Relative Strength Index (RSI)
|Bid||39.00 x 800|
|Ask||39.14 x 800|
|Day's Range||38.21 - 39.84|
|52 Week Range||32.10 - 64.40|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||55.86|
(Bloomberg Opinion) -- The U.S. stock market has had a remarkable run since its coronavirus-induced swoon in March, with technology stocks from Big Tech to upstarts leading the comeback and soaring off their lows. A hot stock market tends to stoke demand for IPOs as well, and that’s exactly what has happened — especially in the area of cloud software and internet services. The latest manifestation of this phenomenon came on Tuesday, when cloud-banking software provider nCino Inc. surged more than 170% in its trading debut. The enthusiasm for this digital niche does make sense on a fundamental level. The pandemic has accelerated the spending shift to cloud-related technologies that enable the work-from-home and digital services we all need to live in a Covid-19 world. So, it’s natural that investors would latch on to the story and bid up many companies related to the space, including new issues. NCino isn’t alone: Cloud-based business-intelligence company ZoomInfo Technologies Inc. soared 62% in its first day of trading in June, while earlier this month, insurance digital-services startup Lemonade Inc. had a triple-digit percentage gain in its debut. All three are posting stellar growth rates and rely on cloud-based infrastructure to deliver their offerings.But a frothier environment is also a recipe for some on Wall Street to take advantage of the heightened investor interest. One potential IPO — Rackspace Technology Inc. — stands out as being particularly suspect. The cloud-computing service provider, owned by private equity firm Apollo Global Management, filed to go public last Friday. After looking at the offering documents, it appears Apollo and its name-brand underwriters such as Goldman Sachs Group Inc., Citigroup Inc. and JPMorgan Chase & Co. are trying to ride the recent wave of cloud enthusiasm with a subpar candidate. For those of us who remember, Rackspace was a second-tier data center and web-hosting company that had trouble competing with Amazon Web Services back when the investment firm took it private in 2016. It doesn’t look like much has changed since then.Simply, Rackspace’s anemic financial results punch a hole in its “cloud” narrative. The company doesn’t deserve to be put in the same breath as the recent big winners in the space. Whereas leading cloud companies have generated stunning sales increases over the past year, Rackspace posted no growth in 2019, according to the filing. And while its revenue did rise marginally about 8% in its March quarter, it is still nowhere in the vicinity of the sector’s best-of-breed. Never mind the fact it lost $48 million in those three months.To illustrate the disparity, cloud monitoring software provider Datadog Inc.’s sales surged by 87% in its latest reported quarter, while user authentication company Okta, Inc. generated revenue growth of 46%. Even Amazon Web Services, at its gargantuan size, saw sales increase by 33% in its March quarter to $10.2 billion, generating $3.1 billion in operating profit for the period. Companies need to show surging demand for their product and services to justify a cloud calling card. These companies do; Rackspace, not so much.On the flip side, one can argue the recent IPOs are widely overvalued. For example, nCino, ZoomInfo and Lemonade are trading at nose-bleed valuations of more than 50 times last year’s sales. But their track records and strong growth prospects can offer at least a shot at a better prospective future.At a time when the surging market has some invoking the word “bubble” and questioning the sustainability of the rally, investors need to look carefully at what bankers and Wall Street firms may be trying to off-load while the arrows are still pointing upward. They should look through the hype, sift through the numbers and analyze each company’s prospects on a case-by-case basis. Not all of the so-called cloud stocks are headed for the sky.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tae Kim is a Bloomberg Opinion columnist covering technology. He previously covered technology for Barron's, following an earlier career as an equity analyst.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Baron Asset Fund recently published its second-quarter commentary – a copy of which can be downloaded here. During the second quarter of 2020, the Baron Asset Fund returned 28.02% (institutional shares). In comparison, the benchmark S&P 500 Index was up 20.54%, while the Russell Midcap Growth Index was up 30.26%. You should check out Baron […]
ZoomInfo was recognized by TrustRadius with the 2020 Top Rated Award for Marketing Intelligence Software, its second Top Rated Award this year.
