Good morning. Happy Friday.
The Asian/Pacific markets did well. Hong Kong, South Korea, Indonesia, Singapore and Thailand led while India lagged. China was closed. Europe, Africa and the Middle East are quiet. Greece, South Africa, Norway and Austria are up; Turkey and the UAE are down. Futures in the States point towards a down open for the cash market.
————— Masterclass Overview –>> here —————
The dollar is up slightly. Oil is up; copper is down. Gold is up; silver is down. Bonds are down.
Stories/News from Seeking Alpha…
Silicon Volley
A war over silicon is brewing between the world’s two largest economies as the U.S. looks to isolate China from one of the most important technologies of the future. This past summer saw the passing of the CHIPS ACT, which allowed the federal government to pour billions of dollars into the semiconductor sector to “lead the world in future industries and protect national security.” The Biden administration followed up on the measures with serious export controls to prevent U.S. firms – or any global company that uses their tech – from selling chip designs, software and equipment to Beijing (it also prohibited American nationals from working with Chinese chip companies to slow their technological advances).
Backdrop: Chips are used in just about everything today, making the modern economy possible, but the bigger concerns here are those used in sensitive military technologies. The most advanced integrated circuits let nations stay far ahead of their rivals in terms of weapons systems and intelligence gathering, and more broadly, are a statement of geopolitical power. As China grows its influence, the country has been making strides towards producing its own advanced chips, and has even surprised the U.S. with its latest military developments (remember the Chinese hypersonic missile test that went around the world in 2021?).
Until now, the U.S. has outsourced the manufacturing of its most advanced chips to Taiwan, which has become increasingly threatened by its forceful neighbor China. Taiwan Semiconductor Manufacturing Company (NYSE:TSM) and other local fabs account for 92% of the world’s advanced semiconductor production, according to the Semiconductor Industry Association, and former House Speaker Nancy Pelosi even saw it necessary to meet with TSMC executives directly during a tension-filled visit to the island last summer. The move highlighted the significance of the company to American security, and its shares are up nearly 10% since the visit. Steve Cress, Head of Quantitative Strategies at Seeking Alpha, recently identified TSMC as one of the top 10 tech stocks for 2023 (see the others here).
Go deeper: The U.S. is now trying to protect the rest of the advanced chip supply chain by forging an alliance that will curtail China’s ability to produce its own domestic silicon. Talks are set to conclude today with Japan, the biggest supplier of chip wafer, metals and chemicals, as well as the Netherlands, known for its deep ultraviolet lithography machines used to carve advanced chips. Restrictions are likely to be imposed on ASML (NASDAQ:ASML), Nikon (OTCPK:NINOY) and Tokyo Electron (OTCPK:TOELY), building on earlier business rules and trading regulations, and marking the latest salvo in the semiconductor war. (23 comments)
Weak guidance
Speaking of chips, Intel (INTC) is out with one of the worst quarterly outlooks in its history, with a forecast that missed estimates by billions of dollars. “Persistent macro headwinds will continue in the near term,” CEO Pat Gelsinger said on the earnings call as the stock slumped 9%, and outlined that Intel would continue to “prioritize investments critical to our transformation” (how’s the $20B fab going in Ohio?). The dividend may be in danger, warns SA Marketplace Jonathan Weber, adding that profitability remains under pressure and Intel continues to lose market share in important areas such as data centers. (285 comments)
More data
The initial estimate of Q4 GDP arrived yesterday, showing the economy expanded at a 2.9% annualized rate, compared to forecasts of 2.6%. The Fed is likely to mark that data as “resilient” – despite a deceleration from Q3 – giving policymakers room to start the year with a couple more rate hikes. At the same time, durable goods orders for December came in at 5.6%, above the expected 2.5% level, while weekly initial jobless claims hit a 9-month low with claims falling 6K to 186K. The major stock averages rallied on the news, while December new home sales topped estimates and added to the upbeat sentiment. (236 comments)
Lots of buzz
Already sharply higher from a report that Meta (META) would pay it millions to boost creator content, BuzzFeed (BZFD) surged more than 120% on Thursday (and shares are up another 20% premarket). A second report stated that the viral media company will use ChatGPT creator OpenAI to help build some content, such as quizzes and personalizing material, though it will remain focused on human-generated journalism in the newsroom. It comes after digital publisher CNET paused a recent test using internal AI tech to create “explainer” stories about financial services after finding factual errors. (3 comments)
We want your feedback! Reply to this email, or send a message to wsbfeedback@seekingalpha.com.
