Episode 36: TikTok, Nikola and Market sell-off.
Happy Monday. It looks to be a busy week as we get going into the last full week of September. While the markets were down today, that is not unusual for this time of the year. We are seeing them adjust from some of the highs reached during the summer, and with so much uncertainty, a correction is healthy.
A key item driving the current sell-off is the delay of the stimulus package. This, coupled with uncertainty about House Democrats drafting a bill to fund through the end of the year has investors in a sour mood. And, the formidable loss of RBG has left the political landscape deeply unsettled. Finally, there is another lockdown looming in Europe with the resurgence of COVID.
The drama with TIKTOK continues as Walmart and Oracle take a 20 percent stake to try and keep it in the US. Pandocap’s question: How does this create a good customer experience? I don’t know that any of this has to do with what’s best for the customers or users; it sounds more like a breakdown.
Nikola continues to get crushed down 34% today. Analysts say there is still an investment opportunity but many are scrutinizing the company after Trevor Milton, their Executive Chairman stepped down. Some experts believe they were good at raising money but lacked the intellectual property and revenue to back sustainable, long-term plans for the company.
Markets closed down today.
Dow 27,147.70-509.72 (-1.84%)
S&P 3,281.06-38.41 (-1.16%)
Nasdaq 10,778.80-14.48(-0.13%)
IPO
We have two interesting listings coming on the NYSE: Asana and Palantir. Of note regarding both these companies: They will be going public under the direct listing method, allowing businesses to sell shares directly to the public with no new shares issued, and no lockup period. We will see how these debut as the last few direct listings have experienced challenges after their public offering.
Of course, this directly leads into some other important news for investors. This month, two new major exchanges were created: Long-Term Stock Exchange (LTSE) and Members Exchange (MEMX). What makes these particularly interesting is that they will compete for listings with NYSE and NASDAQ, and both have created a unique value proposition to attract companies to choose their venues.
The ethos of LTSE centers on adapting to the changes in the investment world and offers organizations the resilience of long-term governance. The exchange supports the creation of more firmly grounded and sustainable company value over time. To me, they offer a vision of building a new foundation for our civic society.
MEMX was founded in 2019 by diverse members of the global financial community. It is an innovative, customer-centric market operator, focused on creating and promoting a fair, transparent, and efficient experience for all investors. MEMX offers a new option to investors, with a simpler platform and features to benefit both retail and institutional investors
Finally, we have Ana Valdez on the show who will be releasing the Latino 2020 economic report. We have amazing growth in our community!
In these challenging times, I am certain that there will be many more developments to come, and as always, we will keep you posted.
#marketselloff