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Snowflake Is Keeping The Magic Alive

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Snowflake Inc’s (NYSE: SNOW) September magic will go down in history as the world’s hottest software IPO. When Snowflake announced its public debut, the demand for its shares was far higher than the supply. It seems that it still is. The initial share price expectation was between $75 and $85. However, the company went public at $120 a share, and it skyrocketed to an amazing $300 on its first day of trading, breaking the record and becoming the largest company to ever double its value on its opening day. This is how Snowflake’s blockbuster debut became the largest software IPO on record.

One of Snowflake’s key innovations in keeping the data storage separate from computing, allowing the businesses to get insights from the stored data. Snowflake came out with this service before Microsoft (NASDAQ: MSFT), Amazon.com (NASDAQ: AMZN), and Google (NASDAQ: GOOG) offered their equivalent products, making it easier for Snowflake to grab a part of the data warehousing market.

Snowflake’s earnings report

Snowflake’s revenues jumped 119% to $159.6 million in the fiscal third quarter which ended October 31st. Revenue growth in the previous quarter was 121%. There is an improvement in the segment of losses – in the year-ago quarter, losses were $1.92 per share, whereas this time around, the company showed a loss of $1.01 per share. The company also reported an adjusted loss of 62 cents per share. Although the earnings report pulled down the share price by 16.1%, with the closing price that day at $339.89, we cannot forget that the company went public with a share price of $120.

Microsoft’s answer

The cloud data management service market is expected to be worth around $13 billion next year. Amazon has been improving its AWS cloud unit so it’s not only Snowflake who has the answer for more and more customers trying to understand all the data and information stored in the cloud and corporate data centers. Microsoft also decided to take on Snowflake and Amazon by unveiling another product designed to enable companies to analyze and keep track of data. Azure Synapse Analytics tool is already used by companies like ABN AMRO Bank N.V. (OTC: ABN.AS), Wolters Kluwer N.V. (OTC: WKL.VI), FedEx Corporation (NYSE: FDX), and The Procter & Gamble Company (NYSE: PG).

Outlook

Snowflake’s management was satisfied with the company’s performance in its first quarter as a public company. Forecasted revenues for the quarter ending in January are within a range between $162 million and $167 million. As many businesses are increasingly shifting their activities to the cloud, the demand for warehousing solutions, like Snowflake’s, will stay high, and it is safe to say that more growth is ahead of us. Having in mind that the demand is expected to increase, the cloud data management service market should follow suit. Therefore, Snowflake’s expectation to generate revenues of $540 million in fiscal 2021 seems doable.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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Baidu Is Determined To Show It Has More to Offer

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For two decades, the 21-year-old company has been viewed as an online marketing tool that sells ads through its web search results. But now, the internet company is ready to show it has much more to offer. Last week, it reported fourth quarter earnings for 2020 that beat market expectations and revealed its ambitious plans to enter the EV land. Many years of investing in AI has finally started to pay off as Baidu is finally monetizing the technology used with smart devices. Company’s investments in non-core businesses iarealso helping it defend its core search platform from rivals Alibaba (NYSE: BABA), Tencent Holdings (OTC: TCEHY) and privately-ownedByteDance, whose products are just as popular.

The Chinese tech giant has recovered from the worst impact that the pandemic had on its business as advertising rebounded. Moreover, non-marketing revenue which excludes advertising and includes its cloud and autonomous driving business, grew 52% YoY. Baidu is also tapping into capital markets, including a potential second listing in Hong Kong. Baidu beefs up its autonomous and smart transport technology to tainto the EV market as it revealed back in January it would set up a smart electric vehicle (EV) company with Geely.

As the domestic economy recovers, the company want to tap into into the fast-growing electric-vehicle market to diversify revenue sources.

Figures

Full year revenue for 2020 amounted to $16.4 billion which is flat compared to 2019. Adjusted earnings of $3.08 per share versus analyst estimates of $2.79 per share came after revenues of $4.6 billion versus analyst estimates of $4.7 billion, according to FactSet.