Today’s Economic Calendar
8:30 Personal Income and Outlays
10:00 Consumer Sentiment
10:00 Pending Home Sales
1:00 PM Baker-Hughes Rig Count
What else is happening…
Compared to tech layoffs, Chipotle (CMG) to hire 15K new employees.
Travel demand: Airbus (OTCPK:EADSY) expanding workforce by 13K.
Report: Elliott prepares slate of nominees for Salesforce (CRM) board.
Southwest Airlines (LUV) earnings dinged by holiday meltdown.
Bed Bath & Beyond (BBBY) slides after reiterating financial obstacles.
IPO comeback? Stripe (STRIP) may go public within the next year.
FDA advisory panel suggests regular bivalent COVID immunization.
What do Mastercard (MA) earnings say about the credit market?
Blackstone (BX): Capital costs could become tailwind for real estate.
This popular tech ETF leads all in capital outflows, despite rising 8% YTD.
—————
Good morning. Happy Thursday.
The Asian/Pacific markets leaned to the upside. Hong Kong, South Korea, Indonesia and Singapore lead while Thailand and the Philippines lagged. China was closed. Europe, Africa and the Middle East are mostly up. Denmark, Poland, Turkey, France, Greece, South Africa, Hungary, Spain, the Netherlands, Italy, Portugal and the Czech Republic are up; Israel is down. Futures in the States point towards a modest gap up open for the cash market.
————— Masterclass Overview –>> here —————
The dollar is up. Oil is up; copper is down. Gold is down; silver is up. Bonds are down.
Stories/News from Seeking Alpha…
The GDP key
Investors looking for signs of how strong or weak the economy actually is will get no better data point than what’s set to be released this morning. The U.S. Commerce Department will publish its initial gross domestic product figure for the fourth quarter, which is expected to expand by a 2.6% annualized rate, slowing from the 3.2% pace recorded in Q3. Remember, that the U.S. already entered a technical recession in the first half of 2022, and many are quite worried that an actual recession could take place in 2023 – if the unemployment rate rises precipitously and the Fed isn’t able to pull off a soft landing.
Fragile or resilient? Data points have been all over the place in recent months, implying mixed signals about the economy and its various sectors. Retail sales have weakened and factory production has declined along with activity in the housing market. Other spending figures point to a strong consumer and slowing inflation, while the unemployment rate remains at record lows despite big layoffs in growth-oriented sectors like technology.
“Industrial production has been down for three months and capacity utilization has been down for eight months, signs that a recession is either here or very near,” writes SA contributor John Mason. “The variables tend to be biased toward the ‘real’ part of economic output, not taking in things like services, but they still tend to capture movements in the economy that are a little bit ahead of the more general changes that most people look at.” See the entire Seeking Alpha article here.
Speaking of the economy: As the White House stares down a potential recession with limited fiscal options, President Biden is likely to highlight what the alternatives would be to his current economic policy. He’ll likely hone in on those today as he decries GOP proposals – like the national sales tax – in his first major economic speech of the year. When faced with recessions in the past, Democrats and Republicans have worked together on fiscal stimulus measures, like suspending the payroll tax or extending unemployment insurance, but that looks less likely this time around, especially as they spar over the debt ceiling.
Electrified outlook
Upbeat commentary from Elon Musk during Tesla’s (TSLA) Q4 earnings call helped shares soar 5.5% during Wednesday’s extended session. During the presentation, Musk offered his perspective on the state of the U.S. economy, autonomous driving and Tesla’s position as an AI company, but his most impactful statements pertained to production and sales outlooks for the full year (see the full transcript here). CFO Zachary Kirkhorn added that price cuts in the U.S. were pursued in light of tax regulations, not demand concerns. Cybertruck also remains on track to see production start later in the year from the Austin Gigafactory, while Tesla plans to share details on its next-generation vehicle at its upcoming Investor Day on March 1. (261 comments)
Trump is back
Meta Platforms (META) is reinstating former President Donald Trump’s accounts on Facebook and Instagram after a two-year suspension following the U.S. Capitol attack on Jan. 6, 2021. “The public should be able to hear what their politicians are saying – the good, the bad and the ugly – so that they can make informed choices at the ballot box,” said Nick Clegg, the company’s president of Global Affairs. Trump will still be subject to Community Standards like any other user, but will return with “new guardrails to deter repeat offenses” (Clegg discusses what the framework will look like here). Digital World Acquisition (DWAC), the blank-check company tied to Trump’s Truth Social media efforts, fell 2% in premarket trading on the news. (124 comments)
Are jets next?
