|Day's Range||18.58 - 18.58|
The latest company to enter the public market is the business-to-business payments company Bill.com. Founder & CEO René Lacerte joins Yahoo Finance’s On The Move panel from the New York Stock Exchange to discuss the company’s market debut.
In a new safety report, Uber reveals the company has received over 3,000 reports of sexual assault related to its 1.3 billion rides in the United States last year. Yahoo Finance's Zack Guzman, Emily McCormick and Alexis Keenan discuss with Strictly Cookies CFO Courtney Comstock.
Uber released a report outlining almost 6,000 reports of sexual assault involving passengers or drivers in the U.S. between the years of 2017 and 2018. Yahoo finance's Alexis Keenan joins On the Move to discuss.
The U.S. and China reach a limited trade deal, and Apple could be headed for very happy holidays. In the world of IPOs, things have been a little topsy-turvy this year.
Dan Ammann, CEO of General Motors’ Cruise automation division, rallied against the automobile’s place in society.
(Bloomberg) -- Lyft Inc., whose ride-hailing service has been a frenemy of car-rental companies, just got a little less friendly with the likes of Hertz Global Holdings Inc. and Avis Budget Group Inc.Lyft said Thursday it’s testing out a car-rental service in Los Angeles and San Francisco and offering unlimited miles as an inducement. The announcement did little for its stock but sent Hertz and Avis shares plunging.While the rise of Lyft and Uber Technologies Inc. raised existential questions for more than century-old rental companies like Hertz and Avis several years ago, both companies have benefited recently by making their cars available to drivers that the ride-hailing services must keep adding to help support their growth. Avis even forged formal partnership with Uber in early 2017 and Lyft last year.Hertz and Avis can breathe easily for a while, said Hamzah Mazari, a Jefferies analyst who rates Avis a buy and Hertz a hold. Building up a big network of cars and rental lots is expensive, and Lyft doesn’t have the balance sheet to do it quickly.“I think the reaction is overblown,” Mazari said by phone. “Lyft doesn’t have a whole lot of capital so they won’t be able to take this nationwide. They are capital constrained, so I’m not too worried about it.”Representatives for Hertz and Avis didn’t immediately respond to requests for comment. The two erased gains following Lyft’s announcement, with Hertz ending the day down 4.8% and Avis dropping 4.4%.Lyft Rentals is a limited experiment that may change, according to the San Francisco-based company’s website. The smartphone app-based service won’t require a stop at a rental counter and will charge market rates for gasoline. Lyft also is offering $20 credits for transport to rental cars and discounts for Monday-through-Thursday use.To contact the reporters on this story: Chester Dawson in Southfield at firstname.lastname@example.org;David Welch in Southfield at email@example.comTo contact the editor responsible for this story: Craig Trudell at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Lyft introduced a rental option via its app to targeted users in the two metro areas last spring, and is now widening the eligible pool of users, a spokesman said. The company said in a blog post that the rental cars will be available via its app to select users who are at least 22 years old. Lyft runs the offer without the involvement of any existing car rental companies, the spokesman said.
The City Council on Thursday authorized municipal staff to negotiate with three companies to operate electric bicycles or scooters in San Antonio: Lime, under its corporate name, Neutron Holdings LLC; Razor USA LLC; and Bird Rides Inc. The council vote follows a staff recommendation that the three operators each receive a two-year contract with a one-year renewal option at the city’s discretion. Each company can operate 1,000 vehicles initially, limiting the total fleet on municipal streets to 3,000. San Antonio began to see a proliferation of dockless vehicles on city streets in June 2018.
2019 was one of the busiest years for IPOs, and the calendar was packed with big tech unicorns and popular consumer brands. Here are some of the hottest market debuts we saw this year.
In California, the ride-hailing company is changing a policy used as a safeguard against driver discrimination against low-income and minority riders.