(Bloomberg) -- ZoomInfo Technologies Inc., a business intelligence and marketing solutions company that recently had the largest ever initial public offering by an advertising company, was showered by the start of Wall Street research coverage Monday, some of which was bullish in the extreme, with one analyst saying it offered the “Holy Grail of Sales,” while other initiations were far more modest in their expectations.The Vancouver, Washington-based firm, which trades on the Nasdaq under ZI, became public less than three weeks ago, raising $935 million at $21 per share. ZoomInfo has since skyrocketed, closing at $51.57 Friday — a roughly 150% increase in less than a month. The company opened 90% above its IPO price on June 4, the most of any stock since 2006 among deals that raised at least $900 million, according to data compiled by Bloomberg.ZoomInfo has seven buy-equivalent ratings, with eight analysts recommending to hold the shares and none advising clients to sell, according to data compiled by Bloomberg. The average 12-month price target of $56 implies shares have upside of just 13% from Monday’s level.Here’s what analysts are saying:Mizuho Securities, Siti PanigrahiZoomInfo offers the “Holy Grail of Sales” on a “sales intelligence platform that we believe has best-in-class accuracy and breadth of business professionals’ data,” Panigrahi wrote.“We expect ZoomInfo to sustain its robust levels of revenue growth and operating margins, benefiting from strong and increasing demand.”Rated buy, price target Street-high $63.Raymond James, Brian PetersonZoomInfo’s “balance of growth/profitability that approaches the rule of 90 is truly an elite financial profile,” Peterson wrote. “Subjective assessments (quick sales cycle, low ASPs, compelling ROI, large TAM) should also attract long-term investors.”Rated outperform, price target $56.Morgan Stanley, Stan Zlotsky“ZoomInfo’s leading platform of intelligence data allows sales and marketing teams to sell more efficiently and maximize chances of success,” Zlotsky wrote in a note. “We see a $27 billion total addressable market and a truly unique growth/margin profile generating meaningful upside to estimates, which appears priced in at current levels.”Rated equal-weight, price target $50.Stifel, Tom Roderick“While ZoomInfo’s current valuation - 60x FY22 EV/Ebitda - certainly reflects lofty ambitions,” its “best-in-class margins and top quartile growth rates puts the company in rarified air among its peers.”Rated buy, price target $60.RBC Capital Markets, Alex ZukinZoomInfo offers “the leading go-to market intelligence database,” with “leading depth and breadth of data, strong technology, and a strong GTM, resulting in both strong growth and strong margin.” But RBC sees “the current price as reflecting the company’s strengths.”Sector perform, price target $50.Canaccord Genuity, David HynesThe firm’s numbers “speak for themselves,” highlighting “an efficient growth engine operating at scale.” But “the prudent move for now is to wait for a better entry point, which often comes with lock-up expirations or the passage of time.”Rated hold, PT $50.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
A proposed change to direct listings could attract more public debuts and woo companies away from traditional IPOs — if the SEC approves the move.
