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Ipo-trade

Reddit Braves Wall Street with 48% Pop in Debut. When Growth?Traders upvoted Reddit’s IPO but can the buzzing social media platform earn its stripes as a public company now? Table of Contents: ⦿ Reddit Surges in Public Market Kickoff ⦿ If Wall Street Bought, Should You? ⦿ Reddit Stacked Up Against Rivals ⦿ Ad Posts Looking Like User Posts? ⦿ Bottom Line 📍 Reddit Surges in Public Market Kickoff Reddit (ticker: RDDT ) stepped into the public-market space this week with a flashy and splashy IPO (initial public offering) in New York that chalked up a 48% gain on its debut day. The listing was met with lots of cheer from Wall Street as it was the biggest one for a social media company since Pinterest hit exchanges in 2019. Shares of Reddit surged to $47 out of the gate to make its first deals at a 38% premium to the company’s IPO price of $34 a share. Valuation soared to $9.5 billion by the end of the session when shares closed at just over $50 a pop. Reddit’s listing day with the Snoo—the website’s official mascot. Source: Reddit. By the looks of it, investors upvoted Reddit—a chat-room powerhouse and a stalwart of community-based culture venues sprawling from cat-praising r/CatsInSinks and owl-loving r/Superbowl to the intimidating trading hub r/wallstreetbets that bankrupted GameStop short-seller Melvin Capital. 📍 If Wall Street Bought, Should You? So the question is, if Wall Street scooped up Reddit shares… should you? Let’s take a behind-the-curtain look at Reddit’s business model. It’s been three years of trying for Reddit to get listed on the New York Stock Exchange. Finally, it issued 22 million shares for flotation, of which 8%—or 1.8 million—were reserved for friends, family and volunteer moderators. Those are unpaid users who make sure all the online communities are running smoothly. And they are also the content creators, because—unlike Netflix (ticker: NFLX ) or Spotify (ticker: SPOT )—Reddit doesn’t pay for its content. The platform boasts roughly 73 million daily active users spread across 100,000 online chat rooms, or “subreddits.” Despite the wide reach and 19 years of existence, the platform has never seen what a profitable year looks like. Its revenue comes predominantly from selling ads to companies who paid $804 million last year while the bottom line arrived at a $91 million loss. The revenue figure was a 20% increase from the $668 million picked up in 2022. 📍 Reddit Stacked Up Against Rivals And while revenue growth can be seen along the years, investors are betting that Reddit will ultimately catch up to the big shots in the social-media space. When Meta (ticker: META ), formerly Facebook, kicked off its public endeavors in 2012, it soaked up a market value of $104 billion and raised $ $16 billion for its IPO. Elon Musk’s X Corp, formerly Twitter, landed its first public deals at a $14 billion valuation, having raised $1.8 billion. In comparison, Reddit raised $748 million at an IPO valuation of $6.4 billion. Reddit carries the lowest valuation at IPO among social media peers. 📍 Ad Posts Looking Like User Posts? Against that backdrop, Reddit is taking a sketchy approach to bolstering its ad sales. Apparently, the folks at the upper echelons of the company decided it’s a good idea to make ad posts look exactly like user posts . The so-called “free form ads”, the company said, will mimic the popular user post type “megathread” and will “encourage users to deep dive into the topic at hand.” The community, on the other hand, didn’t show much love to that new advertising strategy. “Enable comments on ads, you cowards,” said one Reddit user while related threads were loaded with users’ comments of disapproval. 📍 Bottom Line And there you have it, 19 years of posts, 100,000 subreddits, and 73 million users who churn out all the content and self-sustain operations. Reddit gave us the meme stock craze back in 2021. Is it going to give us a rerun of the stock frenzy with its own shares this time? Or will the folks at r/wallstreetbets flip the script and short it? 💬 Let us know your thoughts in the comment section below! Don't want to miss any of our articles and be notified when a new one is released? Give us a follow!
