|Bid||0.00 x 900|
|Ask||0.00 x 1000|
|Day's Range||70.90 - 72.89|
|52 Week Range||59.94 - 107.34|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||2,460.34|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||93.57|
SmileDirectClub slid 28% on its first day of trading, adding to the list of disappointing IPOs. Yahoo Finance’s Brian Sozzi and Alexis Christoforous discuss what’s next for the IPO market with EY's America's IPO Expert Jackie Kelley.
The NYSE has hosted a number of this year's high-profile IPOs this year but Airbnb won't be one of them. Airbnb is planning its public listing for 2020. Cowen CEO & Chairman Jeff Solomon joins Yahoo Finance's Adam Shapiro, Julie Hyman, Andy Serwer, and Hennion & Walsh Asset Management President Kevin Mahn from the New York Stock Exchange to discuss the current IPO market.
Is Zoom Video Communications, Inc. (NASDAQ:ZM) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise […]
Zoom Video is trading significantly higher than 2019's other IPO debutants. Zoom stock had an offer price of $36 and is trading at $73.52—104% higher.
Facebook said its Workplace platform for businesses collaboration, with 3 million paid users, will now work on its Portal video chat devices, which caused Zoom Video stock to fall.
Facebook's Portal video chat devices will now handle the company's Workplace service for businesses, Facebook announced at its Flow conference.
Stephen Curry, who formally announced his investment arm SC30 at TechCrunch Disrupt last week, is not aligning himself with CBD whatsoever.
It's been about four years since Square (NYSE:SQ) came public. At the time of the deal, there was mostly a chilly reception from investors. Square stock priced at $9, which was below the range of $11 and $13. The valuation was actually lower than the company's prior round of venture funding.Source: Shutterstock Interestingly, recently SQ stock is undergoing a similar period of skepticism (which, by the way, has come after a powerful bull move for the past couple years). During the past few months, the shares have gone from $82 to $59. The result is that the year-to-date return on Square stock is only about 7%. In fact, for the past 12 months, the shares have sustained a 39% loss.It's true that many tech stocks, especially the high-fliers, have come under pressure as well. Just look at the major drops in companies like Zoom Video Communications (NASDAQ:ZM) and Okta (NASDAQ:OKTA).InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut hey, when it comes to tech stocks, there are periodic swoons. Yet they have been temporary - and yes, good buying opportunities. * 7 Important IPO Stocks to Watch for the Long Run So might this mean that SQ stock is a good opportunity right now? Well, there's little doubt that the company has a solid platform and is a leader in the fast-growing payments market.All this has come from a fairly simple application, launched in 2009, that involved a credit card reader that connected to an Apple (NASDAQ:AAPL) smartphone or Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) Android device.From there, CEO Jack Dorsey was aggressive in expanding the platform into a myriad of categories like payroll, gift cards, loyalty programs, marketing services, eCommerce, business loans and so on. The result is that Square has become a very sticky service.Although, the move into loans may be having the most impact. "The company is getting a piece of the origination fee, which is pure profit," said Chris Ligan, who is the VP of Acquisitions for point-of-sale credit card processor Auric. In all, SQ has loaned customers about $5 billion. The Market and Square StockThe market opportunity for payments is enormous - estimated at over $100 trillion on a global basis. But this means there is much competition coming into the segment. Of course, there are startups popping up as the venture capital markets are awash with huge amounts of money.But even traditional financial institutions are leveraging their own platforms and customer bases to get a piece of the opportunity. Consider that Bank of America (NYSE:BAC), BB&T (NYSE:BBT), Capital One (NYSE:COF), JPMorgan (NYSE:JPM), PNC Bank (NYSE:PNC), US Bank (NYSE:USB) and Wells Fargo (NYSE:WFC) are the backers of a payments app, called Zelle, which has been getting lots of traction."What ends up happening is as concepts get commoditized, it is tough to remain relevant," said Zafin executive vice president of global partner growth and sales strategy, Meenaz Sunderji. Bottom Line on Square StockEven with the drop-off in the share price, the valuation on SQ stock is still far from cheap. Consider that the forward price-to-earnings multiple is about 54X. In other words, Wall Street is still expecting quite a bit of growth on the top line.But this could be tough to maintain. Besides the emerging competition and the risks of commoditization, SQ also is vulnerable to a slowdown in the U.S. economy (and yes, the recent data does look ominous). Let's face it, the company's customer base is primarily made up of small businesses, and they usually get hit the hardest when the economy goes into recession.So in light of all this, it's probably best to avoid Square stock for now.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Important IPO Stocks to Watch for the Long Run * 7 High Volatility Stocks to Buy as the Market Rebounds * 7 Dow Jones Industrial Average Stocks to Sell The post Things Bleak for Square Stock in a Slowing Economy appeared first on InvestorPlace.
