Latest news with #NasdaqMarketSite
The Star
2 days ago
- Business
- The Star
Firefly Aerospace sputters a day after stellar Nasdaq debut
A screen displays the Firefly Aerospace logo during the company's IPO at the Nasdaq MarketSite in New York City, U.S., August 7, 2025. REUTERS/Jeenah Moon (Reuters) -Firefly Aerospace shares fell 9% in premarket trading on Friday, in what was perceived as a normal market swing, but the space tech firm's robust debut highlighted renewed investor appetite for high-growth listings. After nearly three years of a dryspell in new listings, a resurgence in high-risk sectors such as space, crypto and fintech — fueled by blockbuster entries such as Firefly and Circle — is expected to prompt startups that held back during market turbulence to launch public offerings. Firefly's shares opened for trading on the Nasdaq at $70 apiece, compared with the initial public offering price of $45. It closed the debut session roughly 34% higher. "Large pops and drops show an elevated level of short-term money trading around IPOs, be it hedge funds or retail. This has been a feature of the market in recent months," said Samuel Kerr, head of equity capital markets at Mergermarket. Post-IPO stocks often see sharp swings in the days after listing, driven by factors such as limited share float, profit-taking by early investors and shifts in broader market sentiment. "The fact the stock is still well above the IPO price, despite a drop in premarket trading today and that should hopefully point to a solid cohort of institutional investors serving as a bed-rock for the stock in its early days of trading," Kerr said. Firefly had priced its IPO above the marketed range and raised $868.3 million in the year's biggest U.S. space listing, marking a striking comeback for a company that filed for bankruptcy in 2017. Private space firms have drawn fresh investor interest as they play a growing role in U.S. military and civil programs, aided by NASA's push to contract out lunar missions and the Pentagon's demand for responsive launch capabilities. The sector has also benefited from government spending and commercial satellite demand. Still, it faces potential challenges from high development costs and long production timelines. (Reporting by Manya Saini in Bengaluru; Editing by Shilpi Majumdar)
The Star
2 days ago
- Business
- The Star
Chime beats revenue estimates in first earnings since blowout US IPO
FILE PHOTO: A screen displays the company logo for Chime, a financial technology company, during the company's IPO at the Nasdaq MarketSite in New York City, U.S., June 12, 2025. REUTERS/Kylie Cooper/File Photo (Reuters) -Chime beat Wall Street estimates for second-quarter revenue on Thursday, driven by strong demand for its digital banking and financial services, in its first results following a blockbuster U.S. listing. Younger customers in the U.S., disillusioned with fees and limited flexibility at large banks, have increasingly turned to digital-first startups that offer low-cost banking, early direct deposits and higher-yield savings accounts. Chime's revenue rose 37% to $528 million in the three months ended June 30. Analysts on average had expected $495.2 million, according to estimates compiled by LSEG. The company went public in June in a blockbuster U.S. initial public offering that raised hopes of a lasting rebound in investor demand for high-growth tech listings. The stock is up 25% from its IPO price. Its shares were last down marginally in volatile after-market trading. "This was a breakout first quarter as a public company for Chime, driven by accelerating year-over-year growth, expanding margins, and continued product execution," Co-founder and CEO Chris Britt said. Average revenue per active member grew 12% to $245 in the quarter, the company said. Chime offers a suite of no-fee financial products through its bank partners, including a secured credit card to help users build credit, short-term liquidity tools like early pay access and small-dollar loans, and a deposit sweep program that distributes funds across regional banks. The company says its payments-based banking model is better suited to serve everyday Americans, who often have limited credit histories and rely more heavily on debit transactions than traditional lending products. Purchase volume - the total dollar value of transactions using Chime-branded debit or credit cards - rose 18% in the quarter to $32.4 billion. The rise in volume underscores resilience in consumer spending, with users continuing to rely on debit cards for everyday expenses such as groceries, gas and bills - a trend that has held firm despite broader economic uncertainty. Gross profit came in at $461 million in the quarter versus $333.7 million, a year earlier. (Reporting by Manya Saini in Bengaluru; Editing by Sriraj Kalluvila)
The Star
5 days ago
- Business
- The Star
GlobalFoundries forecasts hit by slow smartphone demand recovery, shares fall
FILE PHOTO: A screen displays the company logo for semiconductor and chipmaker GlobalFoundries Inc. during the company's IPO at the Nasdaq MarketSite in Times Square in New York City, U.S., October 28, 2021. REUTERS/Brendan McDermid/File Photo (Reuters) -Contract chipmaker GlobalFoundries forecast revenue and profit for the third quarter below Wall Street estimates on Tuesday, as it grapples with a slow recovery in demand from clients in the consumer electronics market. Shares of the world's third-largest chip foundry, already down around 15% this year, fell another 6% in premarket trading. U.S. tariff-led economic uncertainty has pressured smartphone sales, with buyers pulling back on orders especially in the low-end segment. Data from IDC in July showed smartphone sales growth slowed to just 1% in the June quarter. CEO Tim Breen, who was named to the top job in February, said the company was awaiting a "return to meaningful growth across the consumer-driven end markets". The company expects third-quarter net revenue of $1.68 billion, plus or minus $25 million, lower than the analysts' average estimate of $1.79 billion, according to data compiled by LSEG. Adjusted profit per share is expected to be 38 cents, plus or minus 5 cents. The midpoint of that was below the 41 cents estimated by analysts. Still, lower costs and strong growth in its automotive and datacenter businesses helped GlobalFoundries surpass adjusted profit expectations for the second quarter. The company recently deepened its push into autos with a chipmaking deal with Continental. It also struck a deal in July to buy chip architecture supplier MIPS for an undisclosed sum to boost its offerings in industrial and AI processors. In June, it increased its investment plans to $16 billion, allocating an additional $1 billion to capital spending and $3 billion to research in several emerging chip technologies, including those used in electric vehicles and AI servers. Net revenue rose 3.7% in the three months ended June to $1.69 billion, slightly above estimates of $1.68 billion. Adjusted profit per share of 42 cents also beat estimates of 35 cents. (Reporting by Aditya Soni in Bengaluru; Editing by Arun Koyyur)
