NexOptic Technology Corp (TSXV: NXO)
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Deals like Facebook’s (FB +1.8%) massive $5.7B investment into Reliance Jio usually don’t work, Citi says, but in this case it likely has little risk to the downside.
“Prior attempts by wireless carriers to invest in software or software firm’s investments in wireless carriers usually don’t work,” analyst Jason Bazinet writes, but Facebook is likely more excited about the JioMart service as opposed to the network.
Facebook and Reliance had previously been discussing a multipurpose app similar to WeChat that would provide not only for communications but also for shopping (and JioMart), money movements, and travel booking.
The deal could put “modest, near-term” pressure on equity – but downside at Facebook is likely capped by the investment, as the company probably sees limited risk of other wireless users using the apps less, he says.
Intel (NASDAQ:INTC) reports Q1 beats for the period ending March 28, driven by data center strength and the coronavirus-related work-from-home component demand.
Data Center Group revenue was up 43% Y/Y to $7B, which included a 53% increase in cloud service provider revenue.
The PC-centric business grew 14% to $9.8B with Notebooks posting a 22% Y/Y unit growth.
Cash flow from operations totaled $6.2B with $2.9B in FCF. Intel strengthened its liquidity with $10.3B in new debt and its buyback suspension.
Q2 guidance sees about $18.5B in revenue (consensus: $18.1B), $1.10 EPS (consensus: $1.17), and 30% operating margin.
Intel isn’t providing a FY outlook due to the coronavirus uncertainties.
Earnings call starts at 5 PM with a webcast here.
Shares are down 5% after hours.
Post updated to correct revenue consensus.
During a webinar, Zoom (NASDAQ:ZM) CEO Eric Yuan announced surpassing 300M daily Zoom meeting participants.
On April 1, Zoom had announced that 200M people used its service in March, up from 10M in December due to the coronavirus-related lockdowns.
The user growth surge came with increased security scrutiny. Zoom 5.0 debuted this week with additional security features, including the AES 256-bit GCM encryption standard.
Zoom shares are up 9.4% to $164.31.
Universal Pictures (CMCSA +1.2%) has announced a five-year exclusive deal with Lego Group to build a new movie franchise – rights it essentially has taken from Warner Bros. (T +0.3%).
The Lego Movie from 2014 was a surprise hit for Warner Bros., grossing $257.8M domestically and $468M worldwide. And it was followed by The Lego Batman Movie and The Lego Ninjago Movie in 2017, and sequel The Lego Movie 2: The Second Part last year.
Those films drew a combined $1.1B in global grosses, and remain in the Warner library.
But when a ticking clock ran out on one Lego development, Deadline Hollywood notes, the franchise became a free agent, and Universal quickly became the leader in the hunt for the rights.
Colony Capital’s (NYSE:CLNY) digital infrastructure platform forms Scala Data Centers S/A, a hyperscale data center platform based in Sao Paolo, Brazil, through the acquisition of assets from UOL Diveo.
CLNY rises 1.6% in premarket trading.
Upon closing of the acquisition, Marcos Peigo, currently an operating partner at Digital Colony, will also become CEO of Scala.
Financial terms of the transaction were not disclosed.
Scala is Digital Colony’s second investment in Brazil and fourth in Latin America, after acquiring Highline do Brasil in 2019, Andean Telecom Partners in 2017, and Mexico Towers Partners in 2013 through its affiliate Digital Bridge.
