Before the bell, futures remain under pressure after technology stocks encountered a selloff.
Before the bell, futures remain under pressure after technology stocks encountered a selloff.
(Bloomberg) -- JD Technology, the fintech unit of Chinese e-commerce giant JD.com Inc., is likely to withdraw its application for an initial public offering on Shanghai’s technology-heavy Star Market, the South China Morning Post reported, becoming the latest casualty of China’s wide-ranging crackdown on the country’s sprawling online finance industry.JD Technology, formerly called JD Digits, was renamed after absorbing JD’s artificial intelligence and cloud businesses earlier this year. It is considering withdrawing the listing because of “changing business circumstances” after China halted Ant Group Co.’s massive stock offering in November, the SCMP said, citing two anonymous sources.The company was looking into raising an estimated 20 billion yuan ($3 billion), the report said, and may resubmit a new listing application in the future. JD.com shares dropped 5% in Hong Kong on Monday. A representative for the company couldn’t immediately comment on the report.China’s fintech industry has faced increasingly tighter scrutiny from Beijing since the introduction of new regulations on consumer lending in November which led to the abrupt suspension of Jack Ma’s Ant’s planned $35 billion debut in Hong Kong and Shanghai.The regulatory crackdown forced fintech companies to rethink their IPOs and raise cash to comply with the rules requiring online lending companies to provide 30% of funding for loans. Previously, companies like Ant and Lufax Holding Ltd., the fintech arm of Ping An Insurance Group Co., only kept about 2% of their loans on their books.Read more: China’s Fintech Giants Scramble to Rethink IPOs, Raise Cash (1)Beijing-based JD Technology had filed for a Shanghai IPO in September, but those plans had since been thrown into doubt as the company weighed changes to its plans, Bloomberg News reported. At the end of December, it elevated its chief compliance officer to the role of chief executive to handle the heightened scrutiny.Lufax Holding Ltd., which went public in New York at the end of October, just before Beijing launched its crackdown, had warned investors before its IPO that it planned to increase the proportion of loan risk it bears with lending partners to 20% from 2% because of regulatory trends.Its share price has seen some violent swings since listing and has dropped almost 13% since Feb. 16. It is, however, still trading 12.7% above its IPO price.(Updates with company comment in third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Food-delivery company Deliveroo kicked off an initial public offering in London that could raise billions of pounds and put the U.K. market on track for its best-ever first quarter.The startup plans to raise capital by selling new stock, while existing holders also will sell shares, according to a statement Monday that didn’t provide details on the size of the planned offering. The Amazon.com Inc.-backed company was valued at more than $7 billion in its latest funding round.Deliveroo will list with a dual-class share structure, effective for three years, to provide Chief Executive Officer Will Shu with the stability to execute long-term plans, the company said last week. As such, the stock is ineligible for the London Stock Exchange’s premium segment and can’t be included in benchmark indexes such as the FTSE 100, despite its expected size.This year, 13 firms have raised 4.3 billion pounds ($5.9 billion) in London, data compiled by Bloomberg show. And Deliveroo is anticipated to add billions to this tally before the end of the month, meaning the U.K. IPO market could be on course to surpass its biggest first quarter on record in 2006, when proceeds reached 6.4 billion pounds.London-based Deliveroo’s planned offering follows the publication of a government-backed report last week that made a slew of recommendations to reform U.K. listing rules. The proposals include allowing dual-class share structures on the premium segment of the LSE, but it could be months before these are effective, confining the company to the standard listing segment for now.Deliveroo’s Class A shares, to be offered in the IPO, will have one vote each, while Shu will hold all of the Class B shares that carry 20 votes each. On the third anniversary of the IPO, the Class B stock will automatically convert into Class A.Such structures could be gaining traction among U.K.