A decision by the U.S. and Germany to send battle tanks to Ukraine has reignited discussions on more advanced weapons platforms, such as fighter aircraft. Lockheed Martin (NYSE:LMT) COO Frank St. John has revealed that there is “a lot of conversation about third party transfer of F-16s,” under which countries would re-export their U.S.-made jets (the company is even ramping up production to backfill the aircraft). While the Biden administration has so far rejected Ukrainian requests and approvals for modern fighter jets, it also opposed the delivery of modern battle tanks, before reversing its policy on Wednesday. Earlier this week, Lockheed’s 2022 sales reflected supply chain and program-specific pressures in its Q4 results, according to SA author Dhierin Bechai, who added that 2023 will be equally challenging. (19 comments)
Today’s Economic Calendar
8:30 Durable Goods
8:30 GDP Q4
8:30 International Trade in Goods (Advance)
8:30 Initial Jobless Claims
8:30 Chicago Fed National Activity Index
8:30 Retail Inventories (Advance)
10:00 Wholesale Inventories (Advance)
10:00 New Home Sales
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $35B, 7-Year Note Auction
4:30 PM Fed Balance Sheet
What else is happening…
Report: Fed’s Brainard on shortlist to head National Economic Council.
Tobacco giants are looking at deal options with Juul (JUUL).
AT&T (T) hits six-month high as analysts see ‘reset’ in outlook.
IBM (IBM) ‘confident’ on strategies, will cut 3,900 jobs.
Shopify (SHOP) surges over 10% on pricing plan increases.
The consumer: Kimberly-Clark (KMB) drops on sales volume slump.
Boeing (BA) reports loss, but first positive FCF since 2018.
Chevron (CVX) announces $75B stock buyback, boosts dividend.
U.S. natural gas slides below $3 for first time in 19 months.
‘NOPE’ got that right – it’s the worst performing ETF of 2023.
—————
Good morning. Happy Wednesday.
The Asian/Pacific markets leaned to the upside. Japan, Hong Kong, China, South Korea, Singapore and the Philippines did well; India and Indonesia were weak. Europe, Africa and the Middle East are mostly down. Denmark, Poland, Turkey, Finland, Hungary, the Netherlands, Israel and Sweden are down more than 1%. Futures in the States point towards a relatively big gap down open for the cash market.
————— Masterclass Overview –>> here —————
The dollar is down slightly. Oil and copper are down. Gold and silver are down. Bonds are up.
Stories/News from Seeking Alpha…
Incoming!
As the war in Ukraine approaches the one-year mark, there is no end in sight to the fighting. Hoping to boost its success on the battlefield, Kyiv has been pressing the West for months to provide its most modern tanks as both sides dig in for the long haul. The U.S. has been reluctant to fulfill the request – citing fuel consumption, training and maintenance – and supplying powerful direct offensive weapons in the conflict appeared to be a red line… until now.
Meet the M1 Abrams: Looking to break a diplomatic logjam with Germany, the Biden administration is set to provide several dozen of its main battle tanks to Ukraine in a major policy reversal. Berlin had said it would only send their domestically made Leopard 2 tanks if the U.S. sent the Abrams first, while the U.K. and Poland piled on the pressure by announcing plans for their own tank deliveries. While the latest decision will heal the divisions, getting the tanks over to Ukraine could still take months, or even a year. Officials have said the tanks would be supplied under an upcoming Ukraine Security Assistance Initiative, meaning the package wouldn’t result in another drawdown of U.S. stock, but would rather come from a new contract or a refurbishment of Abrams tanks from another country. See all the U.S. equipment committed to Ukraine and their replacement contract status.
The M1 Abrams has been in service since the 1980s, and is manufactured by General Dynamics (GD), which is scheduled to report earnings before the bell this morning (here is a preview as a possible cut to defense spending looms). Ahead of the Q4 results, SA contributor Christopher Robb touts the company’s strong backlog and management team, as well as future defense revenue that’s from “sacred cow” projects. For those looking for a well-paying dividend aristocrat, investors might also turn to General Dynamics, which has raised its payout every year for the last quarter-century.