The company provided guidance for the undergoing quarter that was ahead of analyst estimates. Revenue is expected to be in the $4.0 billion and $4.4 billion, representing a growth rate of 15% to 26% YoY, but it does not include potential contribution from its acquisition of live streaming app YY Live. The acquisition was announced last November and is expected to close in the first half of the year. The guidance is also based on the assumption that its core revenue will grow between 26% and 39% on a YoY basis.

EVs

Baidu places a lot of emphasis on its Apollo self-driving technology. Last month, the company formed a strategic partnership with the Chinese car company Zhejiang Geely Holding Group to create a standalone electric car company. Baidu is the majority shareholder. Together, they aim to launch a smart EV model inthree years. Robin Li, Baidu’s CEO Li also said a brand name has been chosen but did not release it.

CNBC has confirmed Xia Yiping, co-founder of bike-sharing start-up Mobike, will be the CEO of the new entity. Xia previously worked at Fiat Chrysler (NYSE: FCAU) and Ford before co-founding a company that was part of China’s boom and eventual bust in shared bike start-ups.

Even Xiaomi is following Baidu’s EV footsteps as the Chinese search engine leader has been basking in newfound investor love as the next EV-maker wannabe. Unlike other EV makers, Baidu’s strategy is akin to Google’s (NASDAQ: GOOGL) (NASDAQ: GOOG) Android for smartphones.

Outlook

Baidu ended an unprecedented year on a solid note and showed it is recovering from the consequences of the global health crisis as its business benefited from an improving macroeconomic environment and the digitalization of businesses and lifestyles. Its commitment on innovation through technology is paying off for the Chinese tech giant. Baidu is well positioned as a leading AI company with a strong foundation to seize the enormous market opportunities in cloud services, autonomous driving, smart transportation, along with all kinds of new opportunities that AI will inevitably bring to the table. The online marketing company chose to be in the right place, at the right time.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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Nvidia’s Game Is On

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Stock Market

On Wednesday, Nvidia Corp. (NASDAQ: NVDA) reported that its quarterly sales topped $5 billion for the first time in the fourth quarter, due to holiday gaming-chip demand and renewed interest in cryptocurrency mining vied with supply shortages. Last week, Nvidia announced it hopes to ease shortages of gaming cards by launching a chip designed for cryptocurrency mining.

Q4 figures

For the quarter ended on January 31st, gaming sales surged 67% to a company record $2.5 billion with full-year revenue also came at a record $7.76 billion, which is a 41 percent increase. On the data-center side, sales nearly doubled to $1.9 billion compared to last year’s figure, while analysts expected $1.85 billion. For the first time, overall revenue for the quarter surpassed $5 billion, which is up 61% compared to $3.11 billion in the year-ago quarter. In its previous quarter, Nvidia also had a quarter sales record as it generated revenue greater than $4 billion.

For the Professional Visualization segment, Q4 revenue was $307 million, down 7 percent from a year earlier with full-year revenue down 13 percent  as it amounted to $1.05 billion.

Automotive revenue for the quarter was $145 million, down 11 percent with full-year revenue was $536 million, down 23 percent from prior year’s figure.

Fourth-quarter net income was $1.46 billion, or $2.31 a share, greatly exceeding last year’s $950 million, or $1.53 a share. Adjusted earnings that exclude stock-based compensation expenses and other items, were $3.10 a share, also exceeding $1.89 a share in the year-ago period.

Q1 forecasts

The company expects about $50 million from CMP sales along with he planning to break out cryptocurrency-related sales in the future. Revenue is forecasted to be in the range between $5.19 billion to $5.41 billion, while analysts had forecast revenue of $4.49 billion on average.