It's been a rough year for the IPO market. While most promising unicorns have sputtered out of the gate, one analyst has a reason to be optimistic going forward.
One of newly public firms’ favorite tools to boost executives’ control may also be a long-term liability, according to Goldman Sachs.
By John Jannarone Peloton Interactive, Inc. expects its remarkably low monthly churn rates to remain subdued as it encourages active use and for marketing expenses to remain manageable as word-of-mouth recommendations lead to new memberships, according to Chief Financial Officer Jill Woodworth. “The number we are most focused on is member retention,” Ms. Woodworth told […]
Peloton Interactive, Inc. Has Monthly Subscriber Churn of Well Under 1% By John Jannarone Peloton Interactive, Inc. looks much fitter than many of this year’s IPOs. Does the fitness-media company have what it takes for the long haul after going public? 2019 has seen dozens of fast-growing companies go public, with the likes of Lyft, […]
Now that Adam Neumann has relinquished his role as CEO of WeWork parent We Co., investors and employees should expect to see costs being slashed and non-core projects abandoned - just as the likes of Lyft, Inc. and Uber Technologies, Inc. have witnessed. That's according to IPO Edge Editor-in-Chief John Jannarone, who spoke to Cheddar […]
(Bloomberg Opinion) -- Many of us have been fixated on WeWork’s struggle to go public and the disastrous post-IPO stock performance of high-profile startups Uber Technologies Inc. and Lyft Inc. But as has often been true in the last few years, the tale is different for the unglamorous tech companies that are running circles around their cool peers.The latest example is Datadog Inc., which helps companies monitor the health of their apps and computing infrastructure; it sold its first batch of public stock late Wednesday. If you fell asleep reading the description, let me wake you up by saying that the company’s most recent pre-IPO investors(1) have a nearly 1,100% gain on their shares in less than four years,(2)according to figures from EquityZen, a marketplace for private stock sales. The earliest Datadog stock buyers from 2011 have a nearly 50,000% gain.In a non-systematic look at more than a dozen other tech companies that have gone public in the past couple of years, the stock gain for Datadog’s pre-IPO investors is at or near the top of the leader board. Repeatedly, the less-buzzy startups like Datadog that sell cloud-subscription software to businesses have been the ones that deliver the goods for early backers. There have been exceptions, but companies like Zoom Video Communications Inc. and Slack Technologies Inc. — the coolest of the Zzzz crowd — have tended to produce strong returns for pre-IPO investors, and their public shares have typically done well, too.Investors, both public and private, love these software-as-a-service companies. Generally their technology is better than anything that came before — if there was an old-guard technology with similar functions — and once businesses use the software and stitch it together with email, calendars, information databases and other corporate systems, it can be tough to ditch. If they’re managed properly, these business software companies can grow fast and predictably.Among the tech companies that have gone public on U.S. stock exchanges since the beginning of 2018, nine of the top 10 by stock gains from their IPO price are software companies that sell to businesses, according to data compiled by Bloomberg. (No. 1 is Zscaler Inc., whose share price has more than tripled since its March 2018 IPO, despite a recent drop.)What are the lessons here? Well, not surprisingly, it may be that the consumer-oriented tech companies with lots of attention as startups may be great companies but not necessarily great investments if the hype leads to overvaluation. That’s particularly true — as in the cases of Uber, Lyft and WeWork — when public company investors are far more dubious than private investors about companies with unproven business models and unsteady financial metrics. The other lesson may be that you’re in luck if you founded a company in a sector like business software that, at least for now, is the apple of investors’ eyes. I have my doubts about how long these software-as-a-service companies can stay viable. When there is an economic downturn and companies take a hard look at what they’re spending on technology, there are going to be software bills they can live without. That swings the advantage to the big software supermarkets like Oracle, Microsoft and Amazon, which can offer companies discounts on a range of technologies. Some young business software companies are also spending big to grow in a way that may not be sustainable, and their corners of the market may not be as big as optimists expect. These young cloud software companies are also priced for growth to the point where they are vulnerable to any hiccup in customer acquisition numbers or revenue gains. That has happened recently, when companies like Zscaler, Alteryx Inc., PagerDuty Inc., CrowdStrike Holdings Inc. and New Relic Inc. reported wobbly financial results, changes in management or were just infected by worries from other companies in their sector. Still, Datadog shows the benefit of being the right kind of business at the right time. Bloomberg News reported Wednesday that Cisco Systems Inc. approached Datadog recently with a takeover offer significantly higher than the $7 billion valuation it had been shooting for in an IPO. (As of Thursday’s early stock market trades, Datadog is valued at about $11 billion, excluding the value of shares held by employees and others.)Datadog was apparently confident enough in its prospects to turn that down and opt to go public. The uncool companies truly are that cool.A version of this column originally appeared in Bloomberg’s Fully Charged technology newsletter. You can sign up here.(1) Those investors include Iconiq Capital, the investment fund that has managed money forMark Zuckerberg of Facebook and other affluent people and institutions in Silicon Valley and beyond. Other stock buyers included Index Ventures, OpenView Ventures, Amplify Partners and Contour Ventures, Datadog announced in early 2016.(2) I will say that it's unusual for tech startups these days to go public without selling stock or doing other cash collections in the four years before an IPO. Some startups can't go four weeks without needing fresh cash.To contact the author of this story: Shira Ovide at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shira Ovide is a Bloomberg Opinion columnist covering technology. She previously was a reporter for the Wall Street Journal.