Reddit's IPO

September 03, 2021

Today is Friday, September 3, 2021

Reddit’s IPO Becomes Clear With Reported Advisor Search 

Online platform Reddit wants to hire investment bankers for an initial public offering, according to a report from Reuters on Thursday.

Recent History: In August, Reddit raised a $410 million Series F round, which gave the company a $10 billion valuation. According to Reuters, the company wants to be valued at over $15 million.

What the CEO is Saying: A few months ago, CEO Steve Huffman said in an interview that the company has plans to go public, but is not sure when.

Data: Reddit is the 19th most popular website, according to Alexa. Many retail investors use the platform’s message boards to communicate about stocks.

Interesting: Reddit apparently decided to skip the SPAC bandwagon and is sticking with an IPO.

Final Thoughts: To really understand how Reddit might perform, consider the history of other social media platforms that went public. Shares of Facebook (Nasdaq: FB) and Snapchat (Nasdaq: SNAP) didn’t pick up momentum until well after a year of their IPOs.

Notables

Notable Earnings Today: n/a

Notable IPOs Today: Digital World Acquisition Corp. Units (Nasdaq: DWACU), Oxus Acquisition Corp. Unit (Nasdaq: OXUSU), ABRI SPAC I, INC. Common Stock (Nasdaq: ASPA), Sierra Lake Acquisition Corp. (Nasdaq: SIERU), Generation Income Properties Inc Unit (Nasdaq: GIPRU).

Notable Equity Crowdfunding Campaigns Ending Today: Powur (Wefunder), HighRes Labs (Fundanna).

Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Nonfarm payrolls (8:30 a.m. ET), Average Hourly Earnings (8:30 a.m. ET), Markit Composite PMI (9:45 a.m. ET), ISM Services Index (10:00 a.m. ET).

Best Value Semiconductor Stocks

The semiconductor sector is soaring right now, but many of the leading stocks are not suitable for value investors. Here’s a look at some of the best value semiconductor stocks today.

Metric: While there are many ways to determine the true value of a stock, the price-to-earnings ratio, also known as P/E, is one of the most popular.

Stat: Across the semiconductor sector, the average P/E ratio is about 26. Thus, stocks that have a P/E ratio under 26 are on average more valuable.

Value Plays: There’s Qualcomm (Nasdaq: QCOM) with a P/E ratio of 17, Micron Technology (Nasdaq: MU) with a P/E ratio of 19.36 and Intel (Nasdaq: INTC) with a P/E ratio of 11.57.

Final Thoughts: There are also other metrics that investors use to look at value stocks, including the price-to-book ratio.

Japanese Bank Reportedly Eyes Crypto Fund

SBI Holdings, a financial services company based in Japan, reportedly wants to launch a cryptocurrency fund comprised of bitcoin, ether, XRP, bitcoin cash or other coins, according to a report from Bloomberg on Thursday.

Fine Print: According to the report, the fund would be open to residents in Japan and would require a minimum investment of around $9,000 to $27,000.

Bigger Picture: Other banks have also announced plans to consider new cryptocurrency funds for institutional investors.

Prices: On Thursday, prices for Bitcoin and Etherum ticked up.

Final Thoughts: If SBI Holdings does pursue the crypto fund, it would serve as another sign that major financial companies are taking crypto more seriously.

Trends to Watch

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