Twilio (NYSE:TWLO) announced its third-quarter results on Oct. 30. While top- and bottom-line results beat analysts' average estimates, investors didn't like the company's Q4 guidance. They sent Twilio stock below $100 for the first time since early January. In the process, I got egg all over my face. That's because I wrote a piece on Oct. 28 suggesting that investors interested in TWLO stock may want to buy the shares before the company's earnings were out to benefit from a post-earnings pop. InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat "pop" never happened. Despite the positive earnings surprise and the 75% year-over-year increase in its sales, investors chose to focus on the Q4 outlook, which was a little weaker than most analysts had expected. * 10 Best-Performing Growth Stocks of the 2010s It wasn't the revenue guidance that caused Twilio stock to fall more than 12% on the news. Instead, it was the EPS outlook of 1 cent -2 cents, excluding some items, versus analysts' average outlook of 7 cents that got investors' shorts in a knot.And I get it. Investors have become focused on companies' pathways to profitability. Anything that gets in the way of that path is going to create trouble for stocks. Twilio stock isn't any different. Recently, another InvestorPlace columnist, Luke Lango, for the second time in two months, urged investors to get ready to buy Twilio stock at $90That suggestion has me wondering if Twilio is worth $90 or more than that. Why Twilio Stock May Be Worth Only $90 Per ShareLango, the other columnist, wasn't suggesting TWLO stock was only worth $90; he said it was worth buying at $90. There's a big difference. I believe in Twilio's business model and by extension, I'm a fan of TWLO stock. However, the fact that Twilio stock traded as high as $151 in late July and now is having trouble moving above $100 tells me that there is a significant group of investors who believe $90-$100 is a ceiling for Twilio stock now. InvestorPlace writer Josh Enomoto recently discussed some of the company's fundamental weaknesses. Its most significant problem is the $2 billion that it paid for SendGrid. The deal gave the Twilio platform the email integration it sorely lacked, but it also raised investors' expectations. According to Enomoto, "With TWLO, you must separate the technology from the investment thesis. While SendGrid fills a technological gap, it creates one from an investment perspective. Thus, management must deliver outstanding - preferably astounding - growth to justify the SendGrid premium.""What we saw in Q3 was an 'okay' earnings report. But when you're taking big risks, you need big results. That didn't happen, which is why TWLO stock has a credibility challenge."Enomoto goes on to remind InvestorPlace readers that Twilio's customers include Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) and other money-losing companies that also could see their credibility questioned over the next few months into 2020. In other words, money-losing tech stocks could be in a downward trend for some time, making the near-term outlook of Twilio stock, at best, "cautiously bullish." Why Twilio Stock May Be Worth More Than $90 Per ShareWhen I suggested investors consider buying Twilio stock before TWLO's earnings, I felt a price in the $100s was warranted for TWLO stock. While the Q3 report does raise questions, it's important to recognize that the company is still going to generate more than $1.1 billion of revenue in 2019, with a minimal loss of $5 million. The fact that its revenue jumped 75% year-over-year in Q3 suggests Twilio's platform still has a great deal of traction with companies that are looking to provide seamless communication for their customers. TWLO still has a pathway to profitability. It's just got to continue to execute in 2020. Lango emphasized Twilio's tremendous opportunity:"This company finds itself at the epicenter of a huge shift towards text-based B2C communication. As this mega-trend plays out over the next several years, Twilio's customer base and revenues will march significantly higher."I couldn't agree more. In October, I stated that I liked how Twilio was building its business, including its expensive acquisition of SendGrid. Furthermore, I felt it would generate a profit before too long. The Q3 results haven't shaken this belief. I think its Q3 results (and its Q4 guidance) were business as usual. Investors chose to make a mountain out of a molehill, so TWLO stock is struggling to gain ground. In the life of most public companies, occasional slumps are not unusual. When it comes to TWLO stock, I see the glass as half full. At this time next year, we'll find out if I was right to believe that Twilio stock is worth more than $90.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best-Performing Growth Stocks of the 2010s * 10 Stocks With Little or No Debt to Own for the Next 50 Years * 5 Restaurant Stocks Dominating Holiday Season Foot Traffic The post Is Twilio Stock Worth More Than $90?Â appeared first on InvestorPlace.
