Thursday’s Headlines: No Snowflake Is The Same
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Eventbrite (EB) +8.1%
TrueCar (TRUE) +6.6%
FedEx (FDX) +5.8%
Under Armour (UAA) +4.9%
Moving Down ⬇️
Shopify (SHOP) -4.8%
ServiceNow (NOW) -3.8%
Facebook (FB) -3.3%
Yext (YEXT) -3.3%
1. Warren Buffett-backed Snowflake (SNOW) saw shares surge more than 111% in its market debut on the New York Stock Exchange yesterday in the largest software IPO ever. The stock began trading at $245 per share and closed at $253.93, having been priced at $120 a day earlier, which was still far higher than the $75 to $85 range it proposed last week. Snowflake was worth $70.4 billion at the end of trading, more than five times its $12.4 billion valuation in February, meaning that Warren Buffett made a nifty $800 million profit from his investment after just one day on the market. Read the full story here.
2. The Federal Reserve on Wednesday said it doesn’t expect to raise rates until the end of 2023 at the earliest and it set out new economic conditions that must be met before it will raise them. The Fed will keep rates near zero until two things happen: labor market conditions return to the “maximum employment” and inflation has risen to 2% and “is on track to moderately exceed 2% for some time.” The news saw the Dow Jones (DIA) close in the green yesterday despite a widespread tech sell-off that saw the Nasdaq (QQQ) and S&P 500 (VOO) fall by market close. Get the complete report here.
3. It seems that Facebook (FB) really wants to get ‘down with the kids’ by adopting a new look with its latest hardware partner: Ray-Ban. The social media network joined forces with Ray-Ban owner Luxottica on Wednesday in a multiyear deal to produce Facebook’s first smart glasses in 2021. The news wasn’t enough to stop Facebook stock falling almost 4% yesterday due to the market-wide tech sell-off, although CEO Mark Zuckerberg did seem excited about the deal, stating: “I can’t go into full product details yet, but they’re really the next step on the road to augmented reality glasses. And they look pretty good too.” Read the full story here.