Thursday's Headlines: Airbnb Goes Public Today

Thursday's Headlines: Airbnb Goes Public Today

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Stitch Fix (SFIX) +12.3%

Calavo Growers (CVGW) +2.8%

Zillow (Z) +2.2%

Ford Motor Company (F) +2.2%

Planet Fitness (PLNT) +2.1%

Moving Down ⬇️

Cloudflare (NET) -7.5%

Tesla Motors (TSLA) -7.0%

Zoom Communications (ZM) -6.5%

Peloton Interactive (PTON) -6.3%

DocuSign (DOCU) -5.9%

1. Well, the day has finally arrived — Airbnb is set to go public on the Nasdaq some time after market-open today priced at $68 per share. This is significantly higher than the target price range of $56-$60 first set out and implies that the company will float with a market cap of around $47 billion. This far surpasses that of industry rival Expedia ($18 billion) but still around half of Booking.com's $86.3 billion. Don't get too excited though, it's very unlikely that mere mortals like us will be able to nab Airbnb shares anywhere near $68 as the price is expected to rocket up the moment they float. Which brings us nicely on to our next story…

2. Shares of DoorDash, another one of December's hotly-anticipated IPOs, jumped some 85% on its market debut yesterday to give the company a valuation of just over $60 billion by market-close. The food-delivery company managed to raise $3.4 billion in proceeds from the floatation event and is almost six times the size of industry-rival GrubHub, although it does still trail Uber at around $90 billion. Such a massive pop on its opening day of trading signals a frenzied demand amongst investors for these high-growth companies that seem to have recovered well from pandemic-related lockdowns. Read more about DoorDash's crazy day here.

3. The noose appears to be tightening around Facebook after the FTC sued the company for anticompetitive practices yesterday. Joined by the attorneys general of 46 states, the suit claims that Facebook is "illegally maintaining its personal social networking monopoly" via a "systematic strategy" that explicitly includes the acquisition of Instagram in 2012 and WhatsApp in 2014. The company has already hit back with a lengthy blog post which notes that both acquisitions were approved by regulators at the time and brands the suit "revisionist history", but this increased scrutiny from federal agencies — not to mention the prospect of a Biden administration — means that Facebook will likely find itself under the cosh in 2021. Read the FTC's statement here.

There are three companies from the MyWallSt shortlist reporting on their quarterly earnings today — Costco, Lululemon, and Vail Resorts

JamesJames

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