News Posts matching #valuation

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Cryptocurrency Market Bleeds Trillions in Less Than 24 Hours; Did the Bubble Pop?

The cryptocurrency market is experiencing another major shakedown in pricing, with the overall crypto market valuation dropping by more than a trillion dollars in less than 24 hours. As of time of writing, leading cryptocurrency by market cap Bitcoin has lost more than 30% in value, dropping to $31,000. Ethereum is down by 40% to $2,424, and memecoin Dogecoin has fallen by 45% - one would think a memecoin would have had its value dropped to zero from the instant of its conception, but that's not the world we live in.

As the market tries to staunch the bleeding, major cryptocurrency platforms Coinbase and Binance are down, citing "network congestion" issues stemming from the unexpected volatility. As investors see their attempts to sell neutered by these network congestion issues, this seems like a way to reduce the amount of cryptocurrencies available in the market, which would feed the descending value cycle even more. Whether or not this is the bubble popping, it's yet another foundational shock to the trust that was already achieved by these platforms and the cryptocurrency market as a whole. How this will affect market availability and demand for graphics cards and hardware is anyone's guess, but even if it does, it'll take some time until we see availability in the main and secondary channels.

Epic Games Announces $1 Billion Funding Round

Today Epic Games announced that it completed a $1 billion round of funding, which will allow the company to support future growth opportunities. Epic's equity valuation is now $28.7 billion.

This round includes an additional $200M strategic investment from Sony Group Corporation, which builds on the already close relationship between the two companies and reinforces their shared mission to advance the state of the art in technology, entertainment, and socially-connected online services. Other investment partners include Appaloosa, Baillie Gifford, Fidelity Management & Research Company LLC, GIC, funds and accounts advised by T. Rowe Price Associates, Ontario Teachers' Pension Plan Board, funds and accounts managed by BlackRock, Park West, KKR, AllianceBernstein, Altimeter, Franklin Templeton and Luxor Capital. Epic continues to have only a single class of common stock outstanding and CEO Tim Sweeney remains the controlling shareholder of the company.

Epic Games Announces $1.78 Billion Funding Round

Epic Games today announced a $1.78 billion round of funding consisting of primary capital and secondary purchases from employee equity holders. Epic's post-money equity valuation is now $17.3 billion.

This round includes a previously announced $250 million strategic investment from Sony Corporation. Additional investment partners include Baillie Gifford, funds and accounts managed by BlackRock, Fidelity Management & Research Company LLC, Lightspeed Venture Partners, Ontario Teachers' Pension Plan Board, funds and accounts advised by T. Rowe Price Associates, Inc., and David Tepper. Existing investors KKR and Smash Ventures also added to their 2018 investment. Following the closing of the funding round Epic will continue to have only a single class of common stock outstanding and will remain controlled by its founder and CEO, Tim Sweeney.

Arm Co-Founder Doesn't Think NVIDIA Owning the Company Would be in Its Best Interests

Arm co-founder Hermann Hauser recently gave an interview to BBC where he expressed some concerns regarding the prospective buy acquisition from NVIDIA, which has been in talks with Arm owner Softbank towards the IP-designer's acquisition. As Hauser puts it, "It's one of the fundamental assumptions of the ARM business model that it can sell to everybody," Hauser told BCC, "The one saving grace about Softbank was that it wasn't a chip company, and retained ARM neutrality. If it becomes part of Nvidia, most of the licensees are competitors of Nvidia, and will of course then look for an alternative to ARM."

Hauser doesn't think the NVIDIA deal will follow through due to these aspects of the chip design ecosystem, with many Arm clients - such as Intel, Apple, Qualcomm, TSMC, Samsung, among others - being direct or otherwise indirect competitors to NVIDIA. Hauser thinks that Arm would be much better served through a British government intervention in bringing the company back towards the British fold: "The great opportunity that the cash needs of Softbank presents is to bring ARM back home and take it public, with the support of the British government." The Softbank acquisition occurred back in 2016 and cost the company some $24 billion; however, recent estimates from New Street Research LLP placed Arm's valuation at USD $44 billion if its IPO took off in 2021, and as much as $68 billion by 2025.

