Episode 64: Everyone Is Back In The Game As Markets Close Up
Welcome to February! We dust off last week and get back into the game as we kick off the markets and a new month. The headlines continue to focus on the new retail investor and speculation about this new cohort. The fact is that this community has been building for years and increased its participation during the pandemic with easy to use financial tools and access to financial forums.
The growth in the capital markets has also benefited the next generation of investors. We have seen the number of IPOs skyrocket in 2020 and SPACS go from 10 in 2013 to an explosive 248 in 2020. These companies have incentives for their employees through stock options, most of the workforce across these new issues are inclusive of Gen-Z and millennials that have access to new capital to participate in markets. Link
When Wall Street is pointing to people sitting at home and playing around in forums as an excuse for a stock’s movement, they are missing the bigger picture that it’s broader than a fad and it will not go away. The next generation involves leveraging all types of information, ranging from Reddit forums to Clubhouse chat groups, and dynamic Podcasts like LatinX America. There are also many diverse community leaders like Ramona Ortega My Money My Future who work to educate and build wealth in lower socioeconomic communities. This is here to stay and the media, Wall Street, and broader capital markets need to be open to supporting the new cohort of investors. If they don’t they will miss the boat on all the opportunities this community brings.
Ford and Google: Ford and Google are entering into a six-year deal, which the automaker said is worth hundreds of millions of dollars. This is the continued focus to move our automakers into the next generation to compete globally.
SpaceX to fly all-civilian crew later this year. I wonder why Elon didn’t mention that last night on Clubhouse! SpaceX will launch four private individuals on a Crew Dragon capsule into orbit around the Earth later this year, dubbed “the world’s first all-civilian mission.”
Market Close
Dow 30 30,212.37+229.75 (+0.77%)
S&P 500 3,773.77+59.53 (+1.60%)
Nasdaq 13,403.39+332.70 (+2.55%)
IPOs
The Honest Co., a Los Angeles-based baby and beauty products company co-founded by actress Jessica Alba, is prepping a confidential IPO filing, per Bloomberg. Honest Co. has raised nearly $500 million from firms like Lightspeed Venture Partners, IVP, and L Catterton. http://axios.link/509J
Nine companies plan to price U.S. IPOs this week, including TELUS International, Atotech, Sano Biotech, and LoanDepot. http://axios.link/xjc8