Latest news with #NewZealand-founded
The Age
2 days ago
- Business
- The Age
Love bombing hits the market in revenge of the DORKs
Call it Reddit revenge or investor amateur hour, but the return of the meme stocks is in full swing again with a new collection of clapped-out US long-shot stocks off and racing on markets. And maintaining our love of catchy sharemarket monikers (like the term 'magnificent seven' for those large dominant tech stocks), the latest batch of meme shares receiving oversized investor love bombs is the 'DORKs'. D is for Krispy Kreme (its sharemarket ticker is DNUT), O is for real estate company Opendoor, R is for Rocket Lab (a New Zealand-founded rocket company), and K stands for Kohl's, a struggling US department store chain. Revenge of the DORKs will make a lucky few – the authors of the frenzy – very wealthy, but if history is a guide, will leave plenty of carnage for those who jumped on the bandwagon too late. At various points over the past week, each of the above companies has experienced a massive surge in their share prices on the back of social media focus from platforms such as Reddit. A couple of additional names, such as struggling apparel group American Eagle Outfitters, have also now joined the group – having garnered online attention thanks to an advertising campaign featuring US actor Sydney Sweeney. The stock was down almost 50 per cent before it was 'memed' and rose 25 per cent in one trading session. Camera company GoPro is another that has caught meme fever last week and jumped 130 per cent in a day. The meme stocks are marked by being a fundamental counterintuitive choice as investments.
Sydney Morning Herald
2 days ago
- Business
- Sydney Morning Herald
Love bombing hits the market in revenge of the DORKs
Call it Reddit revenge or investor amateur hour, but the return of the meme stocks is in full swing again with a new collection of clapped-out US long-shot stocks off and racing on markets. And maintaining our love of catchy sharemarket monikers (like the term 'magnificent seven' for those large dominant tech stocks), the latest batch of meme shares receiving oversized investor love bombs is the 'DORKs'. D is for Krispy Kreme (its sharemarket ticker is DNUT), O is for real estate company Opendoor, R is for Rocket Lab (a New Zealand-founded rocket company), and K stands for Kohl's, a struggling US department store chain. Revenge of the DORKs will make a lucky few – the authors of the frenzy – very wealthy, but if history is a guide, will leave plenty of carnage for those who jumped on the bandwagon too late. At various points over the past week, each of the above companies has experienced a massive surge in their share prices on the back of social media focus from platforms such as Reddit. A couple of additional names, such as struggling apparel group American Eagle Outfitters, have also now joined the group – having garnered online attention thanks to an advertising campaign featuring US actor Sydney Sweeney. The stock was down almost 50 per cent before it was 'memed' and rose 25 per cent in one trading session. Camera company GoPro is another that has caught meme fever last week and jumped 130 per cent in a day. The meme stocks are marked by being a fundamental counterintuitive choice as investments.
RNZ News
5 days ago
- Business
- RNZ News
What's going on with Rocket Lab shares?
Photo: RNZ/ Nate McKinnon Rocket Lab may be recording multi-million-dollar losses, but its share price keeps on going up. Shares in the New Zealand-founded space company have risen more than 800 percent in the past year, to just under US$50 each. In August last year, they were changing hands for less than US$5. In its 2024 financial year, the company recorded a loss of US$33 million to US$35m, from record annual revenue of US$436.2m. Greg Smith, head of retail at Devon Funds, said investors were looking past the lack of profitability, and there was a lot of momentum priced in to its shares. "But the company has been delivering. It is gaining huge credibility through deals with national space agencies and spending here has been ramping up. There's been the recent partnership agreed with the European Space Agency to launch satellites for constellation navigation before December. "And there has been a string of successful launches. A rocket is being produced every 15 days, and [it has] successfully launched its 66th, 67th and 68th Electron rockets." He said the company's upcoming, bigger Neutron medium-lift rocket was another driver of growth. If it was successful, it could unlock US$5.6 billion in National Security Space Launch contracts. "The company isn't profitable yet, so we can't really look at earnings multiples. Even to sales it is looking high at up to 10 times, but if it keeps delivering we might yet see more momentum." Gretjan Verdickt, a lecturer of finance at the University of Auckland, said a significant portion of Rocket Lab's current valuation was based on the promise of a future that was "both exciting and challenging to value". "How much will the space economy truly be worth in 10 or 20 years? How many applications will it lead to? It's difficult for anyone to grapple with. Because of that uncertainty, optimistic investors are willing to pay a very high price today for the potential of a massive payoff down the road. They see a leader in a burgeoning industry and don't want to miss out. "This part of the valuation is precarious. A narrative of explosive growth and future dominance sustains it. If that optimism fades, even slightly, you could see a significant drop. That said, for anyone who got in early, a drop would still leave them with an amazing return." He said the "hype-driven" component of the share price made it fragile. "If you think about it from a behavioural finance point of view, there is a lot of 'fear of missing out' going on too. If you missed the boat at 100 percent, 200 percent... and you jump in