Adam Dodd, co-founder of wealth technology app Freetrade, is stepping down as CEO.
Freetrade
LONDON — The boss of U.K. stock trading service Freetrade is stepping down and leaving the company with immediate effect, the company told CNBC exclusively Monday.
Adam Dodd, who co-founded the company with business partners Davide Fioranell and Viktor Nebehaj in 2016, will be replaced by Nebehaj, currently Freetrade’s chief marketing officer, as CEO, pending customary regulatory approvals.
Dodd remains the largest individual shareholder in Freetrade, owning a roughly 12% stake, according to company filings. He won’t be involved in the day-to-day operations of the company from now, however a Freetrade spokesperson said he’ll continue to support the company’s evolution from the “outside.”
‘We almost died so many times it’s hard to count’
Dodd felt it was the right decision to leave the company and have Nebehaj take the reins as it enters the next stage of its growth trajectory, which includes plans to push out new products including bonds and mutual funds, tax wrappers, and its web platform, as well as grow its core profitable U.K. userbase.
The Freetrade logo on a smartphone screen.
Rafael Henrique | Sopa Images | Lightrocket | Getty Images
“When reflecting on the journey from idea to over a million users with billions in assets, it’s getting through the tough times you remember the most,” Dodd said in comments shared with CNBC. “We almost died so many times it’s hard to count.”
“Now, after putting up our first profitable quarter and with the business on a strong sustainable footing, it’s time to hang up my skates. Freetrade is default alive and ready to take on the incumbent platforms in the UK with self-sustaining growth,” Dodd said.
Dodd added: “I’m very happy to say Viktor will be stepping up to take over the helm as CEO. I’ll be doing everything I can to support him and the company from the board. As for me I’m looking forward to getting to know my kids better, annoying my wife on the farm, and finally getting my pilot license.”
Nebehaj, Freetrade’s incoming CEO, applauded Dodds’ eight-year run as CEO and said that “it’s natural that different stages of a company’s growth require different leaders.”
“With our first profitable quarter behind us, I’m excited about the size of the opportunity ahead,” Nebehaj said in a statement. “Our talented and high-quality team is building the right product for our customers.”
Perry Blacher, Freetrade’s board chairman, said that Nebehaj “is ideally placed to lead Freetrade from strength to strength.”
Wild few years
Dodds’ departure follows a wild ride for the company in recent years. Dodds took Freetrade from a scrappy startup in the early days seeking to disrupt the world of wealth management, to a 500-person company with over 1.4 million users.
In 2020, Freetrade was onboarding thousands of users a day as retail trading activity boomed in the wake of the GameStop stock-trading saga, which saw a community of hardcore fans of the U.S. video game retailer drive up the price of the company’s share price.
More recently, it’s been forced to tighten its belt as the reality of a gloomier macroeconomic environment set in. In 2022, Freetrade announced measures to lay off 15% of its workforce as sought to push toward profitability.
The following year, Freetrade raised £2.3 million ($2.9 million) in a crowdfunding round on Crowdcube at a valuation of £225 million — a 65% discount to its earlier £650 million valuation. Freetrade at the time blamed a “different market environment” plagued by higher interest rates and inflation.
Freetrade still generated an annual loss of £8.3 million in 2023, down from the £28.8 million loss it racked up the year prior, while revenues climbed 45% to £21.6 million in the same timeframe.
DLocal is one of Latin America’s most prominent payment players. It specializes in cross-border payments for emerging markets such as Brazil, Mexico, Colombia and its home country, Uruguay.
Sopa Images | Lightrocket | Getty Images
LONDON — Uruguayan payments firm dLocal has secured a U.K. payment institution license, adding to the company’s growing portfolio of regulatory authorizations as it furthers global expansion.
The emerging markets-focused fintech told CNBC it had acquired an authorized payment institution license from the Financial Conduct Authority, which is Britain’s financial services regulator. That would allow it to start onboarding U.K. merchants for the first time.
DLocal will onboard U.K. merchants through a local entity, Larstal Limited. The subsidiary, which trades in the U.K. as AstroPay, was previously unable to onboard clients locally because of restrictions placed on it by the FCA. DLocal said the restrictions were the result of the U.K.’s exit from the EU.
