250% Jump!

1. Figma IPO Soars ~250% on Debut

Figma had one of the most explosive IPOs we’ve seen—surging roughly 250% above its $33 offering price and valuing the company at nearly $50B. The massive demand reflected renewed investor appetite for tech startups and a strong rebound in tech IPOs.

Pete’s takeaway:
If you’re tracking early-stage AI and SaaS plays, meteoric debuts like this remind us how fast sentiment can change. However, take note that the valuation is sky high. It is now trading at close to 68x sales.

Figma faces established rivals like Adobe, Microsoft, and rapidly rising AI-native tools (e.g. Canva). AI-powered design tools may reduce reliance on Figma or enable competitors to replicate features

2. Apple Q3 Beats Expectations… But With Caution

Apple delivered better-than-expected Q3 results:

• Revenue: $94B (up 10% YoY)

• EPS: $1.57 (+12%)

• iPhone sales jumped 13%, services and Mac revenue also emerged as bright spots.
  However, tariffs still cost about $800M this quarter and could rise to $1.1B in Q4. Apple is ramping U.S./India manufacturing and investing heavily in AI.

Pete takeaway:
Strong execution under macro pressure. Apple’s quality shines under pressure. But don’t overlook near-term margin risks and rising AI investments that could weigh on forward guidance.

iPhone sales continue to be the crown jewel but it is good to see that Service sales are catching up nicely.

Shares up 2.4% after hours.

3. Amazon Q2: Strong Numbers, Tepid Sentiment

• Revenue: $167.7B (13% increase)

• EPS: $1.68 (beat expectations of $1.33)
  Despite solid earnings, shares dropped ~3–7% in after-hours trading. The culprit: lackluster AWS surprises, cautious Q3 guidance, and aggressive AI capital spending.

Pete takeaway:
Amazon still delivers growth—but expectations are sky-high. If you’re in the stock, consider trimming on strength or waiting for better clarity on its AI roadmap.

Shares down over 6% after hours

4. Coinbase Q2 Misses & Stock Slides 8%

Coinbase reported revenue of ~$1.5B (below consensus); trading volumes remained weak, though subscription revenues held up. Stablecoin revenue helped—but wasn’t enough.

Adjusted EPS of $0.12, trailing the $1.49 Wall Street consensus by a wide margin, tumbled from $1.93 in the prior quarter and $1.10 a year before.

Pete takeaway:
Volatile crypto markets can mean missed earnings expectations even when BTC rallies. If you're long crypto-related equities, don’t assume crypto price strength guarantees earnings upside. But COIN still look strong to take much of the crypto market share.

Shares sank 8% after hours.

5. MicroStrategy Rides the Bitcoin Wave

MicroStrategy posted massive profits in Q2, driven by substantial BTC appreciation. The company now holds nearly 600,000 BTC, and its earnings are up sharply from the bitcoin rally.

Adjusted EPS of $32.60, blowing past the -$0.03 consensus, surged from -$16.53 in the prior quarter and -$0.57 in Q2 2024.

Revenue of $114.9M, also beating the $112.5M expected, rose from $111.1M in Q1 and +2.7% from a year before.

Pete takeaway:
Companies holding crypto assets are becoming more direct proxies for blockchain exposure. But be cautious—you’re exposed to both stock market and bitcoin volatility.

Shares down 1.4% after hours

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Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.