Peloton’s $1B Public Offering Bet

Today is Wednesday, November 17, 2021.

Peloton’s $1B Public Offering Bet

Shares of Peloton (Nasdaq: PTON) jumped 15.50% on Tuesday after the exercise equipment company declared a secondary stock sale.

Details: The public offering consisted of 23.9 million shares of common stock sold at $46 each. The net proceeds of about $1.07 billion will go towards general corporate purposes such as working capital, as well as resources for investments and acquisitions.

Background: It was a bit shocking for Peloton to announce the offering to raise more funds. A few weeks ago, the company said that it wasn’t planning to do so. But after a bad quarterly earnings report and numerous challenges, it makes sense for the company.

Numbers: Shares of Peloton are down 62% this year, including 37% in the past month.

Final Thoughts: Will the secondary public offering work out for Peloton? Time will tell.

Notables

Notable Earnings Today: Target (NYSE: TGT), Nvidia (NVDA), Cisco Systems (CSCO), Lowe’s (LOW), Victoria’s Secret (NYSE: VSCO), Despegar (NYSE: DESP) TJX (NYSE: TJX), Baidu (NASDAQ: BIDU), ZIM Integrated Shipping Services (NYSE: ZIM), America's Car-Mart (Nasdaq: CRMT), Mobile TeleSystems (NYSE: MBT).

Notable IPOs Today: UserTesting, Inc. (NYSE: USER), Sono Group N.V. (Nasdaq: SEV), Iris Energy Ltd (Nasdaq: IREN), Braze, Inc. (Nasdaq: BRZE), Nabors Energy Transition Corp. (NYSE: NETC), Achari Ventures Holdings Corp. I Warrant (Nasdaq: AVHIW).

Notable Equity Crowdfunding Campaigns Ending Today:O2 Treehouse (StartEngine), Hardscoop (StartEngine), Peach City Brewing Company (MainVest), Actipulse Neuroscience (Republic), Cluster (Fundify), Mariposa Technology (NetCapital).

Notable Economic Events Today: Building permits (8:30 a.m. ET), Housing starts (8:30 a.m. ET), Crude oil inventories (10:30 a.m. ET).

Stock Picks for Busy Thanksgiving Travel

AAA predicts that 53.4 million people will travel for the upcoming Thanksgiving holiday weekend in 2021, up 13% from 2020 and within 5% of pre-pandemic levels in 2019.

Come Fly With Me: AAA expects air travel for Thanksgiving to be up 80% since last year. Any airline stock seems good, but you if want to buy the dip, check out JetBlue (Nasdaq: JBLU), which is down 25% in the past 6 months.

Check-In: Hotels could also benefit from increased Thanksgiving travel. If that’s the case, you could ride the wave that hotel stocks have experienced this year. Wyndham Hotels (NYSE: WH) is up 46% in 2021.

Drive Time: Car rentals will also increase during the Thanksgiving travel holiday. Hertz (Nasdaq: HTZWW) recently had a re-IPO, just in time for the holiday season.

Final Thoughts: Of course, travel companies could face delays during the holiday season, which might hurt stocks.

Behind Crypto’s Mid-November Correction

The price of many top cryptocurrencies tumbled within the last 24 to 48 hours, including several from recent highs, with numerous events that likely contributed to the downfall.

China Problem: China cracked down on crypto again. On Monday, China told state businesses to stop mining crypto.

Not for Twitter: Ned Segal, the CFO of Twitter (NYSE: TWTR), told The Wall Street Journal on Monday that investing in crypto “doesn’t make sense right now.”

Taxes Coming: President Biden signed the infrastructure bill on Monday, which included provisions for taxing cryptocurrency.

Final Thoughts: Corrections are common in crypto, but any of these incidents could have caused this correction.

Trends to Watch

Stone Faced: StoneCo stock falls after Q3 results hurt by investments, fair value adjustment (Seeking Alpha)

I Pill Good: Biden administration to buy Pfizer antiviral pills for 10 million people, hoping to transform pandemic (The Washington Post)

Decrease: Why Today Was a Bad Day for Jumia Stock (Nasdaq)

So Brave: Brave Browser Launches Built-In Crypto Wallet (CoinDesk)

Stay Tuned: Biden says he will make final decision about Federal Reserve chair in about 4 days (Reuters)

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