Internal | July 16th, 2024

GOOD MORNING

Here's everything you need to know today: JD Vance, the venture capitalist-cum-author-cum-politician, has been tapped as the latest Vice Presidential pick. Yes, the "Hillbilly Elegy" guy, for real. But it makes sense when you remember he invested for Peter Thiel, so he’s used to “We tried to hang your predecessor” energy.

Vance, whose memoir managed to wrangle both Oprah’s approval and a Ron Howard flick, has now leapfrogged from Senate newbie to MAGA VP nominee faster than you can say "Nice beard". His addition to the Trump ticket adds rags-to–the-riches story of the campaign, alongside a touch of Silicon Valley glam, and a sprinkle of kowtowing from a guy who once mused into a hot mic that Trump might be “the American Hitler.” 

We’ll take a deeper look at Vance later today, but in the meantime check out some interesting details on Google’s latest big deal and some very “interesting” investing by a DC politician.

Let’s dive into more detail below.

CYBERSECURITY

Google’s $23 Billion Deal for Wiz Is a Big Bet on Cybersecurity’s Future

Google’s (likely) biggest acquisition to date is a commitment to fortifying its cloud services amid rising cyber vulnerabilities around the globe

BREAKING NEWS
Over the weekend, reports emerged that Google is finalizing a deal to acquire cybersecurity startup Wiz for approximately $23 billion.

Two things stood out to us: the timing of Google's acquisition and, more crucially, the potential reasoning behind it.

In September 2023, Google acquired Mandiant, an American cybersecurity firm specializing in incident response, threat intelligence, and attack surface management, That deal valued at $5.4 billion, making it just a skooch smaller than the proposed purchase price of Wiz: $23 billion.

If Mandiant needs to be more self-sufficient, what is Google worried about? Or even more concerning, what is it preparing for?

WHAT HAPPENED
Google's motivation to get ahead of the feeding frenzy for Wiz makes sense when one looks at its backers and accomplishments in cloud security. Wiz's Series E raised $1 billion in May 2024 at a $12 billion valuation. Sand Hill Road players like Andreessen Horowitz, Sequoia Capital, and Salesforce Ventures participated in the round.

Wiz is also a wiz at what it does, uncovering critical vulnerabilities in major cloud platforms, including Microsoft Azure, Oracle Cloud, and IBM Cloud. In the case of Microsoft Azure's Cosmos DB, Wiz found and remedied flaws that made it possible to download, delete, or manipulate databases belonging to thousands of Azure customers.

As we saw with AT&T last week, which disclosed a massive hack of customer calls and texts from 2022 and 2023, which identified customers' voice and text contact numbers, frequency, duration, and, for some, cell tower locations, users, and the market (their stock continues to fall) are not happy when vulnerabilities become a reality.

Wiz also fits in with Google's diverse portfolio. From Looker in 2019 for $2.6 billion to Fitbit in 2021 for $2.1 billion, the company's strategic investments in data analytics and fitness prove not only a desire to be connected to everything and everyone, but also a requirement, especially with AI systems inevitably heading in the same direction.

But Google's acquisition of Wiz almost seems necessary as competition for cloud computing and services continues to rise, and it is also a reason many have not connected yet.

CONTINUE READING ➔

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POLITICAL TRADING

Senator Mullin’s Stock Trade with Parker-Hannifin Highlights Military Ties

Senator Mullin’s defense contractor investment coincides with his ongoing push for Air Force advancements, modernization, and NDAA support

BREAKING NEWS
U.S. Senator Markwayne Mullin (R-OK) is relatively new on Capitol Hill. He became active in 2013 when he was elected to the U.S. House of Representatives and served in the House from 2013 to 2023 before being elected to the U.S. Senate in 2022, taking office on January 3, 2023.

Mullin is a big supporter of the military and seems to ha U.S. Air Force, particularly enamored with Altus Air Force Base, home of Air Mobility, stating, "Altus produces the world's most inspired, proficient, and adaptive mobility warriors to deliver airpower for America."

It makes sense that Senator Markwayne Mullin sits on the Senate Armed Services Committee, as his recorded comments and actions indicate a strong focus on supporting and improving Air Force capabilities.

What doesn't make sense is why Mullin recently bought stock in Parker-Hannifin (PH), which has extensive business ties and relationships with the U.S. military, primarily through its Aerospace and Defense divisions.

WHAT HAPPENED
At Moby, our goal isn't to look like the next Anonymous, the infamous computer hackers who pledge to bring truth to light. Mullin's trade and thousands of others like it are all part of this public record organized succinctly on Quiver Quantitative.

The trade is not monumental, involving a purchase of $15,001-$50,000 worth of Parker-Hannifin Corporation common stock. In comparison, Nancy Pelosi recently acquired $1,000,001-$5,000,000 of Nvidia stock on June 26, along with a similar purchase of Broadcom. Let's be honest: no one can match Pelosi's scale.

Senator Mullin looks to be a trendsetter with this trader, seeing PH has not been touched on the Hill since Greg Stanton, the Democrat from Arizona, in September 2023. He then promptly sold a month later.

However, maybe "trendsetter" is the wrong word here.

CONTINUE READING ➔

1. NVIDIA’s Path to $200 Per Share

Wall Street predicts NVIDIA's (NASDAQ: NVDA) stock could reach $200 by the end of 2024, despite recent volatility. Upgrades and positive notes initially boosted the stock, but a 5.6% sell-off occurred as investors shifted away from tech.

2. Google Nears Acquisition of Wiz

Google’s parent company Alphabet is close to acquiring cybersecurity startup Wiz for $23 billion, marking its largest startup acquisition to date. This move is part of Google’s strategy to compete more aggressively in the cybersecurity space.

3. TSMC Profits Surge on AI Chip Demand

Taiwan Semiconductor Manufacturing Co. (TSMC) is expected to report a 30% increase in second-quarter profits due to the high demand for AI chips. TSMC remains the leading producer of advanced chips used in artificial intelligence applications.

4. Burberry Shares Drop After Profit Warning

Burberry shares fell 10% following a profit warning and the replacement of its CEO. The company cited disappointing first-quarter performance and broader industry challenges as reasons for the shakeup and financial outlook adjustment.

5. Goldman Sachs Q2 Profits Soar

Goldman Sachs reported a 150% increase in second-quarter profits, driven by a rebound in investment banking activities. The firm’s earnings surge is seen as a positive sign for Wall Street after a challenging period in 2023.

6. BlackRock Hits Record $10.6 Trillion in Assets

BlackRock, the world’s largest asset manager, achieved a record $10.6 trillion in assets under management. This milestone was driven by significant inflows into its long-term investment funds, reflecting robust market conditions.

7. Apple's India Sales Surge 33%

Apple's annual sales in India increased by 33%, reaching nearly $8 billion. This growth highlights India's importance as a rapidly expanding market for the tech giant, which has been increasing its local assembly operations.

8. Super Micro to Join Nasdaq 100

Super Micro Computer will replace Walgreens Boots Alliance in the Nasdaq 100 index on July 22. This inclusion reflects the growing significance of tech companies in major stock indices.

9. Cleveland-Cliffs Acquires Stelco

Cleveland-Cliffs announced the acquisition of Stelco, enhancing its position in the North American steel industry. The deal aims to expand Cleveland-Cliffs’ production capabilities and market reach.

10. Goldman Sachs Increases Banker Pay

Following a 150% surge in quarterly profits, Goldman Sachs announced it will raise pay and bonuses for its bankers. The firm spent $4.2 billion on compensation and benefits in the second quarter, reflecting its commitment to rewarding staff amid strong financial performance.

CONTINUE READING ➔