NVIDIA vs. The FTC 💪

We’re in the thick of a big week for software companies, which has shown mixed results. Unfortunately, DocuSign fell on the wrong side of the tape today after reporting earnings. 

The company reported Non-GAAP net income of $0.61 per share, which comes out to $121.1 million in net income. The company’s total revenue was $545.5 million, +42% YoY. These figures topped analysts’ bets, which came in at $0.46/share and $531 million in revenue. You wouldn’t think that though, based on how the stock performed…

$DOCU fell over 28% in after hours today. Ouch. That’s almost entirely because the company’s revenue guidance came in under analyst expectations. The company anticipated $557-563 million in revenue during Q4, which is below the $575 million figure that analysts published.

Unfortunately, it’s easy to see why DocuSign’s growth is slowing. The company appreciated enormous growth in 2020, during which the stock more than tripled because of the pandemic. However, with the pandemic coming to a “relative conclusion,” the stock has moved mere inches in 2021. 👎 $DOCU is up just 5% this year.

$DOCU quickly ascended the Stocktwits trending rankings, eclipsing other trending streams for the day. DocuSign has settled into the top 10 — it’s worth popping in to check out the conversation.

In September 2020, NVIDIA announced its intent to acquire ARM, a semiconductor design company, in a $40 billion deal. That deal has already received some flack in Europe, but now the U.S’s very own trade regulators are filing a lawsuit to block the merger. 🥊

The U.S. Federal Trade Commission is suing NVIDIA over its ARM merger for “stifling” competition. It suggests that NVIDIA could influence ARM to stop producing valuable IP for the rest of the tech world. Specifically, the FTC worries that NVIDIA’s deal could “undermine competitors, reduce competition and ultimately result in reduced product quality, reduced innovation, higher prices, and less choice” throughout semiconductor and tech markets.

NVIDIA’s not acting like the lawsuit is a huge issue, but it’s no joking matter… after all, Qualcomm, Apple, MediaTek, and Samsung all rely on ARM technology. NVIDIA released a statement claiming the company will encourage ARM to continue making IP beneficial to the greater tech market:

“…NVIDIA is committed to preserving ARM’s open licensing model and ensuring that its IP is available to all interested licensees, current and future.”

We’ll be watching to see where this goes. But given these hurdles, NVIDIA might have a looong road ahead of them. 🕵️‍♀️ $NVDA stock seemed unbothered, gaining 2.2%.

Grab, a Singapore-based “super app,” listed on the Nasdaq today via SPAC. Grab started out as a ride-hailing platform in 2012, but has since-branched into everything from food delivery to digital payments and investments. 🤑

Grab listed through a reverse merger with a SPAC created by the U.S.-based tech investment firm Altimeter Capital. The “super app” of Southeast Asia — also known as the Uber of Southeast Asia — is now valued at a whopping $40 billion. 💸 💸

Brad Gerstner, Altimeter’s CEO, said Grab has become a “powerful flywheel combining ride-hailing, delivery and payments [that has] demonstrated durable growth even during the pandemic and is playing a foundational role in the digitization of Southeast Asia.”

Grab hasn’t turned a profit yet, but its SPAC deal also involved a $4.5 billion private investment in public equity (code for: fundraise on top of the fundraise.) However, by midday today $GRAB shares crumbled 20%, erasing a fifth of its value post-merger. Anthony Tan, Grab Holdings’ Co-Founder and CEO, shared:

“Regardless of the stock price, our focus is on the super app [business model] and that is resilient in spite of COVID.” 🤷 

$GRAB closed down 20.5% today.