NYSE:RDDT
by TradingView
9
Patent Expirations And Competition May Limit ARM’s Market ShareKey points 1. ARM is a leader with a saturated number of customers limiting future growth. It’s in a highly competitive landscape and needs to innovate beyond patent expirations in the 2030s. 2. As a controlled entity of SoftBank, I expect the board to push for buybacks in a bid to maximize returns. 3. I expect SoftBank to slowly unload its stake, while ARM buys back their stock - this may initially sustain the price. Prospects Are Still Solid After IPO ARM designs and licenses processors to manufacturers, it is the engineering company behind the world’s CPUs. About 70% of the world’s population uses Arm-based products. More than 30 billion ARM-based chips (smartphones, small electronics, data centers, networking equipment) were shipped in FY '23, representing an approximately 70% increase since 2016. Most of ARM’s IP sales are in the United States, however a good combined portion are in East Asia, including China (PRC), Taiwan and South Korea. The business model of the company is to design ARM-chips and license them out to manufacturers. It sells the intellectual property behind chips, but doesn’t produce the hardware. This is an engineering-first company, with approximately 80% of global employees focused on research, design, and innovation. The company reaches scale with the ability to license out each CPU product to multiple companies. ARM is a high performing company, with a gross margin of 80% and operating margins of 25%. The company made $2.7 billion in revenues in 2022 that stagnated in the IPO year. Despite stagnating in its IPO year, it’s future prospects from here are still solid as demand for their IP continue to grow. But I don’t believe it’ll grow revenues as fast as analysts are expecting (14% per year). ARM’s Market Share May Suffer As Patents Expire Arm has an addressable market of $202.5 billion, and expects it to grow at a 6.8% annual rate to $246.6 billion by the end of 2025. The company estimates the aggregate value of chips containing Arm technology to be approx. $98.9 billion in 2022, representing 48.9% market share. This market share is large even for a market leader. Competitors and expiring patents can become significant forces driving down the market share for ARM in the future. Notably most of the key ARM patents are expected to expire in the 2030s: The expiration of these patents can open the door for more companies to design and manufacture ARM-based chips. Limited New Customer Growth, But Opportunities in Smart Devices More than 260 companies reported that they had shipped Arm-based chips in 2023, including: Mobile computing: Apple, Guangdong OPPO, Samsung, Vivo Mobile, Xiaomi. Cloud computing: AWS and Alibaba Industrial IoT: Cruise and Mercedes-Benz, Raspberry Pi, Schneider Electric, and Siemens. ARM also entered into a long-term agreement with Apple that extends beyond 2040 allowing the company to use Arm architecture for their CPUs. The customer base for ARM is well established, and the company is at a phase where it will have a harder time acquiring new customers, rather it will have to rely on industry growth and innovation in order to increase revenue. One of the highest-potential growth avenues for ARM is the smart devices vertical. ARM’s CPU architecture fits well in small devices, giving it an advantage over peers with larger CPUs. As compute power increases, it will become more practical for consumers to rely on mobile devices and wearables instead of larger devices for everyday needs, this has the potential to widen the TAM. Another growth avenue for the company is the market adoption of electronically rich vehicles and EVs as well as the capitalizing on government programs subsidizing EVs. Vehicles have an increasing number of processing demands both in central systems, and IoT linked sensors. Selling Pressure From SoftBank May Limit Price Appreciation ARM is a controlled entity owned by SoftBank Group with approximately 90.6% of their outstanding ordinary shares following the completion ARMs IPO. Arm’s Top Shareholders ARM’s IPO is pushed by SoftBank who is looking to cash-in on their investment or escape with minimal losses. One scenario is to expect a continuous selling from SoftBank, which means that there may be selling pressure for some time keeping price appreciation moderate until the stock flips to a diversified investor base.
NASDAQ:ARMLong
by DEXWireNews
Sono Motors (SEV)This is a chart of the solar EV company Sono Motors (SEV). The company is headquartered in Germany and went IPO on the Nasdaq in 2021. This stock is presenting a decent risk-to-reward setup because it has been finding support within important Fibonacci convergence zones (yellow area). I created this Fibonacci convergence zone by using trend-based Fibonacci retracement combined with a long-term Fibonacci drawn from the stock's highest ever price down to a price of zero. Any bottoms that form in or near this Fibonacci convergence level will likely be extremely significant. Aside from a Fibonacci analysis, a double bottom recently formed on the daily chart. Of further note, IPO stocks have been showing signs of beginning to outperform the broader market. While the broader market was making lower lows in June, many IPO stocks, such as SEV, have been making higher lows. Oscillators on the longer-term charts validate this trend by showing signs of beginning to oscillate back to the upside. This is a long-term bullish signal for IPO stocks. Here's a great post by @TradeStation for a more in-depth analysis of the recent IPO outperformance:
SLong
by SpyMasterTrades
$HCP is giving a GREAT IPO LONG opportunity todayIPO intraday trading strategy idea The share price is rising and gonna continue this trend today. The demand for shares of the company still looks higher than the supply. These and other conditions can cause a rise in the share price today. So I opened a long position from $87,73; stop-loss — $78,95; take-profit — $114,07/MOC price. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
HLong
by KozakHlib
$LITM is giving a GREAT IPO LONG opportunity todayIPO intraday trading strategy idea The share price is rising and gonna continue this trend today. The demand for shares of the company still looks higher than the supply. These and other conditions can cause a rise in the share price today. So I opened a long position from $14,23; stop-loss — $9,91; take-profit — $27,19/MOC price. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
NASDAQ:LITMLong
by KozakHlib
SentinelOne $S, recent IPO breakoutSentinelOne is a cybersecurity company with presence in the US, UK and Tel Aviv. Some of its clinets are Aston Martin, NASDAQ:JBLU , NASDAQ:ADSK and NYSE:FVRR . Its Price/Earnings ratio is negative but had a +120% change in sales from the last quarter. That's the kind of fundamentals I like to see on IPOs. As is a recent IPO, its stock price is still too volatile. So, even though today's breakout respects all my BUY filters, I got in with half my position sizing. If tomorrow's price action follows through correctly, I'll but the rest. With a stop loss at $69.74, my target sell will be beyond $84.60. When the price crosses that target I'll adjust my stop to breakeven. IBD Investors gives NYSE:S a 19 in its Industry Rank with a 94 RS rating.
