Parsing Oracle-NetSuite Material Adverse Effect Clause: Part 1
In the merger deal between Oracle (ORCL) and NetSuite (N), the MAE clause lays out the circumstances under which Oracle can back out of the transaction.
Micron Stock Fell Due to Temporary Sales Ban in China
The semiconductors industry is cautious amid rising trade tensions between the US and China.
Semiconductor Earnings Watch: TER and LRCX
This week, semiconductor equipment suppliers Teradyne Inc. (TER) and Lam Research (LRCX) will report their quarterly earnings.
Can Applied Materials Maintain High Efficiency Ratios in 2019?
In fiscal 2018, AMAT’s revenue rose 19% YoY to $17.25 billion, while its non-GAAP (generally accepted accounting principle) net income rose 29.6% YoY to $4.57 billion.
Sizing up the EMC-Dell Merger: A Quick Background Check
Elliott was unhappy with EMC’s performance and wanted them to spin off their holding in VM Ware to shareholders.
Operating Efficiency Drives Applied Materials’ Profitability
In the March quarter, AMAT had an operating expense ratio of 16.6%, which was the lowest operating expense ratio AMAT has ever achieved.
What Price Ratios Say about Applied Materials’ Stock Valuation
On May 9, AMAT had a forward PE ratio of 12.0x, which is lower than KLAC’s ratio of 13.7x but higher than LRCX’s ratio of ~11.4x.
Five Things to Look for in Micron’s Upcoming Results
Micron Technology (MU) stock is in the spotlight this week, as the company is set to release its fiscal 2019 fourth-quarter results on Thursday after markets close.
The Impact of US–China Trade Tensions on Applied Materials Stock
Applied Materials (AMAT) earned 21% of its 2016 revenues and 19% of its 2017 revenues from China. Any major shift in this market could hurt AMAT.
AMAT’s Weak Fiscal Q4 2018 Guidance Makes Investors Cautious
Applied Materials, the world’s largest chip manufacturing equipment vendor, reported strong fiscal Q3 2018 earnings but lowered its fiscal Q4 2018 guidance.
Reduced Memory Spending to Hit Earnings of AMAT, KLAC, and LRCX
The semiconductor industry is going through a downturn, but many companies expect growth to resume in the second half of 2019.
Semiconductor Stocks Hit New 52-Week Highs ahead of Earnings
The first-quarter semiconductor earnings season has begun, and the stock market is showing bullish sentiment as investors buy ahead of earnings releases.
Applied Materials Stock Rallies on Optimism about H2 2019
In this series, we’ll see what investors should expect from Applied Materials’ upcoming earnings.
Does AMAT Stock Deliver Better Returns than Its Peers?
AMAT increased its stock buyback authorization by $6.0 billion, doubled its dividend per share, and is working to improve its profits to improve its ROE.
Why Semiconductor Stocks Fell on April 9
The tech-heavy NASDAQ Composite Index fell 0.37% in the early trading session on April 9 driven by declines in semiconductor stocks.
Understanding Applied Materials’ Stock Price Movement
Because Applied Materials (AMAT) is positioned at the beginning of the supply chain, its stock is among the first to be impacted by any industry-wide news.
Chip Stocks Fall on Fears of a Two-Year Growth Trend Slowdown
NVIDIA and Applied Materials published their latest earnings results on August 16. Their weaker guidances have spooked investors.
What Tokyo Electron acquisition means for Applied Materials
Applied Materials’s merger with Tokyo Electron is expected to provide Eteris with a 25% market share in the chip manufacturing equipment market.
Ambarella Stock Falling: More Chinese Firms Blacklisted
Ambarella (AMBA) stock fell up to 12% today. The stock is trending downward after the US added several more Chinese companies to its Entity List.
Two Semiconductor Stocks Are Crushing It: Time to Sell?
Semiconductor firms Lam Research and KLA Corp. have crushed the markets in 2019. While Lam Research is up 65.4%, KLA has returned 71% year-to-date.
Micron Slumps 11% after Q4 Earnings, Analysts Upbeat
Micron (MU) stock dipped 11% after its Q4 of fiscal 2019 earnings. This slump occurred after the stock rallied about 20% in September on analysts’ optimism.
Micron Stock Fell on Disappointing Guidance
Micron Technology reported upbeat fourth-quarter fiscal 2019 results on September 26 after the market closed. Micron stock fell 1.76% to $48.60 on the day.
Goldman Sachs Turns Bullish on Semiconductor Stocks
The US markets are up today as Wall Street braces for a busy earnings week. The S&P 500 ETF is up 0.3%, and semiconductor stocks lead the market’s gains.
Chip Equipment Suppliers’ Stocks Rise despite Micron’s Capex Cut
On June 25, Micron Technology (MU) reported better-than-expected earnings results for the third quarter of fiscal 2019, which sent the stock up 13.3% a day after its earnings release.
Applied Materials’ Q2 Guidance Signals Semiconductor Weakness
On February 14, in after-hours trading, Applied Materials stock fell 2% as its fiscal 2019 second-quarter guidance missed estimates.
What’s Applied Materials’ Strategy to Tap the AI Trend?
Applied Materials (AMAT), KLA-Tencor (KLAC), and Lam Research (LRCX) are witnessing strong growth in the memory and logic segments.
