Latest news with #CapitalIQ
Time of India
6 days ago
- Business
- Time of India
How and why one of the Europe's biggest technology company has lost $130 billion-plus from its value in less than a year
ASML, a key player in the semiconductor supply chain , has seen its market value plummet by over $130 billion in less than a year, dropping from a peak of $429.5 billion in July 2024 to $297 billion by Tuesday's close, per S&P Capital IQ data. The decline reportedly stems from U.S. export restrictions to China and uncertainty over potential U.S. tariffs under President Donald Trump. ASML is one of the biggest technology companies in Europe. The Dutch company, the sole producer of extreme ultraviolet lithography (EUV) machines used by chipmakers like TSMC to manufacture advanced chips, has faced significant headwinds. 'All the equipment manufacturers in the space have come down because they are concentrating all the fears around … the U.S. restrictions to China,' Stephane Houri, head of equity research at ODDO BHF, told CNBC's 'Europe Early Edition' on Wednesday. Houri also pointed to tariff concerns and questions about over-investment in AI, noting uncertainty over whether 'demand is not at the level that many people expect.' What's hurting ASML ASML's inability to ship its most advanced EUV machines to China has limited its sales potential. CEO Christophe Fouquet told CNBC in January that the company's China business is expected to shrink in 2025 compared to 2023 and 2024. Recently, ASML began shipping its next-generation High NA machines, but global chip stocks continue to face pressure from trade uncertainties. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Zumbido e perda de audição? Médico revela técnica caseira de 1 real para aliviar! Zumbido no ouvido Undo Despite these challenges, a potential U.S.-Europe trade deal could ease market concerns. 'If there is an agreement in the end with President Trump and ... Europe and many other countries, they probably will benefit from the relief in the market, and notably in the sector,' Houri said. Analysts remain optimistic, with LSEG data showing an average price target of 779 euros for ASML, suggesting a 17% upside from Tuesday's close. A recent Wells Fargo note, following discussions with ASML's management, highlighted the company's positive outlook for 2025 and 2026, driven by demand from firms like Samsung and Intel for next-generation chipmaking tools.
Yahoo
19-05-2025
- Business
- Yahoo
23andMe files for bankruptcy and will try to find a buyer
23andMe, a formerly high-flying genetic testing company, announced Sunday that it was declaring bankruptcy and that it would seek a buyer. The company also said CEO and co-founder Anne Wojcicki is resigning immediately and will be replaced by Chief Financial and Accounting Officer Joe Selsavage as interim chief executive. 23andMe moved in November to slash 40% of its workforce as part of a restructuring plan, a step that came roughly two months after its entire board resigned. "We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities," 23andMe Chair Mark Jensen said in a statement. "We believe in the value of our people and our assets and hope that this process allows our mission of helping people access, understand and benefit from the human genome to live on for the benefit of customers and patients." 23andMe offers two basic kinds of services — consumer and therapeutics. The former provides people with information on their ancestry and genetic health profile, including the risk of passing on certain conditions to their children, according to S&P Capital IQ. The therapeutics unit works to develop treatments and conducts research into cancer, immune diseases and other conditions. Data privacy concerns 23andMe's struggles have raised concerns about the privacy of its customers' genetic data, which is used to trace people's ancestry, among other purposes. In filing for bankruptcy protection, the company said there will be no changes to how it manages and protects people's data. 23andMe users must explicitly affirm that the company may share their personal data, although people's data could be included as part of a sale of the company. Some states have passed privacy laws that would require a person's consent before their genetic data is transferred from one entity to another. In its bankruptcy announcement, 23andMe said any buyer of its assets would have to observe applicable privacy laws for customer data. The company has also previously said that any customer data it shares with other parties is anonymous and can't be traced to individual users. 23andMe also allows customers to delete their accounts. To do that, users must log in to their account and submit a request. The company will send an email confirming the request to delete the data, which the user must then verify. 23andMe's stock, which once traded for more than $300 a share, fell to 79 cents before the start of trade Monday. In January, 23andMe reported a third-quarter net loss of $26.8 million on revenue of $60.3 million, an improvement over its loss of $259.7 million on revenue of $44.7 million in the year-ago period. The company filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of Missouri. 