Tag: business

How Can I Buy Shares in Xiaomi (XIACY or 1810) on the Public Stock Market?

Buying Xiaomi American Depositary Receipts (ADRs):

  • This is the simplest and most common way for US investors to buy Xiaomi stock.
  • ADRs represent shares of a foreign company (in this case, Xiaomi) that are traded on a US stock exchange.
  • Xiaomi’s ADR trades under the ticker symbol XIACY on the OTC Markets.

Buying Xiaomi shares directly on the Hong Kong Stock Exchange (HKEX):

  • This method allows you to buy actual shares of Xiaomi (stock code: 1810), but it’s a more complex process and not recommended for all investors.
  • It typically involves opening an international brokerage account that allows trading on the HKEX and navigating potential currency conversion and other fees.

Accenture Acquired Udacity to Expand Its Learning Platform – Focused on AI

Accenture announced today that it will acquire the learning platform, Udacity. This acquisition is part of an initiative to create a learning platform focused on AI, in response to increasing interest in the field. While the acquisition price for Udacity was not disclosed, Accenture also announced a $1 billion investment in a technology learning platform named LearnVantage.

Although the company could offer broader technology training, it underscored its interest in providing training for AI. Kishore Durg, the global lead of Accenture LearnVantage, said in a statement, “The rise of generative AI represents one of the most transformative changes in how work gets done. It’s driving a growing need for enterprises to train and upskill people in cloud, data, and AI as they build their digital core and reinvent their enterprises.”

My Thoughts on Google (GOOGL) and Their Market Share and Investment Opportunity

A lot of people have been giving Google a really hard time of late over their troubled entry into AI – with their chat interface Gemini. Additionally, there are investors out there that think OpenAI, Perplexity and others will start to disrupt their search business which is their main revenue stream via ads.

I don’t think this is going to happen and here is my take:

  • Google has 93% market share in search and 50% in total digital marketing. These are not going anywhere.
  • Cloud is growing 30% YoY with margin expansion.
  • Forward PE of 19 is reasonable compared to industry average and to its historical median.

I think I will be buying more for my own investment portfolio.

Cox Enterprises Acquiring OpenGov for $1.8 billion – Government Software Provider

Cox Enterprises is set to acquire OpenGov, a software provider for cities and state agencies, in a deal valued at $1.8 billion. OpenGov, a privately-owned company based in San Francisco, has developed a software platform over the past twelve years. This platform assists with budgeting, accounting, asset management, and other local government requirements.

via The Wall Street Journal

Who are Salesforce Biggest Clients – Globally?

While Salesforce doesn’t publicly disclose an official list of their “biggest” clients, here are some of the prominent companies and organizations known to be Salesforce customers, highlighting the diverse range of industries they serve:

Large Enterprises:

  • Amazon Web Services (AWS)
  • U.S. Bank
  • Walmart
  • Toyota
  • BMW
  • L’Oreal Americas
  • American Express
  • The Hershey Company
  • Canon
  • The New York Post
  • NBCUniversal
  • PayPal
  • Ford
  • NASA

Public Sector and Non-profits:

  • The American Red Cross
  • The U.S. Department of Veterans Affairs
  • The City of San Francisco
  • UNICEF

Smaller Businesses:

  • Many small and medium-sized businesses (SMBs) across various industries also utilize Salesforce solutions, highlighting their scalability and adaptability to diverse needs.

Additional Considerations:

  • Global Reach: Salesforce boasts a global customer base, with a presence in over 170 countries.
  • Industry Focus: While they serve a wide range of industries, Salesforce has a strong presence in sectors like technology, healthcare, financial services, and manufacturing.
  • Customer Segments: Their solutions cater to various customer segments, from large enterprises to small businesses and non-profit organizations.

Who Are the Largest Shareholders of Axios Media

Axios Media is majority-owned by Cox Enterprises, a family-owned media conglomerate headquartered in Atlanta, Georgia. However, Axios ownership isn’t solely held by Cox Enterprises. Here’s a breakdown:

  • Majority ownership: Cox Enterprises owns approximately 70% of Axios Media.
  • Minority ownership: The remaining 30% ownership is divided between Axios Media employees and its co-founders, Jim VandeHei, Mike Allen, and Roy Schwartz.

Therefore, while Cox Enterprises holds the majority stake, Axios also maintains ownership by its founders and employees, potentially fostering a sense of shared ownership and alignment within the company.

Who are Currently the Largest Shareholders in Monster Beverages

As of October 26, 2023, the largest shareholders in Monster Beverage Corporation (MNST) are:

  1. The Coca-Cola Company: Owns approximately 20% of Monster Beverage’s outstanding shares. This makes them the single largest shareholder.
  2. The Vanguard Group: Owns approximately 6.0% of the shares. Vanguard is a large investment management company with a diverse portfolio of holdings.
  3. BlackRock Inc.: Owns approximately 5.6% of the shares. Similar to Vanguard, BlackRock is a major investment management firm with a broad range of investments.

