Latest news with #eToro
Axios
8 hours ago
- Business
- Axios
Some unicorns have finally accepted reality
Venture capital's distribution blockade may be breaking down, at least a bit, thanks to some unicorns finally accepting that their ZIRP-era valuations were inflated. Driving the news: Circle and Omada Health both are expected to price IPOs this week, at valuations below where they previously were valued by venture capitalists. Chime yesterday launched its roadshow, with pricing expectations suggesting more than a 50% haircut to the $25 billion valuation it fetched n 2021. Hinge Health and eToro both recently went public below their private valuations. The big picture: This is beginning to feel like a sea shift. For the past two years, most unicorns delayed IPOs until they could "grow into" their valuations. Some of this was to protect against dilution and to maintain employee morale, although ego also seemed to play an outsized role. There also were fears that public market investors would view valuation discounts as a sign of weakness, and drive share prices down even farther (i.e., deSPAC redux). Now, however, there's a cohort of companies that have decided to stop endlessly circling their destination. And they've been rewarded, often with upsized IPOs and strong aftermarket performance. Hinge and eToro, for example, are up 26.4% and 17.8% from their IPO prices, respectively. Zoom in: Yes, some of these companies and later-stage investors might be getting some shove from clauses in structured deals, but that's par for the course after a valuation bubble. Look ahead: The private markets often operate with a herd mentality, which means this recent IPO burst should have tailwinds; with an obvious caveat of macro economic disruptions. Not so much during the early summer, when bankers still like to vacation, but in the run between Labor Day and Thanksgiving.
Business Insider
15 hours ago
- Business
- Business Insider
Cathie Wood's ARK Investment buys 25.4K shares of eToro today
21:01 EDT Cathie Wood's ARK Investment buys 25.4K shares of eToro (ETOR) today Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Yahoo
3 days ago
- Business
- Yahoo
Omada Health Preps to Go Public as IPO Market Revives
There's an IPO joke to be made here, but unfortunately for you, only institutional investors will get it. On Thursday, virtual healthcare provider Omada Health became the latest company to press ahead with an initial public offering amid economic uncertainty that's given cold feet to some other companies expected to do likewise. The IPO is expected to take place next week following Omada's announcement that its roadshow is underway. READ ALSO: E.l.f. Soars After $1 Billion Pow(d)er Move to buy Hailey Bieber's Rhode and Shrinking GDP Shows Tariffs' Impact as Courts Scrutinize Their Legality This year began with bankers and venture capitalists feeling bullish about a revitalized IPO market as they anticipated business-friendly policies from the Trump administration. And, in the first quarter, the needle moved in that direction: According to Ernst and Young, the period saw 15 listings raise more than $7.9 billion, 20% higher than the first quarter of 2024 and the strongest start to a year since 2021. But following the selloff prompted by Trump's 'Liberation Day' tariff announcement in April, EY noted in April that IPO market activity had come 'to a complete halt.' Of note, buy-now-pay-later giant Klarna and ticket marketplace StubHub postponed their highly anticipated listings. Mercifully, subsequent weeks have seen the IPO market shake off some rust. Stock-trading app eToro debuted earlier this month, pricing its IPO above the expected range, and its shares have since risen 19%. Meanwhile, fintech Chime and stablecoin issuer Circle filed paperwork to go public. Adding to the recent run of optimism is Nvidia-backed AI firm CoreWeave, which began trading in March. The company reported its first results on May 14, with 400% year-over-year revenue growth besting expectations. Its shares are up 170% since its listing. Which sets the stage for Omada: The San Francisco-based firm specializes in virtual care for chronic conditions including diabetes and hypertension, which it offers through programs with employers, pharmacy benefit managers, health systems and health plans. Omada plans to raise up to $158 million at a $1.1 billion valuation. While virtual care boomed during the pandemic, the sector more recently had an up-and-down couple of years as the world returned to normalcy. Omada, on the other hand, managed to improve its performance in that time: According to a Securities and Exchange Commission filing, its revenue increased to $169.8 million last year, up from $122.8 million in 2023 while its net losses shrank to $47.1 million from $67.5 million. Hinging on Health. There's one very important recent IPO we haven't mentioned yet: Omada competitor Hinge Health, which debuted on the New York Stock Exchange last week. In a promising omen for Omada, Hinge raised $273 million at a $2.6 billion valuation after selling shares at the top end of its expected range, suggesting investors have an appetite for health-tech now that the segment's post-pandemic prospects have stabilized. This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Trending tickers: latest investor updates on Costco, Dell, Ulta, Adidas and Volkswagen