NYSE:SLong
by dpuleo19
$WEAV is giving a GREAT IPO SHORT opportunity todayIPO intraday trading strategy idea The share price is falling and gonna continue this trend today. The demand for shares of the company still looks lower than the supply. These and other conditions can cause a fall in the share price today. So I opened a short position from $20,84 stop-loss — $22,47 take-profit — $15,98/MOC price Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
NYSE:WEAVShort
by KozakHlib
$LVLU is giving a GREAT IPO SHORT opportunity todayIPO intraday trading strategy idea The share price is falling and gonna continue this trend today. The demand for shares of the company still looks lower than the supply. These and other conditions can cause a fall in the share price today. So I opened a short position from $12,68 stop-loss — $14,62 take-profit — $6,86/MOC price Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
NASDAQ:LVLUShort
by KozakHlib
$BLZE is giving a GREAT IPO LONG opportunity todayIPO intraday trading strategy idea The share price is rising and gonna continue this trend today. The demand for shares of the company still looks higher than the supply. These and other conditions can cause a rise in the share price today. So I opened a long position from $19,62; stop-loss — $16,62; take-profit — $28,62/MOC price. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
NASDAQ:BLZELong
by KozakHlib
$RIVN is giving a GREAT IPO LONG opportunity todayIPO intraday trading strategy idea The share price is rising and gonna continue this trend today. The demand for shares of the company still looks higher than the supply. These and other conditions can cause a rise in the share price today. So I opened a long position from $119,40; stop-loss — $105,42; take-profit — $161,34/MOC price. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
NASDAQ:RIVNLong
by KozakHlib
4
$EXFY is giving a GREAT IPO LONG opportunity todayIPO intraday trading strategy idea The share price is rising and gonna continue this trend today. The demand for shares of the company still looks higher than the supply. These and other conditions can cause a rise in the share price today. So I opened a long position from $41,69; stop-loss — $36,50; take-profit — $57,26/MOC price. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
NASDAQ:EXFYLong
by KozakHlib
$CIAN is giving a GREAT IPO LONG opportunity todayIPO intraday trading strategy idea The share price is rising and gonna continue this trend today. The demand for shares of the company still looks higher than the supply. These and other conditions can cause a rise in the share price today. So I opened a long position from $17,65; stop-loss — $16,45; take-profit — $21,25/MOC price. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
CLong
by KozakHlib
$IOBT is giving a GREAT IPO LONG opportunity todayIPO intraday trading strategy idea The share price is rising and gonna continue this trend today. The demand for shares of the company still looks higher than the supply. These and other conditions can cause a rise in the share price today. So I opened a long position from $17,13; stop-loss — $14,66; take-profit — $24,54/MOC price. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
NASDAQ:IOBTLong
by KozakHlib
$NRDS is giving a GREAT IPO LONG opportunity todayIPO intraday trading strategy idea The share price is rising and gonna continue this trend today. The demand for shares of the company still looks higher than the supply. These and other conditions can cause a rise in the share price today. So I opened a long position from $29,84; stop-loss — $21,24; take-profit — $55,64/MOC price. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
NASDAQ:NRDSLong
by KozakHlib
2
$BIRD is giving a GREAT IPO LONG opportunity todayIPO intraday trading strategy idea The share price is rising and gonna continue this trend today. The demand for shares of the company still looks higher than the supply. These and other conditions can cause a rise in the share price today. So I opened a long position from $23,85; stop-loss — $20,04; take-profit — $35,28/MOC price. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
NASDAQ:BIRDLong
by KozakHlib
1
$LIAN is giving a GREAT IPO SHORT opportunity todayIPO intraday trading strategy idea The share price is falling and gonna continue this trend today. The demand for shares of the company still looks lower than the supply. These and other conditions can cause a fall in the share price today. So I opened a short position from $14,39 stop-loss — $15,64 take-profit — $10,64/MOC price Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
LShort
by KozakHlib
$UDMY is giving a GREAT IPO SHORT opportunity todayIPO intraday trading strategy idea The share price is falling and gonna continue this trend today. The demand for shares of the company still looks lower than the supply. These and other conditions can cause a fall in the share price today. So I opened a short position from $26,17 stop-loss — $27,90 take-profit — $20,98/MOC price Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
NASDAQ:UDMYShort
by KozakHlib