-based technology startup founders. E-commerce operator THG Plc set up a golden share, which allows its founder to fend off unwanted takeover bids for three years, in its 1.88 billion-pound offering in September, London’s biggest since mid-2017. The stock has risen more than 30% since then.Dual-class shares are more common in the U.S., used by the likes of Google parent Alphabet Inc. and Facebook Inc., where the weighted voting rights are kept in perpetuity. Some investors have balked at bringing the practice to the U.K., saying it dilutes corporate governance norms by allowing founders to retain control after taking their companies public. Both THG and Deliveroo put in a sunset clause, meaning a time limit, on this share structure, mitigating the risks for post-IPO shareholders.Lockdown WinnerAfter initially struggling at the start of lockdowns, Deliveroo got a boost as restaurants stopped providing service indoors, pushing more and more customers to order takeout meals and even groceries. Bloomberg News reported the startup’s plans to tap public markets in September.“Covid has accelerated the transition of food online,” Shu said in an interview, adding that the company is “confident about the behavior of the new consumer base,” even after coronavirus restrictions lift. “We can be confident that the growth trajectory will continue,” he said.The company’s gross transaction value -- the total amount of transactions processed on its platform -- grew by 64.3% to 4.1 billion pounds in 2020, compared with the previous year, while underlying gross profit nearly doubled to 357.5 million pounds, according to the statement. Deliveroo reported reported a loss of 9.6 million pounds last year before interest, taxes, depreciation and amortization.Across Europe, beneficiaries of the pandemic-fueled migration to online services are cashing in via IPOs. Poland’s InPost SA, which operates automated parcel lockers for deliveries, surged in its Amsterdam debut in late January, while digital used-car dealer Auto1 Group SE raised 1.8 billion euros in Frankfurt last month.Why Dual-Class Shares Catch On, Over Investor Worries: QuickTakeLondon has been Europe’s busiest venue this year. Deals include British bootmaker Dr. Martens Plc, which soared in its debut last month, while virtual greeting-card and gifting firm Moonpig Group Plc floated in February. Foreign issuers are also lining up to list: Trustpilot, a Denmark-based online platform for consumer reviews, has laid out plans for a U.K. IPO, while Russia’s largest dollar-store chain Fix Price made its trading debut in the City on Friday after a $1.7 billion offering.Founded in 2013, Deliveroo has 115,000 food merchant partners and more than 100,000 delivery riders in the U.K. and overseas, according to Monday’s statement. The company said it plans to create a fund to help restaurants and grocers in rebuilding their businesses after the pandemic, and also will give its “longest-serving and hardest-working riders” individual payments of as much as 10,000 pounds. Deliveroo will also make 50 million pounds of shares available to its customers as part of a “community offer.”Goldman Sachs Group Inc. and JPMorgan Chase & Co. are joint global coordinators on the offering, while Bank of America Corp., Citigroup Inc., Jefferies and Numis Securities Ltd. are joint bookrunners.(Adds CEO comments in the tenth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Long before Credit Suisse Group AG was forced to wind down a $10 billion group of funds it ran with financier Lex Greensill, there were plenty of red flags.Executives at the bank knew early on that a large portion of the assets in the funds were tied to Sanjeev Gupta, a Greensill client whose borrowings were at the center of a 2018 scandal at rival asset manager GAM Holding AG. They were also aware that a lot of the insurance coverage the funds relied on depended on a single insurer, according to a report. Credit Suisse even conducted a probe last year of its funds that detected potential conflicts of interest, yet failed to prevent their collapse months later.On Friday, the bank finally pulled the plug and said it would liquidate the strategy, a group of supply chain finance funds for which Greensill had provided the assets and which had been held up as a success story. The funds, which have about $3.7 billion in cash and equivalents, will start returning most of that next week, leaving about two-thirds of investor money tied up in securities whose value may be uncertain.The decision caps a dramatic week that started when Credit Suisse froze the funds after a major insurer for its securities refused to provide coverage on new notes. The move sent shock waves across the globe, prompted Greensill Capital to seek a buyer for its operations, and forced rival GAM Holding AG to shutter a similar strategy. For Credit Suisse and its new Chief Executive Officer Thomas Gottstein, it’s arguably the most damaging reputational hit after an already difficult first year in charge.While the financial toll on the bank may be limited, fund