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Cisco Systems Inc. approached software company Datadog Inc. in recent weeks with a takeover offer significantly higher than the $7 billion valuation it aimed for in its initial public offering, according to people familiar with the matter.Datadog rebuffed the advance to pursue a stock listing because it felt it could be worth more as a public company over time, according the people, who requested anonymity because the talks were private. Talks between Cisco and Datadog are no longer active and Datadog is committed to going public, they said.A representative for Cisco declined to comment. Datadog couldn’t immediately be reached for comment.Cisco rose less than 1% to $49.72 at 10:12 a.m. in New York trading, for a market value of about $211 billion. Several rivals to Datadog also gained, including New Relic Inc., up 5.8%, Splunk Inc., which rose 3.9% and Elastic NV, which rose 3.1%.Datadog raised $648 million in its U.S. IPO Wednesday, selling 24 million shares for $27 each after marketing them at $24 to $26. The listing values Datadog at $7.83 billion.Software companies that power business processes have delivered some of this year’s best IPO debuts thanks to high margins and solid revenue. Zoom Video Communications Inc. and Crowdstrike Holdings Inc. have doubled in value since they began trading and are among the ten best performing offerings this year, according to data compiled by Bloomberg.In 2017, Cisco succeeded in buying a company on the eve of its IPO. It acquired AppDynamics Inc. for $3.7 billion right before the data analytics company was set to price its listing.(Updates share prices in fourth paragraph, details about IPO in fifth.)\--With assistance from Crystal Tse.To contact the reporters on this story: Liana Baker in New York at firstname.lastname@example.org;Gillian Tan in New York at email@example.com;Ian King in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Alan Goldstein at email@example.com, Liana Baker, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Enterprise software has been one of the most notable bright spots in the tech world. Just look at some of the recent IPOs which have soared in value from companies like Zoom Video Communications (NASDAQ:ZM) and Elastic (NYSE:ESTC) But even mature firms, like Microsoft (NASDAQ:MSFT) and Adobe (NASDAQ:ADBE), have rejuvenated their businesses.Source: JHVEPhoto / Shutterstock.com And then there is IBM (NYSE:IBM). The company whiffed on the cloud. It also whiffed on mobile. And even in AI (artificial intelligence) - in which IBM has invested for a long time - the results have been mixed.The irony is that IBM should have been a huge beneficiary of these trends. It has a trusted brand, a global footprint (it has 60 datacenters across the world) and a massive customer base. But unfortunately, the company did not adapt quickly enough.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars The Good News for IBM StockDespite all its problems, IBM is still healthy from a financial standpoint, as it continues to generate substantial cash flows. The company also has incredibly talented employees.More importantly for IBM stock, the company has made critical moves to restructure its operations. Specifically, it has eliminated jobs and unloaded non-core assets, while also retooling its software to keep up with the competition.But I think the most consequential point is that the company has been willing to make big bets, as shown by its $34 billion mega-acquisition of Red Hat.True, there is a good deal of irony in this deal. When Linux and other open-source software platforms emerged in the 1990s, IBM's reaction was to fight back - and hard.But it was a losing battle. Open-source software has become a critical part of companies' arsenals. So with the Red Hat deal, IBM has become the leader of the space.There are clear benefits to open-source software. Specifically, adoption of it can be rapid because the technology is free and it's continuously being updated by developers.Red Hat has been able to leverage its technology to create an extensive platform that enables a hybrid cloud environment. Because of security, privacy and regulatory concerns, larger companies need to combine different, i.e. hybrid, options when it comes to the cloud. For example, they can utilize a mix of private and public clouds. Among the companies that provide public cloud infrastructure are Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) and MSFT. As a result of this need for flexibility, the flexibility of the open-source model, for the most part, has proven to be spot-on.As part of IBM, Red Hat will benefit from the tech giant's tremendous distribution capabilities. What's more, the cloud opportunity is still massive. IBM believes that the typical enterprise has only transitioned 20% of its data to the cloud.Here's what the Senior Vice President and Chief Analyst of research firm IDC , Frank Gens, said about the acquisition of Red Hat: "As organizations seek to increase their pace of innovation to stay competitive, they are looking to open source and a distributed cloud environment to enable a new wave of digital innovation that wasn't possible before. Over the next five years, IDC expects enterprises to invest heavily in their journeys to the cloud, and innovation on it. A large and increasing portion of this investment will be on open hybrid and multicloud environments that enable them to move apps, data and workloads across different environments."In other words, the deal has the potential to generate growth for IBM and should help make Big Blue a major player in cloud computing. That should definitely be positive for IBM stock. The Bottom Line On International Business Machines StockI can understand why there is lots of skepticism regarding the bull case on IBM stock. Consider that, over the past five years, IBM stock price has fallen 2%.But I think the Red Hat deal will be a game changer that will get IBM stock back on track. In fact, investors are already more upbeat on the shares, as IBM stock price has jumped 25% this year.There will likely be bumps in the road for IBM stock, as acquisitions are never easy. But with the dividend yield at 4.56% - one of the highest in the tech world - and the forward price-earnings ratio standing at only 10.5, IBM does look interesting.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post IBM Stock: It's All About Red Hat appeared first on InvestorPlace.
