Top US stocks: UiPath, T-Mobile and Boeing

UiPath releases earnings after the closing bell, Deutsche Telekom ups its stake in T-Mobile US, Ryanair says Boeing’s prices are too high, Pfizer and Moderna booster shots are on the horizon, and State Street announces a $3.5 billion acquisition.

USA (1)

UiPath

Automation specialist UiPath will release second quarter earnings after the markets close today, with investors hoping the launch of its new platform, alongside its new acquisition and partnerships, can keep up the momentum built in the first.

The company is aiming to deliver annual recurring revenue of $702 to $704 million, revenue of $180 to $185 million, and a non-GAAP operating loss of $35 to $25 million in the second quarter. Watch for any changes to its outlook, with UiPath currently aiming to deliver annual recurring revenue of $850 to $855 million over the full year.

UiPath launched its new platform in the last quarter, unleashing three new products and other 100 new features, and completed the acquisition of Cloud Elements to improve its user and programming interfaces back in March. UiPath is a stock to watch amid the growing problem with labour shortages in several industries.

T-Mobile

Deutsche Telekom has taken a step closer to taking control of T-Mobile US after striking a deal with Softbank, which will become the largest individual shareholder in the German telecoms giant as a result.

Deutsche Telekom is issuing 225 million new shares to Softbank at EUR20 each in return for 45 million shares in T-Mobile US owned by the Japanese conglomerate at $118 each. Deutsche Telekom is also buying another 20 million T-Mobile US shares from Softbank in cash raised from selling its business in the Netherlands.

This will see Deutsche Telekom’s stake in T-Mobile US rise to 48.4% from 43.4%, with its CEO having shown his ambition of gaining control over the business. Softbank will become the largest investor in Deutsche Telekom with a 4.5% stake and the pair will work together on other investments and opportunities going forward.

Boeing

Boeing shares will be in play today after European low-cost airline Ryanair cancelled a large order after failing to agree on a price.

Ryanair was holding talks about placing orders for MAX10s to follow on from its existing orders for 210 b737 ‘Gamechanger’ aircraft, but said negotiations have ended ‘without any agreement on price’.

‘We are disappointed we couldn't reach agreement with Boeing on a MAX10 order. However, Boeing have a more optimistic outlook on aircraft pricing than we do, and we have a disciplined track record of not paying high prices for aircraft,’ said Ryanair’s Michael O’Leary. Ryanair also said that Boeing’s optimistic pricing outlook could be why other customers like Delta and Jet2 have been placing new orders with Boeing’s only rival, Airbus.

There was also separate news that Singapore is set to give the green light for Boeing 737 MAX aircraft to take to the skies after over two years of being grounded, the country’s aviation regulator said yesterday. The Civil Aviation Authority of Singapore said the decision was made after operators complied with new directives and additional training was undertaken by crew. Singapore Airlines said it continues to work with regulators about getting its fleet of 737 MAX planes back up and running.

Moderna and Pfizer

US chief medical advisor Anthony Fauci has said Pfizer’s coronavirus vaccine will be rolled-out to provide booster shots starting later this month, but has warned the introduction of Moderna’s jab could take longer.

Pfizer booster shots will start to be rolled out during the week commencing September 20, with the country looking for people to take a third shot eight months after their second dose.

Pfizer is the only one likely to gain the necessary approvals in time for the planned roll out, according to the director of the National Institute of Allergy and Infectious Diseases. ‘We hope that Moderna would also be able to do it, so we could do it simultaneously. But if not, we’ll do it sequentially,’ they told CBS.

State Street

State Street, which provides a flurry of services to institutional investors, has agreed to buy Brown Brothers Harriman’s investor services business for $3.5 billion in cash in a deal that should be completed before the end of the year.

The investor services business had $5.4 trillion in assets under custody at the end of June, which compares to State Street’s existing $31.9 trillion in AUC. State Street said it is now targeting a higher pretax margin of 31% as a result of the deal and that it expects to deliver $260 million worth of synergies in addition to improving earnings over the first three years.

‘The Investment Servicing industry enjoys strong fundamentals as worldwide growth in financial assets drives industry revenues. This combination with BBH Investor Services helps us consolidate our position as the industry innovator and leader,’ said State Street’s chairman and CEO Ron O’Hanley.

Sea

Shopee, the Southeast Asian online shopping platform owned by Sea Ltd, is actively recruiting sellers ahead of a launch in Poland, according to reports from Reuters.

It would mark the first foray into Europe for the Singapore-based company, building on the entry of its gaming arm Garena. It follows on from reports last week that Shopee is looking to simultaneously launch in India after expanding in Latin America earlier this year. The two unnamed sources also said Shopee will be entering Argentina in the coming months.

Raytheon

Raytheon is being investigated by US authorities about whether it bribed the royal family of Qatar, according to reports from the Wall Street Journal.

The report said officials are investigating whether payments made by the US weapons company to a consultant for the Qatar Armed Forces were actually intended as bribes for a member of the country’s ruling royal family.

A lawsuit filed in California back in 2019 that alleged Raytheon had made around $1.9 million in payoffs through a consulting firm linked to one of the brothers of Qatar’s ruling emir were dismissed on jurisdictional grounds. But the US SEC has started to make inquiries as a result, according to the report.

JD.com

JD.com appointed a new president on Monday alongside new chief executives for its Retail and Health International divisions.

The company said it has appointed Lei Xu as president of the group. He has previously led JD Retail. It has appointed Lijun Xin as the new CEO of JD Retail, having previously worked as an executive director of JD Health. Enlin Jin is taking charge of JD Health. All of the changes are with immediate effect.

Xu will take charge of day-to-day operations and report to group CEO Richard Qiangdong, who will spend more time working on the company’s long-term strategy.

Didi Global

Chinese ride-hailing service Didi has denied claims that the Chinese government is looking to take a stake in the business as part of its regulatory clampdown on a number of large firms.

‘Didi is currently actively and fully cooperating with cybersecurity probe, foreign media reports that Beijing city government is coordinating companies to invest in it are incorrect,’ Didi said in a post on Chinese social media platform Weibo on Saturday.

Bloomberg had reported that Beijing’s municipal government was looking to make an investment in Didi to give state-owned firms control over the business.

ForgeRock

Digital identity management outfit ForgeRock is looking to achieve a valuation of over $1.9 billion when it launches its initial public offering, new regulatory filings revealed.

Having filed for an IPO last month, new documents show ForgeRock is looking to sell 11 million shares between $21 to $24 each.

ForgeRock saw revenue rise to $84.8 million in the first half of 2021 from $55.4 million the year before as demand continues to rise for its digital identity and access management tools as more businesses shift online and utilise more connected devices. It boasts the likes of Standard Chartered, Maersk and Toyota as customers.

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