This article is a part of InvestorPlace.com's Best ETFs for 2020 contest. Ian Bezek's pick for the contest is the iShares Russell 2000 Growth ETF (NYSEARCA:IWO).Source: Shutterstock Are you ready to party like it's 1999? You should be. The great big bull market of the 2010's is certainly getting up there in age. The skeptics have been calling for its demise for years now. But there's good news: We should have at least one more spectacular year ahead of us before the cycle turns.Why's that? Simply put, generational bull markets tend to end on euphoria. In 1929, for example, stocks became so popular that shoeshine boys were speculating in the market. In fact, so many ordinary Americans had gotten into trading that margin rates to borrow money to buy stocks hit 15% and up annually. There was literally a shortage of available credit because so many Americans borrowed to ride the bull.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn the 1960s, peace and love were in. So was money. Popular magazines were full of stock-picking tips. Young mutual fund managers became rock stars. People believed that the stock market was easy money. Incredibly, the stock market went up from the late 1940s with virtually no interruption until 1973, when the market finally imploded. Consider how that bull market ran for more than two decades before meeting its end.Similarly, the late 1990's mania was just the finishing touches on an amazing 18-year run in which the Dow Jones Industrial Average went from 1,000 to 10,000. Again, for comparison's sake, the S&P 500 would have to go from 666 (the March 2009 low) to nearly 7,000 to make a move of equal magnitude. Suddenly, calls for the S&P 500 to reach 4,000 don't look so silly. The Market Hasn't Topped Yet … 2019 Looks Like 1998The fact is, bull markets end with euphoria. People quitting their careers to take up day trading, as we saw in the late 1990s. That simply hasn't happened yet this time around. Instead, we actually saw a rather sedated market in 2019 where investors dumped shares of the market's most questionable offerings; stocks like Uber (NASDAQ:UBER), Lyft (NASDAQ:LYFT) and Slack (NYSE:WORK) were big busts. WeWork fared even worse. Its initial public offering (IPO) was canceled and the business is seemingly imploding now. * 10 Best-Performing Growth Stocks of the 2010s If you are looking for a comparable point, 1998 might be it. In the fall of that year, the IPO market came to a screeching halt following a sudden market correction. Stocks had dumped due to emerging market problems, which in turn, forced the Federal Reserve to cut rates and pump money into the system. Anything sound familiar? That's right, it's like the Fed cutting rates now to ease the pain of the escalating China trade war.Despite the emerging market problems, the stock market managed to close 1998 with gains in the 20-30% range on the major indexes. That was just setting the stage, however, for the fun that lay ahead. Stocks went absolutely bonkers to the upside in 1999 as the Fed's easy money flood set the stage for limitless upside on internet and other high-growth stocks. By the end of 1999, the tech-heavy Nasdaq Composite was up more than 80% in a single year. The Conditions Are In Place for a Big Run HigherMany bears have been quick to go after the stock market lately. They say trees don't grow to the sky. What goes up must come down. And so on. And they'll eventually be right. But there's no sign that the market needs to top tomorrow.Consider forward earnings. The S&P 500 is selling for less than 18x 2020's projected earnings. That's hardly more expensive than it has been over the past few years; the market was around 17.5x forward earnings when President Trump was inaugurated in January 2017, for example. That means that nearly all the gains in the stock market over the past three years have come due to earnings growth, not rising market valuations.With the Fed now cutting rates again, conditions are in place for a rise in earnings growth next year. The economy remains robust. Just look at consumer confidence or unemployment. Any sign of a trade deal, and things should surge. Don't forget that there's an election in November, and the incumbent has every incentive to try to juice the economy and stock market ahead of the vote. So don't be surprised if there is fiscal stimulus as well; who knows, maybe that rumored huge infrastructure deal will finally come to fruition.In any case, the S&P 500 topped at around 24x forward earnings in 2000. To hit a similar valuation level today, the S&P would have to surge to more than 4,200, or more than 25% upside from today's prices. That's even if earnings don't pick up next year. There's no guarantee we'll get to a 2000-level peak of enthusiasm before the market tops, but if the 1920s, 1960s and 1990s are any guide, things will end with more excitement than we have right now. The Best Way to Play This? Small-Cap GrowthIf you're full-on bullish on the market, your first instinct might be to purchase mega-cap growth stocks. They've led the stock market up so far, so why do something else? The thing is though, the so-called FAANG stocks can't keep leading the market forever. For example, Apple (NASDAQ:AAPL) is up 70% year-to-date and is already worth more than a trillion dollars. It won't realistically go up 70% again next year. Meanwhile, other popular tech stocks like Amazon (NASDAQ:AMZN) and Facebook (NASDAQ:FB) have started to underperform.That makes sense. Over time, leadership should transition to smaller-cap growth stocks as is often the case in late-cycle bull markets. Thus, my pick for InvestorPlace.com's