Russian response: “Deliveries of offensive weapons to the Kyiv regime will lead to a global catastrophe,” said Vyacheslav Volodin, speaker of the Russian Duma lower house of parliament. “If Washington and NATO countries supply weapons that will be used to strike civilian cities and attempt to seize our territories, as they threaten, this will lead to retaliatory measures using more powerful weapons. Arguments that the nuclear powers have not previously used weapons of mass destruction in local conflicts are untenable. Because these states did not face a situation where there was a threat to the security of their citizens and the territorial integrity of the country.” (27 comments)
Grantham speaks
At the beginning of 2022, legendary fund manager Jeremy Grantham, whose resume includes predictions of Japan’s asset price bubble in the 1980s, and the U.S. market crashes in 2000 and 2007, explained that we are in the fourth superbubble of the last hundred years. Since then, U.S. stocks and bonds have lost $10T and $5T, respectively, in addition to an unexpectedly large loss of $2T in cryptocurrency. Where will things go from here? While the most extreme froth has been wiped off the market, Grantham follows up on his investing thesis in the latest article entitled, After A Timeout, Back To The Meat Grinder! (22 comments)
Earnings flurry
While initially climbing 5% in after-hours trading Tuesday, Microsoft (MSFT) gave back the gains to end the session 2% lower. The software giant reported fiscal second-quarter earnings that surpassed expectations – as sales of Azure cloud and Office services grew from a year ago – but it was followed by a downbeat outlook and an announcement that new business growth slowed in December. AI is the ‘next platform wave’ for success, CEO Satya Nadella said on a conference call, before a network outage hit Microsoft Azure, Teams and Outlook worldwide. In other tech news, Google (GOOG, GOOGL) was officially sued by the U.S. Department of Justice over online advertising antitrust violations. (131 comments)
What happened?
A technical glitch and subsequent halts caused a chaotic open on Wall Street yesterday, in one of the biggest snafus to hit the New York Stock Exchange (ICE) in years. It appears that the NYSE failed to carry out an opening auction for dozens of stocks, meaning there weren’t any accurate “Limit Up Limit Down” bands, but read more about that process here. Traders on the beat were scurrying for arbitrage opportunities, with outsized moves taking place for AT&T (T), Exxon (XOM), Uber (UBER), Wells Fargo (WFC) and Walmart (WMT). The SEC – which is considering routing most retail orders through auctions at exchanges – is investigating. (120 comments)
Today’s Economic Calendar
7:00 MBA Mortgage Applications
10:00 State Street Investor Confidence Index
10:30 EIA Petroleum Inventories
11:00 Survey of Business Uncertainty
11:30 Results of $24B, 2-Year FRN Auction
1:00 PM Results of $43B, 5-Year Note Auction
What else is happening…
GE (GE) profit rises as demand for jet engines outpaces energy.
Lockheed Martin (LMT) tops earnings and revenue expectations.
3M (MMM) cuts manufacturing roles as macro woes likely to persist.
Will Tesla (TSLA) reveal Nevada semi-truck plant during earnings today?
This income ETF has a 12% dividend yield and nearly $20B in assets.
J&J (JNJ) hit by forex and vaccine sales, outlook above estimates.
Murdoch calls off plan to re-merge Fox (FOX) with News Corp. (NWS).
Verizon (VZ) gains even as analysts see ‘weak’ 2023 outlook.
AT&T (T) earnings preview: It’s all about the cash flow.
Walmart (WMT) raises minimum wage to $14, adds new benefits.
Bed Bath (BBBY) is perky again even as bankruptcy concerns circulate.
—————
Good morning. Happy Tuesday.
The Asian/Pacific markets leaned to the upside. Japan, Hong Kong and China did well. Europe, Africa and the Middle East are lean down, but other than Turkey and Sweden (both down), there are no outstanding movers. Futures in the States point towards a negative open for the cash market.
————— VIDEO: Wayne Whaley’s TOY Barometer —————
The dollar is down slightly. Oil is up a small amount; copper is down. Gold is flat; silver is flat. Bonds are up.
Stories/News from Seeking Alpha…
Earnings parade
Earnings season will kick into overdrive today as tech giants begin to report their quarterly results. Microsoft (MSFT) is scheduled to start the festivities after the bell, with a set of results that come during a period of notable changes at the company. For one, Microsoft just revealed plans to lay off 10,000 employees (along with a related charge of $1.2B), and yesterday, the company – which revolutionized the computing industry – confirmed it would make a “multi-billion dollar” investment in ChatGPT developer OpenAI.