investors are left with about $7 billion locked up in a product that was presented as a relatively safe but higher-yielding alternative to money markets.The Greensill-linked funds were one of the fastest-growing strategies at Credit Suisse’s asset management unit, attracting money from yield-starved investors in a region that had for years had to contend with negative interest rates. The bank started the first of the funds in 2017, but they really took off in 2019, the year rival asset manager GAM finished winding down a group of bond funds that had invested a large chunk of their money in securities tied to Greensill and one of his early clients, Gupta’s GFG Alliance.The Credit Suisse funds, too, were heavily exposed to Gupta early on. As the bank ramped up the strategy, the flagship supply-chain finance fund had about a third of its $1.1 billion in assets in notes linked to Gupta’s GFG Alliance companies or his customers as of April 2018, according to a filing.Credit Suisse executives were aware but denied at the time that it was an outsized risk, according to people familiar with the matter. They argued that most of the loans were to customers of Gupta and not directly to GFG companies, the people said, asking not to be identified because the information is private.Over time, the proportion of loans linked to GFG and customers appeared to decrease, while new counterparties popped up in fund disclosures that packaged loans to multiple borrowers -- making it harder to determine who the ultimate counterparty is. Many of the vehicles were named after roads and landmarks around Lex Greensill’s hometown in Australia.The executives in charge of the fund also knew that much of the insurance coverage they relied on to make the funds look safe was dependent on just a single insurer, according to the Wall Street Journal. They considered requiring the funds to secure coverage from a broader set of insurers, with no single firm providing more than 20% of the coverage, but never put the policy in place, the newspaper said.A spokesman for Credit Suisse declined to comment.Greensill, meanwhile, was looking for new ways to fuel the growth of his trade finance empires after the collapse of the GAM funds removed a major buyer of his assets. In 2019, SoftBank Group Corp. stepped in, injecting almost $1.5 billion through its Vision Fund to become Greensill’s largest backer. It also made a big investment in the Credit Suisse supply chain finance funds, putting in hundreds of millions of dollars, though the exact timing isn’t clear.Over the course of 2019, the flagship fund more than doubled in size, but soon questions arose about the intricate relationship between Greensill and SoftBank that fueled the growth. The funds had an unusual structure in that they used a warehousing agreement to buy the assets from Greensill Capital, with no Credit Suisse fund manager doing extensive due diligence on them. Within the broad framework set by the funds, the seller of the assets -- Greensill -- basically decided what the funds would buy.Credit Suisse started an internal probe that found, among other things, that the funds had extended large amounts of financings to other companies backed by SoftBank’s Vision Fund, creating the impression that SoftBank was using them and its sway over Greensill to prop up its other investments. SoftBank pulled its fund investment -- some $700 million -- and Credit Suisse overhauled the fund guidelines to limit exposure to a single borrower.Neither Gottstein nor Eric Varvel, the head of the asset management unit, or Lara Warner, the head of risk and compliance, appeared to see a need for deeper changes. The bank reiterated it had confidence in the control structure at the asset management unit.Credit Suisse’s review didn’t mention at the time that Greensill had also extended financing to another of his backers, General Atlantic. The private equity firm had invested $250 million in Greensill Capital in 2018. The following year, Greensill made a $350 million loan to General Atlantic, using money from the Credit Suisse funds, according to the Wall Street Journal. The loan is currently being refinanced, said a person familiar with the matter.A spokeswoman for General Atlantic declined to comment.Shortly after the Credit Suisse probe concluded, more red flags popped up. In Germany, regulator BaFin was looking into a small Bremen-based lender that Greensill had bought and propped up with money from the SoftBank injection. Greensill was using the bank effectively to warehouse assets he sourced, but BaFin was worried that too many of the those assets were linked to Gupta’s GFG -- a risk that the Credit Suisse’s managers, for their part, had brushed off earlier.SoftBank, meanwhile, was quietly starting to write off its investment in a stunning