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SAP Spearheads EU Tech Pop
German software company SAP’s [SAP] share price jumped 8.2% to €161.54, a record high, after reporting robust growth in Q4 and projecting that operating profit will rise to approximately €10bn next year; the firm also announced a major pivot to artificial intelligence (AI). Dutch chipmaker ASML [ASML] also reported a boom in demand. Driven primarily by these performances, the region’s tech sector rose nearly 4% Wednesday, adding some €36bn in market value.
Netflix Bodyslam
Streaming giant Netflix [NFLX] beat analyst expectations by adding 13 million subscribers in Q4, matching growth levels last seen during the pandemic. The company also said its operating income was at $1.5bn, relative to $550m in the year-ago quarter. In addition, Netflix announced a $5bn deal for rights to show World Wrestling Entertainment’s [WWE] flagship Raw programme in the US for 10 years, starting in January 2025.
New Tesla Model Announced
Tesla [TSLA] has told suppliers that it is aiming to commence production of a new mass-market electric car by mid-2025, Reuters reported. The model has the codename Redwood and was described as a compact crossover. Elsewhere in the space, Japan’s Nidec [NJDCY] has cut its full-year operating profit by nearly a fifth over demand uncertainty and an increase in price competition in key market China.
Apple’s AI Moves
Following in the footsteps of Samsung [005930:KS], Apple [AAPL] is moving to boost the AI capacity of its iPhones, reported the Financial Times. The Cupertino company has made a series of acquisitions and hardware updates towards this end; research from PitchBook shows it has bought 21 AI start-ups since the start of 2017. Elsewhere, Apple has scaled back its ambition to develop a driverless car and is now working on a more conventional electric vehicle, according to Bloomberg.
Is the Obesity Drug Race Still Wide Open?
The market may be dominated by Novo Nordisk [NVO] and Eli Lilly [LLY], but other drugmakers can still “win” the race, according to Adam Steensberg, CEO of biotech company Zealand Pharma [ZLDPF]. Zealand’s share price surged 100% over the last year thanks to its progress on its own anti-obesity drug, which is now in late-stage trials. On Tuesday, Eli Lilly said that its AK-OTOF experimental gene therapy had restored the hearing of a child who was born deaf.
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