Innovid Corp
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Communication Services : Media | Small Cap Growth
Company profile

Innovid Corp. is an independent software platform that provides ad-serving and creative services for the creation, delivery, and measurement of television (TV) ads across connected TV (CTV), mobile TV and desktop TV environments to advertisers, publishers and media agencies. The Company serves various TV advertisers, including Anheuser-Busch InBev, CVS Pharmacy, Kellogg’s, Mercedes-Benz, Target, Sanofi and Volvo. It offers Ad serving solutions, including Campaign Submission Form, which is a Web-based portal used by clients to submit all advertising campaign information and creative assets; Campaign Management Tool, which is its platform portal for campaign implementation and management and Analytics Dashboard, which provides unified visualization of ad performance filterable by delivery, audience reach, device breakdown, viewability, verification and more. It also offers Adobe and Google Web Designer plug-ins to streamline ad creation and data feed mapping.

Price
Delayed
$2.26
Day's Change
-0.105 (-4.45%)
Bid
--
Ask
--
B/A Size
--
Day's High
2.42
Day's Low
2.24
Volume
(Average)

Today's volume of 75,889 shares is on pace to be in-line with CTV's 10-day average volume of 185,693 shares.

75,889

Banks are short more than $1 trillion in capital, this analyst says, who fears the shortfall will only get worse

8:37 am ET November 30, 2022 (MarketWatch)
Print

By Steve Goldstein

Critical information for the U.S. trading day

The new year is nearly upon us, and one idea for where to invest is the banking sector, whose margins benefit from the high interest rates, at not terribly demanding valuations.

Here to counter that view is Christopher Whalen, the chairman of Whalen Global Advisers, who makes the bold case that banks were short over $1 trillion in capital at the end of the second quarter, and that it's only going to get worse as the Fed keeps hiking interest rates.

That claim may surprise those who think the U.S. banking industry has some $2.2 trillion in capital. But he whittles that figure in several ways. First, he notes, there's a difference between book equity and tangible equity, the latter of which is used by banking regulators to evaluate solvency. It's a narrower definition, excluding items like goodwill and deferred tax assets, that brings the total down to $1.49 trillion from $2.22 trillion.

Then, drawing on Federal Deposit Insurance Corp. data, he subtracts what's called accumulated other comprehensive income. "Thanks to QE and now QT, all sorts of assets have become negative return propositions for banks and nonbanks alike. If the coupon pays less than the funding costs, you're losing money," he says. That takes capital down to $1.23 trillion.

Now comes the more controversial part. First he marks to market losses on loans and securities created during 2020 and 2021, for the impact of this year's Fed rate hikes. That right there is enough to push banks into insolvency, with some $1.74 trillion of losses from marking to market.

Another $794 billion losses comes if bank holdings of U.S. Treasury securities, mortgage-backed securities and state and municipal securities also are marked to market. Put it all together, on Whalen's calculations, and banks have a $1.3 trillion shortfall as of the second quarter.

Granted, and this is very important, banks don't have to mark their assets to market. So what's the worry? That exception isn't infinite -- banks are allowed to ignore mark-to-market losses so long as they have the capacity and intent to do so. "Even if the bank holds these low-coupon assets created during 2020-2021 in portfolio to maturity, cash flow losses and poor returns could eventually force a sale," Whalen says.

He performed a similar analysis on JPMorgan Chase (JPM), which he calls one of the better managed banks. Jamie Dimon's bunch has a $16 billion shortfall as of the second quarter -- and a $58 billion deficit if the mark-to-market adjustment is a steeper 17.5% -- on Whalen's numbers.

The bigger question is when those asset sales could possibly occur. "Sales of assets will occur slowly but lenders may force issue on collateral that is 20pts underwater," he told MarketWatch in an email. And what's unsustainable now is set to get worse. "Higher rates just make eventual mess bigger," Whalen added.

The market

U.S. stock futures were pointing higher in early action. Commodities were moving up, with gains for both oil and gold . The dollar was lower.

For more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor's Business Daily.

The buzz

Fed Chair Jerome Powell is scheduled to speak at 1:30 p.m. at the Brookings Institution, the current employer of former Fed Chair Ben Bernanke. "We see hawkish risk from Powell's comments today which may reinforce his November FOMC message that policy rates may need rise to higher levels and that a slowdown to a 50bp hike is not a dovish pivot," said economist at Citi. There are two other Fed speakers as well, with Gov. Michelle Bowman due to speak about banks, as Gov. Lisa Cook speaks at the Detroit Economic Club.

Private-sector job creation slowed to 129,000 in November, ADP estimated, in what it said was the weakest job growth since Jan. 2021. Meanwhile, the Commerce Department upped its estimate of third-quarter growth to 2.9% from 2.6%. The advanced trade in goods report showed a 7.7% rise in the goods deficit, a 0.8% increase in wholesale inventories but a 0.2% drop in retail inventories.

Still to come are Chicago PMI, job openings and pending home sales all are due for release, with the Beige Book of economic anecdotes due at 2 p.m.

In the eurozone, year-over-year inflation slowed to 10% in November from 10.6%.

CrowdStrike Holdings (CRWD) slumped after the cybersecurity firm guided for slowing subscription revenue growth

Horizon Therapeutics (HZNP) rallied after the Irish drugmaker said it's in talks to be purchased, with heavy hitters including Amgen (AMGN), Johnson & Johnson (JNJ) and Sanofi circling the company.

An Alzheimer's drug from Biogen (BIIB) and Eisai moderately reduced cognitive decline but also comes with side effect

Walt Disney (DIS) said its returning CEO, Bob Iger, will initiate organization and operational changes that could result in impairment charges. It flagged the Disney Media and Entertainment Division, which includes its streaming services, for changes.

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Top tickers

Here are the most active stock-market tickers as of 6 a.m. Eastern.

Ticker  Security name 
TSLA    Tesla 
GME     GameStop 
NIO     Nio 
AMC     AMC Entertainment 
MULN    Mullen Automotive 
BABA    Alibaba 
XPEV    XPeng 
OTIC    Otonomy 
CRWD    CrowdStrike Holdings 
APE     AMC Entertainment preferreds 

The chart

Hardship withdrawals have reached an all-time high, according to data from Vanguard. Such withdrawals are only permitted for an immediate and heavy financial need and subject to income taxes and a 10% early withdrawal penalty.

Random reads

This 22-year-old sells human bones for a living.

There's another World Cup going on in Qatar -- for camels

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Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern.

Listen to the Best New Ideas in Money podcast with MarketWatch reporter Charles Passy and economist Stephanie Kelton

-Steve Goldstein

	

(END) Dow Jones Newswires

November 30, 2022 08:37 ET (13:37 GMT)

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