Category: 3. Business

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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Apple is stepping up its succession planning efforts, as it prepares for Tim Cook to step down as chief executive as soon as next year.

Several people familiar with discussions inside the tech group told the Financial Times that its board and senior executives have recently intensified preparations for Cook to hand over the reins at the $4tn company after more than 14 years.

John Ternus, Apple’s senior vice-president of hardware engineering, is widely seen as Cook’s most likely successor, although no final decisions have been made, these people said.

People close to Apple say the long-planned transition is not related to the company’s current performance, ahead of what is expected to be a blockbuster end-of-year sales period for the iPhone.

Apple declined to comment.

The company is unlikely to name a new CEO before its next earnings report in late January, which covers the critical holiday period.

An announcement early in the year would give its new leadership team time to settle in ahead of its big annual keynote events, its developer conference in June and its iPhone launch in September, the people said.

These people said that although preparations have intensified, the timing of any announcement could change.

Cook, Apple’s former operations chief who turned 65 this month, has led the company since 2011 when he took over the role from its co-founder Steve Jobs, who died months later. During Cook’s tenure, the Big Tech group’s market capitalisation has surged from about $350bn in 2011 to $4tn today.

Apple’s shares are trading close to an all-time high after strong results last month, although its stock-price rise of roughly 12 per cent this year lags behind its Big Tech rivals Alphabet, Nvidia and Microsoft, whose valuations have been propelled by Wall Street’s exuberance about artificial intelligence.

Apple has had a number of high-profile changes this year among its top executive team. Longtime Cook confidante, chief financial officer Luca Maestri, stepped back from his role at the start of this year. Jeff Williams, a Cook protégé, announced he was stepping down as chief operating officer in July.

Appointing Ternus would put an executive from the hardware side of the company back in charge at the iPhone maker at a time when Apple has struggled to break into new product categories and keep up with its Silicon Valley rivals in AI.

Cook has voiced his preference for an internal candidate to be chosen as his replacement, saying the company has “very detailed succession plans”.

“I love it there and I can’t envision my life without being there so I’ll be there a while,” he told singer Dua Lipa on her podcast in November 2023.

• Ascletis Pharma announced new preclinical and Phase Ib clinical results for its portfolio of next-generation obesity drug candidates, including ASC36, ASC35, and ASC30, developed using its proprietary AISBDD and ULAP technologies.

• A key highlight is the plan to submit a US Investigational New Drug Application in 2026 for a co-formulated monthly therapy that showed greater weight reduction in animal models compared to existing treatments.

• We’ll explore how Ascletis Pharma’s advancement toward a US IND submission for its obesity treatment candidates could reshape its investment narrative.

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For investors considering Ascletis Pharma, the core belief hinges on the company’s ability to break into the high-growth obesity treatment market with its new-generation drug candidates. The recent disclosure of strong preclinical and Phase Ib data for ASC36, ASC35, and ASC30, along with a planned US IND application for a co-formulated monthly obesity therapy, marks a potentially significant catalyst that could refresh sentiment and drive near-term share price momentum. This news adds clear visibility to the clinical pipeline, which has repeatedly faced skepticism due to historic unprofitability and regulatory hurdles. While the obesity portfolio’s progress could accelerate prospects and broaden Ascletis’ market appeal, key risks remain, especially related to clinical trial outcomes and the heavy investment demands required before potential commercialisation. Materially, these developments could shift attention from past earnings volatility toward future pipeline milestones as primary value drivers.

On the flip side, regulatory outcomes and patent risks remain critical concerns for shareholders. Upon reviewing our latest valuation report, Ascletis Pharma’s share price might be too optimistic.

The Simply Wall St Community offered one fair value estimate before this latest news event, suggesting very little variation in opinions at that time. While clinical trial advancements have improved pipeline visibility, actual commercial success depends on regulatory approvals and market uptake. Explore other views that may broaden your perspective on what could shape the company’s future.

Explore another fair value estimate on Ascletis Pharma – why the stock might be worth less than half the current price!

Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.

These stocks are moving-our analysis flagged them today. Act fast before the price catches up:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include 1672.HK.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

MDA Space (TSX:MDA) is making headlines after two major updates for investors: robust earnings for the quarter and year to date, along with a new partnership to advance wireless power systems for use in space.

See our latest analysis for MDA Space.

The share price has had a turbulent ride this year, with a sharp dip in recent months weighing on sentiment. Positive earnings and partnership news made headlines during this period. While the year-to-date share price return stands at -21.87%, long-term investors have still pocketed a 238.3% total shareholder return over the past three years. This points to significant gains for those who have stayed the course.

Curious what else is happening in the sector? You can explore other aerospace and defense innovators with strong momentum by checking out See the full list for free.

MDA Space’s recent results and high-profile partnership have caught investor attention, but with shares still well below analyst targets and strong revenue gains, is this a bargain opportunity or is future growth already priced in?

According to IndusyHoldings, the narrative puts MDA Space’s fair value at CA$44.08, nearly double the recent close. This sets the stage for an ambitious financial outlook.

MDA Space can benefit greatly from the tailwind of the industry as they offer a wide product range that includes LEO and MEO satellites, space robots and space rovers.

Read the complete narrative.

What’s the growth blueprint fueling that target price? The narrative’s secret sauce lies in bold projections about future revenue and profit margins. Want to know which key financial figures put this company in the spotlight? The full story breaks down the ambitious numbers that build this valuation case. Read on to see what’s driving it.