23andMe said that, if granted approval in bankruptcy court, the company would solicit bids from potential acquirers over a 45-day period and potentially conduct an auction. One possible buyer is Wojcicki herself. The executive, who recently submitted an acquisition offer that 23andMe rejected earlier this month, said in a social media post Monday that she may again bid for 23andMe. "I have resigned as CEO of the company so I can be in the best position to pursue the company as an independent bidder," she wrote, adding that continues to believe in the company's brand and business. "We have had many successes but I equally take accountability for the challenges we have today. There is no doubt that the challenges faced by 23andMe through an evolving business model have been real, but my belief in the company and its future is unwavering," she said. Raw Video: Mexican navy training ship hits Brooklyn Bridge Italy's Trulli: From Past to Present Will the House Republican budget be a sinking ship in the Senate? Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Saks Bondholders Prove to Be a Tough Sell
Bondholders can be a tough crowd — just ask Saks Global. Equity investors are more excitable and want nothing but growth. But since bondholders have actually loaned a business money, they care about just one thing — that company's ability to make the required interest payments and to pay up when the bonds come due. More from WWD Saks Joins Amazon in Designer Fashion Breakthrough Saks CEO Marc Metrick Reassures Bondholders, Says Company Has $350M to $400M of Liquidity Inside the Saks-Neiman Marcus Merger And debtholders are feeling shakier about Saks, which sold $2.2 billion in junk-rated bonds in December to help it buy Neiman Marcus Group. Those bonds were trading at as high as 97.75 cents on the dollar at the start of the year, according to S&P Capital IQ. But trouble in the retail outlook, declines in consumer confidence and tariffs spooked the market, which as of Friday had bondholders selling the IOU's from Saks for 63.88 cents on the dollar. That decline was fast and sharp enough to prompt Saks Global chief executive officer Marc Metrick to step in and try to reassure the market in a call on Monday. In addition to some updates on money saved as Neiman's is melded with Saks, Metrick said the company had between $350 million and $400 million of liquidity now. Additionally, it's not planning on taking on more debt, but might carve out part of its $1.8 billion asset-backed loan for what's known as a FILO facility that could be quickly tapped to cover any needs. It wasn't enough for bondholders, who traded the debt down to 55.5 cents on the dollar on Monday. That extra jitter passed and a late trade on Tuesday was at 61.43 cents, not far off of where trading started on Monday, according to a market observer. The problem is Saks has lots of bills to cover. In addition to paying for recent shipments from vendors, it has a long list of past-due bills to suppliers that it's promised to catch up on. It also has a roughly $120 million interest payment on the bonds due in late June. It's a lot to juggle, given all the changes taking place at the company, which also on Tuesday launched a storefront on Amazon, bringing a host of big designer names to the e-commerce giant. 'I'm sitting here as a CEO in a world where I've got a big plan for transformation,' Metrick told WWD on Monday. 'I've got to invest in that transformation. I've got to be a strong counterparty to my brand partners and we're seeing a turbulent market. There's a lot of unknowns with what could happen, and I'm further fortifying my balance sheet. That's what I'm doing.' If the drop in bond prices makes it seem like Saks is scrambling, the retailer has lots of company. 'Who isn't scrambling?' said Gary Wassner, CEO of Hilldun Corp., which has been supportive of Saks and helps finance many brands shipping to the company. 'Retail has had to deal with crisis after crisis,' Wassner said. 'COVID[-19] caused so much damage, and now tariffs. With consumer confidence dropping, it's getting harder and harder for the industry to know how to manage operations, purchases and pricing. Uncertainty is not a consumer motivator. 'The bond price concerns me, but I'm not surprised to see it where it is, in an environment like this,' Wassner said. 'Saks is a fighter, and [executive chairman] Richard Baker isn't a person who backs away from a challenge. If Saks Global can normalize its receipt of merchandise, it will improve cash flow and increase margins.' Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange Sign in to access your portfolio
Irish Times
22-04-2025
- Automotive
- Irish Times
Tesla profit slumps 39% as EV sales dry up and tariff worries loom