Here are some additional insights about Monster Beverage’s ownership structure:

  • Institutional ownership: Over 63% of Monster Beverage’s shares are owned by institutions such as investment companies, pension funds, and insurance companies. This indicates that Monster Beverage is a popular investment choice for institutional investors.
  • Individual investors: While the largest shareholders are institutions, individual investors still hold a significant portion of the company’s shares, indicating a diverse ownership structure.

Monaco Royal Family Under Fire as Back Door to Western Europe

Prince Albert II of Monaco, a tiny country renowned for its casinos, grand prix, and status as a tax haven, is facing scrutiny for allegedly favouring his nephews’ business interests. A yearlong investigation by Bloomberg revealed that his nephews’ construction company secured state contracts worth over $60 million. Furthermore, Prince Albert II allegedly helped quash a lawsuit from a competing developer over an apartment building his nephews aimed to develop near the Casino de Monte-Carlo. Government offices have been raided by the police, but the prince and his family deny any wrongdoing. Monaco remains one of the few countries where power is still centered in the palace. This has raised concerns among European officials, who fear that the wealthy nation “continues to serve as a back door to Western Europe for financial criminals,” as stated by Bloomberg.

Webull Prepared to Go Public at $7.3 billion Valuation (SPAC deal) – Xiaomi and Alibaba as Early Investors

The News: Online brokerage Webull is planning to go public via a $7.3 billion merger with a special purpose acquisition company (SPAC), after previous initial public offering (IPO) attempts were unsuccessful, partly due to its past crypto offerings.

Details: The New York-based company, which launched its trading platform in the U.S. in 2018, has agreed to merge with SK Growth Opportunities Corp. The company plans to start trading on the Nasdaq in the second half of 2024, giving Webull an estimated enterprise value of roughly $7.3 billion.

Webull’s U.S. CEO, Anthony Denier, stated that the company’s previous attempts to IPO were hindered by its cryptocurrency trading offerings, a practice the SEC has frowned upon. To eliminate this regulatory uncertainty and clear the path for its public listing, Webull sold its crypto asset business in late 2023.

Why SPAC?: Denier explained that the SPAC route provides a more certain valuation upfront compared to a traditional IPO. The blank-check deal is expected to raise approximately $100 million for Webull, which it intends to use for international expansion and new product development.

Webull experienced significant growth during the pandemic, with registered users reaching 20 million worldwide. The company has targeted more active traders than competitors like Robinhood, offering tools for technical analysis.

It’s important to note that this impending public listing occurs as fintechs proceed cautiously due to increased regulatory scrutiny of companies with ties to China. Despite early backing from Chinese tech giants Xiaomi and Alibaba, Denier emphasized that Webull is not majority-owned by Chinese entities.

How Did Baillie Gifford Start and Grow Their Investment Fund and Management

The story of Baillie Gifford’s origins starts in Edinburgh, Scotland, in 1908, when two ambitious lawyers, Colonel Augustus Baillie and T.J. Carlyle Gifford, saw an opportunity in the burgeoning rubber industry.

The Founding Moment:

  • Baillie, a veteran of the Boer War, and Gifford, a brilliant young lawyer, combined their expertise to establish a law firm, Baillie & Gifford WS.
  • They quickly recognized the potential of the rubber industry and decided to create an investment trust focused on this promising sector.
  • In 1909, The Straits Mortgage and Trust Company was launched, with Baillie & Gifford managing its assets. This marked the official start of Baillie Gifford, laying the foundation for their journey as successful investment managers.

Early Years and Growth:

  • The initial years were challenging, with the rubber industry facing fluctuations. However, Baillie Gifford’s astute investment decisions and long-term perspective helped the trust navigate these difficulties.
  • They gradually diversified their portfolio beyond rubber, venturing into other sectors like shipping, textiles, and utilities.
  • Throughout the 20th century, Baillie Gifford continued to grow, weathering various economic storms and building a reputation for prudent management and a focus on long-term investment horizons.

Evolution and Modern Form:

  • In the late 20th century, Baillie Gifford embraced new investment strategies and technologies, adapting to the changing financial landscape.
  • They became pioneers in growth investing, focusing on identifying and backing companies with high growth potential.
  • Their commitment to research and analysis, coupled with their distinctive partnership structure, which emphasizes collective decision-making and long-term thinking, further set them apart.

Today:

  • Baillie Gifford stands as a global investment management powerhouse, managing over £216 billion (US$ 264 billion) in assets for a diverse clientele.
  • They are known for their innovative approach to investing, dedication to sustainability, and commitment to supporting the companies they invest in.

What are the Benefits of Dividend Investing Over Capital Growth Returns?