late, the prices - because you are willing to buy - the stock price increases more. This leads to a momentum effect." He said the other aspect of the share price was the company's cash flow. "There is a real, tangible business generating real cash flows behind the stock price. "Rocket Lab has already realised tremendous growth. Their revenue has increased significantly over the past few years, and they have a backlog of over $1 billion in signed contracts, providing a clear line of sight into future earnings. "They have two core pillars of growth. First, their proven Electron rocket is a workhorse for the small satellite market. Second, and more importantly for the future, is their upcoming Neutron rocket, which is designed to compete with larger players like SpaceX for much bigger, more lucrative contracts. "Additionally, they're not just a launch company. Their Space Systems division - which builds satellite components and platforms - is their biggest revenue driver. They are strategically building an end-to-end space company, and their pending acquisition of the company Mynaric is another step in that direction." When it came to whether the 800 percent increase was sustainable, the level of share price was probably not, he said. "Unless the company's growth potential is even better than what people are currently thinking. However, the underlying business growth is there. There is a very real and rapidly growing company here. The ultimate test will be whether its fundamental performance can grow fast enough to justify the market's sky-high expectations. That said, if the balloon pops, it can go real fast, real quick."
RNZ News
5 days ago
- Business
- RNZ News
What's really going on with Rocket Lab shares?
Photo: RNZ/ Nate McKinnon Rocket Lab may be recording multi-million-dollar losses, but its share price keeps on going up. Shares in the New Zealand-founded space company have risen more than 800 percent in the past year, to just under US$50 each. In August last year, they were changing hands for less than US$5. In its 2024 financial year, the company recorded a loss of US$33 million to US$35m, from record annual revenue of US$436.2m. Greg Smith, head of retail at Devon Funds, said investors were looking past the lack of profitability, and there was a lot of momentum priced in to its shares. "But the company has been delivering. It is gaining huge credibility through deals with national space agencies and spending here has been ramping up. There's been the recent partnership agreed with the European Space Agency to launch satellites for constellation navigation before December. "And there has been a string of successful launches. A rocket is being produced every 15 days, and [it has] successfully launched its 66th, 67th and 68th Electron rockets." He said the company's upcoming, bigger Neutron medium-lift rocket was another driver of growth. If it was successful, it could unlock US$5.6 billion in National Security Space Launch contracts. "The company isn't profitable yet, so we can't really look at earnings multiples. Even to sales it is looking high at up to 10 times, but if it keeps delivering we might yet see more momentum." Gretjan Verdickt, a lecturer of finance at the University of Auckland, said a significant portion of Rocket Lab's current valuation was based on the promise of a future that was "both exciting and challenging to value". "How much will the space economy truly be worth in 10 or 20 years? How many applications will it lead to? It's difficult for anyone to grapple with. Because of that uncertainty, optimistic investors are willing to pay a very high price today for the potential of a massive payoff down the road. They see a leader in a burgeoning industry and don't want to miss out. "This part of the valuation is precarious. A narrative of explosive growth and future dominance sustains it. If that optimism fades, even slightly, you could see a significant drop. That said, for anyone who got in early, a drop would still leave them with an amazing return." He said the "hype-driven" component of the share price made it fragile. "If you think about it from a behavioural finance point of view, there is a lot of 'fear of missing out' going on too. If you missed the boat at 100 percent, 200 percent... and you jump in late, the prices - because you are willing to buy - the stock price increases more. This leads to a momentum effect." He said the other aspect of the share price was the company's cash flow. "There is a real, tangible business generating real cash flows behind the stock price. "Rocket Lab has already realised tremendous growth. Their revenue has increased significantly over the past few years, and they have a backlog of over $1 billion in signed contracts, providing a clear line of sight into future earnings. "They have two core pillars of growth. First, their proven Electron rocket is a workhorse for the small satellite market. Second, and more importantly for the future, is their upcoming Neutron rocket, which is designed to compete with larger players like SpaceX for much bigger, more lucrative contracts. "Additionally, they're not just a launch company. Their Space Systems division - which builds satellite components and platforms - is their biggest revenue driver. They are strategically building an end-to-end space company, and their pending acquisition of the company Mynaric is another step in that direction." When it came to whether the 800 percent increase was sustainable, the level of share price was probably not, he said. "Unless the company's growth potential is even better than what people are currently thinking. However, the underlying business growth is there. There is a very real and rapidly growing company here. The ultimate test will be whether its fundamental performance can grow fast enough to justify the market's sky-high expectations. That said, if the balloon pops, it can go real fast, real quick."