The Star
30-07-2025
- Business
- The Star
JPMorgan to enable crypto purchases via credit cards in Coinbase tie-up
People watch as the logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron at Times Square in New York, U.S., April 14, 2021. REUTERS/Shannon Stapleton (Reuters) -U.S. banking giant JPMorgan on Wednesday partnered with Coinbase to allow customers to fund their wallets using its Chase credit cards and buy cryptocurrency on the exchange starting in fall 2025. Once viewed warily by traditional financial institutions, the digital assets industry has gained enough traction among consumers and investors that large banks are now entering the space. From custody services to card-linked purchases, financial heavyweights are increasingly offering crypto-related products and mulling new use cases for the tokens, signaling how far the once-nascent market has matured. The cryptocurrency market recently touched a $4 trillion valuation and is expected to grow further as regulatory clarity in major markets such as the United States drives broader adoption. "Beginning in 2026, you'll be able to directly link your Chase account to Coinbase," the cryptocurrency exchange said in a blog post. Starting in 2026, Chase customers will be able to redeem credit card reward points for USDC, a U.S. dollar-pegged stablecoin, and directly link their bank accounts to Coinbase to fund crypto purchases. Stablecoins are a type of token designed to shield users from price volatility and are widely used as a bridge between traditional finance and digital assets. With rising demand for low-cost, instant transactions, stablecoins are poised for rapid growth as adoption spreads across payments, trading and emerging financial platforms. Earlier this month, PNC said it was working with Coinbase to offer crypto trading to the bank's customers. Coinbase shares were last up 3% in premarket trading. They have surged about 50% so far this year, giving the crypto exchange a market value of about $95 billion and helping it secure a spot in the benchmark S&P 500 index, a milestone for the industry. (Reporting by Manya Saini in Bengaluru; Editing by Shilpi Majumdar)
CTV News
29-07-2025
- Business
- CTV News
PayPal lifts 2025 profit forecast above estimates as turnaround picks up pace
The PayPal logo appears on a screen at the Nasdaq MarketSite, in New York's Times Square. (AP Photo/Richard Drew, File) PayPal raised its full-year profit forecast above Wall Street estimates on Tuesday, as the digital payments giant's push to revive growth in high-margin businesses such as Venmo and U.S. checkout begins to pay off. Under CEO Alex Chriss, PayPal has shifted its focus to profitability rather than chasing top-line growth. The company is trying to regain momentum in parts of its business that lost steam after the pandemic-era e-commerce boom faded and competition intensified. PayPal's Venmo, a platform that has become virtually synonymous with peer-to-peer payments in the U.S., posted revenue growth of 20 per cent for the second quarter. The unit's total payment volume growth accelerated to its highest rate in three years. On a per-share basis, the payments firm now expects an adjusted annual profit in the range of US$5.15 to $5.30 versus its prior expectations of $4.95 to $5.10. Analysts on average had expected $5.10, according to estimates compiled by LSEG. But PayPal's shares fell 1.2 per cent before the bell after the company guided to a current-quarter profit that was in line with Street views and roughly flat from a year earlier. PayPal expects third-quarter adjusted profit in the range of $1.18 to $1.22. At the mid-point of $1.20 per share, it matches Wall Street expectations. Transaction margin dollars - the profit PayPal makes on each transaction after covering direct costs - grew seven per cent to $3.8 billion in the quarter. The increase reflects an ongoing push to drive higher-margin volumes across the company's branded checkout products and streamline costs tied to unbranded processing. Adjusted operating margins expanded 132 basis points to 19.8 per cent. Margins have been a key source of investor concern in recent years, amid fears that Big Tech rivals such as Apple Pay and Google Pay are chipping away at PayPal's market share. While the company long held a first-mover advantage in digital payments, that edge has diminished, though PayPal has previously pushed back against concerns that its market share is under pressure. Spending holds up Meanwhile, U.S. consumers have continued to spend despite a mix of economic pressures, including persistent inflation and the threat of new trade policies, easing concerns about a potentially sharp pullback in transaction volumes. Analysts say some shoppers are also buying early to avoid expected price hikes from tariffs later this year. That resilience has helped PayPal and major U.S. lenders sidestep early worries that trade tensions could weigh on spending in the second quarter, even as lower-income households show signs of strain. Total payment volume - which tracks the total value of transactions handled by the platform - increased six per cent to $443.5 billion. Adjusted profit came in at $1.40 per share in the three months ended June 30. That compares with $1.19 per share a year earlier. PayPal's second-quarter net revenue climbed 5% to $8.3 billion. (Reporting by Manya Saini in Bengaluru; Editing by Maju Samuel)