Snapshot: Analysts are likely to raise questions over how both events might impact Microsoft’s business throughout 2023, so stick around for the conference call or catch the transcript later on Seeking Alpha. SA Marketplace author Dilantha De Silva recently discussed the long-term implications of the OpenAI investment and whether Microsoft can gain an edge over Google (GOOG, GOOGL). Also pay attention to Microsoft’s segment financials and recurring revenue growth momentum, according to contributor Business Quant, while Tradevestor says it is high time for a stock split. Do you agree?
Things are likely to get volatile as earnings pour in, but so far, tech stocks have had a great start to the new year. The Nasdaq Composite Index (COMP.IND) is up nearly 10% in 2023 after getting pummeled last year as the Fed floored the accelerator on interest rates. There are still several catalysts that could derail things, so keep an eye on what corporations say about rising costs and a strong dollar, as well as slowing economic growth and other macro headwinds.
WSB poll results: Out of the 1,150 subscribers who participated in yesterday’s survey – entitled “The $1T Question” – 73% said a one-trillion dollar coin solution should not be used to solve the current debt ceiling crisis. Out of the remaining participants, 16% weren’t sure and only 11% felt it would be appropriate. Watch your portfolios as this story continues.
NATO bid
Turkey has issued fresh threats to block Sweden’s bid to join NATO after a far-right politician publicly burned a copy of the Quran in Stockholm over the weekend. A military buildup could be another boon for defense stocks, though the latest rhetoric – combined with the possibility for cuts to U.S. defense spending – isn’t spelling good news for the sector that outperformed in 2022. There is additional speculation that the U.S. could force Turkey’s hand via an F-16 jet purchase from Lockheed Martin (NYSE:LMT), which is set to report Q4 earnings this morning (see the full preview here).
Annual jab
It’s been a long time coming, but the FDA just proposed one annual dose of the latest updated COVID-19 shot for healthy adults as it aims to improve coverage rates and simplify the country’s vaccine strategy. The plan would make things similar to annual flu immunization campaigns and comes ahead of a committee meeting later this week. In September, the U.S. rolled out mRNA-based COVID shots developed by Pfizer (PFE)/BioNTech (BNTX) and Moderna (MRNA) as boosters targeting Omicron BA.4 and BA.5 subvariants, but recent studies have indicated that updated bivalent shots have performed poorly against newly dominant COVID variants such as BQ.1.1 and XBB. In other news, Amazon (AMZN) unveiled its latest effort to jump into the healthcare sector with a new generic prescription service.
Equity strategy
Wall Street is rallying year to date, but trailing the performance of other global equity markets. At the same time, U.S. stocks with foreign revenue exposure are outperforming as global growth improves and the dollar (DXY) weakens. Research shops are jumping on the trend to identify names poised to benefit. Goldman Sachs identified 50 stocks with the highest sales exposure to China. Jefferies also released its inaugural list of global stock picks. And for those looking at charts, MKM’s technical strategist named his favorite ADRs as the S&P ADR Index (SPADR) outpaces the S&P 500 (SP500) (SPY).
Today’s Economic Calendar
9:45 PMI Composite Flash
10:00 Richmond Fed Mfg.
1:00 PM Results of $42B, 2-Year Note Auction
1:00 PM Money Supply
What else is happening…
DOJ poised to file second antitrust lawsuit against Google (GOOGL).
CEO Sundar Pichai says staff cuts will avoid bigger future problems.
Spotify (SPOT) also confirms it will axe 6% of its workforce.
Wayfair (W) surges over 25% as Wall Street bears become bulls.
Commodities looking at ‘superior total returns’ this year – Goldman Sachs.
Hershey’s (HSY) urged to reduce harmful metal levels in chocolate.
Earnings preview: General Electric (GE) set to report Q4 results.
Tesla’s (TSLA) Musk testifies ‘funding secured’ tweet was real deal.
Amazon (AMZN) brings ‘Amazon Air’ cargo service to India.
This Bitcoin mining ETF is +100% YTD and January hasn’t even ended yet.
—————
Good morning. Happy Monday. Hope you had a good weekend.
The Asian/Pacific markets leaned to the upside. A few markets were closed. Europe, Africa and the Middle East are doing well. Poland, Turkey, Russia, Greece, South Africa and Sweden are leading. Futures in the States point towards a positive open for the cash market.
————— Masterclass Overview –>> here —————
The dollar is up. Oil and copper are up. Gold and silver are down. Bonds are down.