best ETFs for 2020 is the iShares Russell 2000 Growth ETF (NYSEARCA:IWO). The smaller companies that make up the IWO ETF have far more room for upside as their market caps are typically just a few billion dollars or less. It's much easier to go from $2 billion to $10 billion in a couple of years than from $200 billion to a trillion. * 7 Best Quantum Computing Stocks Trading Today On top of that, this ETF is focused on companies with strong tailwinds at their backs. For example, nearly 30% of the ETF is invested in healthcare companies, which allows it to profit from the revolution in biotech, the huge growth in medical devices and the general demographic aging trend that is giving the whole sector a lift. After that, the ETF has 19% of its capital in industrials, which should do well with the Fed easing again and the economic cycle turning back up. And 17% of the fund is in technology stocks; thus, well over half of IWO is allocated to promising small companies that can get bigger quickly. IWO: Many Great FeaturesAnother reason to like IWO is that it is a large and cost-efficient ETF. Its expense ratio of just 0.24% per year, which makes it highly competitive with other growth funds. It has nearly $10 billion of assets under management, so it has no problems with liquidity or trading slippage. And it is highly diversified; no position makes up more than 1% of the ETFs total assets. So if some software company implodes or a biotech firm's lead drug candidate fails a key trial, it won't matter much to IWO overall.Investors still don't fully believe in this bull market. The IWO ETF is trading almost 5% below its September 2018 peak. Even while the market has easily surpassed last year's highs, pure growth names have lagged to a degree. That sets up a compelling opportunity for 2020, as small growth companies will shine brightly.At the time of this writing, Ian Bezek owned FB stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best-Performing Growth Stocks of the 2010s * 10 Stocks With Little or No Debt to Own for the Next 50 Years * 5 Restaurant Stocks Dominating Holiday Season Foot Traffic The post Best ETFs for 2020: iShares Russell 2000 Growth ETF (IWO) Is the Best Bet appeared first on InvestorPlace.
Lyft's shares are down more than 40% since the company's IPO earlier this year. With falling revenue growth rates, rising competition and an overvalued stock, this opportunity is best avoided. The message from Lyft is that it is firing on all cylinders and reaching key milestones ahead of target.
This year has been riddled with U.S.-China trade war rumors, impeachment talk and all sorts of notable initial public offerings. But 2019 has also been a year that saw the S&P 500 repeatedly hit all-time highs. Going into what many have predicted will be a strong 2020, what should smart investors be taking away from the last 12 months? In this episode of "Moneyline" with Matt McCall, he has the perfect packing instructions. Grab your suitcases (or your portfolios) and listen up.The big indexes, especially the record-setting S&P 500, have certainly been in focus lately. But there's one McCall thinks deserves a bit more attention. The Russell 2000, home to a collection of small-cap stocks, rallied just before Thanksgiving to reset a 52-week high. What does this mean?For investors, an easy way to track this index is through the iShares Russell 2000 ETF (NYSEARCA:IWM).InvestorPlace - Stock Market News, Stock Advice & Trading TipsAfter several months, the IWM exchange-traded fund crossed resistance at $160, and now it appears poised for a 2020 breakout. Using history as his guide, McCall says it's looking likely that the coming year will be a good one for the market, and for small-cap stocks overall. Since the creation of the Russell 2000, almost every time such a breakout has occurred, the following 12 months have brought impressive rallies. McCall's PodcastSo, investors should be gearing up to watch small-cap stocks after the ball drops. But those aren't the only names worth watching in the market. So far, 2019 has brought almost 350 IPO stocks to the New York Stock Exchange and the Nasdaq. Can you name more than 10?Big IPO names definitely drew attention this year, but not all for the right reasons. Uber (NYSE:UBER), Lyft (NASDAQ:LYFT) and Beyond Meat (NASDAQ:BYND) have largely disappointed. Plus, poor WeWork didn't even make it to its big day. * 7 Hot Stocks for 2020's Big Trends Just as with any group of stocks, IPO stocks did offer a few diamonds in the rough. One, a competitor to Splunk (NASDAQ:SPLK), went public in August 2019. This company, Dynatrace (NYSE:DT), looks perfect to McCall based on the pattern it has forming on the chart. Unlike novice investors, he looks for what he dubs the "J-curve." After a post-IPO rally, these new public companies often drop, sometimes below their opening price. This is exactly what DT stock did. Now, though, it's breaking out again, signifying that it's completing the "J."At this point, Dynatrace stock looks rather interesting to McCall, but he's not making a "buy" call yet. DT specializes in application performance monitoring, incorporating the cloud and artificial intelligence. It certainly has huge potential in 2020.Keep your eyes on these small-cap and IPO stocks headed into the new year. And don't forget to tune in to "Moneyline" with Matt McCall for more market insight and his analysis on this past decade's highest-returning names. Your financial freedom could be just around the corner.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post Small-Cap Stocks Are Ready for a Strong 2020 appeared first on InvestorPlace.