Pedro Arnt, dLocal’s CEO, told CNBC he expects the business to stand out from domestic payment tech rivals, such as Worldpay and Checkout.com, given its focus on emerging markets in places like Latin America, Africa and Asia.
“The differentiating factor for us when we think of our U.K. base of merchants is that the geographies where we serve them, and those are the only geographies we work,” Arnt said in an interview. He added that dLocal is also targeting global merchants that have a U.K. presence.
“The U.K. has become a hub for many global companies — even the American companies, some Asian companies — for their emerging market expansion, primarily in Africa, and in some cases LatAm,” Arnt told CNBC.
UK expansion plans
Established in 2016, dLocal is one of Latin America’s most prominent payment players. It specializes in cross-border payments for emerging markets such as Brazil, Mexico, Colombia and its home country Uruguay.
With a payment license now under its belt, dLocal is looking to boost its U.K. footprint, with plans to increase headcount and grow business.
Arnt said dLocal has already been expanding its U.K. footprint, with a number of its senior executives — like Chief Operating Officer Carlos Menendez and Chief Revenue Officer John O’Brien — based in London. Globally, dLocal currently has over 1,000 employees.
Arnt said a major benefit the U.K. payment license will bring dLocal is recognition as a “licensed partner” that companies in the developed world can trust to handle payments in emerging markets with complex regulatory needs. DLocal now holds over 30 licenses and registrations worldwide.
Still, dLocal will come up against some fierce competition. Britain already has an established fintech ecosystem with numerous well-capitalized players in the world of payments operating there, including PayPal, Stripe, Adyen, Checkout.com, Mollie and Revolut — to name a few.
‘Not for sale’
DLocal went public on the Nasdaq in 2021, notching a $9 billion valuation at the time. It’s seen its market capitalization decline since then. As of Tuesday, the business was worth $3.4 billion. Still, the stock has risen about 40% in the past six months.
Last month, Reuters reported dLocal was in the process of exploring a potential sale. When asked about buyout speculation by CNBC, Arnt said he didn’t want to comment on rumors, but clarified that dLocal isn’t currently for sale.
All in all, Arnt said, being a public company comes with a level of transparency and oversight that he sees as “positive commercially” for it. At times, he added, “rumors will emerge that someone’s interested in the asset — but I wouldn’t assume there’s too much to that.”
“While there would be a fiduciary duty to shareholders to entertain takeovers, Arnt said that for now, “the company is not for sale.”
Jensen Huang, Nvidia’s founder, president and CEO, speaks about the future of artificial intelligence and its effect on energy consumption and production at the Bipartisan Policy Center in Washington, D.C., on Sept. 27, 2024.
Chip Somodevilla | Getty Images
Nvidia revealed new chips for desktop and laptop PCs on Monday that use the same Blackwell architecture underpinning the company’s fastest AI processors for servers and data centers.
The chips, called GeForce RTX 50-series, will come pre-installed in computers ranging from about $550 to $2,000, the company said. Laptops with the chips will start shipping in March.
Nvidia unveiled the processors at CES in Las Vegas, where CEO Jensen Huang delivered a keynote address on Monday.
“Can you imagine, you have this incredible graphics card, Blackwell, I’m going to shrink it and put it in there,” Huang said, holding up a laptop.
Nvidia, which has soared past $3.5 trillion in market cap by selling AI chips to giant cloud vendors and other tech companies, was until the last few years known for selling graphics processing units (GPUs) to power video games. Nvidia’s first chip in late 1999 was designed to draw triangles and polygons quickly for 3D games.
“Of course, back then, we were a gaming company, and these GPUs were created to accelerate games,” Justin Walker, senior director of product at Nvidia, said on a press call.
Wall Street is less enthused about Nvidia’s gaming business these days given the explosion in AI and ever-increasing demand for more processing power. In the quarter that ended in October, Nvidia’s gaming sales accounted for under 10% of total revenue, compared to 88% from data center chips.
Nvidia has the vast majority of the AI GPU market for data centers, outpacing rivals Advanced Micro Devices and Intel.
