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Wall Street's Bullishness on IPOs Only Extends So Far

Wall Street's Bullishness on IPOs Only Extends So Far

Bloomberg14 hours ago
Bloomberg News is now tracking the daily gyrations and cumulative impact of Donald Trump's second term on stocks, the dollar, 10-year Treasury notes, gold and Bitcoin. Click here to see the tracker .
Given the persistent optimism in stock markets, you'd think it would be a perfect time to pull off that long-planned initial public offering. But as private equity firms are finding out in the US, it's not that simple.
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Adcore Inc (ADCOF) Q2 2025 Earnings Call Highlights: Strong APAC Growth and Improved Margins ...
Adcore Inc (ADCOF) Q2 2025 Earnings Call Highlights: Strong APAC Growth and Improved Margins ...

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Adcore Inc (ADCOF) Q2 2025 Earnings Call Highlights: Strong APAC Growth and Improved Margins ...

Release Date: August 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Adcore Inc (ADCOF) reported a 35% surge in APAC revenue, indicating strong regional performance. Gross profit improved by 6% year-on-year, reaching 3.1 million CAD in Q2 2025. Gross margins increased to 47% in Q2 2025 from 44% in Q2 2024, showcasing improved efficiency. The company's cash position grew by 23% year-over-year, reaching 9 million CAD. Adcore Inc (ADCOF) achieved a positive adjusted EBITDA of 156,000 CAD, a significant improvement from a loss in the previous year. Negative Points Overall revenue slightly decreased by 1% year-on-year, from 6.6 million CAD to 6.5 million CAD. Revenue in North America decreased by 43%, indicating challenges in that region. The company experienced a net loss of 0.4 million CAD, although reduced from the previous year. Working capital decreased by 14% from December 2024 to June 2025. Despite improvements, the stock price remains low at $0.26, with management believing there is a disconnect between stock price and company valuation. Q & A Highlights Warning! GuruFocus has detected 4 Warning Signs with ADCOF. Q: Can we expect the strong growth in the APAC region to continue, and what's driving this performance? A: The growth in the APAC region is driven by new client acquisitions and increasing SaaS revenue from our Media Blast app. We expect this positive trend to continue throughout 2025. Unidentified_2 Q: How did Adcore achieve a gross margin of 47% in Q2, and is this sustainable? A: The increase in gross margin is due to higher SaaS revenues and improved efficiency through AI implementation. Unidentified_12 Q: Is Adcore leveraging new AI tools like Google's AI Max to gain market share? A: Yes, Adcore is at the forefront of AI innovation, using tools like Google's AI Max to enhance our services. This positions us as a leader in AI-driven transformation, attracting new clients and business opportunities. Unidentified_2 Q: How is AI impacting Adcore's operations and financial performance? A: AI is deeply integrated into our operations, improving efficiency and reducing costs. It allows us to accomplish more with fewer resources, enhancing our business processes and financial outcomes. Unidentified_2 Q: Does Adcore plan to open new offices, particularly in South America? A: Currently, there are no plans to open new offices. We are focusing on remote work to reduce costs while maintaining efficiency. Unidentified_2 For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio

America is barrelling toward a 'deflationary shock' as 3 forces hit consumer demand, a top economist says
America is barrelling toward a 'deflationary shock' as 3 forces hit consumer demand, a top economist says

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America is barrelling toward a 'deflationary shock' as 3 forces hit consumer demand, a top economist says