Sony Invests $250 Million In Epic Games for Minority Stake

The Sony Corporation today announced plans to invest $250 million to acquire a minority interest in Epic Games Inc. This investment represents a 1.4% ownership of the company and gives Epic a valuation of nearly $18 billion. This investment solidifies the strong existing relationship between the two companies at a time when Sony is preparing to release the PlayStation 5. Epic Games CEO Tim Sweeney has publicly praised the upcoming console calling it a "remarkably balanced device" and praised its innovative SSD. The Sony Corporation will join Tencent and various other companies who own significant stakes in the company. The merger is still subject to customary closing conditions, including regulatory approvals and it is unsure when or if this will be granted.
SonyThe investment allows Sony and Epic to aim to broaden their collaboration across Sony's leading portfolio of entertainment assets and technology, and Epic's social entertainment platform and digital ecosystem to create unique experiences for consumers and creators.

NVIDIA: Turing Adoption Rate 45% Higher Than Pascal, 90% of Users Buying Upwards in Graphics Product Tiers

NVIDIA during its investor day revealed some interesting statistics on its Turing-based graphics cards. The company essentially announced that revenue for Turing graphics cards sales increased 45% over that generated when NVIDIA introduced their Pascal architecture - which does make sense, when you consider how NVIDIA actually positioned its same processor tiers (**60, **70, **80) in higher pricing brackets than previously. NVIDIA's own graphics showcase this better than anyone else could, with a clear indication of higher pricing for the same graphics tier. According to the company, 90% of users are actually buying pricier graphics cards this generation than they were in the previous one -which makes sense, since a user buying a 1060 at launch would only have to pay $249, while the new RTX 2060 goes for $349.

Other interesting tidbits from NVIDIA's presentation at its investor day is that Pascal accounts for around 50% of the installed NVIDIA graphics cards, while Turing, for now, only accounts for 2% of that. This means 48% of users sporting an NVIDIA graphics card are using Maxwell or earlier designs, which NVIDIA says presents an incredible opportunity for increased sales as these users make the jump to the new Turing offerings - and extended RTX feature set. NVIDIA stock valuation grew by 5.82% today, likely on the back of this info.

EA Stocks Dive 13% With Disappointing Battlefield V Sales, Mobile Revenue

EA stocks today have taken a dive of 12.83% (17% at the worst case scenario, with a slight rebound in the meantime), at the moment of writing, compared to their opening hours. The descent, which represents a dip towards a $80.61 valuation per share compared to the $92.52 at the opening market, followed the release of the company's Q3 FY19 Financial Results, caused by lower than expected sales from Battlefield V and lower than expected revenue from EA's mobile efforts. This is capitalism at its finest - the 7.3 million sales of Battlefield V (an impressive number by any metric) fell close to a cool million short of projected sales by this time, and that is enough for the market to correct their expectations.

EA's mobile business saw a YoY fall of 22%, which did little to assuage investors and provide a positive note for the underperforming Battlefield V. It's interesting to note how interesting the markets can be: on the surprise announcement of the new, Respawn-developed Apex Legends, there was no significant change in EA's stock valuation, despite this launch meaning a new, hopefully rich, revenue source for the publisher. Although considering TechPowerUp's overall sentiment regarding that games' launch (not representative of the entire community), it seems that EA won't be banking much on our users.

NVIDIA Revises Financial Outlook for 2019 by $500 million, Immediately Hit Back by the Stock Market

NVIDIA's stock value has been falling precipitously in the last several months. We reported in December that the company lost some 48.8% in value between October and December, moving from an all-time peak of $289.36 on October 1st, to just under $149 on December 14th. At the time, excess inventories were the cause, alongside a less than glamorous reception to their new RTX series of graphics cards. Now? NVIDIA cites "deteriorating macroeconomic conditions, particularly in China" as harming demand for their gaming GPUs. But this now comes alongside a its datacenter business also falling short of expectations - that's two of NVIDIA's most lucrative markets being put towards the red, or at least, with lower than expected income revenues.

This led the company to revise its financial outlook for the year, lowering revenue estimates by $500 million, down to $2.2 billion from its initial $2.7 billion forecast. Gross margins have been lowered by some 7%, which means lowered earnings for investors. Since the December plunge, NVIDIA's stock had recovered up to around $160 per share, but has now dived 14.52%, down to $136.90 - even lower than before. The company has seen its market valuation shrink by more than 50% inside of four months - while the company is still well in the green side of the limbo, so to speak, these certainly don't serve to improve the company's spirit.
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