Tesla's first-quarter profit dropped 39 per cent as sales of its electric vehicles plummeted owing to a weak product line-up and a worldwide consumer backlash to Elon Musk's increased involvement in US politics. Mr Musk has come under investor pressure to address his absence from Tesla as well as the perceived brand damage from his close relationship with US president Donald Trump and his controversial role as head of the so-called Department of Government Efficiency (Doge). His political interventions have also hurt sales in big European markets this year. Tesla is banking on a revival in vehicle demand following the recent upgrade to its flagship Model Y car. Investors are also awaiting details on a new affordable vehicle it has promised. Adjusted net income for the first quarter fell 39 per cent from a year earlier to $934 million (€818 million), missing analyst expectations for $1.5 billion by a wide margin, according to a filing from the Austin, Texas-based company on Tuesday. READ MORE Revenue fell 9 per cent to $19.3 billion, missing the average $21.4 billion analyst estimate, according to S&P Capital IQ. Earlier this month, Tesla reported that its deliveries fell 13 per cent in the first three months of this year, compared with a year before, marking its worst quarter since 2022. It also lost its crown as the world's largest electric-vehicle maker to Chinese rival BYD. Tesla's share price has halved from its high in mid-December. The group also faces growing risks from Mr Trump's trade war, which it has warned could make it a target for retaliatory tariffs and increase the cost of making vehicles in the United States. Tesla assembles all of its vehicles sold in the US locally but it is still exposed to the sweeping tariffs and disruptions to the global automotive supply chain since it sources components from other markets. 'While the current tariff landscape will have a relatively larger impact on our energy business compared to automotive, we are taking actions to stabilise the business in the medium to long term and focus on maintaining its health,' Tesla said in the earnings filing. Mr Musk has also clashed with Peter Navarro, the architect of Mr Trump's trade policies, and the White House has said his government role, which was originally meant to continue into 2026, could end well before that once his work with Doge is complete. Tesla's first-quarter operating margin also fell to 2.1 per cent from 5.5 per cent a year earlier. – Copyright The Financial Times Limited 2025
Harvard Business Review
17-04-2025
- Business
- Harvard Business Review
What Type of Corporate Venture Builder Are You? - SPONSOR CONTENT FROM EY
By Praveen Arivazhagan, Raju Sarma and Sachin Lulla The largest US companies have a $9 trillion deficit in shareholder value. That's the gap between the market capitalization of the bulk of the S&P 500 in January 2025 and the value those companies need to achieve first-tier total shareholder return growth of at least 15% annually through 2029, according to an EY-Parthenon analysis (Figure 1). This group excludes the Magnificent Seven tech stocks and their outsized growth profiles, as well as banks and real estate investment trusts (REITs), with their different capital structures. Figure 1: The growth imperative: companies need to identify, approve and fund $9 trillion of intrinsic value. 1. Based on S&P 500 constituents as of January 14, 2024. 2. 'Banks' includes Diversified Banks, Regional Banks, Investment Banking and Brokerage, Asset Management and Custody Banks, Consumer Finance, and Diversified Financial Services (Capital IQ sector classifications). 3. Magnificent Seven is a group of high-performing and influential companies in the US. Source: EYP analysis, S&P Capital IQ How can the remaining 432 companies make up that $9 trillion current deficit? Corporate venture building is an essential avenue to increase P&L growth and the market multiplier for the business. Yes, building a new venture can be difficult. Companies need to find the right product-market fit, develop a go-to-market strategy, and enable a team with the right entrepreneurial mindset to distinguish themselves in the market and earn that higher multiple. But established companies have an advantage over startups: the endowments, or differentiated assets, they have already developed, including customer relationships, intellectual property and their supply chain ecosystem. These endowments can help corporate venture builders establish a business that can quickly deliver outsized returns. But the endowments can also vary from company to company, leading to distinct ways for corporate venture building to work. Based on building more than 70 ventures, EY-Parthenon corporate venture builders have categorized new ventures into four archetypes (Figure 2), taking into account triggers that prompt the need to develop a new venture and a company's specific endowments. Companies that embark on venture building should align their efforts to these four archetypes to help maximize their chances of success. Figure 2: The four corporate venture building archetypes The four archetypes 1. Corporate Launchpad Trigger: The company identifies an internal problem and uses its endowments to