It’s All-Go For a $4.5 Billion GoDaddy IPO

Nov 21, 2014, 12:37 pm EST
It’s All-Go For a $4.5 Billion GoDaddy IPO

According to a report in the New York Post, it looks like GoDaddy Inc. will launch its IPO “early next year.” No doubt, the timing is certainly good for a cloud-based deal. Yet a GoDaddy IPO may face some headwinds.

First of all, let’s get a background on the company:  Founded in 1997, GoDaddy is one of the pioneers of domain registration and web hosting. To deal with the intense competition and rapid commodization, the company wisely pursued an aggressive marketing strategy, which included salacious commercials. Some of them were during the Super Bowl. Read 

This Week’s New Stocks: Will Habit Be the Next Hot Restaurant IPO?

Nov 18, 2014, 5:53 pm EST
This Week’s New Stocks: Will Habit Be the Next Hot Restaurant IPO?

Last week was pretty solid for IPOs. Nine new stocks pulled off their deals, raising about $2 billion or so. The standout performance was Virgin America (VA), which posted a gain of 30%.

But there was still some weakness with biotech deals. For example, the shares of NeuroDerm (NDRM) lost 8%, even though the offering was struck at the mid-point of the expected price range.

As for the upcoming week, the pipeline of new stocks is certainly full (eHi Car Services is a holdover from last week). Here’s a look at each: Read 

Vivint Solar Stock Gets Burned After Earnings

Nov 12, 2014, 9:40 am EST
Vivint Solar Stock Gets Burned After Earnings

Vivint Solar (VSLR) has been on a wild ride since going public in early October. Within a few weeks of its debut, the stock would drop from $18.71 to $9.66. Then it went on a bull run, reaching nearly $15. But on Tuesday, VSLR stock is plunging again, down a grueling 19% on a dismal third-quarter report.

Vivint Solar installs solar panels for homeowners, who agree to 20-year contracts that generally provide savings of 15% to 30% compared to typical utility rates. All in all, it’s a win-win. Homeowners have a low-risk approach to solar and Vivint Solar gets the benefit of recurring income.

Yet the company is still in the nascent stages, which means the financial results are likely to be volatile. Shareholders got a stiff reminder of that in Q3. Revenues skyrocketed by 266% to $8.3 million, versus the Wall Street forecast of $7.5 million. During the period, the company installed 49 megawatts of power, up a sizzling 196% from the year-ago period. Read 

Virgin America Leads This Week’s New Stocks

Nov 10, 2014, 2:48 pm EST
Virgin America Leads This Week’s New Stocks

Last week was a mixed bag for new stocks. While 13 IPOs were on the calendar, only 8 deals got priced. However, some of the ones that did get through were pretty hot, such as Nevro (NVRO), up 41%, and Freshpet (FRPT), which posted a gain of 27%.

For the most part, Wall Street is fairly selective with new stocks, which means that hot deals like NVRO are pretty rare. Much more often, they stumble or sputter out of the gate. For example, one of the week’s deals, Upland (UPLD), fell a grueling 19% on its first day of trading!

As for this week, there are eight new stocks ready to go public (one additional offering, The Joint, is a holdover from last week). So let’s take a look at each: Read 

Alibaba Earnings: Mobile Usage Boosts Revenues

Nov 4, 2014, 11:44 am EST
Alibaba Earnings: Mobile Usage Boosts Revenues

Back in mid-September, Alibaba (BABA) pulled off the biggest IPO in history, raising a staggering $25 billion. Investors saw the deal as a huge opportunity to benefit from the growth in ecommerce in China.

And yes, BABA stock has been a winner, up about 50% from its IPO price. But on the heels of its first earnings report as a public company, the response has been lukewarm. So far in today’s trading, the stock is up about 2%.

To see why, let’s dive into Alibaba earnings: In the quarter ended September 30th, revenues jumped by 54% to $2.74 billion but net profits plunged by 39% to $494 million, or 20 cents per share. Read 

Hilton Stock a Buy, Even If Blackstone Is Selling (HLT)

Nov 4, 2014, 11:19 am EST

Investors in Hilton Worldwide Holdings (HLT) have rightfully shrugged off news of Blackstone Group’s (BX) plan to cut its stake in the international hotel group.

Hilton stock has edged above its year-ago IPO levels despite an initial dip Monday on the news of the sale. You can thank last week’s robust earnings report and guidance for the fourth quarter and next year.

Meanwhile, both Hilton’s business and its stock are showing strength amid a promising lodging industry climate, so investors looking for something to hop on board might want to take a closer look at HLT. Read 

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