Dividend investing can be considered better than standard long-term investing for capital growth returns due to several reasons:

  1. Regular Income: Dividend investing focuses on investing in companies that pay regular dividends to their shareholders. This provides investors with a consistent stream of income, which can be reinvested or used for other purposes.
  2. Compounding Effect: Dividends can be reinvested to purchase additional shares of the company’s stock. Over time, this reinvestment can lead to the compounding effect, where the dividend income grows exponentially.
  3. Stability and Consistency: Companies that pay dividends are often mature and stable, with a track record of generating consistent profits. This stability can provide a level of confidence to investors, especially those seeking reliable income.
  4. Lower Market Volatility: Dividend-paying stocks tend to be less volatile compared to growth stocks. This lower volatility can provide a smoother investment experience, particularly for those who prefer a more conservative approach.
  5. Inflation Hedge: Dividends have the potential to increase over time, which can help investors keep up with inflation and maintain purchasing power.

It’s important to note that the choice between dividend investing and standard long-term investing depends on individual preferences, risk tolerance, and investment goals. Both approaches have their advantages and drawbacks, and it’s essential to consider one’s specific financial situation before making investment decisions.

Who Are the Largest Shareholders in Twilio

Twilio’s ownership structure features a mix of institutional and individual investors, with several holding sizeable stakes. Here are the top shareholders as of January 8, 2024:

Institutional Shareholders:

  • The Vanguard Group: With 9.595% ownership, Vanguard holds the largest institutional stake in Twilio. This translates to over 17.3 million shares.
  • BlackRock, Inc.: BlackRock comes in second with approximately 5% ownership, holding around 9 million shares.
  • Nikko Asset Management Co., Ltd.: This Japanese asset management firm owns around 3.5% of Twilio, which translates to roughly 6.3 million shares.
  • Baillie Gifford & Co.: This Scottish investment firm holds around 3% of Twilio, amounting to 5.4 million shares.
  • State Street Global Advisors, Inc.: This institutional investor owns around 2.5% of Twilio, representing 4.5 million shares.

Individual Shareholders:

  • Jeff Lawson (CEO): As co-founder and CEO, Jeff Lawson holds a significant individual stake, estimated to be around 10% of Twilio’s total shares. This translates to roughly 18 million shares.
  • Other individual investors: While not disclosed individually, other executives and early investors likely hold smaller stakes in Twilio.

Who Are the Largest Shareholders in Soundcloud?

SoundCloud’s ownership situation is currently in a state of flux, with potential changes on the horizon:

Current Shareholders:

  • Raine Group: This venture capital firm has been a major investor in SoundCloud since 2017 and currently holds the largest single shareholder position.
  • Temasek Holdings: This Singaporean state investment fund is another significant shareholder, having invested in SoundCloud alongside the Raine Group in 2017.
  • Other smaller investors: Various other venture capital firms and individual investors also hold smaller stakes in SoundCloud.

Potential Sale:

  • In January 2024, reports emerged that both Raine Group and Temasek are exploring a potential sale of SoundCloud before the end of the year. This means the identity of the largest shareholders could change significantly in the near future.
  • Potential buyers for SoundCloud are unknown at this time, but various tech companies and media groups have been floated as possible candidates.

What are the True Benefits of a Dual Class Share Structure?

While the main benefits of dual-class structures often revolve around founder control and long-term focus, there are indeed other potential advantages to consider:

Increased Efficiency in Decision-Making: With a smaller group holding significant voting power, decision-making processes can be faster and more streamlined. This can be particularly advantageous for startups and agile companies needing to adapt quickly to market changes.

Attract Investors with Different Risk Appetites: Dual-class structures can attract two distinct types of investors: those seeking higher voting power and control alongside potentially higher risks, and those who prioritize lower voting power but potentially more stable and predictable returns. This diversification can benefit the company by bringing in a wider range of capital and expertise.

Enhanced Focus on Innovation: As founders and management hold more control, they can direct resources towards long-term innovative projects that may not immediately yield profits, potentially leading to breakthroughs and competitive advantages in the future.

Protection Against Activist Investors: The entrenched control by founders can offer a shield against short-termist activist investors who might push for decisions that prioritize immediate financial gains over long-term value creation.

Improved Shareholder Alignment: If super-voting shares are distributed strategically to key executives and senior leadership, their interests become more closely aligned with those of the overall shareholder base, potentially leading to better decision-making in the long run.

Global Competitiveness: Dual-class structures are more common in certain countries like the US and China, where public markets might be less forgiving of long-term investment strategies. This can give companies from these regions a competitive edge when facing companies from jurisdictions with a stricter one-share-one-vote approach.

