Latest news with #MoneyMovers
CNBC
32 minutes ago
- Business
- CNBC
Stablecoin issuer Circle soars 124% in NYSE debut after pricing IPO above expected range
Shares of Circle Internet Group soared 124% after the stablecoin company and its selling shareholders raised almost $1.1 billion in an initial public offering. The stock opened at $69.50 on the New York Stock Exchange after its IPO priced at $31. The New York-based company priced its IPO late Wednesday, far above this week's expected range of $27 to $28 and an initial range last week of between $24 and $26, valuing the company Thursday at some $6.8 billion before trading began. Circle joins Coinbase, Mara Holdings and Riot Platforms as one of the few pure-play crypto companies to list in the U.S. This marks the company's second attempt at going public. A prior merger with a special purpose acquisition company collapsed in late 2022 amid regulatory challenges. "To realize our vision, we needed to forge relationships with governments, we needed to work with policymakers … because if you want this to work for mainstream it's got to work in mainstream society and you need to have those rules of the road," CEO Jeremy Allaire told CNBC's "Money Movers" Thursday. "We've been one of the most licensed, regulated, compliant, transparent companies in the entire history of this industry, and that's served us well." The crypto industry is enjoying newfound political favor under a friendly U.S. administration. The stablecoin sector specifically has been ramping up on the expectation that Congress will pass stablecoin legislation this summer. Wall Street analysts say it could grow by 10-fold in the next five years, creating a trillion-dollar market opportunity. CEO Jeremy Allaire co-founded Circle in 2013. Based in Boston, the company initially focused on consumer-facing payments and crypto wallet and exchange services. It moved to New York earlier this year. In 2018, Circle founded the U.S. dollar-pegged USDC stablecoin to establish a standard for fiat money on the internet, launching it in partnership with Coinbase through a consortium called Centre. In 2023, they dissolved Centre as a standalone entity, with Circle taking over the responsibilities of USDC and Coinbase taking a minority stake in the stablecoin company. The two companies also entered into an agreement to split the revenue of USDC stablecoin and Coinbase CEO Brian Armstrong said on the company's most recent earnings call that it has a "stretch goal to make USDC the number 1 stablecoin." USDC is the second-largest stablecoin on the market, behind Tether's USDT. Stablecoins are cryptocurrencies whose values are pegged to that of another asset, usually the U.S. dollar. Traditionally used as bridge currencies for crypto traders, stablecoins today are benefiting from increased interest by banks and payment firms as the Trump administration rolls back Biden-era crypto policies and in anticipation of Congress blessing the system. Specifically, companies that aren't traditional users of cryptocurrencies are now interested in the efficiency and lower cost that stablecoins might bring to remittances, business-to-business payments and e-commerce, at the same time as they remain essential to tokenized financial markets. Rhetoric around stablecoins preserving U.S. dollar dominance – partly by ensuring demand for U.S. government debt, which backs nearly all dollar-denominated stablecoins – has grown louder too.
CNBC
6 days ago
- Business
- CNBC
Tom Lee says the April selloff has 'rebirthed a new bull market,' likes small caps for second half
Tom Lee says investors are in a new bull market following the April lows, and prefers small caps in the second half of the year as buyers start to look past tariff risk. "I think what happened at the April lows — which was very capitulatory, and that was a huge liquidation event, and we had a VIX spike to 60 — that is the kind of flush and reset that I would associate with a new bull market," Lee told CNBC's " Money Movers " on Friday, referring to the CBOE Volatility Index . "I think we had what was a miniature bear market, but has essentially rebirthed the new bull market." The head of research at Fundstrat Global Advisors expects any dips from here on will be "pretty shallow," given the boost markets can get later in the year from potential deregulation and new tax benefits. He also expects that the Federal Reserve, which has held interest rates steady since December amid tariff uncertainty, will start to ease monetary policy more aggressively in 2026 — another bullish tailwind for stocks. "We still think dips are going to be pretty shallow. It's still the most hated V-shaped rally. I mean, the Covid rally was hated until we made new highs. And the rally from the fall of 2022 was hated until we made new highs. It's not any different this time," Lee said. "While a lot of people are calling a top, I actually think that this is more of a mid-cycle kind of start of a new bull market," Lee added. Lee said he favors a barbell investment strategy, allocating more toward the Magnificent Seven in the near term amid a tech-fueled comeback, and then a preference for small caps in the second half of the year. The Russell 2000 small cap index has been especially punished this year, down more than 7% while the S & P 500 is virtually unchanged, as investors dumped riskier, more indebted companies for safe havens. "As I look at the second half, I think the small caps really have a strong case to be made, because as long as we move towards a tariff resolution, or the markets feel that way, then I think investors can actually start putting flows back into stocks other than the Mag Seven," Lee said.
