Episode 75: The Bull Market Continues
We close out a very strong week on the market with many of the Wall Street leaders predicting a continued bull market. As the global economic recovery begins to accelerate, Goldman Sachs is advising its clients on how to position themselves for upside with equity exposure both in the U.S. and in overseas markets. Goldman’s analysts led by Guillaume Jaisson included Tesla in their Global Cyclicals basket, a group of stocks the bank thinks will outperform as businesses reopen and the vaccine rollout picks up outside of the U.S.
Bitcoin's latest bull market helped drive venture capital investment for cryptocurrency and blockchain startups to unprecedented highs.The sector landed a record $3 billion in Q1 2021 across 239 VC deals, according to PitchBook data. Several mega-rounds went to startups that are escorting institutions into the crypto fold, including the $350 million rounds raised by Dapper Labs and BlockFi which topped the list. More validation is coming: on the heels of a remarkable jump in revenues, Coinbase is set to go public via direct listing next Thursday. The exchange operator has also emerged as a top crypto investor.
Way too much SPACulation. John Coates, acting director at the Securities and Exchange Commission, has had enough of wild-eyed, unfounded, and just plain nuts-o financial projections from startups going public via special purpose acquisition corporations. “Any simple claim about reduced liability exposure for SPAC participants is overstated at best, and potentially seriously misleading at worst,” Coates wrote.
Skims, the shapewear brand founded by Kim Kardashian, raised $154 million, led by Thrive Capital, at a $1.6 billion valuation. Bottom line: "Skims has defined itself by aiming for a younger market and emphasizing inclusivity, offering nine sizes and as many skin-tone shades. It reported $145 million in sales last year, and has sold more than four million units since its founding in late 2019." — Michael de la Merced, NY Times
Market Close
Dow 30 33,800.60 +297.03 (+0.89%)
S&P 500 4,128.80 +31.63 (+0.77%)
Nasdaq 13,900.19 +70.88 (+0.51%)
IPO
In a bid to catch a sizable piece of a $200 billion mobile app market, App software developer AppLovin Inc (+1.11%), named a pre-IPO per share price range of $75 - $85, which would create a $30 billion-plus valuation. The company plans to sell at least 25 million shares, leaving about 360 million shares outstanding, which will trade on the Nasdaq under the ticker “APP.”
The Honest Co, a baby and beauty products company co-founded by actress Jessica Alba, is preparing to go public. The Los Angeles-based company backed by L Catterton confidentially files for an initial public offering with the Securities and Exchange Commission. The expected IPO valuation will be about $2 billion, or twice the initial target.
LATAM
Kavak, the Mexican startup that’s disrupted the used car market in Mexico and Argentina, today announced its Series D round of $485 million, which now values the company at $4 billion. This round more than triples their previous valuation of $1.15 billion in October, establishing them as a Unicorn. Kavak is now one of the top five highest-valued startups in Latin America.