There's a risk that inflation could turn negative soon, David Rosenberg says. The top economist thinks the US is headed for a "deflationary shock." Tariffs, immigration policies, and an aging population could hit consumer spending and growth, he said. Inflation-weary consumers would be forgiven for thinking falling prices are a good thing, but that's not necessarily the case. Disinflation is usually welcomed news, but deflation signals something more dire is going on in the economy. And deflation is exactly what may be in store for the US, according to one top economist. David Rosenberg, the president of Rosenberg Research, thinks that America could be headed toward a "deflationary shock," a situation where prices decline rather than merely increase at a slower pace. While consumers might perk up at the idea of lower prices, deflation is often thought to be a more difficult problem for policymakers to solve than high inflation. The Fed can raise interest rates to combat higher prices, but, in the case of deflation, central bankers can only lower interest rates until they hit 0% before needing to turn to other options to boost the economy. That's one reason why countries like Japan and China, which have been slammed with deflation crises in the past, have seen their economists mired in long periods of anemic growth in the years that followed. The US could be facing a similar fate, Rosenberg said, adding that he believed America was "following the footsteps" of those two nations in particular. "We are now staring down the barrel of a deflationary shock, and it amazes me how all the bond bears, inflation-phobes, and Fed policy hawks are missing this secular shift as they continue to play by the old rules," Rosenberg wrote in a report on Wednesday. He sees three reasons the US is headed for an era of deflation. Tariffs could actually be deflationary Tariffs are thought by economists to be inflationary, as companies can pass along the cost of import duties by raising prices for consumers. But there's also a deflationary aspect to tariffs: Higher prices cause consumers to spend less, which could lower prices as demand falls relative to supply, Rosenberg said. There are already signs that consumers are beginning to tighten their belts. While inflation rose to 2.7% in July, retail sales have been pretty weak, growing 0.6% in June after a 0.9% contraction in May, according to US Census Bureau data. July is expected to show retail sales grew 0.5%. "GDP is, after all, only about spending," Rosenberg said, referring to how consumer spending accounts for around two-thirds of GDP growth in the US. Trump's immigration crackdown could hit growth Slower spending among Americans could collide with the near-term impact of President Donald Trump's immigration policies. Reduced immigration is likely to result in less consumer spending, another factor that will lower prices and hurt economic growth, Rosenberg said. Immigration flows have already started to drop, with new entrance visas to the US plunging 20.5% in May, he said. Meanwhile, Rosenberg added that most immigrants in the US are between the ages of 35 and 54, the age range where spending tends to peak in a lifecycle. "In the final analysis, the demand destruction coming from the trade file, along with lower growth in future spending due to a reduced immigrant consumer base, should lead to lower inflation," he wrote. "Every young immigrant household not allowed into the US accelerates the aging consumption cliff that lies around the bend," Rosenberg added. An aging population will be a drag on spending Those factors are exacerbated by the fact that America's population is rapidly growing older, and people aren't having as many kids as they used to. According to the latest projections from the US Census, the number of Americans 65 and older is expected to soar to 82 million by 2050, up 47% from 2022 levels. An aging population can hit economic growth, given that older Americans tend to save more than they spend. The change in someone's likelihood to consume drops from 0.94 at age 35 to around 0.67 at age 65, per Rosenberg's analysis. "The fact that this is happening in such a highly leveraged economy is only going to exacerbate the deflationary trendline in the not-too-distant future," Rosenberg said, referring to high debt levels in the US that could limit the government's ability to spend on other things to stimulate the economy. Rosenberg, who's known as a contrarian on Wall Street, has made a lot of bearish calls about the US economy in recent years. Earlier in this year, he said he still believes the US was headed for a recession, and speculated that a downturn could materialize as soon as mid-summer. Read the original article on Business Insider

Activist Starboard buys more Salesforce stock after first demanding change in 2022
Activist Starboard buys more Salesforce stock after first demanding change in 2022

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Activist Starboard buys more Salesforce stock after first demanding change in 2022

By Svea Herbst-Bayliss NEW YORK (Reuters) -Activist Starboard Value, one of the first investors to publicly push Salesforce to make changes three years ago, increased its stake in the U.S. software company by almost 50% in the second quarter, according to a regulatory filing on Thursday. The hedge fund reported owning 1.3 million shares in Salesforce on June 30, compared with 849,679 shares at the end of the first quarter when it boosted its stake by almost 52%. The move comes as the company's stock price has lost nearly 30% since January and is off nearly 9% over the last 12 months. Salesforce, which has a market value of $223 billion, came under intense pressure from a handful of activist investors in late 2022 and early 2023. But many who publicly pushed for changes cut their stakes or exited completely by the middle of 2023 after the company reported better results, added a new director to the board and made other changes. Now the pressure may be increasing again with Starboard, which is known to revisit earlier investments if the company is seen as backsliding on promises, loading up on the stock. While Salesforce's stock price gained nearly 100% in 2023, Starboard's chief executive, Jeffrey Smith, said late last year that the company still had room to become more efficient and profitable. A Starboard spokesperson could not be reached for comment on Thursday. The firm also increased its holding in drugmaker Pfizer by 10.5% to 8.5 million shares, less than a year after unveiling a $1 billion stake in the company and pushing it to improve performance. At Autodesk, where the hedge fund settled its fight with the software design company in April, Starboard cut its stake by nearly 27%, the filing shows. While Thursday's filing is backward-looking, the so-called 13F filings, which detail what U.S. stocks a fund manager owned at the end of the previous quarter, are closely watched for possible investment trends.

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