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Digimarc's Massive Layoffs: What's Next?
Ryan Serkes
February 28, 2025
The
Daily Trade
Hey Daily Traders,
Digimarc is facing financial turmoil, with shares plummeting 43% after announcing layoffs for 40% of its workforce. Despite a $39 million loss last year, the company is exploring strategic alternatives with Goldman Sachs, including a potential sale, as it seeks financial stability.
Meanwhile, Snowflake's earnings report missed expectations, showing a loss of $0.90 per share instead of the anticipated $0.17 profit. Despite this, analysts are optimistic, with several firms upgrading their price targets due to Snowflake's promising position in the data cloud market.
Here's what's happening today:
- 📉 Digimarc shares plummet amid major layoffs.
- 📊 Snowflake misses earnings estimates, analysts react.
- 📈 Money market fund assets reach record highs.
- 🚀 Auburn lands $11.4M defense contract for space tech.
- 🔋 Surge in natural gas plans challenges climate goals.
Question
Do you think Digimarc's decision to lay off 40% of its workforce will help stabilize the company, or is it a sign of deeper financial troubles?
Reply to this email with your answer
Stock Market  Digimarc, a tech company based in Beaverton, Oregon, has seen its shares drop significantly by 43% following the announcement of layoffs affecting 40% of its workforce. The company, which specializes in digital watermarks, has been struggling financially, reporting a $39 million loss last year despite $22.4 million in sales. In response, Digimarc has hired Goldman Sachs to explore strategic alternatives, including the possibility of selling the company. CEO Riley McCormack emphasized the difficulty of the decision to lay off 90 employees but highlighted the necessity of operating sustainably for the remaining stakeholders. The company has been losing money for over a decade, and these steps are seen as crucial to stabilizing its financial position. The market value of Digimarc has now fallen to approximately $330 million. Key Takeaway
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Stock Market Snowflake Inc. released its latest quarterly earnings, revealing a significant miss against analysts' expectations. The company reported a loss of $0.90 per share, falling short of the anticipated $0.17 earnings per share. Despite the earnings miss, Snowflake's stock saw a slight increase in trading, reflecting investor confidence bolstered by recent analyst upgrades. Analysts have issued mixed reviews, with BTIG Research upgrading Snowflake to a 'buy' rating and setting a price target of $220. Other firms like KeyCorp and Wells Fargo also raised their price targets, citing Snowflake's potential in the data cloud market. The earnings miss, however, underscores the challenges Snowflake faces in achieving profitability while expanding its market share. Key Takeaway
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Stock Market The Investment Company Institute has reported that money market fund (MMF) assets have reached a new record high, totaling $6.97 trillion. This increase of $60.54 billion in a single week highlights the growing appeal of money market funds as a stable investment option amid economic uncertainties. Government and prime funds saw the most significant growth, with government funds alone increasing by $52.97 billion. Money market funds are considered a safe investment due to their focus on high-quality, short-term debt securities. The rise in MMF assets suggests that investors are seeking security and liquidity, possibly in response to fluctuating market conditions and interest rates. This trend reflects broader investor behavior in times of financial instability. Key Takeaway
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Stock Market Auburn University's Applied Research Institute has been awarded an $11.4 million contract from the Department of Defense to establish a radiation hardening facility for space technology. This facility, located in Huntsville, Alabama, will be the only university-led center of its kind in the nation, providing crucial testing for military technology in space environments. The initiative addresses a national shortage of rad hardening infrastructure, as identified by agencies like NASA and the Department of Defense. Auburn's efforts are seen as a significant contribution to national security and the future of American space operations, reinforcing Alabama's reputation as a leader in aerospace and defense research. Key Takeaway
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Stock Market  The demand for electricity from tech companies is driving a resurgence in natural gas-fired power projects across the U.S., challenging climate goals. Despite expectations for renewable energy to take precedence, utilities are increasingly turning to natural gas as a reliable and cost-effective power source. This shift raises concerns about meeting greenhouse gas-reduction targets crucial for mitigating climate change. Industry analysts note that the construction of new gas plants contradicts efforts to reduce emissions, as natural gas is a significant source of carbon dioxide and methane. The trend is fueled by the growing electricity needs of AI and data centers, highlighting a conflict between technological advancement and environmental sustainability. Key Takeaway
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Today's Technical Analysis
RSI Buy | MFI Buy | WillR Buy | AO Buy |
CCI Buy | BBANDS Hold | ULTOSC Buy | STOCH Buy |
RSI Buy | MFI Buy | WillR Buy | AO Buy |
CCI Buy | BBANDS Buy | ULTOSC Buy | STOCH Hold |
RSI Buy | MFI Buy | WillR Buy | AO Buy |
CCI Buy | BBANDS Buy | ULTOSC Hold | STOCH Buy |
RSI Buy | MFI Hold | WillR Buy | AO Buy |
CCI Buy | BBANDS Buy | ULTOSC Buy | STOCH Buy |
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Technical Indicator Information
Relative Strength Index (RSI) | Period: 14 days | Overvalued threshold: 70 | Undervalued threshold: 30
Money Flow Index (MFI) | Period: 14 days | Overvalued threshold: 80 | Undervalued threshold: 20
Williams Percent Range (WillR) | Period: 14 days | Overvalued threshold: -20 | Undervalued threshold: -80
Aroon Oscillator (AO) | Period: 14 days | Overvalued threshold: 75 | Undervalued threshold: -75
Moving Average Convergence/Divergence (MACD) | Period: 26/12/9 days | Overvalued threshold: MACD crosses below MACD Signal | Undervalued threshold: MACD crosses above MACD Signal
Stochastic Oscillator (STOCH) | Period: 14/3/3 days | Overvalued threshold: %K crosses below %D above 80 | Undervalued threshold: %K crosses above %D below 20
Commodity Channel Index (CCI) | Period: 20 days | Overvalued threshold: 100 | Undervalued threshold: -100
Bollinger Bands (BBANDS) | Period: 20 days | Overvalued threshold: price >= upper band | Undervalued threshold: price <= lower band
Parabolic Stop and Reverse (SAR) | Period: variable 50 - 100 days | Overvalued threshold: SAR crosses above price | Undervalued threshold: SAR crosses below price
Triple Exponential Average (TRIX) | Period: 15 days | Overvalued threshold: TRIX crosses below 0 | Undervalued threshold: TRIX crosses above 0
Ultimate Oscillator (ULTOSC) | Period: 28/14/7 days | Overvalued threshold: 70 | Undervalued threshold: 30
Directional Movement Index (DMI) | Period: 14 days | Overvalued threshold: PlusDI crosses below MinusDI | Undervalued threshold: PlusDI crosses above MinusDI
Average Directional Index (ADX) | Period: variable 14 days | Requirement: >= 25
Analysis is only performed on securities with market caps in excess of $100 million and with daily trade volume in excess of $50 million.
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