The past decade saw a ton of innovation from incumbent companies — like Amazon, Google, and Facebook. But new companies emerged as well and made their mark.
Back in April, Pinterest (NYSE:PINS) came public in a high-profile offering, with the shares jumping 28% on its first day of trading. The stock price would hit a high of $36 by late August. But since then, things have not gone too well. Keep in mind that Pinterest stock is actually below its initial offering price, which was $19. This puts the market cap at about $10.5 billion.Source: tanuha2001 / Shutterstock.com Part of the reason for this has been the rotation away from consumer internet initial public offerings (IPOs). For example, Uber (NYSE:UBER) is off 33% from its IPO while Lyft (NASDAQ:LYFT) is down even more. All in all, investors are looking beyond the top line and instead want to see a pathway to profitability.In a way, this is actually good news for the PINS stock price. Note that -- at least on an adjusted basis -- the company has been able to show modest profitability.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut unfortunately, it has still not been enough. The latest earnings report was not necessarily encouraging, and yes, this was the main reason that Pinterest stock has taken a dive.Now the company did beat on the bottom line, with adjusted earnings of 1 cent a share. By comparison, the consensus was for a loss of 4 cents a share.The problem? Well, revenues were off a bit. They came in at $279.7 million, while the forecast was for $281 million. No doubt, in today's tough environment, there is little room even for a small miss!Yet, I think this has been an overreaction. * 7 Hot Stocks for 2020's Big Trends Let's face it, Pinterest is still growing at a torrid pace. The quarterly ramp in revenue was 47% year-over-year -- and it is also important to note it is getting tougher to churn out the growth as the revenue base increases.Besides, Pinterest is continuing to invest in bolstering the platform. For example, there is more relevancy and personalization, such as with using algorithms for recommendations. This should not only allow for a more engaging experience, but also improved click-through rates and monetization.Next, Pinterest has revamped the design for its Apple (NASDAQ:AAPL) iOS and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) Android apps. Much of this is the result of extensive user feedback. There has also been more of an emphasis on lessening the friction of the user experience.Oh, and Pinterest is broadening the concept of topics for pinning. To this end, there is a collection for well-being activities, such as to deal with stress and anxiety. As seen with the huge success of the Noom app, this approach does have lots of potential. Bottom Line on Pinterest StockWhen it comes to social networks, there needs to be great care with the monetization. As a result, Pinterest has been methodical -- but this does not mean it has been a laggard either. The company has continued to improve the ad features, in terms of bidding, targeting and analytics. There have also been interesting partnerships for shoppable pins, such as with Shopify (NYSE:SHOP).But perhaps the biggest opportunity for PINS stock is the global market. During the latest quarter, worldwide monthly active users (MAUs) increased by 28% to 322 million. There was double-digit growth in nearly all countries. In fact, Pinterest currently sells ads in 28 countries, up from 19 in the second quarter.Something else: the global average revenue per user (ARPU) is 90 cents; That is, there is room for improvement here.Thus, Pinterest should be a solid growth play. The company also provides an immersive user experience, which is critical for today's e-commerce shopper and is unique when compared to other platforms like Amazon (NASDAQ:AMZN) and eBay (NASDAQ:EBAY). So, with the recent weakness in Pinterest stock, there is an opportunity here for investors.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post Pinterest Stock: Should You Pin It To Your Portfolio? appeared first on InvestorPlace.