However, it’s crucial to remember that these potential benefits are not guaranteed and depend on various factors like the specific design of the dual-class structure, the company’s governance practices, and the overall market context. As with any business decision, weighing the potential benefits and drawbacks with careful consideration is key before implementing a dual-class structure.

What is PennyMac Mortgage Investment Trust (PMT) REIT

PennyMac Mortgage Investment Trust (PMT), traded on the New York Stock Exchange as PMT, is a publicly traded real estate investment trust (REIT) in the United States. Here’s a breakdown of what they do:

What they invest in:

  • Primarily residential mortgage loans: PMT buys and sells mortgages of various types, focusing on loans used for purchasing homes.
  • Mortgage-related assets: This includes securities created from pools of mortgages (mortgage-backed securities) and investments related to loan defaults (credit risk transfer structures).

Their goal:

  • Provide attractive risk-adjusted returns to shareholders: This means they aim to invest in a way that balances potential profit with managing risk, ultimately delivering steady income to their investors.
  • Two main ways they achieve this:
    • Dividends: They distribute a portion of their profits to shareholders regularly, typically as quarterly payments.
    • Capital appreciation: Ideally, the value of their investments will increase over time, leading to a higher share price and further profit for shareholders when they sell their shares.

Key things to know about PMT:

  • Founded in 2008, headquartered in California.
  • Focuses on the US residential mortgage market.
  • Managed by PennyMac Financial Services (PFSI).
  • Market capitalization of approximately $5.6 billion (as of October 2023).
  • Risks: Like any investment, PMT is subject to risks associated with the mortgage market, interest rates, and the overall economy.

Who might be interested in PMT:

  • Investors seeking income: The regular dividend payments can be attractive for those wanting consistent returns.
  • Investors with longer-term goals: Capital appreciation over time can potentially bring additional profits.
  • Investors comfortable with moderate risk: While PMT manages risk, the mortgage market and broader economy can fluctuate, affecting their investments.

Why Are Musicians and Labels Choosing RouteNote over Other Distributors?

Musicians choose RouteNote for a variety of reasons, often depending on their individual needs and priorities. Here are some of the key factors that might draw them to RouteNote:

Free distribution: RouteNote offers completely free basic distribution to a vast network of digital stores and streaming platforms, including Spotify, Apple Music, Deezer, and TikTok. This is particularly appealing for beginner and independent musicians who might not have a large budget for music promotion.

High royalty share: RouteNote keeps a lower percentage of royalties compared to some other distributors (85% for free distribution, 100% for Premium plan). This means musicians keep more of their earnings for each stream or download.

Wide store reach: RouteNote distributes to a very large number of platforms, both major and niche, giving musicians the potential to reach a wider audience globally. This can be helpful for expanding their fanbase and generating more income.

Transparency and user-friendly platform: RouteNote has a reputation for being transparent with their fees and royalties, and their platform is considered user-friendly and easy to navigate. This makes it easier for musicians to manage their music distribution without needing technical expertise.

Additional features: RouteNote offers various optional features like pre-saves on Spotify, YouTube Content ID monetization, release scheduling, and advanced analytics. These can be helpful for musicians who want to further promote their music and gain insights into their audience.

Free vs. Premium options: RouteNote provides both a free and a Premium service. The free plan is suitable for basic needs, while the Premium plan offers additional features and higher royalty share for a monthly fee. This flexibility allows musicians to choose the option that best suits their budget and goals.

Has Distrokid Recently Increased Their Prices for Musicians?

Yes, DistroKid did recently increase their prices. All subscription tiers saw an increase between 11% and 15%. Some examples of the new prices include:

  • Musician plan: $22.99/year (previously $19.99/year)
  • Musician Plus plan: $39.99/year (previously $35.99/year)
  • Ultimate plan (5 bands/artists): $89.99/year (previously $79.99/year)

The price increase happened quietly sometime in late December 2023/early January 2024. Existing users with active subscriptions at the time of the increase are not affected and will continue to pay the original price until their renewal date.

How Does Mastercard Actually Make Money?

MasterCard doesn’t make money directly from consumers using their cards. Instead, they generate revenue through several key channels:

1. Assessments: This is the main source of income, accounting for roughly 28% of Mastercard’s revenue. Assessment fees are charged to financial institutions that issue Mastercard-branded cards based on the gross dollar volume (GDV) of transactions made using those cards. The higher the GDV, the higher the fee.

2. Transaction fees: This accounts for about 34% of their revenue. These are small fees charged to merchants every time a Mastercard is used for a purchase. This fee is typically a percentage of the transaction amount and a fixed fee.

3. Cross-border fees: When a Mastercard is used in a different country than the one where it was issued, additional fees are charged, contributing around 23% of Mastercard’s revenue. These fees cover currency conversion and other costs associated with cross-border transactions.

4. Other revenue: This includes smaller sources of income like data analytics services, consulting fees, and licensing fees for Mastercard technology.