Virgin Atlantic Explores IPO

Steven Lerner
Steven Lerner

Plus Elon Musk's unhealthy Dogecoin obsession.

Today is Monday, August 9, 2021.


Virgin Atlantic Explores IPO Amid Fluid Travel Market

Virgin Atlantic is reportedly considering a potential initial public offering on the London Stock Exchange, according to Sky News on Saturday.

Let’s examine this potential IPO in the broader travel market.

Catch the Spirit: Spirit Airlines (NYSE: SAVE) recently canceled thousands of flights, which upset a lot of travelers.

Mandate: United Airlines (Nasdaq: UAL) and Frontier Airlines (Nasdaq: ULCC) recently announced Covid-19 vaccine mandates for the crew. Other airlines could follow, and this mandate could eventually extend to passengers.

Money Problems: An IPO would represent an incredible turnaround story for Virgin Atlantic. The company filed for bankruptcy last year and raised funds a few months ago to stay afloat.

Travel Sentiment: Looking at recent TSA checkpoint data, travel has improved since last year but it’s still at pre-pandemic levels. Leisure travel is back, but business travel - which is where airlines make their money - is not back yet.

Final Thoughts: Virgin Atlantic’s potential as an investment option really depends on the state of the pandemic.


Notables

Notable Earnings Today: AMC Entertainment (NYSE: AMC), The Trade Desk (Nasdaq: TTD), DISH Network (Nasdaq: DISH)

Notable IPOs Today: n/a

Notable Equity Crowdfunding Campaigns Ending Today: Audubon Bioscience (Microventures), Glow Worm Play Cafe (MainVest), Tasty Acres Microgreens (MainVest)

Notable Economic Events Today: Job Openings and Labor Turnover data (10:00 a.m.)


Binance.US CEO Quits After 3 Months

Brian Brooks, the CEO of Binance.US, stepped down from the role on Friday after just three months on the job.

Background: Brooks’ career includes time as a lawyer, banker, and in cryptocurrency.

Scrutiny: Binance.US, the U.S. arm of cryptocurrency exchange Binance, has reportedly been under investigation by the feds for money laundering and tax evasion.

Why This Matters: The appointment of Brooks as CEO was seen as a way to help Binance (and the cryptocurrency industry as a whole) appear to be more legitimate. This news looks bad for the crypto market.

Final Thoughts: Prices for Bitcoin, Ethereum and other major cryptocurrencies dropped on Sunday.


Elon Musk’s Unhealthy Dogecoin Obsession

There’s no denying the connection between Elon Musk and Dogecoin, a cryptocurrency that was originally created years ago as a joke. The Tesla (Nasdaq: TSLA) CEO constantly tweets about the digital asset, which has played a role in the rise of Dogecoin.

Tweets: Since December, Musk has tweeted to his followers with messages such as calling Dogecoin “the people’s crypto” or photos of a dog barking at the moon. In the past year, those tweets have occurred before a massive uptick in the price of Dogecoin.

To The Moon: Musk’s love of Dogecoin goes beyond just Twitter. He announced in May that he is launching a mission to the moon through SpaceX that will be funded by Dogecoin.

Live From New York: The price of Dogecoin peaked right before Musk served as the guest host on an episode of Saturday Night Live in May. Shortly thereafter, the price of Dogecoin plummeted.

Why Musk Likes Dogecoin: While there isn’t a definitive answer, people close to Musk say that he likes Dogecoin because he likes memes and funny things.

Final Thoughts: Although Dogecoin is a functional coin and a popular asset that investors have backed, there are concerns that Musk’s Dogecoin tweets are a form of market manipulation. This clouds the future possibilities of Dogecoin.


What’s in a Name?: Ethan Allen changes stock symbol from ETH to avoid confusion with ethereum (CNN)

Warren Buffett Does It Again: Berkshire Hathaway’s operating earnings jump 21% as recovering economy boosts railroad, energy units (CNBC)

I Oil Therefore I Am: Saudi Aramco Q2 Profit Soars To Nearly 300% On Global Demand Recovery (Benzinga)

A New Low: Real Estate Investment Platform Fundrise to Lower Entry Barrier for New Class of Investors (Crowdfund Insider)

Looking for Deals: Retail investors on the hunt for bargains in China-focused funds (Financial times)


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