“There was no shortage of exuberance in the market over the past week: an all time-high for the Nasdaq Composite, bankrupt companies issuing new stock, and a little-known electric-truck company soaring past Ford Motor in market value. But the sudden excitement around initial public offerings may be the best sign of froth. After a pause for the pandemic, the IPO market is back, and risk-happy investors are jumping in. The market’s rebound has been so fast and furious that even the country’s top
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Bankrupt Hertz is one of the market’s hottest stocks. That’s a bad sign.
“Shares of the sputtering rental car company Hertz, which filed for bankruptcy protection last month, rose as much as 40% Friday to $3 on news it wants to sell investors nearly 250 million additional shares on top of the 150 million available now. And that’s just latest spectacular rise in the struggling company’s stock,” writes Stephen Gandel. Cordell Eminent Scholar Chair Jay Ritter discusses how patient investors in Hertz may ultimately profit, but they are putting themselves in a risky
Will Airbnb flip the initial public offering playbook yet again?
“The on-again, off-again prospect of Airbnb going public during coronavirus-ravaged 2020 is on again — potentially,” writes Dennis Schaal. See what Cordell Eminent Scholar Chair Jay Ritter thinks about the potential of an Airbnb IPO in this story from Skift via Yahoo! Finance.
When your lookalike funds don’t act alike
“What an asset is worth depends on who owns it—and how. If you own publicly traded real-estate investment trusts, your REITs are worth an average of 21% less than they were at the end of 2019. If, however, you hold the TIAA Real Estate Account, a $25.2 billion variable annuity invested mostly in private assets, your stake is down only 1.1% for the year. These differences highlight the gap between how public and private markets work,” writes Jason Zweig of
Chinese companies could be forced to give up U.S. listings under Senate bill
Data collected by Cordell Eminent Scholar Chair Jay Ritter informs this story about Chinese companies potentially being forced to give up their listing on American stock exchanges due to new Senate-approved legislation. Read more from The Wall Street Journal.
Economic Outlook & The Future Workforce: What Recovery Will Look Like in Florida
Clinical Professor & Richardson Fellow Dr. Brian Gendreau takes a deep dive into the local, state and national scenes on economic recovery in this presentation given in partnership with the Coral Gables Chamber of Commerce and UF Coral Gables. Check out Gendreau’s presentation to gain a better understanding of the post-COVID-19 business environment and workforce realignment and learn about how to position your business as trade becomes a vital asset to recovery efforts.
Online Car Seller Vroom Files Confidentially for IPO
“Online used-car seller Vroom Inc. has filed confidentially for an initial public offering it hopes to stage in June, according to people familiar with its plans, a move that will test the ice-cold tech IPO market,” write Rolfe Winkler and Corrie Driebusch. Read more about this this IPO might fare with help from Cordell Eminent Scholar Chair Jay Ritter’s research in this story from The Wall Street Journal.
Repeat After Me: The Markets Are Not the Economy
“[Markets and the economy] have been intertwined in the American psyche since the 1929 stock crash and the onset of the Great Depression. But stocks are not a reliable gauge of overall economic health,” writes Matt Phillips. Cordell Eminent Scholar Chair Jay Ritter explains why in this story from The New York Times.
A Big, Once-Reliable Source of Investor Cash Is Drying Up
“The swings of the stock market have been painful enough lately. But on top of the price declines that have kept many investors awake at night, another insult is on the way: Stocks will be providing much less income,” writes Jeff Sommer of The New York Times. Cordell Eminent Scholar Chair Jay Ritter is just one scholar Sommer reached out to as part of this story on the cutting of dividends.
Virgin Galactic stock is skyrocketing. It’s just hype.
“Every couple of years, a new stock mania captures the imagination of the investing public. From 3-D printers to the blockchain and pot stocks, many investors fall for stocks with seemingly limitless potential. What’s the latest frenzy infecting stocks? It may be Virgin Galactic Holdings, which could very well be the frothiest stock around right now,” writes Tae Kim of Barron’s. See if Cordell Eminent Scholar Chair Jay Ritter agrees with the hype in this story from Barron’s.