Aug 13, 2014, 12:14 pm EDT
Since the launch of its hyped IPO back March, King Digital (KING) has been mostly a nightmare for investors. The offering was priced at $22.50, as the company raised about $500 million. But now KING stock is at a lowly $13.79, thanks in large part to a 25% drop after earnings.
Might there be a bargain here? Well, King stock is definitely cheap, with its price-to-earnings ratio at only 7X. But investors might still want to still hold off.
The company, which is the developer of the hugely popular Candy Crush Saga mobile game, is experiencing a deceleration in its growth path. For the second quarter, revenues came to $593.5 million, which was below the Wall Street consensus of $605.7 million. Bookings were also weak, with a 5% drop-off from the first quarter to $611 million. Read
Aug 12, 2014, 2:06 pm EDT
Since reporting its blow-out quarterly report, Twitter (TWTR) has lost some steam. True, part of this is normal profit-taking, but there may also be some real concerns.
The main issue plaguing the company? User growth.
No doubt, TWTR showed encouraging momentum in the second quarter. MAUs (monthly active users) jumped by 24% on a year-over-year basis to 271 million (the sequential growth rate was an impressive 6.3%). Read
Aug 11, 2014, 1:47 pm EDT
It’s going to get fairly quiet here at the IPOPlaybook — at least through early September or so. There’s nothing to get alarmed about. A quiet period toward the end of summer is normal for the new stocks market, as many traders go on vacation.
Actually, when things get started again, it looks like the activity will continue to be robust. True, biotech deals look a bit overdone, but investors still have a hunger for quality deals. Just look at some of the recent IPOs like GoPro (GPRO), El Pollo Loco (LOCO) and Mobileye (MBLY).
OK, so what are the offerings to expect after the August break? Well, based on recent filings, there are some interesting new stocks to consider. Read
Aug 7, 2014, 11:54 am EDT
During the past few weeks, much of the gains for 2014 have evaporated. Both the S&P 500 and the Dow Jones Industrial Average are down more than 3% since July 25. And while the S&P is still showing a gain for the year so far, the Dow is now in the red for 2014.
As should be no surprise, the biggest impact has been on smaller stocks, which tend to be riskier. Naturally, many IPOs have taken hits, too. But a pullback in a stock often leads to one question: Should investors just stay away, or are they looking at a good buying opportunity thanks to lower prices?
For some of these new stocks, I think we’re seeing the latter. The fact is that there are plenty of innovative companies that are attacking huge market opportunities. In other words, this should be a good time for long-term investors. Read
Aug 4, 2014, 10:48 am EDT
Last week was the most active week for IPOs since 2007, with 15 offerings hitting the market (according to Renaissance Capital). Yet the overall performance was mixed. While some IPOs had standout performances — like Mobileye (MBLY) and HealthEquity (HQY) — there were also plenty of duds, especially with small biotech deals.
As for the this week, the activity will remain healthy as 10 deals are planned to come to market. Of these, four are holdovers from last week, which include Auris Medical (EARS), Tobira Therapeutics (TBRA),
Microlin Bio (MCLB) and Zosano Pharma (ZSAN).
So let’s take a look: Read
Jul 30, 2014, 10:49 am EDT
Last week I was at a conference on Sand Hill Road, which is in Menlo Park, Calif. The highway is nothing special, kind of rustic looking. But Sand Hill Road is the nerve center of venture capital in Silicon Valley. Some of the firms located there include Andreessen Horowitz, Sequoia Capital, Battery Ventures and Greylock Partners. It reminded me of the importance that venture capital firms have in the current business landscape.
To understand why venture capital is so important, let’s first take a brief look at its history. Interestingly enough, venture capital is a fairly young practice, with the roots going back to the early 1970s. At the time, several tech veterans like Tom Perkins and Don Valentine saw huge opportunities to provide funding for emerging startups. Read