reversal from a bet it had made only a year earlier. By the end of last year, it had substantially written down the stake, and it’s considering dropping the valuation close to zero, people familiar with the matter said earlier this month.Credit Suisse, however, was highlighting the success of the funds to investors. Varvel, the head of asset management, listed them in a Dec. 15 presentation as an example of the “innovative” and “higher-margin” fixed-income offerings that the bank was planning to focus on.By that time, Greensill already knew that a little-known Australian insurer called Bond and Credit Company had decided not to renew policies covering $4.6 billion in corporate loans his firm had sourced. The policies were due to lapse on March 1, prompting a last-ditch effort from the supply-chain firm to take the insurer to court in Australia. That day, a judge in Sydney struck down Greensill’s injunction, triggering the series of events that have since reverberated around the world.Credit Suisse didn’t know until very recently that the insurance was about to lapse, according to a person with knowledge of the matter.In an update to investors Tuesday, Credit Suisse said that several factors “cumulatively” led to the decision to freeze the funds, and that it was looking for ways to return cash holdings. But in a twist that may complicate the liquidation of the remainder, it also said that Greensill’s German Bank was one of the insured parties and plays a role in the claims process, and that bank was just shuttered by BaFin.Many of the assets in the funds have protection to make them more appealing to investors seeking an alternative to money market funds. Yet the second-biggest of them, the High Income Fund, doesn’t use insurance. It’s also the fund with the least liquidity, with less than 20% of the net assets in cash.Credit Suisse has said it wasn’t aware of any evidence suggesting financial irregularities with the papers issued by Greensill or by the underlying companies. The bank still hasn’t commented on how many of the assets in the funds are tied to Gupta’s GFG Alliance.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
To win Senate passage, Biden agreed to make millions ineligible for the third checks.
And will you even get a payment this time, under the new limits the president agreed to?
BT denied any "misalignment" between board and management on Saturday after Sky News said that CEO Philip Jansen had indicated he might resign unless the company replaced its chairman. The British broadband and mobile telecoms operator said on Monday that Jan du Plessis, who was appointed chairman in November 2017, had informed the board of his intention to retire once a successor has been appointed. "There has been no misalignment between the board and executive management over the company's strategy," BT added.
The bill that passed the Senate makes payments harder to get. Your tax return might help.
Congress is nearing passage of the third economic stimulus check it will send out to you and other taxpayers as part of its Covid-19 relief bill.
Class-action suits contend that insurers have been unfairly profiting from emptier roads.
ARK Investment founder Cathie Wood says her new Tesla price target is coming soon. What will it be? Barron's hazards a back-of-the-envelope guess.
“These transactions are not anonymous,” the IRS' national fraud counsel said. “We see you.”
“Over 85% of American households will get direct payments of $1,400 per person,” Biden said over the weekend.
It’s time to check in with the macro picture, to get an idea of just where markets are headed in the coming months. That’s what a JPMorgan global research team, headed up by Joyce Chang, has been doing. The JPM team starts by noting the sell-off in US Treasury bonds last week, pushing up yields as investors acted in response to inflationary fears. However, the rise in bond yields steadied on Friday, and Chang’s team does not believe that inflation is the great bugaboo it’s made out to be; her team sees a combination of economic growth and fiscal stimulus creating a virtuous circle of consumer spending fueling more growth. They write, “Our global economics team is now forecasting US nominal GDP to average roughly 7% growth over this year and next as targeted measures have been successful in addressing COVID-19 and economic activity is not being jeopardized. Global growth will exceed 5%...” What this means, in JPM’s view, is that the coming year should be good for stocks. Interest rates are likely to remain low, in the firm’s estimation, while inflation should moderate as the economy returns to normal. JPM’s stock analysts have been following the strategy team, and seeking out the stocks they see as winners over the next 12 months. Three of their recent picks make for