Costco (COST) shares were just below the flatline in pre-market trading on Friday, despite the US warehouse retailer posting quarterly results that beat Wall Street expectations. The company's results were buoyed by stronger e-commerce sales and higher membership revenue. For the three months ending 11 May, net income rose to $1.90bn (£1.41bn), or $4.28 per share, compared with $1.68bn, or $3.78 per share, in the same period a year earlier. Revenue also climbed from $58.52bn in the year-ago quarter, supported by an 8% increase in comparable sales — a key retail metric that excludes fluctuations from new store openings or closures. Online sales were particularly strong, rising nearly 16% from a year earlier when excluding the impact of fuel prices and currency movements. 'Costco's (COST) results suggest the company is performing strongly, though perhaps not across the board,' said Adam Vettese, market analyst at investment platform eToro. 'Sales have beaten expectations, showing a spike in e-commerce and membership fees, which help foster that exclusivity of being part of the Costco club, also ticking the right way.' Read more: FTSE 100 LIVE: European stocks rise despite appeals court temporarily reinstating Trump tariffs Vettese cautioned that macroeconomic pressures could still weigh on performance. 'Last quarter was a miss due to cost pressures, and with the threat of tariffs looming, a business like Costco (COST) where margins are crucial does not want to feel that squeeze,' he said. 'Some might view Costco (COST) as a fairly safe defensive play, but investors should also be mindful about increased costs or outside interference playing havoc with those carefully engineered margins. "That said, those who have held Costco (COST) shares the last couple of years will be likely pleased with the performance. With ongoing consumer uncertainty, Costco's recent track record may continue to attract investor interest.' Shares in Dell (DELL) gained in pre-market trading on Friday after the company posted first-quarter earnings that fell short of Wall Street forecasts but delivered stronger-than-expected revenue and issued a bullish outlook for the current quarter. The computer and IT infrastructure group said it expects adjusted earnings of $2.25 per share in the second quarter, alongside revenue in the range of $28.5bn to $29.5bn, ahead of analyst expectations compiled by LSEG. Company executives attributed the upbeat forecast to robust demand for artificial intelligence-related infrastructure, which tends to carry higher margins than Dell's (DELL) traditional systems. Dell expects to ship $7bn in AI systems this quarter alone. 'We generated $12.1bn in AI orders this quarter alone, surpassing the entirety of shipments in all of fiscal 2025 and leaving us with $14.4bn in backlog,' said Jeff Clarke, Dell's (DELL) chief operating officer. While adjusted earnings in the fiscal first quarter missed estimates, revenue topped forecasts. Dell (DELL) maintained its full-year revenue guidance at roughly $103bn — in line with consensus — but raised its full-year earnings outlook to $9.40 per share, up 10 cents from its previous forecast. The company's growing focus on AI infrastructure marks a strategic pivot amid slowing demand in its traditional PC business. Shares in Ulta Beauty (ULTA) rose about 8% in pre-market trading on Friday, after the cosmetics retailer raised its full-year profit guidance and reported quarterly results that exceeded expectations, buoyed by strong consumer demand and lower inventory losses. The company now expects full-year earnings in the range of $22.65 to $23.20 per share, up from a previous forecast of $22.50 to $22.90. The outlook revision came as Ulta (ULTA) reported adjusted earnings of $6.70 per share for the quarter ended 3 May, ahead of the $5.81 expected by analysts. Quarterly sales rose to $2.85bn, compared with the consensus estimate of $2.79bn. Comparable sales — a key retail metric — increased 2.9% year-on-year, driven by a 2.3% rise in average transaction size and a 0.6% increase in the number of transactions. Read more: Gold prices retreat as investors await key US inflation data Ulta (ULTA) said demand was particularly strong