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🧟 Are IPOs Back From the Dead?
Plus, the 2024 Super Bowl is the most expensive on record.
Happy Monday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.
🟩 | US stocks rose modestly Monday. There wasn’t a clear-cut catalyst. Wall Street is mainly looking forward to Big Tech earnings this week and the Fed’s rate decision.
📈 | One Notable Gainer: SoFi Technologies' stock soared 20% after the company announced its fourth-quarter earnings and recorded $594 million in revenue. Initial projections were calling for $571.70 million.
📉 | One Notable Decliner: iRobot's stock dropped over 8% after canceling its merger with Amazon due to regulatory hurdles. It announced a 31% workforce reduction and the resignation of its CEO.
🧟 | Tomorrow's Trade: Are IPOs Back From the Dead? Scroll down for more.
Plus, come view this week's Top 4 A.I. Stock Forecasts.
LAST WEEK’S POLL RESULTS
🟩🟩🟩🟩🟩🟩 🐂 Bullish
🟨🟨⬜️⬜️⬜️⬜️ 🐻 Bearish
S&P 500 Heatmap. Credit: Finviz
All stocks on US exchanges. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
MCGR: McGrath RentCorp's shares surged over 10% following WillScot Mobile Mini's announcement to acquire the company in a $3.8 billion cash-and-stock deal.
WDC: Western Digital's stock rose 2.6% after reports on January 27 of Bain Capital reinitiating talks for a merger between Western Digital and Japan's Kioxia Holdings.
BE: Bloom Energy's stock fell 4.5% following a Bank of America downgrade to underperform from neutral, citing stagnant revenue forecasts from 2023 to 2025.
ZI: ZoomInfo Technologies' shares surged over 6% following a Bank of America upgrade to buy from neutral, driven by anticipated revenue growth acceleration and new AI products.
BEAM: Beam Therapeutics' shares rose 16% following JPMorgan's upgrade, citing potential market share gains and a strong gene therapy pipeline.
TOGETHER WITH VANTAGEPOINT
If you’re reading this, count yourself fortunate.
Now, most people are aware of the impact that artificial intelligence is having on society…
From entities like ChatGPT to surging A.I. stocks, and cutting-edge calculators predicting life expectancy with precision, the resonance of A.I. is destined to persist throughout our lifetime.
But future generations of traders won’t be able to fathom trusting their money in the markets without it.
Even in the present day, not all traders grasp the revelation I'm about to unfold.
A brand-new way to discover, inspect, and NOW forecast stocks 1 – 3 days ahead.
Don't believe me?
Come view this week's Top 4 A.I. Stock Forecasts.
For attending, we’ll also forecast stocks that are in your portfolio right now.
OVERHEARD ON THE STREET
Axios: Fidelity increased the value of its X Holdings shares by over 11% in December.
CNBC: Tech companies are increasingly cutting jobs, with 23,670 layoffs at 85 firms in January, the highest since March's nearly 38,000 layoffs.
Bloomberg: Cathie Wood scooped up nearly 690,000 shares of Telsa across two exchange-traded funds operated by her firm ARK Investment Management in January. The ETFs spent an estimated $141 million on shares.
Glassdoor: Employee confidence touched its lowest point since 2016 in January.
CNN: Developers proposed building America's tallest structure, a 1,907-foot "Legends Tower," in Oklahoma City, significantly surpassing the city's current tallest building.
TOMORROW’S TRADE IDEA, TODAY
The Death of IPOs
2023 wasn’t a good year for IPOs. There were only 153 IPOs last year, down 85% from the all-time high of 1,033 in 2021.
The Fed’s rate hikes severely diminished investors’ appetites for growth stocks, all but killing the IPO market.
With rate cuts expected in 2024, investors are hopeful that IPOs could make a comeback. However, according to Linqto’s IPO Sentiment Survey, this is still cautious optimism.
AI Is Just a Piece of the Pie
In recent years, the IPO market has been dominated by tech offerings. Analysts believe this trend will continue with AI advancement as a tailwind.
Although many IPOs in 2024 will be tech-related, two consumer brands are gaining popularity. Chinese fashion company Shein is expected to go public. Amer Sports, the manufacturer of Wilson tennis rackets, is also planning an IPO.
Other Big Names
A few other companies are eyeing up an IPO this year, including Reddit and Fanatics.
Social media company Reddit is reportedly planning to go public in March. When it filed for an IPO in 2021 it was valued at around $10 billion. Reddit’s IPO is expected to include 10% of its authorized shares.
Fanatics is a licensed retailer for both the NFL and Formula 1. The company recently hired new CEO Andrew Low Ah Kee, known for his work with Opendoor’s IPO in 2020.
Investors and analysts alike are hopeful that the Fed will cut rates in 2024, giving the IPO market a much needed revival.
Which IPO are you most optimistic about? |
TOGETHER WITH VANTAGEPOINT
If you’re reading this, count yourself fortunate.
Now, most people are aware of the impact that artificial intelligence is having on society…
From entities like ChatGPT to surging A.I. stocks, and cutting-edge calculators predicting life expectancy with precision, the resonance of A.I. is destined to persist throughout our lifetime.
But future generations of traders won’t be able to fathom trusting their money in the markets without it.
Even in the present day, not all traders grasp the revelation I'm about to unfold.
A brand-new way to discover, inspect, and NOW forecast stocks 1 – 3 days ahead.
Don't believe me?
Come view this week's Top 4 A.I. Stock Forecasts.
For attending, we’ll also forecast stocks that are in your portfolio right now.
ON OUR RADAR
ATTOM: Average weekly wages are rising faster than median home prices in 197 of the 338 counties in the US.
Bloomberg: Venezuelan bonds continued to fall after the U.S. threatened renewed sanctions, with government notes due in 2027 sliding 2.2 cents to 19.2 cents, the largest drop since March 2020.
CNN: The 2024 Super Bowl is on track to be the most expensive on record with an average ticket price of around $9,800, 70% higher than last year, while the cheapest ticket at $8,188 is over 50% more than last year's $5,997.
Euronews: After a drone strike on a US base in Jordan, crude oil prices rose to $78.2 (up 0.27%) and Brent to $82.9 (up 0.05%), amid escalating Middle East tensions and President Biden's vow of accountability.
Redfin: Homebuyers with a $3,000 monthly budget have gained almost $40,000 in purchasing power since mortgage rates peaked last fall.
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