Playing FTSE Nvidia and ARM deal is off? Intel to spin out Mobileye? The chipmakers wars continue!
What did Steve D get for his birthday? What does Paul think of the Lion King? And why does Steve W think Corning is a transparent company? Find out in this week’s Playing FTSE podcast!
This week, we start off with a game from Steve D. Paul and Steve W take random pairs of stocks and try to figure out which has the highest TRAILING EPS. This one’s a high scoring one as Paul and Steve W reason, remember, and wildly guess their way through acquisitions, stock splits, and twenty numbers to remember. Some of these are easier than others—see how you get on. More importantly, see how you get on with the Netflix vs. Visa question. “WOW” says Paul…
With the game out of the way, it’s onto a semiconductor special. We start off with the latest developments in the story concerning Nvidia’s attempt to buy ARM Holdings. Led by new antitrust enthusiast Lina Khan, the FTC has sued to stop Nvidia from acquiring ARM on the grounds that it might unfairly stifle competition with other chip manufacturers. Steve W takes baby steps in figuring out exactly what ARM does, Paul thinks about the implications for Nvidia, and Steve D ponders the possibility of a future ARM IPO and the prospects of owning shares if the company appears on the LSE.
In contrast to Nvidia, Intel has been lagging somewhat lately. Underperforming shares and a general struggle to innovate has caused the X86 outfit to lose ground to its rivals. But this week, the company announced an intention to spin off self-driving car unit Mobileye—arguably the most promising aspect of the company at the moment. With the intention of improving “visibility” for Mobileye, both in terms of investment and in terms of attracting talent, Intel are letting the company trade separately whilst retaining a controlling interest. Paul runs us through the difference between Intel’s Mobileye and Tesla’s FSD as the Steves take opposite views on the wisdom of the move from Intel. Who loves it and who hates it? Find out here!
Lastly, we have a look at the new ETF from ARK. With their flagship ARK Innovation ETF down 22.6% over the last 12 months against a 29% gain for the S&P 500 (figures correct at the time of writing) ARK have launched a new ETF focused on the most transparent companies. Paul looks through the holdings and investigates how closely the fund is tied to the index it purports to track. Steve W wonders why ARK weren’t doing this sooner. And Steve D reflects on the run that ARK have had this year.
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Show Notes: What’s been going on in the financial world and why should anyone care? Find out as we dive into the latest news and try to figure out what any of it means. We talk about stocks, markets, politics, and loads of other things in a way that’s accessible, light-hearted and (we hope) entertaining. For the people who know nothing, by the people who know even less. Enjoy!
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