Show me some AI 🍿
Apple earnings, New IPO, and Ola’s comeback.
Sup gang 👋
Back here after a solid break, couple pounds heavier from all the Diwali sweets.
Markets closed for the weekend, but a few things from the business world were paying attention to.
Let's hit it.
1 Big Thing: Markets Want More AI From Apple 👎
Mr. Market wasn't too pleased with Apple's quarterly earnings, driving stock down 2% on Friday.
Although iPhone sales exceeded expectations, concerns are mounting over Apple's AI strategy, which some investors feel is lagging behind competitors.
Context:
Apple, despite acquiring Siri in 2010, continues to be fall behind in generative AI despite spending billions on the project.
Apple Intelligence, its new AI system for iPhones and Macs, has become the subject of jokes for its limitations.
However, Apple Intelligence is showing promise, with adoption rates doubling those of the recent iOS 17.1 release.
Otherwise, Apple’s financials looked pretty solid this quarter, with growth across the board from devices and services.
Revenues topped at $94.9 billion, up 6.1% YoY
iPhone revenue of $46.2 billion was helped by the new 16, which is off to a strong start, outperforming the 14 and 15 from previous years.
And there’s more. The iPad business had the strongest growth, with an 8% increase in sales, Mac revenue grew 2%, while the Services business grew 12%.
Worth noting: a one-time tax charge related to a European decision took a bite out of Apple's net income.
Bottomline: big tech is stable and predictable. But investors want more, such as continued re-invention to keep growth going.
2. New $8.5 billion Media Giant 📺
What’s Poppin’—the European Commission green lit Reliance and Disney to merge their media operations in India, which will create the largest media entity in India to date, valued at over $8.5 billion.
The gameplay:
Reliance will hold 56% of the company, Walt Disney will get another 37%, and the remaining 7% will be owed by Bodhi Tree Systems.
The NewCo will run 100+ TV channels, 2 streaming platforms, with Disney+ Hotstar retaining IPL streaming rights in 2025.
One snag though: A Delhi-based developer registered the domain "JioHotstar.com," creating a sticky situation for Reliance. This domain is now held by two Dubai-based siblings who use it to promote positivity—which is likely to end only one way, but creates unnecessary PR mess for RIL.
Back to the deal: with access to Disney’s IP, Reliance could get undisputed influence over India’s online and offline media and entertainment space, to innovate and take on competition like Netflix or Prime Video.
While We’re on Mergers 🤝
InsuranceDekho and RenewBuy are planning a merger to form a major player in India’s insurance aggregation market, taking on PolicyBazaar.
The combined entity could be valued at over ₹8,000 crore ($950 million). with the merger involving cash and stock transactions, which is
The deal will be conducted in stock and cash, and is likely to pave the way for a potential ID IPO.
3. Ola’s Charting a Comeback 🤙
Diwali spending is helping Ola accelerate growth, with the company selling 41,605 units, a 68% increase from September’s 24,726 units.
October bump helped Ola’s market share to 30%, up from 27% the previous month.
Yes, but: despite this upswing, Ola faces scrutiny from the Central Consumer Protection Authority over alleged consumer rights violations and misleading advertising. The company claims to have resolved nearly all after-sales complaints but remains under investigation.
By the numbers: Ola reported a 2.8% revenue increase for its last quarter (Q1), reaching ₹1,644 crore, with losses down to ₹347 crore.
Stock trades at ₹80, nearly 50% below mid-August peak. Investors await Q2 results.
Zoom out: while India’s EV penetration remains under 7%, operational hurdles, competition, and market volatility are real challenges.
What else are we snackin’ 🍿
😎 NVIDIA Joins DOW: Nvidia will replace Intel in the Dow Jones Industrial Average. This change reflects Nvidia's rising prominence in the tech sector, particularly in areas like artificial intelligence and gaming.
🚀 UPI Hits New Highs: UPI transactions hit a record 16.6 billion in October, up 10% from September. The transaction value also surged 14%, reaching ₹ 23.5 lakh crore from ₹20.6 lakh crore.
🤡 Musk gotta pay: A federal judge has ruled against Elon Musk's bid to block severance payments to former Twitter executives, including ex-CEO Parag Agrawal.
Aight folks, that’s it for today. Enjoy your weekend and catch up on some much-needed downtime. We’ll be back on Monday, like clockwork!
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