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.
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
