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.
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
Not a Happy Meal: McDonald's broken ice cream machines are part of FTC investigation, report says (USA Today)
Just in Time for the Holidays: Amazon is reportedly planning to release an Amazon-branded TV as soon as October (The Verge)
A Big Sacrifice: Broadcom CEO Says He’s Sacrificing Sales to Avoid a Future Crash (Bloomberg / Yahoo!)
Stopped: GM to halt production at nearly all North America assembly plants due to new chip problem (Detroit Free Press)
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