Apple's quarterly earnings beat estimates and the tech giant announced a record $110 billion buyback. Sony Pictures and Apollo Global Management express interest in acquiring Paramount Global for $26 billion, amid other bids. Coinbase reports impressive earnings. Japan's intervention threatens yen-based carry trades. All this and more on this edition of World Street.
iWin Moment
Apple Inc's quarterly results and forecast beat modest expectations as revenue fell below estimates. The results and guidance suggest the tech giant may be regaining its footing in the smartphone market, despite stiff competition and regulatory challenges.
The company also announced the biggest US buyback ever, saying its board approved an additional $110 billion in share repurchases. With the announcement, the iPhone maker tops its own record for the largest buyback value announced in the US.
Paramount Pursuit
Sony Pictures and private equity firm Apollo Global Management have sent a letter to the Paramount Global board expressing interest in acquiring the company for about $26 billion, reported Bloomberg.
The expression of formal interest comes as David Ellison’s Skydance Media, backed by private equity firms RedBird Capital and KKR, awaits word from Paramount’s special committee on whether the panel will recommend its bid to acquire the company to Shari Redstone, the controlling shareholder.
Wheel Wealth
The father-son duo behind Phoenix-based online used-car dealer Carvana Co. have seen their fortunes rebound as shares of the company have surged more than 3,000 percent from historic lows, reported Bloomberg.
Father Ernie Garcia II and son Ernie Garcia III have added more than $11 billion in combined net worth since December 2022, when Carvana stock fell below $4 a share as rising interest rates sapped sales, and the company was forced to restructure debt.
Coinbase Coin Craze
Coinbase reported better-than-expected revenue in its first-quarter earnings report. The primary marketplace in the U.S. for buying and selling digital tokens, reported net income of $1.18 billion, or $4.40 per share, compared to a year-ago loss of $78.9 million, or 34 cents a share.
Its profit in the quarter includes a $650 million mark-to-market gain on crypto assets held for investment in connection with the company’s adoption of updated accounting standards.
Buyback Boost
Japan is threatening to derail one of the most profitable currency bets this year: carry trades borrowing the yen to invest in emerging-market currencies. A gauge of yen volatility jumped to the highest level since July this week as Japanese officials were suspected to have twice intervened to prop up the besieged currency, reported Bloomberg.
Yen-funded emerging-market carry trades are headed for a loss this week, with those targeting the Indian rupee and Colombian peso suffering among the biggest declines.
Huawei's Hidden Hand
Huawei Technologies is secretly funding cutting-edge research at American universities including Harvard through an independent Washington-based foundation, reported Bloomberg.
The Chinese telecom giant blacklisted by the US is the sole funder of a research competition that has awarded millions of dollars since its inception in 2022 and attracted hundreds of proposals from scientists around the world, including those at top US universities that have banned their researchers from working with the company, the report said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