Result: Fair Value of $44.08 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, heavy reliance on government contracts and potential Artemis delays could quickly overturn the optimistic outlook presented by current projections.

Find out about the key risks to this MDA Space narrative.

If you want to dig deeper or see things differently, you can analyze the data for yourself and shape your own view in just a few minutes. Do it your way

A great starting point for your MDA Space research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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While it may not be enough for some shareholders, we think it is good to see the Pos Malaysia Berhad (KLSE:POS) share price up 25% in a single quarter. But that doesn’t change the fact that the returns over the last half decade have been disappointing. In fact, the share price has declined rather badly, down some 69% in that time. So is the recent increase sufficient to restore confidence in the stock? Not yet. We’d err towards caution given the long term under-performance.

Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they’ve been consistent with returns.

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Pos Malaysia Berhad isn’t currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

This free interactive report on Pos Malaysia Berhad’s balance sheet strength is a great place to start, if you want to investigate the stock further.

It’s good to see that Pos Malaysia Berhad has rewarded shareholders with a total shareholder return of 20% in the last twelve months. That certainly beats the loss of about 11% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It’s always interesting to track share price performance over the longer term. But to understand Pos Malaysia Berhad better, we need to consider many other factors. Take risks, for example – Pos Malaysia Berhad has 3 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Arm Holdings (ARM) recently reported annual results, showing double-digit growth in both revenue and net income. The company’s latest earnings update gives investors more concrete insight into how demand for its chip designs is impacting the bottom line.

See our latest analysis for Arm Holdings.

Even with robust annual growth fueling optimism, Arm Holdings’ share price has taken a breather lately, slipping 18.1% over the last month but still maintaining a respectable 9.0% year-to-date share price return. Investors seem undecided whether current demand and momentum are enough to drive the next leg higher, but the company’s 8.6% total shareholder return over the past year hints that the big picture remains encouraging for those with patience.

If the action around semiconductor stocks has your attention, it could be the perfect time to explore the full landscape of innovation and performance with our tech and AI stocks screener: See the full list for free.

So is Arm Holdings offering a rare buying opportunity with its recent pullback, or has the market already factored in all of its anticipated growth, leaving little room for upside?

The current narrative from jaikhom pegs Arm Holdings’ intrinsic fair value at just half the prevailing share price, spotlighting a dramatic difference between market enthusiasm and fundamental estimates. Recent trading momentum and the gap to the fair value demand a closer look at what’s fueling price action.

Based on a forward earnings framework anchored to the 10-year U.S. Treasury yield, the stock’s intrinsic fair value is estimated at $70 per share. Applying a prudent 20% discount to reflect interest rate risk and macro uncertainty yields a conservative, risk-adjusted target of $56. However, recent market action suggests investor sentiment has shifted decisively beyond fundamentals. With ARM now trading in the $120 to $140 range, its implied earnings yield has fallen below that of the 10-year Treasury, which is often seen as a hallmark of speculative enthusiasm.

Read the complete narrative.

Can you spot the surprising assumptions behind this eye-catching valuation gap? The forecast hinges on benchmarks that most investors ignore, plus a risk adjustment few consider. Wonder how macro forces shape this price target and the profit multiples underlying it? Uncover the bold logic and see what could be missing from the consensus view.

Result: Fair Value of $70 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, surprising earnings strength or a swift change in interest rates could quickly challenge this cautious valuation outlook.

Find out about the key risks to this Arm Holdings narrative.

Of course, if this perspective does not align with your own, you can always dig into the numbers yourself and craft a narrative from your findings in just a few minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Arm Holdings.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ARM.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

During the quarter ended September 30, several funds also reduced their exposure to prominent names in healthcare and energy.

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Bonds also posted gains on expectations of monetary easing that pushed benchmark 10-year yields down about seven basis points. Yields decline when bond prices rise.

During the quarter, Bridgewater increased its stake in Fiserv , and Discovery initiated a position in the payments software firm. Both funds made their moves before Fiserv reported disappointing results and cut its revenue guidance for the second consecutive quarter. The news led to its market capitalization dropping about $30 billion in a single day.

Lone Pine Capital and Tiger Global cut their stakes in Facebook parent Meta Platforms by 34.8% and 62.6% respectively, while Bridgewater and Coatue were among the funds that reduced their exposure to Nvidia.

The latest positions were revealed in filings known as 13-Fs, which hedge funds and other institutional investors file at the end of each quarter. While they are backward-looking and do not reveal current holdings or short positions, the filings offer investors a glimpse of the portfolios of often-secretive funds.

Bridgewater, which enjoyed a stellar run during the first nine months of the year as it outperformed its top peers, slashed its stake in Nvidia by nearly two-thirds to 2.5 million shares and in Alphabet by more than 50% to 2.65 million shares.

Several changes at billionaire Philippe Laffont’s Coatue Management were around big AI names. The firm reduced its holdings in AI industry bellwether Nvidia by 14.1% to 9.9 million shares, joining some other high-profile firms such as Bridgewater and Michael Burry’s Scion Asset Management which have reduced their exposure to the company.

Berkshire Hathaway revealed a $4.3 billion stake in Google parent Alphabet and further reduced its stake in Apple, detailing its equity portfolio for the last time before as chief executive officer.

A Bridgewater spokesperson declined to comment on the fund’s latest positions. The other funds did not immediately respond to requests for comment.

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