Episode 20: Earnings, Facebook and IPOs.
Hi Pandocap Family. Happy Friday; good to see you! - we have a lot to cover today. It is a sell-off day on the markets as we have several aspects driving the selling-off.
Yesterday we saw Nike report earnings and many analysts expected a different outcome from what occurred. Nike missed their targets, losing $790 million and today their stock is down 7%. It’s the first of many earning reports that are expected to drive the market down next month. Then, the Fed put limits on bank buybacks and dividends after they conducted a stress test on the banks, which today drove some of the bank stocks down almost 7%. Finally, we had the much-anticipated IPO of Albertsons, who lowered their pricing from $18 to $16, going public today on NYSE, which opened at $15 below its pricing. It was disappointing to see its public debut break price but as we all know it’s really tough to predict this market.
In other news, advertisers are bailing on Facebook today as they boycott advertising on the platform, driving the stock price to drop 8%. Mark Zuckerberg came out and made a statement that they will try to do more to enforce restrictions against hate messaging and false information but it doesn’t seem to be enough to satisfy some of the bigger companies that are boycotting Facebook. These companies include Patagonia, Unilever, Honda, and others.
Finally, as if we didn’t see this coming, Texas and Florida are pausing their reopening plans as coronavirus cases surge. Pandocap family, please be safe and healthy.
Moving on to the markets.
Dow down -729 points 2.84%
S&P lower -74.74 points 2.42%
Nasdaq lower -259 points 2.59%
All sectors down today and closed lower.
IPO Markets
On the IPO side we will see more companies, other than just the biotechs, trying to make a debut on the public markets, such as Lemonade Inc under ticker LMD, a financial platform, and Dun and Bradstreet, a technology platform. We will see how it goes for them as today Albertsons had a rough start. Good Luck!
Closing Thoughts
I want to thank Lyanne Alfaro for a great interview that we shared on Monday. Next week we have another great power Latina Martha Hernandez, from madeBOS, joining us on Pandocap. In addition to our Influential Women series featuring Lee Fan, VC and former CFO of Grubmarket. Finally, I am so excited to announce that Vero Gonzalez has joined Pandocap. Vero will be reporting out of Mexico City and featuring companies that are emerging in the Latin markets, in addition to highlighting ones that would like to ramp-up their international exposure. Thank you all and have a great weekend.