Plus: SpaceX allocated around 20% of its IPO shares to individual investors, sources say. And Asian chip stocks rebound after roller coaster week. Julie Chang hosts.
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[00:00:16] [SPEAKER_02] Here's your morning TNB Tech Minute for Friday, June 12th. I'm Julie Chang for The Wall Street Journal. Adobe lifted its full-year financial targets, citing growing demand for its AI products. Second quarter profit reached $1.71 billion, up from $1.69 billion a year earlier. Revenue rose 13% to $6.62 billion, beating analysts' expectations.
[00:00:42] [SPEAKER_02] Adobe plans to focus on its freemium AI offerings in an effort to grow its user base at the expense of short-term annualized recurring revenue growth. The software company is also pausing plans to raise prices on its Creative Cloud suite, to focus instead on user acquisition. Plus, the company faces a leadership transition as its CFO departs on Monday and its CEO plans to step down once a successor is found. Adobe's stock has tumbled 37% this year.
[00:01:12] [SPEAKER_02] SpaceX allocated around 20% of its $75 billion offering to individual investors. That's according to people familiar with the matter. That figure is significantly higher than the typical 5-7% range in an IPO allocated to so-called retail investors. Large institutional investors and sovereign wealth funds typically receive the bulk of the shares.
[00:01:36] [SPEAKER_02] SpaceX CEO Elon Musk made clear from the beginning he wanted individuals to play an outsized role in the offering. His fan base of investors has boobied shares of his other company, Tesla, for years. And Asian chip stocks rebounded today following a volatile week driven by geopolitical tensions, inflation, and AI bubble concerns.
[00:01:58] [SPEAKER_02] South Korea's Samsung Electronics and SK Hynix are up 7.8% and 2.3% respectively, after facing heavy losses earlier in the week. In Taiwan, TSMC, the world's largest contract chipmaker, rose about 0.5%, while Foxconn put on nearly 1.5%. The renewed momentum came after foreign investors pulled out at least $5 billion on a net basis from Taiwan stocks in June, per Taiwan's central bank governor.
[00:02:28] [SPEAKER_02] Japan's Tokyo Electron and Kyocera Holdings were both last about 7% higher. That's your TMB Tech Minute. Join us again this afternoon for more.
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