Intel

Posted on | by Leon Hinde

NAS:INTL has traded through the $30 resistance and is likely in the early stages of a multi-year recovery.

Combined with Gaudi 3 and Sierra Forest Xeon to be launched by 2024, INTC may just claim a decent market share in the generative AI market moving forward.

INTC has further streamlined its AI GPU offerings for the accelerated computing market through the next-gen Habana Gaudi 3, slated to be launched together with the Sierra Forest Xeon processor by H1’24.

Citi Group

Posted on | by Leon Hinde

{C.NYS}

Citigroup reported net income for the first quarter 2023 of $4.6 billion, or $2.19 per diluted share, on revenues of $21.4 billion. This compares to net income of $4.3 billion, or $2.02 per diluted share, on revenues of $19.2 billion for the first quarter 2022.

Revenues increased 12% from the prior-year period and 6% excluding the divestiture-related impacts, as growth in net interest income was partially offset by lower non-interest revenues. The higher net interest income was driven by the impact of higher interest rates across businesses.

Net income of $4.6 billion increased 7% from the prior-year period, and decreased 19% excluding the divestiture-related impacts.

Alibaba

Posted on | by Leon Hinde

BABA:NYS

Despite nearly 16x more revenue and 3.6x more operating income, Alibaba is still trading at the same price as in 2014. We’re buyers of the stock based on an inflection point as new value is unlocked as Alibaba splits into 6 different components.

Taobao & Tmall

Cainiao Smart Logistics

Global Digital

Cloud Intelligence

Local Services

Digital Media & Entertainment

Alibaba’s main business, Taobao & Tmall, is currently driving profits.  Taobao is a consumer-to-consumer platform, while Tmall is B2C. Both companies target Chinese consumers.

The Global Digital Business includes Alibaba.com, AliExpress, Lazada and others and is mainly focused on international markets.

Cloud Intelligence, this segment alone could be worth more than Alibaba is currently valued at.

Cainiao Logistics is essential to Alibaba’s operations as it ensures smooth 24-hour delivery across China. The revenue growth of this unit has been quite amazing, with a CAGR of 46.49% since 2018. Widely regarded as one of the largest Unicorns in China.

Local Service Group, These are mainly the DoorDash, Takeaway.com, Uber Eats, Yelp, Booking.com etc. in the Chinese economy. 

Digital Media & Entertainment, consists of a range of different companies. One of them is Youku, one of the largest video hosting and streaming companies in China. 

Buybacks – Almost one year ago, Alibaba Group announced an increase in its stock buyback from $15bn to $25bn. Alibaba bought back $9.66bn worth of shares in 2022 and for 2023 they’ve allocated $12bn+ for buybacks.