IPO Excitement Wasn’t Enough
By Mon, Dec 14, 2020
Hey Scoopers,
The market wrapped last week mostly in the red, despite the excitement about the latest round of IPOs. — More on that in the “Overall Market” section.
Beyond the overall market, one tech company got a boost after it got on the next tech acquisition list, while a few SPAC IPOs lost their price momentum. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, we’ve got three stocks on our watchlist this week. What are you watching? — 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: The stock market indices didn’t agree on the direction. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: By Sunday evening, Bitcoin’s price jumped above the $19,000 per coin level once again.
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IPO Excitement Wasn’t Enough
The market had a somewhat challenging Friday. Indices first dipped below zero and then gradually recovered but not enough to finish the day in the green, except for the Dow. There was no news beyond the fact that the stimulus package is still being debated in Congress, and the new number of COVID-19 cases and unemployment claims are on the rise. No wonder why the market couldn’t just stay cheerful, no matter how much excitement there was about new IPOs.
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Next Tech Acquisition
So what happened?
Shares of Dropbox Inc (Ticker: DBX) were up by more than 20% on Friday. Revenue is growing, the company has become profitable, and the operations generate free cash flow. Friday’s stock price jump came after The Information picked the company as the next possible tech acquisition.
New IPO targeted by the billionaire behind Google and Amazon
I’d like to ask your permission to share a story with you today. It involves a secret billionaire virtually unknown among regular Americans. Quietly, he was the first backer of Amazon, putting in $8 million at just $0.20 a share in 1996. And now he’s putting hundreds of millions into a new IPO that deserves your attention. He calls it “the largest economic opportunity of the 21st century.”
Watch this video that shows the technology, you’ll see why.
SPACs
So what happened?
Shares of a few favorite SPAC IPOs ended the week deeply in the red. For example, shares of QuantumScape (Ticker: QS) were down by more than 15%. And, shares Luminar Technologies (Ticker: LAZR) were down more than 16%. Both are pre-product tech companies that were quite hyped up due to investors’ excitement about SPACs. They are now pulling back from the early excitement. Perhaps, investors are locking their gains before the end of the year.
This Week’s Earnings
So what happened?
Despite a somewhat lighter earnings week, there are still a few noteworthy companies on the calendar. Nike (Ticker: NKE), Lennar (Ticker: LEN), and FedEx (Ticker: FDX) are among the companies releasing their latest earnings report that we would be watching. What are you watching this week?
Here is a list of some of the most important earnings you may want to have an eye on:
(Source: Stock Card’s Earning Calendar)
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