for trendy, affordable brands such as Elf Beauty, especially among younger shoppers. New product launches, including Milk Makeup and several Korean skincare brands, also helped lift store traffic. The retailer has also leaned into marketing initiatives and digital channels, while enhancing its appeal with celebrity-owned lines such as Rihanna's Fenty Beauty. Shares in Adidas ( traded higher on Friday, even as the sportswear group warned that escalating US tariffs could lead to higher costs and retail prices for its products in the key US market. In a statement, the company cautioned that it had not yet determined how much of the additional cost burden would be passed on to US consumers, citing ongoing uncertainty in global trade negotiations. Adidas ( added the geopolitical headwinds were preventing it from upgrading its full-year guidance. 'Higher tariffs will eventually cause higher costs for all our products for the US market,' the company said. 'Given the uncertainty around the negotiations between the US and the different exporting countries, we do not know what the final tariffs will be,' it added. 'Therefore, we cannot make any 'final' decisions on what to do. Cost increases due to higher tariffs will eventually cause price increases, not only in our sector, but it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products.' Stocks: Create your watchlist and portfolio Adidas ( also said it currently lacks the capacity to manufacture most of its products within the US, leaving it particularly exposed to any new trade barriers imposed by Trump. Volkswagen ( chief executive Oliver Blume has pledged a 'massive' increase in investment in the US, as the German carmaker seeks to cushion the impact of tariffs imposed by Trump. In an interview with Süddeutsche Zeitung, Blume said the company had held 'fair, constructive' talks with US commerce secretary Howard Lutnick, adding: 'I was in Washington myself and we have been in regular dialogue ever since," according to a Reuters report. "The Volkswagen Group ( wants to invest further in the USA. We have a growth strategy," he told the German newspaper. According to Lutnick, Volkswagen ( is considering expanding on its existing footprint in the US with 'further, massive investments' as the auto group navigates heightened trade tensions. The commitment comes as Volkswagen ( undergoes significant restructuring at home. In December, the company announced plans to cut around 35,000 jobs in Germany over the next five years as part of a broader effort to reduce costs and respond to softening demand for vehicles in in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Recorder
5 days ago
- Automotive
- Business Recorder
European shares ease after court blocks Trump's tariffs
FRANKFURT: European shares eased on Thursday as initial relief that a US trade court had blocked some of President Donald Trump's tariffs fizzled out. The continent-wide STOXX 600 index closed 0.2% lower. The Court of International Trade ruled that Trump overstepped his authority by imposing across-the-board duties on imports from US trade partners on April 2. In a swift response, the Trump administration filed an appeal and questioned the authority of the court. 'This does not necessarily mean tariffs are disappearing any time soon, as the federal appeals court is likely to take a more favourable view of them,' said Lale Akoner, global market analyst at eToro. 'What it does signal, is the beginning of a lengthy legal battle, one that could ultimately reach the Supreme Court, a development with significant market implications.' On Sunday, Trump backtracked on his latest tariff threats towards the European Union, as Brussels stepped up efforts to secure a deal with Washington. The ongoing tariff uncertainty saw most regional indexes close flat or lower on Thursday. However, European shares are expected to rise slightly by the end of 2025 before reaching new highs in 2026, a Reuters poll found. Wall Street's main indexes rose on the day, also lifted by AI bellwether Nvidia reporting a 69% surge in quarterly sales after Wednesday's closing bell. European semiconductor companies rode the wave, with ASM International gaining 2.7%, Soitec up 3.6% and ASML Holdings also marginally higher. Those gainers contained a decline in the broader technology index to 0.2%, after it hit its highest level since early March. Utilities underperformed with the sector down 0.8% overall. National Grid and Severn Trent fell 3.8% and 2.3%, respectively, as the British firms traded without entitlement to their latest dividend payouts. Shares of Auto Trader dropped 11.3% in their biggest one-day fall since March 2020 after the UK's largest automotive platform missed full-year revenue estimates. The stock was also Thursday's worst performer.
