mismatch between workers and employers and a labor supply shortage.

Airport stocks have been recovering from the COVID-19 pandemic, as air travel demand has increased due to the vaccine rollout, the lockdown easing, and the consumer confidence restoration.

Dating stocks have grown as online dating has become more popular and mainstream, especially among younger generations. Match Group is a company dominating the online dating market, as it has a large and loyal user base, a diversified portfolio of brands, and a robust innovation pipeline.

These trends are exciting and profitable but also impactful and meaningful, as they can potentially improve our lives, society, and planet. However, investing in any trend or company involves risks and uncertainties, so you should always research and diligence before making investment decisions.

Traditional news faces a reckoning as layoffs and digital competition bite. MercadoLibre, Latin America's e-commerce king, feasts on the mobile boom, growing at 82% and diversifying with fintech. 2023's stock stars were energy giants like ExxonMobil, riding high on oil prices, and tech titans like Microsoft, resurgent in cloud computing. This trend isn't fading: MercadoLibre's market cap of $83 billion and Microsoft's at $2.5 trillion hint at their dominance and growth potential. Consumers get diverse digital marketplaces, and healthcare giants like UnitedHealth thrive while energy prices remain high. Markets adapt, with new investment opportunities emerging in digital media and Latin American e-commerce. The future is digital, mobile, and diversified – prepare for the ride.

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In this episode, we discuss the latest trends and predictions for 2024 in the fields of AI and Web3, two of the most exciting and disruptive technologies of our time. We also cover the performance of the capital markets and the economy, the energy transition, and the challenges and opportunities in the venture capital ecosystem. Tune in to hear our insights and analysis on the state of the world and the future of innovation.

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Blackstone (NYSE: BX) acquired Rover, the world's largest network of pet sitters and dog walkers, for $1.35 billion in November 2023. The private equity firm sees Rover as a leader in the fast-growing online pet care market, which is expected to reach $54.9 billion by 2027, growing at a compound annual growth rate (CAGR) of 8.6% from 2020 to 2027. Blackstone plans to invest in Rover's growth, expansion, and innovation and leverage its expertise and resources to help Rover scale its platform and services. Blackstone's stock has been performing well, reaching an all-time high of $152.68 on November 29, 2023. The company reported a revenue of $23.4 billion and a net income of $6.8 billion for the fiscal year 2020, up 14% and 9%, respectively, from the previous year, 2023. Blackstone faces competition from other private equity firms, such as KKR, Carlyle, and Apollo, who are also active in the pet care sector. However, Blackstone has a strong track record, a diversified portfolio, and a large capital base, which could help it capitalize on the pet care opportunity.

Cigna (NYSE: CI) is in talks to merge with Humana, another major health insurer, in a deal that could be finalized by the end of this year, according to the Wall Street Journal. The merger would create a new powerhouse in the health care industry by combining Cigna's strength in the employer-sponsored and individual markets with Humana's leadership in the Medicare Advantage market. This would create a more diversified and competitive player in the health insurance space, generating significant cost savings and synergies and enhancing the companies' capabilities in digital health, value-based care, and pharmacy services. Cigna's stock has been on a steady rise, reaching a 52-week high of $268.25 on November 29, 2023. The company reported a revenue of $160.4 billion and a net income of $8.5 billion for the fiscal year 2020, up 11% and 66%, respectively, from the previous year. Cigna faces competition from other health insurers, such as UnitedHealth, CVS Health, and Anthem, who are also pursuing mergers and acquisitions to expand their scale and scope. However, Cigna has a loyal customer base, a broad network of providers, and a strong innovation culture, which could help it maintain its leadership position in the healthcare market.

JPMorgan Chase (NYSE: JPM) benefits from the higher interest rate environment, boosting its net interest income and margins. Higher interest rates also reflect a stronger economy and higher demand for loans, which increase the bank's lending and fee income. The bank is also well-positioned to weather any potential financial stress or volatility, as it has a robust capital and liquidity position, a diversified business mix, and a prudent risk management strategy. JPMorgan Chase's stock has been bullish, reaching an all-time high of $172.75 on November 8, 2023. The bank reported revenue of $122.9 billion and a net income of $29.1 billion for the fiscal year 2020, up 4% and 20%, respectively, from the previous year. JPMorgan Chase faces competition from other banks, such as Bank of America, Citigroup, and Wells Fargo, who also benefit from the higher interest rate environment. However, JPMorgan Chase has a leading market share, a loyal customer base, and a strong innovation culture, which could help it outperform its peers in the banking sector.

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