Alibaba Struggling With Tarnished Reputation (BABA)

Mar 5, 2015, 6:15 am EST
Alibaba Struggling With Tarnished Reputation (BABA)

Last September, Chinese ecommerce giant Alibaba Group Holding Ltd (NYSE:BABA) pulled off history’s largest IPO, raising about $25 billion. But life as a public company has not been smooth.

BABA stock is off about 32% from its high, as a variety of top hedge funds — like Eton Park Capital Management LP, and Omega Advisors and Appaloosa Management — have unloaded their positions.

And while we’d all like to believe that the market is overreacting, giving investors a chance to grab BABA stock for cheap, there are a few lingering concerns that might keep investors away from Alibaba. Read 

Wayfair Stock Shooting Higher, But Don’t Get Excited Yet

Mar 4, 2015, 12:19 pm EST
Wayfair Stock Shooting Higher, But Don’t Get Excited Yet

Wayfair Inc (NYSE:W), which operates an e-commerce platform for home products, got a nice lift today. On news of its fourth-quarter results, W shares are up a sizzling 17% and are challenging $30 per share.

But investors should probably be cautious on this move. Since coming public in early October, Wayfair has been extremely volatile, with the price reaching as high $39.43 and a low of $16.74.

But let’s first take a deeper look at the earnings report. Read 

Mobileye Stock Gets Back Into Gear (MBLY)

Feb 26, 2015, 12:38 pm EST
Mobileye Stock Gets Back Into Gear (MBLY)

Mobileye NV (NYSE:MBLY), which develops advanced safety systems for cars, pulled off a red-hot IPO back in late July. But since then, investors have felt lots of pain. Mobileye stock is off about 38% since its peak in October.

The latest Mobileye earnings report, however, was certainly encouraging. Fourth-quarter revenues climbed 26.4% to $39.7 million and adjusted earnings came to 6 cents per share. The Street consensus was only for revenue of $36.4 million and adjusted earnings of 5 cents per share.

MBLY also cranked out a hefty $50.8 million in free cash flows in Fiscal 2014, demonstrating the strong leverage in the business model. In all, the company has $418 million in the bank. Read 

GoDaddy IPO: Headed for The Big Board

Feb 25, 2015, 12:11 pm EST
GoDaddy IPO: Headed for The Big Board

GoDaddy Inc., which is a top seller of domains and web hosting services, has published its latest S-1, which shows that the company plans to list its shares on the NYSE under the ticker of GDDY. The company also disclosed its updated financials — and they indicate that the company is still growing at a nice pace.

During last year, GoDaddy posted revenues of $1.4 billion, up 22.7%, and the adjusted earnings before interest, taxes, depreciation, and amortization came to $271.5 million. This growth came even though the company’s core business is considered fairly mature. Yet during 2014, the domains segment posted an increase 13.7% to $763.3 and the hosting business saw a 33.4% jump to $507.9 million.

It certainly helps that GoDaddy continues to grow its customer base, which was up 9.7% last year to 12.7 million. Read 

Snapchat Mega-Round Threatens … AOL and YHOO?

Feb 20, 2015, 8:39 am EST
Snapchat Mega-Round Threatens … AOL and YHOO?

Snapchat — the creator of the wildly popular mobile app of the same name — reportedly is prepping for a round of funding for as much as $500 million at a $19 billion valuation, according to a recent Reuters report. That’s on top of the $648 million already raised by the rapidly growing company.

With the easy access to enormous amounts of capital, Snapchat certainly won’t be pressured to pull off an IPO. And as a result, it will have the advantage of not being distracted by the capriciousness of public investors.

Instead, Snapchat will get wide latitude to try new features and experiment with different business models. It’ll even have the benefit of more secrecy (which is something the CEO and co-founder of Snapchat, Evan Spiegel, has been known to favor). Read 

New Stocks to Watch: These IPOs May Not Be So Healthy

Feb 9, 2015, 12:00 pm EST
New Stocks to Watch: These IPOs May Not Be So Healthy

Even though the overall markets were robust last week, the optimism did not spread to IPOs. While 10 new stocks were on the calendar, only three could their deals done – and all of them were healthcare operators.

Now four of the postponed deals will attempt to come public this week. They include Carbylan Therapeutics, Inotek Pharmaceuticals, AltheaDx and Infraredx (I covered these last week in a post for the IPOPlaybook).

The problem? Well, there are four other healthcare offerings on the calendar. In other words, this week could again prove fairly difficult. Read 

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