CNBC
22-05-2025
- Business
- CNBC
Hinge Health opens at $39.25 per share after pricing IPO at top end of range
Shares of Hinge Health popped in their debut on the New York Stock Exchange on Thursday after the digital physical therapy startup raised about $273 million in its initial public offering. The stock opened at $39.25, above its $32 IPO price. Hinge sold 8.52 million shares in the offering, while the total offering was for 13.7 million shares, with the balance being sold by existing shareholders. Hinge, founded in 2014, uses software to help patients treat acute musculoskeletal injuries, chronic pain and carry out post-surgery rehabilitation from anywhere. The San Francisco-based company filed its initial prospectus in March and updated the document earlier this month with an expected pricing range of $28 to $32. Wall Street and the digital health sector have been watching Hinge's debut closely, as it will shine some light on investors' appetite for new health tech solutions. The broader tech IPO market has been in an extended drought since late 2021, when soaring inflation and rising interest rates pushed investors out of risky assets. Within digital health, it's been almost completely dormant. Hinge is leading the charge, with virtual chronic care company Omada Health filing to go public earlier this month. "Health care is tough, absolutely, but we're very different from any of the digital health companies that have come before," Hinge CEO Daniel Perez told CNBC's "Money Movers" on Thursday. "Our technology is actually automating the delivery of care itself, and that's why a lot of investors have been so interested in Hinge Health." Perez and Hinge's Executive Chairman Gabriel Mecklenburg co-founded the company after experiencing personal struggles with physical rehabilitation. Perez broke an arm and a leg after he was hit by a car, and Mecklenburg tore his anterior cruciate ligament during a judo match. Both men went through about 12 months of physical therapy. At the IPO price, Hinge is worth about $2.6 billion, though that number could be higher on a fully diluted basis. That's down significantly from a private market valuation of $6.2 billion in October 2021, the last time the company raised outside funding. Hinge has raised more than $1 billion from investors including Insight Partners, Tiger Global Management, Coatue Management and Atomico. Ben Blume, a partner at Atomico, said Hinge's ability to scale has "truly set them apart." The firm led Hinge's Series A funding round in 2017. "Hinge Health has grown into a clear category leader, improving the lives of people who are living with chronic pain," Blume said in a statement to CNBC. "Their success is a testament to the power of mission-driven innovation." Hinge is trading on the NYSE under the ticker symbol "HNGE."
CNBC
20-05-2025
- Business
- CNBC
What CEOs from auto, housing, travel and ad markets are saying about tariffs, consumer spending and the economy
The outlook on consumer spending continues to get cloudier. Last week, consumer sentiment slid to its second-lowest reading on record while recent credit card data showed that many Americans are starting to cut back. Walmart, Microsoft and Subaru are just some of the companies that have warned of price increases related to tariffs, which could lead price-sensitive shoppers to pull back even more. However, there are plenty of companies and sectors that still see strong demand, especially in the wake of the broader market rebound following the Trump tariff pause, most recently extended to the steepest China import taxes. "The consumer is coming back with a vengeance," airline CEO Barry Biffle of Frontier Group said on "Money Movers" on Tuesday. At the CNBC CEO Council Summit in Arizona on Monday and Tuesday, multiple CEOs with close reads on key consumer spending areas — homebuilding, car buying, advertising and travel — shared their latest views on the state of the economy. Homebuilder and developer Taylor Morrison, which operates across 12 states including Texas, Florida and North Carolina, serves several distinct demographics, according to CEO Sheryl Palmer. This includes the younger first-time homebuyer, the upgrading slightly older buyer, and the group that she called "fifty-five and better." It's that latter group, which represents more than $114 trillion in total assets, Palmer said, where the company is seeing massive interest in new homes. "Covid really changed this group," she said. For these buyers, it's about "I want what I want, I can afford what I want, and I don't know what tomorrow brings so I want to live every day to the fullest," she added. Among this type of homebuyer, who is heavily interested in things like home upgrades and the community amenities, Palmer said she has not seen any signs of stress in their ability to buy homes, or in credit profiles. However, she noted, if the home is "a more discretionary purchase, there's just a lot more thoughtfulness, which makes sense." The first-time homebuyer is dealing with questions around cost, Palmer said. "Can I afford it? What can I afford?" she said, are the concerns among these buyers. While Palmer pointed to higher home prices and sticky interest rates as contributing to a "volatile period," — mortgages rates were back above 7% this week — she said rising prices of nearly everything from insurance to groceries are what is making younger buyers more hesitant. With concerns of potential tariff-driven price increases hitting the automotive industry hard, consumers have rushed to buy both new and used cars in recent months. Carvana has been a big recipient of that, recently reporting a 46% year-over-year sales increase, leading to record quarterly results. CEO and co-founder Ernie Garcia said at the CEO Council Summit said that when the tariffs were announced "there was some pull forward especially of new car sales" but that has started to even out. Pricing of used cars has also