an interesting lot, with Strong Buy ratings from the analyst community and over 50% upside potential. We’ve used the TipRanks database to pull the details on them. Let’s take a look. On24 (ONTF) The first JPM pick were looking at here is On24, the online streaming service that offers third parties access for scaled and personalized networked events. In other words, On24 makes its streaming service available for other companies to use in setting up interactive features, including webinars, virtual events, and multi-media experiences. The San Francisco-based company boasts a base of more than 1900 corporate users. On24’s customers engage online with more than 4 million professionals every month, for more than 42 million hours every year. As can be imagined, On24 saw a surge of customer interest and business in the past year, as virtual offices and telecommuting situations expanded – and the company has now used that as a base for going public. On24 held its IPO last month, and entered the NYSE on February 3. The opening was a success; 8.56 million shares were put on the market at $77 each, well above the $50 initial pricing. However, shares have taken a beating since, and have dropped by 36%. Nevertheless, JPM’s Sterling Auty thinks the company is well-placed to capitalize on current trends. “The COVID-19 pandemic, we believe, has changed the face of B2B marketing and sales forever. It has forced companies to move most of their sales lead generation into the digital world where On24 is typically viewed as the best webinar/webcast provider.” the 5-star analyst wrote. “Even post-pandemic we expect the marketing motion to be hybrid with digital and in-person being equally important. That should drive further adoption of On24-like solutions, and we expect On24 to capture a material share of that opportunity.” In line with these upbeat comments, Auty initiated coverage of the stock with an Overweight (i.e., Buy) rating, and his $85 price target suggests it has room for 73% upside over the next 12 months. (To watch Auty’s track record, click here.) Sometimes, a company is just so solid and successful that Wall Street’s analysts line up right behind it – and that is the case here. The Strong Buy analyst consensus rating is unanimous, based on 8 Buy-side reviews published since the stock went public just over a month ago. The shares are currently trading for $49.25 and their $74 average price target implies an upside of 50% from that level. (See On24’s stock analysis at TipRanks.) Plug Power, Inc. (PLUG) And moving over to the reusable energy sector, we’ll take a look at a JPM ‘green power’ pick. Plug Power designs and manufactures hydrogen power cells, a technology with a great deal of potential as a possible replacement for traditional batteries. Hydrogen power cells have potential applications in the automotive sector, as power packs for alt-fuel cars, but also in just about any application that involves the storage of energy – home heating, portable electronics, and backup power systems, to name just a few. Over the past year, PLUG shares have seen a tremendous surge, rising over 800%. The stock got an additional boost after Joe Biden’s presidential election win – and his platform promises to encourage ‘Green Energy.” But the stock has pulled back sharply recently, as many over-extended growth names have. Poor 4Q20 results also help explain the recent selloff. Plug reported a deep loss of $1.12 per share, far worse than the 8-cent loss expected, or the 7-cent loss reported in the year-ago quarter. In fact, PLUG has never actually reported positive earnings. This company is supported by the quality of its technology and that tech’s potential for adoption as industry moves toward renewable energy sources – but we aren’t there yet, despite strides in that direction. The share price retreat makes PLUG an attractive proposition, according to JPM analyst Paul Coster. “In the context of the firm's many long-term growth opportunities, we believe the stock is attractively priced at present, ahead of potential positive catalysts, which include additional ‘pedestal’ customer wins, partnerships and JVs that enable the company to enter new geographies and end-market applications quickly and with modest capital commitment,” the analyst said. “At present, PLUG is a story stock, appealing to thematic investors as well as generalists seeking exposure to Renewable Energy growth, and Hydrogen in particular.” Coster’s optimistic comments come with an upgrade to PLUG’s rating - from a Neutral (i.e., Hold) to Overweight (Buy) - and a $65 price target that indicates a possible 55% upside. (To watch Coster’s track record, click here.) Plug Power has plenty of support amongst Coster’s colleagues, too. 13 recent analyst reviews break down to 11 Buys and 1 Hold and