Scoop
24-06-2025
- Business
- Scoop
Generate Invests In Halter - New Zealand's Fastest Growing Technology Company
Generate is pleased to announce that it has invested $10 million into Halter - a rapidly growing New Zealand-founded and headquartered company. Generate bought secondary shares and joined a $165m capital raise led by US venture capital firm, Bond. The team at Bond have notably been investors in industry pioneers including AirBnB, DocuSign, Facebook, Stripe, and Uber. Founded in 2016, Halter has grown to become the leading operating system to run a dairy or beef farm. Halter's system includes a solar-powered smart collar for each cow and an app that lets farmers manage their cattle and pasture from their phone. The collar's sound and vibration cues enable farmers to virtually fence, move, and monitor their cattle 24/7. Halter launched their commercial farm in New Zealand in 2021. Since then, they have scaled to >1,000 farms across New Zealand, Australia, and the USA. In 2024, they were named New Zealand's fastest growing company by the Deloitte Fast 50 Index. Generate's investment in Halter, via its Balanced, Growth and Focused Growth funds, follows its earlier strategic investments in venture capital firms Movac and Icehouse Ventures to help accelerate more New Zealand tech companies. Generate's Chief Investment Officer Sam Goldwater said, 'We're excited our members have the opportunity to join in on Halter's remarkable growth story. It is a company that can generate great returns for our investors while enabling New Zealand's largest export industry to simultaneously create more value and deliver environmental benefits.' Advertisement - scroll to continue reading As Halter CEO and Founder Craig Piggott noted, 'Farmers are the backbone of rural communities. They feed society and play a key role in building sustainable food systems. Halter farmers are pioneering a more productive and sustainable way to farm.' Generate's investment team has been tracking Halter over many years largely thanks to their investment in Icehouse Ventures Growth Fund II, a substantial investor in Halter. The decision to invest further reflects the significant commercial and technical milestones achieved by Halter over the last few years. 'Halter's traction with cattle ranchers in the US has been particularly impressive. They have secured ranchers from Oregon to Louisiana and are proving their system can provide transformative impact.' Their commercial traction - and foundations for significantly more growth - generated notable interest from investors around the globe. The capital raise attracted offers from multiple investors and even resulted in several flying to New Zealand to pitch their offer. That Generate secured an allocation reflects the success of its long-term, proactive, and strategic investment into New Zealand tech companies. Halter's expansion throughout New Zealand has been particularly impressive - now with customers in every region and up to 30% market share in some farming regions. Coupled with their traction with cattle ranchers in the US they are proving their system can provide transformative impact. 'We are delighted to have more than 135,000 of Generate's investors aligned to our mission to help farmers to thrive — it's fantastic to have New Zealanders backing Halter's growth capital.', Craig Piggott commented. About Generate: Generate is an award-winning New Zealand-owned KiwiSaver and Managed Fund provider committed to helping New Zealanders plan for a secure and fulfilling retirement. With a team of expert advisers and track record of strong long-term performance, Generate aims to educate and empower Kiwis to make informed decisions to maximise their financial future. About Halter: Founded in 2016, Halter is the leading operating system to run a dairy or beef farm. Thousands of farmers in New Zealand, Australia and the US use Halter to run their farm, with new customers going live daily. Halter is headquartered in Auckland and employs over 200 people across New Zealand, Australia, and the US. About Icehouse Ventures: Icehouse Ventures' mission is to be transformative investors in transformative Kiwi technology companies. Over the last 20 years, Icehouse Ventures has invested >$500m into >350 New Zealand startups. They were among the first investors in Halter, Mint Innovation, Dawn Aerospace, Tradify, OpenStar, Hnry, Tracksuit, and Crimson Education.