Stories/News from Seeking Alpha…
The trillion dollar question
As the debt ceiling battle escalates on Capitol Hill, a once far-fetched solution to the dilemma has resurfaced. The Treasury would mint a $1T platinum coin, deposit it at the Federal Reserve, and the asset swap would result in an extra $1T to cover a big portion of Washington’s bills. Extraordinary measures are already being employed by the Treasury and investors should note how it may affect their portfolios. In a new article, SA contributor James Baker sheds light on how the situation could impact stock, bond, gold, silver, and U.S. dollar markets, while highlighting the differing consequences of past debt ceiling crises.
Back to the mint: The concept of a trillion-dollar coin dates back to 1992, when populist presidential candidate Bo Gritz suggested the idea during his second White House run. The idea resurfaced during the debt ceiling crisis of 2013 and the Obama administration even explored the possibility before the impasse came to an end with a continuing resolution. The method results in the U.S. minting more money to pay for its obligations, rather than borrowing through Treasuries (or the collection of taxes).
While the trillion-dollar coin is not illegal, the accounting ploy has been frowned upon as it could threaten the checks and balances of Congress and open a Pandora’s box about all of public finance. It’s based on a loophole from a 1996 bill that discusses commemorative coins. According to Law 31 USC 5112 (k): “The Secretary may mint and issue platinum bullion coins and proof platinum coins in accordance with such specifications, designs, varieties, quantities, denominations and inscriptions as Secretary, in the Secretary’s discretion, may prescribe from time to time.” Has the U.S. ever defaulted on its debt?
“It truly is not by any means to be taken as a given that the Fed would do it, and I think especially with something that’s a gimmick,” Treasury Secretary Janet Yellen said in an interview. “The Fed is not required to accept it, there’s no requirement on the part of the Fed. It’s up to them what to do.”
Outlook: If the extraordinary measures are exhausted and Congress fails to raise the $31.4T debt ceiling – something that could happen by early June – there could be big consequences for the U.S. economy. “Our borrowing costs would increase and every American would see that their borrowing costs would increase as well,” Yellen warned. “On top of that, a failure to make payments that are due would undoubtedly cause a recession in the U.S. economy, cause a global financial crisis… and would certainly undermine the role of the dollar as a reserve currency that is used in transactions all over the world.” (8 comments)
Box office haul
While the theater industry has struggled since the pandemic, Avatar: The Way of Water just topped $2B at the global box office, giving rights holder Disney (DIS) yet another successful franchise (alongside Marvel and Star Wars). The House of Mouse acquired the jewel following its $71B purchase of 21st Century Fox (FOX) assets in 2019, though some were not enthusiastic about the expensive purchase, like activist investor Nelson Peltz. The latter is now seeking a seat on the Disney board to make operational improvements and reduce costs as DIS’s stock trades near pandemic lows. SA Marketplace author Long Player writes that the coming battle will be better than Fight Night, and will boil down to how much impatience the short-term performance crowd will have.
Latin legal tender
South America’s largest economies, Brazil and Argentina, are commencing preparatory work on a common currency called “sur” (south) that could aid regional trade and reduce dependency on U.S. dollar. A new currency bloc that covers all of Latin America would represent the world’s largest currency union outside the eurozone. Other Latin and South American countries will also be invited to join talks on a common currency, such as Chile, Colombia, Cuba and Venezuela, with plans set to be discussed at a summit this week in Buenos Aires. (4 comments)
Higher margins?
Shares of Salesforce (CRM) are up 3.5% premarket on reports that activist investor Elliott Management accumulated a multi-billion dollar investment in the firm. “We look forward to working constructively with Salesforce to realize the value befitting a company of its stature,” said Jesse Cohn, managing partner at Elliott. The news comes after fellow activist investor Starboard Value disclosed a stake in Salesforce in October and follows a recent announcement by CRM to lay off 10% of its workforce earlier this month. In recent years, Salesforce has also splurged on M&A, shelling out $27B for Slack Technologies, and billions more on Tableau Software and MuleSoft. (14 comments)
We want your feedback! Send a message to wsbfeedback@seekingalpha.com.
Today’s Economic Calendar
10:00 Leading Indicators
What else is happening…
Semiconductor industry: Here are Mizuho’s top chip picks for ’23.
Apple (AAPL) is a ‘best of both worlds’ player – Morgan Stanley.
China says COVID outbreak has now infected 80% of the population.
Abbott (ABT) under DOJ criminal probe over baby formula plant.
Western Digital (WDC) merger talks with Kioxia said to be advancing.
Shell (SHEL), Volta (VLTA) and more EV charging consolidation?
U.S. and allies to proceed with price caps on Russian oil products.
Report: Spotify (SPOT) is the latest tech company to plan layoffs.
—————