Outlook

Gaming-card supply shortages will likely remain going forward with more and more ‘smart’ products using AI that will increase demand for data-center chips.  Numerous companies across the globe are applying Nvidia AI to create cloud-connected products. The reality is AI services are transforming the world’s largest industries. Everything is rounding up nicely for Nvidia that just reported another record quarter that capped a breakout year for its computing platforms that allowed it to benefit from the “smartphone moment”. Technology is offering an opportunity to change the way businesses across industries interact with their customers and Nvidia positioned itself well to play a big part in that exchange.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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EVs Are Growing in All Directions

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Traditional automakers are transforming their business models to adapt to an all-electric future. General Motors (NYSE: GM) increased its investment to have a zero tailpipe emission line-up by 2035 with the plan to invest $7 billion in electric and autonomous vehicles this year and $27 billion by 2025. Ford Motor (NYSE: F) followed by more than doubling its EV investment by 2025 with $22 billion designated for electric vehicles and $7 billion for autonomous vehicles. The biggest obstacle to electric cars was that they cost much more to build than conventional models but big manufacturers are now putting the money to where their mouths areas they hope to benefit from economies of scale and profit from them. But, the scary costs aren’t stopping anyone, even smaller players who are going full speed ahead as they try to adapt to an electric future.

Affordability –  Chinese budget electric car takes on Tesla

A budget EV by China’s top automaker, state-owned SAIC Motor, selling in China for $4,500 is  a top hit now outselling Tesla’s (NASDAQ: TSLA) tech savvy cars which are not even close when it comes to affordability. The Hong Guang Mini EV is being built as part of a joint venture with General Motors (NYSE: GM). Last month, sales were around double those of Tesla, which was questioned this month over safety issues. While the model clearly lags well behind Tesla when it comes to its battery, range and performance, its convenience and low price have made it one of China’s bestselling “new-energy” vehicles. The Chinese government offers license plates for free to support EV adoption. In many cities, it can take months and even years, to get a license plate for a petrol engine whereas for EVs, it is guaranteed.

Premium – European carmakers are transforming their models

Jaguar Land Rover’s portfolio will be all-electric by 2025. The British carmaker will launch electric models of its entire Jaguar and Land Rover line-up by 2030,  JLR is a smaller company  so instead of focusing on achieving scale, it will re-emphasise Jaguar’s credentials as a luxury brand when it goes all-electric to take advantage of its premium positioning. Although that makes sense from a marketing point of view, it doesn’t make EV-related production costs any less challenging. But, British automakers don’t have a choice because the UK plans to ban the sale of new petrol and diesel cars from 2030. Germann luxury car brand Bentley Motors, owned by Volkswagen (OTC: WWAGY) revealed back in November its range will be fully electric by 2030 so all of Europe is serious about emission-free cars.

Pickups to see the light of day

2021 will also be the year when the world’s first electric pickup sees the light of day. he The U.S. pickup truck market is now dominated by the Ford F-150, Ram 1500, and Chevy Silverado, with smaller contributions from GMC, Toyota Motor (NYSE: TM), Nissan (NYSE: NSANY), and Honda (NYSE: HMC). Even Jeep joined the fray last year, as the Jeep Gladiator arrived in the marketplace. But, things are about to change as besides an electric Ford F-150, the market is about to get richer with highly anticipated models from new entrants such as Rivian, Bollinger, Lordstown Motors (NASDAQ: RIDE), Atlis Motor Vehicles and Hercules Electric Mobility.

Worksport provides update on growing profitable private label sales

Worksport LTD (OTC:WKSP) announced today it has shipped over 1,900 covers to its newest U.S based Private Label customer and that the company is in discussions with two New Private Label customers. Private label customers represent national middle market brands. The #1 accessory of pickups are tonneau covers and Worksport is a well-established manufacturer of both innovative and affordable tonneau covers. But this company is also a game changer due to its Terra Vis solar system that can also be used independently from pickup trucks, allowing the company to expand its customer market. Worksport  received a trademark protection in China along with partnering with Atlis and Hercules to configure its ground-breaking technology for its upcoming pickups. Worksport gathered its target funding of over $4 million more than half a year before the end of its Regulation A offering and the orders and deals just confirm the demand for its unique offerings, including its TerraVis Solar Tonneau Cover and COR battery system.

Outlook

Although Financial Times research shows that EVs will remain significantly more expensive for carmakers to produce than ICE models for at least a decade and affordability is essential for a wider adoption, the market is expanding at a pace that is nothing short of extraordinary. As carmakers fine-tune their production know-how to deliver battery-powered cars which also benefit from a simpler structure and fewer components, costs will go down eventually, and even faster with potential breakthroughs in battery technology.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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