But CES, formerly known as the Consumer Electronics Show, is all about consumer products, and the new chips announced Monday are primarily intended for gaming.
Nvidia says the RTX 50-series chips will support a feature called DLSS 4 that uses AI to boost gaming frame rates. They also can display character faces with more details, and will generally provide users with better graphics and higher resolution.
Nvidia’s gaming business is growing, with revenue increasing 15% from a year earlier in the latest quarter. But data center sales have at least doubled for six straight quarters, topping $30 billion in the most recent period.
Nvidia says that technical improvements made for its massive AI business will trickle down into its graphics cards for games.
“While we are now an AI company as well as a gaming company, our gaming side still benefits tremendously from the fact that we are an AI company,” Walker said.
The Blackwell GPU architecture and core design that the 50-series chips use debuted in the company’s AI accelerators, which were announced in March and started shipping later last year. Nvidia said they were designed and optimized to run neural networks used by OpenAI’s ChatGPT and Google’s Gemini.
The new chips for PCs and laptops will come in a number of different configurations. The company says the most expensive and powerful of the chips, the RTX 5090, will be sold individually for $1,999 and is twice as fast as its predecessor, the RTX 4090. Nvidia says it has 92 billion transistors, versus 208 billion transistors on the company’s B200 GPU for servers.
Nvidia says the chips will be optimized to run AI models and do computer graphics, not just run the latest games. The chips will be powerful enough for some game makers to integrate generative AI into their characters in games like “PUBG: Battlegrounds.”
The new processors will also will be powerful enough to to run large language models and image generation models from companies including Meta, Mistral and Stability AI, Nvidia said.
Samsung Electronics plans to ramp up its on-device AI business, with the aim of exceeding global market growth in the consumer electronics segment this year.
The global consumer electronics market for smartphone, TV and home appliances will grow roughly 3% in 2025, Jong-Hee Han, chief executive officer of Samsung Electronics, told CNBC’s Chery Kang.
Samsung, the world’s largest smartphone and TV maker, expects its mobile devices business to grow by 4%-5% this year, while growth in TV and home appliances unit is also likely to accelerate, said Han, also the head of device eExperience (DX) division of Samsung Electronics.
This comes as Chinese brands such as Huawei and Xiaomi have emerged as serious competitors to Samsung by offering high-end smartphones at significantly lower prices.
Competition from Chinese companies is ‘helpful” for Samsung and the consumers, Han said during the interview, noting that the company aims to differentiate its products with more security and convenience, rather than lowering prices.
AI chip delays
Samsung announced a major leadership reshuffle in November, putting Jun Young-hyun as co-CEO and head of the memory chip arm, sharing leadership duties with Han.
The South Korean tech giant, once the dominant force in the memory chip sector, has fallen behind SK Hynix in the race to supply high bandwidth memory chips, or HBM chips, that are a key component for AI leader Nvidia.
Samsung will reportedly issue its fourth-quarter revenue and operating profit forecasts on Wednesday, before releasing quarterly results in late January.
Samsung operating profit for the December quarter is expected to come in at 8.2 trillion won ($5.6 billion), according to Reuters estimates, a notable uptick from 2.8 trillion won it reported a year earlier, but down from 9.18 trillion won in the prior quarter.
Last year, shares of the South Korean giant plunged 32%, according to LSEG data, lagging the broader benchmark Kospi’s 9.6% loss.
The share price has “never been this low before,” Han said during the interview, adding that the company has “value-up” plan, aimed at increasing shareholders’ returns. The plan will be announced “one by one when it’s in order,” he said, according to a CNBC translation of his statement in Korean.
Investors are hoping for Samsung to close the gap on HBM and get more serious about its “value-up” scheme, Phillip Wool, head of research at Rayliant Global Advisors said in a note Monday, while adding that the 10-trillion won share buyback plan may help stabilize the stock’s price.
Peter Lee, an analyst at Citi, cautioned in a note on Dec. 31, that a longer-than-expected delay in getting Nvidia’s approval for its HBM chips and weaker PC sales could continue to pose downside risks. He maintained a “buy” rating on the stock while trimming its target price to 83,000 won from 87,000 won.