started to come down, especially compared to the increases seen in recent years, Garcia said. But when it comes to any signs of growing consumer weakness, Garcia said "we don't see any evidence of that; it feels very strong." Garcia said that Carvana sells vehicles to buyers across a wide range of age groups, and overall, "consumer credit looks pretty stable." "I think it always feels like credit is getting worse, but I don't think there's a lot of evidence yet that it's getting a lot worse," Garcia said. Since joining Pinterest in June 2022, CEO Bill Ready has overseen a push into Gen Z, who now make up 40% of the social media platform's userbase and who are overwhelmingly on the platform to seek help with shopping inspiration. Ready, who said that Pinterest is a platform "for intentional choices," said he is starting to see "some shifts in consumer behavior." That is coming to life through searches for "budget-related items" in areas like apparel and home goods, which are up over 200%, Ready said. "Consumers are becoming more thoughtful and planning for the potential increase in costs or are maybe starting to experience that already," he said. During and coming out of the pandemic, the overarching narrative has been that many shoppers had shifted their spending from goods to experiences, with the biggest benefits of that being the entertainment and travel industries. NFL Commissioner Roger Goodell and Marriott International CEO Anthony Capuano, who spoke at the CNBC CEO Council Summit about their long-term partnership, said they've seen continued strength from sports fans and travel lovers. While Goodell said the demand around the NFL's recent schedule release and the more than 600,000 people who traveled to Green Bay, Wisconsin, for the NFL Draft reflects how "sports is in a different place" and is not expected to be impacted by consumer uncertainty, he acknowledged some of the challenges facing the broader entertainment industry. Capuano said that at Marriott, which operates across 144 countries, there was a strong travel boom at the start of the year, and after a slight lull in March, it has come back strong in April even as concerns over consumer confidence have grown. The desire to travel, especially among young people, Capuano said, is not showing many signs of slowing down. However, Capuano said he is monitoring job and unemployment trends more broadly, and if there continues to be strong job creation and relatively low unemployment, he will "feel reasonably good about the consumer." "The reality is this; our business thrives in times of stability and high consumer confidence," Capuano said. "Neither of those have been in ample supply in recent months."
CNBC
06-05-2025
- Business
- CNBC
Trump downplays tariff talks: 'We don't have to sign deals'
Key Points "Everyone says, 'When, when, when are you going to sign deals?'" Trump said during a White House meeting with Canadian Prime Minister Mark Carney. After weeks of saying that countries were asking for bilateral trade talks with the U.S., the president and his team have yet to announce any formal agreements or frameworks. Trump's effort to deprioritize trade deals marked a turn away from what Treasury Secretary Scott Bessent told CNBC the day before. VIDEO03:16 President Trump: Stop asking how many trade deals have been signed "The Art of the Deal" author President Donald Trump said in a surprising comment Tuesday that the United States does not need to "sign deals" with trade partners, despite top White House officials claiming for weeks that such deals are the administration's top priority. "Everyone says, 'When, when, when are you going to sign deals?'" Trump grumbled during a White House meeting with Canadian Prime Minister Mark Carney. "We don't have to sign deals, they have to sign deals with us. They want a piece of our market. We don't want a piece of their market," Trump said. After weeks of saying that countries were asking for bilateral trade talks with the United States, the president and his team have yet to announce any formal agreements or frameworks. "I wish they'd ... stop asking, how many deals are you signing this week?" said Trump, clearly frustrated at the mounting pressure on the White House to show progress on trade talks. "Because one day we'll come and we'll give you 100 deals," he said. Trump's effort to deprioritize trade deals Tuesday marked a turn away from what his Treasury secretary, Scott Bessent, told CNBC the day before. The U.S. is "very close to some deals," Bessent said on "Money Movers." Trump said Sunday on Air Force One that there "could very well be" trade deals rolled out this week. "At the end, I'm setting the deal," he told reporters en route to Washington. Trump said Wednesday during a NewsNation town hall that his administration has "potential deals" with India, South Korea and Japan. On April 29 he said negotiations with India were "coming along great" and the U.S. will "likely have a deal with India." On Tuesday, however, Trump blamed top aides such as Bessent and Commerce Secretary Howard Lutnick for overpromising trade deals. "I think my people haven't made it clear, we will sign some deals," said Trump. "But much bigger than that is we're going to put down the price that people are going to have to pay to shop in the United States. Think of us as a super luxury store, a store that has the goods." U.S. markets moved lower Tuesday afternoon after Trump made the comments about deals. Investors and business leaders are desperately hoping the Trump administration can negotiate a series of bilateral agreements with major U.S. trading partners such as Japan, South Korea and India before the full brunt of the tariff-induced trade slowdown hits the U.S. economy. But so far, the Trump administration has not provided any details about any specific deals. Instead, nearly every day, top aides publicly say that several deals are "close" and could be announced within days.
