Mar 4, 2015, 12:19 pm EDT
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
Feb 26, 2015, 12:38 pm EDT
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
Feb 25, 2015, 12:11 pm EDT
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
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