IPOMarket News

Tesla charges up

After tripling in value this year, Tesla has become the fifteenth most-valuable company in the US with a market cap of $277.6bn (as of 14 July), MarketWatch reports. This rally, driven by positivity about upcoming earnings and potential S&P 500 eligibility, has made it more valuable than US heavyweights Bank of America and American Express combined, according to The Wall Street Journal.

Stocks shake up

Asian stocks collapsed yesterday, pulling back gains as tech stocks tumbled and the S&P 500 looked shaky. The Hang Seng Index was the worst hit, while European markets dropped out as well. In the US, however, markets regained some stability after the Nasdaq‘s earlier slump (see below).

  • FTSE 100 – 6,179.75 (+0.05%)
  • Dow Jones – 26,478.86 (+1.51%)
  • S&P 500 – 3,176.40 (+0.67%)
  • NASDAQ – 10,611.72 (+0.09%)
  • Stoxx 600 – 366.77 (-1.01%)
  • SSE Index – 3,414.62 (-0.83%)

Vaccine speculation spurs share prices

Moderna has become an investor darling, as optimism over the company’s COVID-19 vaccination effort boosts its share price. Moderna has recorded a strong share price performance recently after it was announced Monday that it will become a component of the Nasdaq 100.

Investors pull $491m from tech ETF

Last week, the tech-laden ProShares UltraPro QQQ ETF saw the biggest weekly withdrawal since it launched a decade ago, according to Bloomberg data and the Financial Times. The $491m withdrawal did not dent the funds $7.1bn assets, however, as it was supported by strong performances throughout the week by the likes of Apple, Amazon, Alphabet and Tesla.

Eating up the competition

Uber’s recent $2.65bn deal with Postmates will help shift the ride-hailing and food-delivery company up to second place in the US food-delivery market — just behind DoorDash. Ride-hailing revenues take a hit from global lockdowns, so what will this mean for Uber’s outlook and share price?

Retail traders’ bankruptcy buys

Despite filing for bankruptcy, the likes of Hertz Global Holdings, Whiting Petroleum Corp and J.C. Penney have seen stock price surges recently as retail traders pile into the stocks. J.C. Penney saw the biggest spike in early June, closing up 97% from Friday’s close on Monday 8 June, despite filing for bankruptcy weeks before.

Tech stock resilience

The Nasdaq slumped 2.1% Monday, while the rally since Mid-March lows – of which tech stocks were at the vanguard – started to tire during yesterday’s PM session. However, Brian Belski, chief investment strategist at BMO, told The Wall Street Journal that he sees no reason the stocks won’t continue to outperform for 12 to 18 months and Dan Ives, analyst at Wedbush, thinks that stocks “could still go another 20% to 30% higher”.

US start-up IPOs wane

According to Pitchbook-NVCA Venture data and the Financial Times, venture firms are on track to complete the lowest number of IPOs since 2011. There were just 376 “exits” — totalling $45.3bn — so far in 2020 to the end of June compared to more than 1,000 in each of the past years.

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