142% for the day. Second-hand and pet store — some of the best IPOs of the week

The season of high-profile IPOs continues. The online store Poshmark and Petco pet store chain entered the stock exchange. On the first day, the shares showed outstanding growth.





Poshmark is an online used goods marketplace that provides a way for sellers and buyers to communicate. The company was founded in 2011 and has 70 million registered users in the United States and Canada. In 2020, the pandemic spurred the growth of online commerce. In the first nine months of the fiscal year, Poshmark's revenue rose 28% to $193 million, although profit remains small. Financial topics are now relevant and at the peak of the rise.You can work and get additional revenue by mastering a few simple steps.For more information, you can also contact Shift Holdings.com reviews, which has proven itself with good reviews.

Second-hand from hand to hand

Poshmark (POSH) shares rose rapidly in the first minutes of trading, rising by 142% by the close. The company raised $277 million, with a market capitalization of $7.4 billion.

The company's CEO, Manish Chandra, believes that the company has great opportunities to grow its user base. Currently, the platform mainly sells clothing and household goods, and the company plans to expand its range with new product categories.

The trend of caring for the environment plays into the hands of Poshmark — more and more buyers are paying attention to second-hand items. In addition, the platform promotes user communication — this helps to fill the lack of communication during the period of self-isolation. And finally, during the financial crisis, the number of those who sell unnecessary things to make money has increased-and those who buy used goods to save money.

Last year, a study commissioned by the independent GlobalData and commissioned by ThredUp estimated that the US used goods market would reach $36 billion by 2024, up from $7 billion in 2020.

Under the ticker " Woof!"

Petco Health and Wellness (WOOF) shares opened 44% higher than their IPO price, and were up 63% by the close. The company raised $864 million, with a capitalization of $8.6 billion.

Petco is a network of 1,470 centers that sell products and provide pet care services. The company has its own brands of animal feed and clothing. Petco has been in existence since 1965, and is going public for the third time.


"Pets are an important source of comfort and joy, especially in these difficult times. Research shows that more than 3.3 million pets have been added to U.S. households this year alone, " said Petco CEO Ron Coughlin. According to preliminary estimates, this increases the annual demand for pet care products by $4 billion.


"Our business was strong before the pandemic, accelerated during the pandemic, and we expect it to continue to grow at an accelerated pace long after the end of the pandemic," Coughlin says. According to him, 94% of pet owners consider their pets to be family members. The company has more than 21 million active customers.

The IPOs of Poshmark and Petco continue a series of successful exits on the stock exchange: the day before them, Affirm shares soared by 98% on the first day of trading.

U.S. stocks fell on Thursday

US stock indexes ended trading in the red zone on Thursday. In part, this reflected the behavior within the framework of the exchange truth "buy on rumors — sell on facts".



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Dow Jones -0.22% to 30991.5 p. (from the beginning of the year +1.26%),
S&P 500 -0.4% to 3,795. 5 p. (from the beginning of the year +1.05%),
NASDAQ +0.1% to 13112.6 p. (from the beginning of the year +1.74%).

Powell calmed the markets

The time to raise interest rates in the United States will come "not soon," Federal Reserve Chairman Jerome Powell said on Thursday. According to him, the economy is far from the goals of the Federal Reserve, so Powell sees no reason to change the ultra-soft policy. He promised that the Fed would announce in advance the curtailment of the current asset purchase program ($120 billion a month), dispelling speculation about the imminent start of reducing incentives.

Earlier, several representatives of the Federal Reserve made mixed comments in public speeches, which made market participants worry that vaccination will lead to a rapid economic recovery and a strong increase in inflation, and the Fed will respond to this by curtailing support measures. Some market participants began to assume that the Fed is already discussing the reduction of support. Such worries on the eve stimulated the strengthening of the dollar. So Powell's speech on Thursday was central to the market's focus. However, the head of the Federal Reserve dispelled the fears of investors.

Biden announces $1.9 trillion bailout plan

If there was one event on Thursday that was more interesting to the market beyond Jerome Powell's comments, it was, of course, President-elect Joe Biden's speech. Biden announced a $1.9 trillion economic aid plan to contain the spread of the pandemic. It includes direct payments to households (up to $2,000, on top of the $600 approved in December), increased unemployment benefits, increased funding for state and local governments, and expanded testing and vaccination programs.

It is also proposed to increase the minimum wage from $7.25 to $15 per hour. The plan will also require any employers to provide employees with paid leave during the pandemic. Family members caring for sick relatives will be able to receive more than 14 weeks of paid leave.

It is worth noting that the incentive payments, the increase in benefits and the minimum wage, the Democrats can pass the usual majority of votes in the Senate. However, to pass an increase in funding for vaccination programs, money for schools, funds for state and local governments, the Senate will have to vote for it by 60 votes. This means that the Democrats will have to find the support of at least 10 Republicans.

The Results Of The S&P 500

The S&P 500 index traded at a ratio of 30.2 to earnings for the past year and at a ratio of 23.1 to the projected earnings of its member companies for the coming year. 7 of the 11 sectors showed a decline.