China: One of Applied Materials’ Key Revenue Drivers
Applied Materials (AMAT) supplies SME (semiconductor manufacturing equipment) to chip makers all over the world.
Understanding the Role of AMAT, LRCX, and KLAC in Semiconductor Growth
According to SEMI’s estimates, the global semiconductor market is expected to grow at a CAGR (compound annual growth rate) of 6.7% between 2015 and 2025.
What AMAT’s Price Ratios Say about Its Valuation
On August 7, 2017, AMAT had a PS ratio of ~3.7x.
Is AMAT Losing Market Share to Lam Research and KLA-Tencor?
The emergence of the IoT (Internet of Things), self-driving cars, AR/VR (augmented/virtual reality), and AI (artificial intelligence) is driving demand for logic and memory chips.
Could AMAT Achieve New Revenue Milestones in Fiscal 2017?
Applied Materials’ revenues rose 45% year-over-year to $3.5 billion in fiscal 2Q17, as its foundry and display equipment sales rose in triple digits.
What Pushed Applied Materials’ Stock Price to a 17-Year High
Applied Materials (AMAT) stock has risen 86% over the past 12 months to the 17-year high of $44. In this series, we’ll look at the factors driving Applied Materials’ fiscal 2017 earnings.
Oracle Announces NetSuite Acquisition: Cloud Gets Bigger
On July 28, 2016, Oracle (ORCL) and NetSuite (N) announced a merger. Oracle will purchase NetSuite for $109 per share, or $8.6 billion net of cash and debt.
Could the Oracle-NetSuite Deal Get Competitive?
Oracle (ORCL) co-founder Larry Ellison and his family control 45% of NetSuite (N) stock. So it’s theoretically possible but not likely that a company could make a hostile bid.
Can the Oracle-NetSuite Deal Get Antitrust Approval?
With most mergers, the rate of return is driven by the time it takes to finalize the transaction. For Oracle (ORCL) and NetSuite (N), the timeline will be driven by the antitrust waiting period.
Oracle-NetSuite Agreement: The Basics
NetSuite agreed to a non-solicitation agreement with a fiduciary out. This means that during the pendency of the merger, NetSuite may not contact other potential buyers.
The Oracle-NetSuite Merger: What’s the Rationale?
The relationship between Oracle and NetSuite goes back a long way. Oracle co-founder Larry Ellison and his family own almost half of NetSuite stock.
Will the ARM Holdings-Softbank Merger Attract Arbitrageurs?
Arbitrageurs will certainly be interested in setting up the ARM Holdings (ARMH) spread, especially if they can get an 8% return using the ordinary shares.
Risk-Reward Ratio of the ARM Holdings-Softbank Merger
ARM Holdings (ARMH) was trading at about $47 per share before the deal with Softbank was announced. The risk-reward ratio is about 12:1.
Could the ARM Holdings-Softbank Deal Get Competitive?
Softbank is paying a pretty penny for ARM Holdings (ARMH). The premium to the prevailing share price was in the low 40%.
Regulatory Conditions to the Softbank-ARM Holdings Deal
Softbank decided to waive any antitrust or regulatory conditions to the transaction. It doesn’t care if the regulators have issues—it’s buying the company.
What Are the Conditions for the ARM Holdings-Softbank Merger?
ARM Holdings and Softbank are merging in a cash transaction. In an unusual step, there aren’t regulatory or antitrust conditions to the transaction.
What’s the Rationale for the Softbank-ARM Holdings Merger?
The Softbank-ARMS Holdings merger intends to increase Softbank’s growth so that it can position itself as a leader in Internet of Things.
Making a Big Splash: Softbank Acquires the UK’s ARM Holdings
On July 18, Japan’s Softbank and the United Kingdom’s ARM Holdings (ARMH) announced a merger where Softbank will buy ARM for 1,700 pence in cash.
What’s the Rationale for the Microsoft-LinkedIn Merger?
LinkedIn will be a standalone entity within Microsoft. This transaction is part of Microsoft’s plan to focus on cloud-based offerings. It wants to rely less on PCs.
TSMC Has Accelerated Advanced Technology Development
TSMC is currently ramping up production of its 16nm technology. It expects to complete it by the end of fiscal 2Q16.
Foundries to Grow Faster than Integrated Circuits in 2016
Taiwan (EWT) is the largest semiconductor manufacturer, housing the world’s top two foundries, namely TSMC (TSM) and UMC (United Microelectronics).
Applied Materials Is Open to Merger Opportunities
Applied Materials is still open to a merger. Applied Materials’ CEO, Gary Dickerson, clarified that he will be selective in the merger opportunities.
Applied Materials Dominates the Semiconductor Equipment Space in XLK
Applied Materials provides manufacturing equipment, services, and software to the global semiconductor industry. It has a market cap of $18.68 billion.
Magnetar Adds New Stake in Applied Materials
In 4Q14, Magnetar established a new position in Applied Materials. The position accounted for 2.66% of the fund’s fourth quarter portfolio.
Teradyne and the future of the semiconductor industry
The forecast suggests a 26.5% growth in global semiconductor test equipment sales, Teradyne’s (TER) primary area of operations.