WeWork parent The We Company has delayed the office-sharing startup's initial public offering until the end of the year. It now either won't come to the public market at all, or come at such a low valuation its venture backers will take a loss. This isn't terribly unusual for 2019.Source: Mitch Hutchinson / Shutterstock.com So far in 2019 there have been 94 IPOs, and 38 of them have shown negative returns.The big winners, like CrowdStrike Holdings (NASDAQ:CRWD), Beyond Meat (NASDAQ:BYND) and Zoom Video Telecommunications (NASDAQ:ZM), have generally come to the market prepared to make a profit. There have also been big medical winners with market caps near $1 billion, like ShockWave Medical (NASDAQ:SWAV) and Turning Point Therapeutics (NASDAQ:TPTX). Most IPOs are still hits -- but the batting average is declining like an aging slugger's.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWeWork is distinguished by the same flaws as Uber (NYSE:UBER) stock and Lyft (NASDAQ:LYFT) stock. It's not making money, even at scale, and current investors are looking at you for a bailout. The WeWork ProblemWeWork's model is to buy lots of office space, fix it up, then sell it at retail in the form of "memberships." As I wrote in August, it's more like LA Fitness than Cloudflare (NYSE:NET), which went public Sept. 13 and is already showing a 25% return. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Worse, WeWork's business model is not unique. IWG (OTCMKTS:IWGFF), founded in Belgium back in 1989, has been operating in low-cost suburban office parks for years. It came public at the end of 2016 and only proved itself this year. IWGFF stock is up 92% year-to-date.The difference is that IWG has a market cap of $4.8 billion. WeWork was initially seeking a market cap of $47 billion. Worse, WeWork needs the $3 billion it was trying to raise in order to secure the $6 billion line of credit in order to keep operating.The business model is based on a myth of young workers with startups signing up for prestige "co-working spaces" dressed up with amenities they like. In fact, WeWork has mainly signed up established tech companies seeking contingency space like Salesforce (NYSE:CRM), Cisco (NASDAQ:CSCO) and Facebook (NASDAQ:FB). It's expansion insurance. CEO Adam NeumannMeanwhile t-shirted CEO Adam Neumann has come off as something of a fraud. He isn't a dweeby kid. He's a 40-year old Israeli military veteran who spent big money before earning a dime for shareholders. He tried to score $5.9 million from his own company for trademarking the word "We." This is also a mom-and-pop operation; co-founder Miguel McKelvey gets only six mentions in the U.S. Securities and Exchange Commission Form S-1, against 20 mentions for Neumann's wife Rebekah.While portraying a handsome young family man on TV, Neumann also created a fraternity culture that drew a sexual harassment suit last year.Worse, it's clear the business model is not yet working. WeWork lost $1.9 billion in 2018, then another $904 million for the first six months of 2019, on revenue of $1.5 billion. The Bottom Line on the WeWork IPOThe real loser is SoftBank (OTCMKTS:SFTBF) and its Vision Fund. It brought $100 billion to the party in order control the technology of the future -- and it's trying to raise another $100 billion. SoftBank founder Masayoshi Son runs the fund, but the money is mostly from sovereign wealth funds in Saudi Arabia and the United Arab Emirates.Son's losers, in addition to WeWork, include Uber, Sprint (NYSE:S) and Slack (NYSE:WORK), which is down more than 30% after coming public in June. Son has called his Vision Fund the ultimate disruptor, but it may be Son who turns out to be the greater fool.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post Is Failure in Store for the WeWork IPO? appeared first on InvestorPlace.
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...