solve it—and create solutions it can sell. By becoming its own first customer, the company can test the product or solution before launching it. Endowments: Capabilities with commercial potential, such as talent, capital and industry intelligence; a ready 'first customer' within its own corporation; the ability to pilot and incubate the venture internally. Benefit: Solving its own challenge and creating a new P&L to boost growth. By testing internally, it can release the solution in the market with more certainty of success and a quicker path to growth. Example: An industrials company saw that the lack of transparency and high costs in insurance pricing frustrated its customers. The company developed an insurance venture to address customer concerns about transparent pricing and high costs. The company has access to such data inputs as customer behavior and equipment health, which helps it more effectively assess insurance risk and generate more accurate and transparent pricing than a competitor might. The new venture allows the company to improve product bundles, increase 'stickiness,' capture a greater share of total cost of ownership, and lower that total cost for customers. 2. Tech Attacker Trigger: To develop a disruptive tech-focused business that will lead its legacy competitors, the company is looking to enter a new business or region where it has little market share. Endowments: The ability to pilot and incubate in the core business; customer and other owned relationships. Benefit: The ability to use technology to disrupt a market where it has low market share. Example: A manufacturer of residential and commercial industrial equipment sought new growth in smart connected product solutions, offering energy management, real-time monitoring, leak detection alerts and fleet management. The company used its well-established product heritage to innovate with modular electronic controls that had built-in connectivity. It also used its customer partnerships to create digital revenue streams, such as subscription revenue from installers for providing high-quality leads for parts, service, maintenance and replacement. The large installed base also allowed the company to build new partnerships with demand aggregators and utility companies to offset loads during peak demand periods, generating new revenue from utilities and passing on the savings to their consumers. 3. IP Ignite Trigger: The desire to increase market multiples by monetizing its technology or intellectual property (IP) into a new business that can command a potential higher multiple. Endowments: Proprietary IP, research and development (R&D), products, pricing power, value chain expertise and data; capabilities with commercial potential. Benefit: Repurposing IP, including dormant IP, to create a business that can command a higher multiple than the core. Example: A global company's growth rate was plateauing as contractors sought better pricing and service-level agreements. The company used its large procurement and supplier base, pricing power and substantial customer base to turn its procurement function into a revenue-generating B2B marketplace, with better pricing for contractors and committed volume for suppliers. 4. Customer X Trigger: Signs of stagnation across current products. Endowments: Deep customer and other owned relationships; channel and distribution partners. Benefit: The ability to quickly scale new offerings by using existing customer and ecosystem relationships in new ways. Example: A consumer products company faced a long-term decline in demand for its core products. But it had relationships with millions of consumers and thousands of retail outlets. Using these relationships, the company developed a new retail services platform, providing independent brick-and-mortar retailers with analytical tools and value-added services to help drive profitable growth and efficiency. Archetypes may overlap These archetypes are not mutually exclusive. Multiple archetypes can come into play for a new venture. A company could build a corporate launchpad and make itself the first customer, igniting existing IP to do so. Or it could use its existing IP in new ways, reimagining what it can do for existing customers. Still, to successfully use venture building to find an entirely new P&L and increase total shareholder returns, companies can start by determining what those advantages are and what venture building archetype makes the most sense for them. Learn more about how the EY-Parthenon Corporate Venture Building team helps companies originate, build and scale new businesses and reimagine their core business for growth. Praveen Arivazhagan is Chief Venture Builder and EY-Parthenon Americas Corporate Venture Building Leader, Ernst & Young LLP. Raju Sarma is a senior venture builder and LA Venture Garage Leader for EY-Parthenon, Ernst & Young LLP. Sachin Lulla is EY Americas Consulting Industrial Products Sector Leader, Ernst & Young LLP. Charlotte Clark, EY-Parthenon venture builder, Ernst & Young LLP, also contributed to this article.
