Jun 27, 2014, 11:59 am EDT
According to the latest Alibaba IPO filing, the company will list its offering on the NYSE — a part of the IntercontinentalExchange (ICE) — under the ticker BABA. While this is not necessarily a surprise, it is nonetheless another sign that the Nasdaq OMX Group (NDAQ) is losing its long-time dominance of tech deals.
If anything, the NASDAQ has deep innovative roots. Keep in mind that — when it was launched in the early 1970s — it was the world’s first electronic stock exchange. For the most part, it was a way to make it easier to trade in smaller stocks that could not meet the stringent requirements of the NYSE.
But this turned out to be a huge advantage, especially with the PC revolution in the 1980s. During this time, the NASDAQ benefited from the listings of breakout companies like Apple (AAPL), Microsoft (MSFT), Intel (INTC) and Oracle (ORCL). Read
Jun 27, 2014, 9:45 am EDT
People haven’t used as much Internet bandwidth discussing the Alibaba IPO as the World Cup, but it’s probably a close second.
Indeed, the Chinese Internet giant has captured the imagination of financial pundits for month, and for an obvious reason:
Everything about Alibaba is huge. Read
Jun 26, 2014, 12:58 pm EDT
Last night GoPro (GPRO) priced 17.8 million shares at $24 apiece, which was at the top of the range of $21-to-$24. Founded in 2002, the company is the developer of popular HD action-sports cameras. And so far in today’s trading, GPRO stock is up an impressive 32%.
Then again, it’s no surprise that the GoPro IPO is a winner. The company is one of the pioneers of the wearables market, which looks to have a bright future. From 2011 to 2013 revenues surged from $234.2 million to $985.7 million. GPRO has also been able to be consistently profitable. Last year, the net income came to $60.6 million.
To gin up even more excitement for the GoPro IPO, the company’s founder and CEO, Nick Woodman, gave an interview on CNBC’s “Squawk Box.” He mentioned that the key to the company’s success was that it essentially was the first version of the “selfie.” According to Woodman: Read
Jun 26, 2014, 9:05 am EDT
Which stock has more upside: Alibaba or its biggest U.S. counterpart, Amazon.com (AMZN)? And if you had, say 100 shares in Amazon stock, would you pawn them in a heartbeat to buy big into the Alibaba IPO?
Well, before you do anything too rash amid the crazy buzz around this upcoming new offering, if you find yourself in the situation of holding Amazon stock … keep on holding.
Amazon Stock Still Has Some Luster
One of the biggest and longest-standing complaints about Amazon stock — its breathtakingly high valuation — has actually come down in the past year amid a nearly 20% slide in AMZN. Granted, that still gives Amazon a laughable valuation of 500-plus, but a price-to-sales ratio of just under 2 is something investors can live with. Read
Jun 26, 2014, 8:30 am EDT
The prospects for IPOs didn’t look bright at the start of the second quarter. Small-cap stocks hit a great deal of turbulence, especially in the go-go biotech and cloud industries.
In fact, to get new stocks off the ground, Wall Street investment banks had to lower the price ranges on IPOs and cut back on the number of shares being offered.
Somewhere in the middle ground of banks’ tactics working and fears being overblown, Q2 turned out to be a standout one for new stocks. We saw 65 public offerings during the period, and they posted an average return of nearly 25%. Among these new stocks, only 19 generated negative returns. Read
Jun 25, 2014, 1:39 pm EDT
For the past few years, we’ve seen a lot of buzz over the prospects for a public stock offering of SpaceX, a spacefaring venture that makes and launches the Dragon spacecraft and Falcon launch vehicles to transport cargo and deliver satellites for clients including NASA, the US Military and private sector companies.
However, perhaps the reason most people want to see a SpaceX IPO is because it’s one of the many brainchildren of Tesla (TSLA) CEO Elon Musk, who has consistently made huge returns for stock investors since the late 1990s.
The Power of Musk
A bit of background: Early in his career, Elon Musk built Zip2, one of the first Internet-based city guides, which he later sold for roughly $340 million in cash and options to Compaq. He then launched X.com and merged it with PayPal, which then became the top player in online payments space and was sold to eBay (EBAY) for $1.5 billion. Read