Feb 20, 2015, 8:39 am EDT
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
Feb 9, 2015, 12:00 pm EDT
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
Feb 6, 2015, 10:21 am EDT
This week Alibaba Group Holding Ltd (NYSE:BABA) announced a strategic venture with LendingClub Corp (NYSE:LC), that will leverage its online lending platform for financing international transactions. So far, Wall Street has given much more favor with Lending Club stock as it jumped over 5% on the news. However, BABA stock barely moved initally, then fell 3% by the end of the week.
So what should investors do?
Well, first of all, let’s take a look at the details on the deal: It’s a multi-year arrangement where Lending Club will be the exclusive facilitator of loans to small businesses to make wholesale purchases of goods from Alibaba.com. The amounts will range from $5,000 to $300,000 per merchant. Read
Feb 5, 2015, 12:19 pm EDT
GrubHub Inc (NYSE:GRUB), which operates an online and mobile platform to allow takeout for restaurants, is showing no signs of slowing down. In the fourth quarter, revenues surged by 50% to $73.3 million. And yes, Wall Street is buying up GRUB stock, which is up about 10%.
Of course, company handily beat the consensus estimates. Revenues came in about $3 million higher and earnings were 13 cents per share, compared to the average forecast of 11 cents per share.
The outlook for GrubHub is also encouraging. For the current quarter, the company is looking at revenues of $83 million to $85 million, which compares to an $80 million Street consensus. Read
Feb 2, 2015, 11:33 am EDT
The IPO market got into stride last week, with 10 new stocks pulling off their deals, including eight biotech operators.
But of course, the standout deal was Shake Shack Inc (NYSE:SHAK), a fast-growing burger chain. On its debut on Friday, the stock soared by 119%.
OK, so what’s on tap for new stocks for this week? Let’s take a look (one is holdover from last week, Infraredx, which I covered in a prior post). Read
Jan 30, 2015, 11:42 am EDT
Shake Shack Inc (NYSE:SHAK), the rapidly growing burger chain, was widely expected to have a hot IPO.
But I doubt few people were imagining SHAK stock would have this much sizzle.
The Shake Shack IPO already set up well, pricing a deal at $21 despite a range of $17 to $19. But it really blew the doors off this morning, when SHAK raced up more than 130% on its debut. Read