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👋🏼 Making An Entrance

A look at some of the most promising IPOs for the rest of 2020, plus a breakdown of some of the weeks biggest and more complex headlines.

Abby Hadidian
Abby Hadidian

Hey there! I’m Abby, the newest member of the Four Minute Finance team. I’ll be showing up in your inbox a few mornings a week with a look at what's happening in the news and markets.

Together we'll break down big topics in business, economics, and even personal finance into content you can digest in just 4 minutes. I'm so excited to get started with you!

In the Headlines

A breakdown of some of this week's biggest stories

🚙  Tesla's stock bounces, as long-time bearish analyst at J.P. Morgan lifts price target

Translation: The big banks are starting to trust TESLA

If you’ve been watching the TESLA stock bounce around the last few months, you’re not alone. Big bank analysts have been right there with you, calling it ‘the crash just waiting to happen’. But if demand for Teslas continues to grow and they fulfill orders on time, who knows how much further up it could go; and big investors don’t want to miss out on that opportunity.

🍿  Theater Stocks Plunge After Cineworld Shutdown Caps ‘Lost Year’

Translation: Movie theaters may be shutting down for good.

The impact of the coronavirus shutdowns are starting to be less temporary. After months of closed theaters and delayed movie releases, one of the biggest theater chains in the country is considering shutting down operations completely. This could mean hundreds of thousands of lost jobs, with ripple effects impacting the entire entertainment industry.

💰 Treasury Yields Hit Highest Levels Since June

Translation: Bonds are back!

The traditional ‘safe investment’ is bouncing back. News that we may be receiving another stimulus package, and recent strides in vaccine development are making investors more optimistic that the US economy is on its way to a full recovery.


On the topic of going public...

Last week on the podcast, we talked about the different ways companies go public.Before we wrap up on that topic, I wanted to point out that we are now on track to have the biggest year for IPOs since the dot-com bubble. 📈

What does that mean?

If you listened to our episode on IPO’s, you know that companies go public to raise money, then executives either invest that money back into the company or just pocket a nice profit.

At the height of the dot-com boom, companies had raised over $100B through US IPOs in just one year. In 2020, we've already seen companies raise over $60B , and there still are a lot more planning to go public.

If you have ever considered investing in an IPO, 2020 might be the year to take the leap.

3 upcoming IPOs we'll be watching:
  • 🏠  AirBNB  - The beloved and controversial vacation rental platform delayed their plans to go public after coronavirus lockdowns shuttered everyone travel plans. But they bounced back stronger than ever, and filed with the SEC to go public back in August
  • 🌮  DoorDash - In the race for food delivery dominance, DoorDash is Usain Bolt, hanging out far ahead of the pack and their lead keeps getting bigger.
  • 🛒  Instacart - I don't know if its was COVID or we just finally have an excuse to admit we hated grocery shopping. In the past few months, they've seen a 500% jump in orders, and seem to be continuing to impress customers despite the spike.

Investing in a company always involves taking on risk, especially when dealing with newly listed shares. But, if you’ve been interested in trying out the IPO game, 2020 may still have surprises left for you.


Word of the day

Price Target

(n.) What a financial analyst thinks a stock is actually worth. It may also refer to what an analyst thinks a stock will be worth in the future.


One final thought..


If you've read this far, thank you! Not to be a broken record, but I am SO excited to join the Four Minute Finance community. I've been a finance and economics nerd since my early teens, and I can't wait to geek out with all of you a few times a week.

If there is one thing thats most important to me, it's making sure we're writing about things that interest and matter to you. My email is abby@fourminute.fm. Pop in my inbox any time if you have any feedback or ideas for the newsletter.

Like the legendary Silicon Valley investor Reid Hoffman says,
"Feedback is your best friend."

Newsletter

Abby Hadidian

Newsletter writer for Four Minute Finance | Econ Nerd & Pun Enthusiast