Episode 93: Investors expect a 10% correction in the market
The stock market is near all-time highs, which makes for a great time to plan for a big sell-off, even if you don’t expect one to come. A sell-off that sends the stock market down 10% from current levels would be very average by historical standards.
Chinese companies will be unable to go public in the U.S. unless they make new risk disclosures, according to a statement released Friday morning from SEC chair Gary Gensler. Why it matters: Chinese companies, and tech startups in particular, are already under growing pressure from their own government. Now they're also getting squeezed by U.S. officials.
Despite the ginormous $113B quarter, Amazon still missed sales expectations — and the stock plunged 7%. The 'Zon also predicted that sales growth will continue slowing in the current quarter. CFO Brian Olsavsky blames tough year-over-year comparisons: in the same quarter last year, Amazon doubled its profit as nearly every biz line benefited from the corona-conomy — from ecomm, to cloud computing, to Prime Video. When you're comparing to that, it's tough to keep growth accelerating.
Robinhood’s stock debut disappointed. The “stonk”-slinger priced its shares at the low end of its range, unusual for a buzzy startup in a hot IPO market: $38 versus a top-end guidance of $42. After fleetingly brushing $40 per share, the stock slumped to $34. The price has rebounded a bit, above $36 per share but still putting the earliest buyers under water.
Market Close
Dow 30 34,935.47 -149.06 (-0.42%)
S&P 500 4,395.26 -23.89( -0.54%)
Nasdaq 14,672.68 -105.59 (-0.71%)
IPO
Weber is expected to begin trading next week on the New York Stock Exchange using the ticker "WEBR." The company is offering 46,875,000 shares of stock, with an additional allotment of 7,031,250 shares available to underwriters, if there is sufficient demand. Management is currently planning to price the stock in a range of $15 to $17 per share, though that price could change depending on interest from investors. At the high end of its range and including the additional allotment, the grill maker could raise more than $916 million, valuing the company at nearly $5 billion.
LATAM
NotCo, a plant-based food alternative company, raised a $235M funding round. The round was led by Tiger Global and included DFJ Growth Fund, ZOMA Lab, and athletes such as Lewis Hamilton and Roger Federer. With the new funding, NotCo becomes the newest Chilean unicorn at a $1.5B valuation. NotCo makes plant-based milk, burger patties, meat, and ice creams sold across Latin America. The startup currently operates in six countries in the Americas and has plans to expand into Asia and Europe. The company launched its plant-based milk NotMilk in the United States seven months ago and is on track to reach 8,000 retail outlets by the end of the year