2019 has already seen a slew of impressive tech companies go public, but traders will be watching closely over the next two quarters, as another round of heavyweight tech company IPOs are expected.
"It really was a fascinating and impressive quarter. When you think back at the first half of 2019, it was the busiest first half since 2007," Jose Cobos, the New York Stock Exchange's head of technology capital markets, told Cheddar. "We had a tremendous number of IPOs."
"That's even more impressive when you think about the fact that January and February, for the most part, the market was closed as result of the SEC and government shutdown."
The New York Stock Exchange reports that it raised about 75 percent of all tech IPO proceeds in the U.S. during the first two quarters, a share equivalent to just over $12 billion. Eleven tech companies have gone public on NYSE so far this year, including household names like Uber ($UBER) and Fiverr ($FVRR), as well as lesser-discussed firms like the security policy management company Tufin Software Technologies ($TUFN) and the Nigerian shopping platform Jumia Technologies ($JMIA).
It's expected that Peloton, Postmates, and Airbnb will follow suit later this year.
"[In] September, October, November, I think we'll continue to see a fairly large number of companies go out," he said, adding that 2018 was ultimately the highest performing year for tech companies, in terms of listings and proceeds raised, since 2014.
Meanwhile, in recent years, only two companies have pursued direct listings: Spotify ($SPOT) and Slack ($WORK). He said more companies could list shares, but that "it's not necessarily the right method for all companies."
Unlike public offerings, direct listings don't involve the creation of new shares.
Companies usually go public, Cobos explained, because executives hope to raise more capital to grow the business, to provide liquidity to investors, and to expand their company's public profile.
Paramount Global is set to absorb Showtime into Paramount+, creating a single streaming option to compete with the likes of Netflix and Warner Bros. Discovery’s Max. The company also plans to raise the monthly price from $9.99 to $11.99 per month after the integration.
Debt ceiling talks are underway in Washington, DC ahead of a default deadline. Michael Rosen, chief investment officer with Angeles Investments, joined Cheddar News to explain how a potential default could affect investment portfolios, among other items, for Americans.
Australia's government announced regulations for buy now, pay later services, which will be labeled as consumer credit products, which puts them under the country's Securities and Investments Commission's watch.
Walmart is reportedly teaming up with pet telehealth provider Pawp, giving subscribers unlimited access to vet services via video and text, starting on Tuesday.
Cheddar News checks in to see what's on The Day Ahead, which will include earnings from Lowe's, Dick's Sporting Goods, BJ's and AutoZone along with new home sales data. In addition, Microsoft's Build 2023 Developer Conference is slated to kick off for software engineers and web developers.
Venmo will soon have accounts for teenagers ages 13-17 but they will have to follow a set of rules, with parents or guardians opening accounts on their behalf under their own accounts.
Rory Harvey, General Motors' incoming North American president, joined Cheddar News to discuss GM's foray into the rapidly-changing electric vehicle market along with what lies ahead. "It's a very dynamic time in the automotive industry," he said. "If you look to the transformation across the EVs, it's happening and it's happening at a pace."
