An IPO for Kids
By Fri, Nov 20, 2020
Hey Scoopers,
A few market forces balanced each others’ effect throughout Thursday. However, the market wrapped the day slightly in the green. — More on that in the “Overall Market” section.
Beyond the overall market, a non-believer of a TV streaming platform turned believer and excited other investors to buy the stock. At the same time, the news of raising $100 million by a sports camera maker didn’t sit well with its investors. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, a new gaming IPO is on its way. — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
Market Recap
- U.S. markets: All three indices finished Thursday in the green. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price-rally seems to have no barrier. The cryptocurrency is only a hundred dollars away from the $18,000 price tag at the time of writing this Scoop on Thursday afternoon.
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Balancing Forces
The downward arrows reversed, and all three indices ended Thursday in the green. On the one hand, Pfizer (Ticker: PFE) one-upped Moderna (Ticker: MRNA) by announcing it would be ready to ship its COVID-19 vaccine within hours of an FDA approval and made investors giddy about the future. On the other hand, the number of jobless claims increased due to a resurgence in the number of COVID-19 cases. The balance of the two forces, combined with the two days of downward movements, ended the market in the green on Thursday.
Non-Believer Became A Believer
So what happened?
Shares of Roku (Ticker: ROKU) were up by more than 10% on Thursday. The jump came after a non-believer analyst from Pivotal Research turned believer and upgraded the stock from a “sell” recommendation to “hold.” It gave investors the confirmation that the old TV is dead and the new TV is the future and sent Roku’s stock high up in the day. Old TV is dead. Long live the new ad-based and streaming TV.
The Elephant in the (5G) Room
Now is a time when it pays to heed timeless financial wisdom.
John Templeton, one of the world’s greatest investors, once said, “To buy when others are despondently selling and to sell when others are avidly buying requires the greatest of fortitude and pays the greatest ultimate rewards.”
No Dilution
So what happened?
Shares of GoPro (Ticker: GRPO) were down by more than 13% on Thursday. The sports camera maker had a decent quarter lately and just announced raising $100 million in unsecured notes. Raising money means diluting existing investors. Such a dilution doesn’t sit well with the company’s patient investors, who have been waiting for profit and growth for a long time.
A New Gaming IPO
So what happened?
We loved the headline from CNBC that while parents are busy talking on the video conferencing platform Zoom (Ticker: ZM), kids were more than happy streaming games and playing online on a new game making platform called Roblox.
The not-so-well-known game-making platform that grew its revenue by more than 90% due to the pandemic is gearing up for an IPO. This is perhaps the best year for the company to IPO and takes advantage of the COVID-19 boost. Finally, kids are getting their own IPO.
If you have any questions, or suggestions let us know by emailing us at members@tradestocks.com. We look forward to hearing from you.
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