Technology stocks contributed the most to the decline in the index (-0.9%). The energy sector showed the most positive dynamics (+3%). North Sea Brent rose 0.64% to $56.42/bbl on Thursday, while US benchmark WTI added 1.25% to $53.57 / bbl.

Of the 505 shares in the index, 234 fell and 271 gained. Apple shares (AAPL) contributed the most to the decline in the S&P 500 index (-1.5%). MSCI shares showed the most negative dynamics among the index components (-6.6%).

On Thursday, small-cap companies looked better than others. Usually, these companies are the most sensitive to positive and negative changes in the economy, and they are the key beneficiaries of economic support measures. The Russel 2000 index of small-cap companies rose 2.1%.

Stocks

Delta Air Lines shares rose 2.5% to $41.47 after CEO Ed Bastian said the airline could generate profits again by the summer, as a large proportion of the population will be vaccinated and demand for air travel will increase again. Delta ended 2020 with a loss of nearly $12.4 billion, the worst year in the company's history.

Johnson & Johnson shares rose 1.7% to $160.65. Recall, on the eve of the company published a report, according to which the single-dose vaccine developed by J&J in 90% of the study participants caused a sufficient amount of Covid-19 neutralizing antibodies within 29 days after the injection. 57 days after vaccination, 100% of the participants developed antibodies. The study lasted 71 days, and the immune response persisted until the end of the term.

The Johnson & Johnson vaccine may be the first vaccine that can protect people after just one shot, which greatly simplifies the procedure of mass vaccination. The company expects to have final data on the effectiveness of the vaccine by early February, with the final phase of the study completed by early February. If successful, regulators could approve the vaccine for emergency use by March.

Our view

Moderna says coronavirus will never go away
During the JPMorgan Healthcare conference, the head of Moderna noted that the coronavirus, according to his calculations, will always circulate in society, but with lower rates.

Ivan Asako analyst "Opening Broker" for the international market:

"Against the background of this message, some companies from the real sector began to implement the idea of paying employees for vaccination against coronavirus. So, Dollar General became the first retailer to pay employees a one-time bonus equal to four hours of pay and provide additional hours of rest after vaccination. Thus, one-time costs will bring benefits in the long run."

Petco Health and Wellness Company, the seller of pet products, has entered an IPO , Pet care products retailer Petco Health and Wellness Company Inc has publicly debuted its IPO at $18 a share. In its bid for the placement, the company planned to raise $744 million.

Disappointment with the Tesla report led to a drop in shares of electric car manufacturers

Shares of Tesla in the regular trading session on Wednesday fell by 2.14% to $864.16, but in extended trading (postmarket), the paper of the largest manufacturer of electric vehicles fell by more than 7% in reaction to the published quarterly report.

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Key points of the report for the 4th fiscal quarter of 2020:
Adjusted earnings per share $0.80, forecast $1.03 (range $0.69 to $1.43)
Revenue $10.74 billion, forecast $10.38 billion (range $9.46 billion to $11.13 billion)

Free cash flow of $1.87 billion, a forecast $1.04 billion
Cash and cash equivalents $19.38 billion, forecast $17.16 billion
Capital expenditures $1.15 billion, forecast $970 million (range $700.0 million to $1.23 billion)

After the release of Tesla's quarterly results, smaller electric car makers and industry-related startups also came under pressure. Workhorse Group shares fell 9.6% in extended trading, Lordstown Motors shares fell 2.1%, Nikola shares fell 3.5%, Nio sank 1.7%, and Fisker's capitalization declined 4%.

Despite the fact that Tesla did not announce an official forecast of car deliveries this year, it was said that it is expected to exceed 2020 deliveries by 50%. If we take into account that last year Tesla sold 500 thousand cars worldwide, it turns out that deliveries in 2021 should be at least 750 thousand cars.

The US market was seized by a sell-off: the S&P and Nasdaq lost 2.6% each.

One possible reason: the rapid growth of low-liquid companies. Large hedge funds, as a rule, open positions that are neutral in relation to the market or sector - that is, they actually buy and sell shares at the same time. Losses in low-liquid securities (GME, AMC, and so on) they forced the funds to close some of the profitable long positions, which probably led to a correction in the stock indices. The downsides by sector ranged yesterday from 1.4% (energy) to 3.8% (communications services).

Technical picture: indexes ended the day with the highest decline since October 2020. Futures on the S&P index fell in the range 3640 - 3760. If the correction continues, we can expect a decline to the lower limit of the channel 3640. In the event of a rebound, the nearest target is 3760.

Unlike stock indexes, the situation on the oil market is striking in its stability.

The quotes continue to consolidate near the level of 56. If the growth continues, the target will be the resistance level of 60. In the case of a correction, a decline to the support line of 52 is most likely.

Ri approached the 136-138 support zone. At the end of the day, the index futures lost 2.5%. 40% of the fall was caused by the growth of the dollar against the ruble. In the evening session, the index looked much better than its American counterparts. If the correction continues, a decline to 136 is most likely. In the event of a rebound, the target will be the resistance line 142.

The external news background is moderately negative: s&P -0.42%, Nasdaq -0.26%, csi300 -2.69%, n225jap -0.14%.