Initial public offerings (IPOs) are hot again. And perhaps no company exemplifies this more than ZoomInfo Technologies (NASDAQ:ZI). Prior to this year, very few investors were talking about ZoomInfo, or even were aware of the company. Now, ZI stock is one of the trendiest names around. Shares have more than doubled since they IPOed at $22 on June 4.Source: II.studio / Shutterstock.com Even if you didn't get in at the IPO price, you could still make quick gains. ZoomInfo opened trading at $34 and is now at $50. That's a pretty amazing return inside of a month. It's particularly impressive since this isn't a small company either.At current trading levels, ZoomInfo has a market capitalization of around $20 billion, immediately making it a formidable player in the software-as-a-service space. So what is ZoomInfo, and should you own some?InvestorPlace - Stock Market News, Stock Advice & Trading Tips A Closer Look at ZI StockFrom the company's prospectus, we find that its core mission is to be:"[A] leading go-to-market intelligence platform for sales and marketing teams. Our cloud-based platform provides highly accurate and comprehensive information on the organizations and professionals they target. This "360-degree view" enables sellers and marketers to shorten sales cycles and increase win rates by delivering the right message, to the right person, at the right time, to hit their number."The company points to the considerable success that it has already achieved. At the time of the IPO, ZoomInfo had more than 200,000 paying customers, 630 of these customers spend at least $100,000 per year on the company's software. The company generates revenues entirely from subscriptions, and it estimates that its total addressable market is currently $24 billion per year. * 10 Consumer Stocks to Buy to Ride the Post-Covid-19 Wave More specifically, the company is currently a leader in collecting publicly-available information and organizing it for salespeople. As you know, there's a ton of data, including contact information, on the internet. But much of it isn't well-organized or centrally located. By finding it and assembling it into an easy-to-use package, ZoomInfo gives its clients a big leg-up in their own sales and marketing process.One other important note before we move on. You probably already know this, but just to be clear, there is absolutely no connection between ZoomInfo and Zoom Video (NASDAQ:ZM). They're entirely different businesses, management teams, and capital structures. Anyone buying ZoomInfo thinking it is a video conferencing play is making a mistake. Favorable NumbersThe good news starts at the revenues line. ZoomInfo pulled in nearly $300 million in sales last year. Impressively, that figure more than doubled from 2018's haul.Also, of note, ZoomInfo is already profitable on an operating basis. That's quite rare among new technology IPOs nowadays. That profitability does come with an asterisk. After paying interest on its debt, ZoomInfo was unprofitable last year. However, with the capital it raised from the IPO, ZoomInfo should be able to clean up its balance sheet and further improve its earnings profile.Going forward, the company's growth appears to continue to be on a solid trajectory. The company's revenues should surpass $500 million this year. And the novel coronavirus does not appear to have had a major impact on the business either. If anything, improved sales and marketing spend is even more important right now given the drastic changes in the economy. DrawbacksCompetition is the main concern for ZoomInfo. The company sees its addressable market at $24 billion and its market cap is already up to $20 billion. As such, it needs to secure a large portion of the total addressable market for the investment to be highly-profitable on a long-term basis.However, there are plenty of other rivals that want the same customers. On the more sophisticated end, you have companies like Microsoft's (NASDAQ:MSFT) LinkedIn that have vast quantities of customer data as well. On the low end, it's easy for data scrapers to sell similar data to ZoomInfo, albeit with generally lower quality and a more complicated user experience.Another concern is that ZoomInfo uses multiple classes of stock with different voting rights. As a result, as it stands now, insiders hold 89.6% of the total voting shares of ZoomInfo. In the event that the company started heading in a poor direction, it would be difficult to force insiders to make changes. ZI Stock VerdictAs long as the hot market for software-as-a-service stocks continues, ZoomInfo shares could easily continue powering higher. Valuations -- in particular price/sales multiples -- are hitting record highs across the industry.Compared to other hot names like Fastly (NYSE:FSLY), Zoom Video, and Alteryx (NYSE:AYX), there's more room for near-term gains at ZoomInfo.At some point, however, expect ZoomInfo to take a breather. Remember, the public offering was at $22 and it started trading at $34 just a few weeks ago. At $50, there's already a good chunk of speculative premium built into shares.At this point, the company really needs to get a few more quarters of growth under its belt to back up its valuation.Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek. At the time of this writing, he held no positions in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post There Still May Be Money to Be Made as ZoomInfo Stock Powers Higher appeared first on InvestorPlace.
Renaissance IPO ETF Manager Kathleen Smith joins Yahoo Finance's Akiko Fujita to discuss the latest IPO market expectations amid the coronavirus.
ZoomInfo has successfully completed its ISO 27001 and SOC 2 Type II audits for selected services and global controls of the ZoomInfo platform.
ZoomInfo announced today that it has earned 10 No. 1 rankings in G2’s Summer 2020 Grid Reports, its highest total ever.
David Ethridge, US IPO Services Leader at PwC, joined Yahoo Finance's The Final Round to discuss the 2020 IPO market and his outlook for IPO's through the end of the year.
Nelson Griggs, President of the Nasdaq, joined Yahoo Finance's The Final Round to discuss the recent IPO's on the Nasdaq this year and his outlook for the market.
On Tuesday, (VRM) (ticker: VRM), the online car-buying platform, went public for $22 a share. It was a triumphant end to a six-month streak without a single IPO from a venture-backed tech company. The Vroom IPO followed successful offerings from private-equity backed companies, including (SLQT) (SLQT); (WMG)(WMG), (ZI) (ZI), a cloud database provider; and (FOUR)(FOUR).
The financial stress brought on by COVID-19 closures threatens to unleash a wave of school closures for an industry that was already struggling from demographic shifts, high tuition costs, and reduced funding.
This year’s batch of IPO’s is receiving a warm welcome from the public markets. The recent rally in equities has encouraged companies looking to debut publicly, to strike the iron while it’s hot.
Shares of the online used-car service (VRM) began trading on Tuesday with a roar, opening 83% higher and becoming the latest hot initial public offering. At $45.69 a share, the company would have a market value of around $5.2 billion. In an interview with Barron’s on Tuesday morning, Vroom’s chief financial officer, Dave Jones, said the company had timed the offering well, with a growing willingness of consumers to shop for cars online.
(Bloomberg Opinion) -- The public capital markets are having a moment. A handful of big initial public offerings in the U.S. and Europe have launched successfully in the last week. Billions of dollars of fresh equity have been raised over the last two months. In the U.K., companies have taken advantage of a liberalized regime for tapping investors. But asset managers don’t possess infinite cash and the corporate fundraisings have barely begun. At some point, there must be a reckoning.The IPOs of coffee-capsule maker JDE Peet’s BV, Warner Music Group Corp. and business-intelligence platform ZoomInfo Technologies Inc. are less encouraging than first appears.Much of the legwork on JDE Peet’s was done before the crisis hit. Its at-home beverage business possessed clear resilience to the impact of the pandemic. The deal rested on some supportive anchor investors and was priced at an alluring discount to Nespresso-owner Nestle SA. That is not to diminish the achievement of getting the listing done, but only a minority of firms will share such favorable characteristics.Likewise, Warner Music, which priced at the upper end of its marketing range, was in the works before the crisis. Digital music is evidently resilient to lockdowns. ZoomInfo’s near doubling on debut is so extreme it begs the questions of whether it was mispriced or whether the elevated price will stick.These successes unfortunately do not prove the IPO market is open to all comers.Now consider how already-listed companies are raising money to cut debt, especially now that equity markets are up a lot since their March nadir. Quick-fire placings like Compass Group Plc’s $2.5 billion share sale remain the preferred route over time-consuming rights offers. The implication is that companies can’t get, or don’t trust, investment banks to backstop rights offers that won’t close for a few months.Where rights offers are underway, the terms are onerous. That’s the case with Bang & Olufsen A/S, the Danish high-end hi-fi company whose chairman sadly passed away this week. It’s selling new stock at nearly 60% below the company’s implied share price, adjusted for the enlarged share count. That is a sizable discount given the shares had already dropped around 45% since January. Despite that, fees and expenses will absorb some 13% of the gross proceeds. Look also at SIG Plc’s recent fundraising. The building materials group is seeking 150 million pounds ($189 million) — equivalent to almost its entire market capitalization. It has lined up buyout firm Clayton, Dubilier & Rice LLC to provide up to 85 million pounds of the total, for a stake of roughly 25%. SIG clearly wanted to be 100% sure of getting most of the money. But certainty meant going beyond the usual stock-market investors.In the financial crisis, the banking sector had to be bailed out. Today, the impact of the pandemic goes beyond one industry. Thousands of companies will be looking to cut their leverage. The demands on asset managers to write checks in support of that transition will continue. With dividend income cut, investors could be under more pressure to sell existing holdings to fund these cash calls. If that assessment is right, the money will run out at some point. The equity market may look generous right now. Overstretched corporates shouldn’t take it for granted.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares of ZoomInfo (ZI) surged more than 70% on its market debut on the Nasdaq on Thursday, the first technology IPO since the global pandemic.