Sell, each, all aggregating to a Strong Buy consensus rating. PLUG shares sell for $39.3 and have an average price target of $62.85, which suggests a 60% one-year upside potential. (See Plug’s stock analysis at TipRanks.) Orchard Therapeutics, PLC (ORTX) The last JPM stock pick we’ll look at is Orchard Therapeutics, a biopharma research company focused on the development of gene therapies for the treatment of rare diseases. The company’s goal is to create curative treatments from the genetic modification of blood stem cells – treatments which can reverse the causative factors of the target disease with a single dosing. The company’s pipeline features two drug candidates that have received approval in the EU. The first, OTL-200, is a treatment for Metachromatic leukodystrophy (MLD), a serious metabolic disease leading to losses of sensory, motor, and cognitive functioning. Strimvelis, the second approved drug, is a gammaretroviral vector-based gene therapy, and the first such ex vivo autologous gene therapy to receive approve by the European Medicines Agency. It is a treatment for adenosine deaminase deficiency (ADA-SCID), when the patient has no available related stem cell donor. In addition to these two EU-approved drugs, Orchard has ten other drug candidates in various stages of the pipeline process, from pre-clinical research to early-phase trials. Anupam Rama, another of JPM’s 5-star analysts, took a deep dive into Orchard and was impressed with what he saw. In his coverage of the stock, he notes several key points: “Maturing data across various indications in rare genetic diseases continues to de-risk the broader ex vivo autologous gene therapy platform from both an efficacy / safety perspective… Key opportunities in MLD (including OTL-200 and other drug candidates) have sales potential each in the ~$200-400M range… Importantly, the overall benefit/risk profile of Orchard’s approach is viewed favorably in the eyes of physicians. At current levels, we believe ORTX shares under-reflect the risk-adjusted potential of the pipeline...” The high sales potential here leads Rama to rate the stock as Outperform (Buy) and to set a $15 price target, implying a robust 122% upside potential in the next 12 months. (To watch Rama’s track record, click here.) Wall Street generally is in clear agreement with JPM on this one, too. ORTX shares have 6 Buy reviews, for a unanimous Strong Buy analyst consensus rating, and the $15.17 average price target suggests a 124% upside from the current $6.76 trading price. (See Orchard’s stock analysis at TipRanks.) Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Ark Funds CEO and Founder Cathie Wood joined Benzinga’s “Raz Report” this week and discussed the history of Ark Funds. Wood shared her thoughts on the fintech market, where she sees huge growth ahead. Wood on Fintech: “We think that fintech is probably one of the most misunderstood of all the technology platforms,” Wood said. Digital wallets are going to gut banks, according to Wood. Digital wallets will be responsible for customer’s banking and also loans, debit cards and credit cards, as well as for buying crypto and stocks. “Digital wallets are not only going to do our banking, they’re going to be bank branches in our pockets," she said. Banks will face “innovator’s dilemma” and have a hard time catching up, Wood said. The Ark Funds leader mentioned Cash App from Square Inc (NYSE: SQ) and Venmo from Paypal Holdings (NASDAQ: PYPL) specifically as companies benefitting form the shift being led by millennials. In its 2021 Big Ideas list, Ark said the value of digital wallets per user could rise from $1,900 currently to $20,000 by 2025. Related Link: Roku Will Take Lion’s Share Of Streaming TV Market, According To Cathie Wood Ark Funds Holdings: Square is the second largest holding in the flagship Ark Innovation ETF (NYSE: ARKK) representing 6.3% of assets. Paypal is the 19th largest holding in the Ark Innovation ETF, representing 1.7% of assets. Square and Paypal are both top 10 holdings in the Ark Next Generation Internet ETF (NYSE: ARKW). Square and Paypal rank first and second, respectively, for assets in the Ark Fintech Innovation ETF, representing 9.9% and 5.4%, respectively, of the fund’s assets. See more from BenzingaClick here for options trades from Benzinga'What's The Reason Not To Diversify?' Cathie Wood Talks Bitcoin Hitting 0,000, Rise Of NFTsRoku Will Take Lion's Share Of Streaming TV Market, According To Cathie Wood© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tetragon lost its bid to reclaim its portion of a $200 million Series C investment in the blockchain company.
Worries about the frothiness of China's stock market and steps authorities might take to rein it in are forcing investors out of popular technology and consumer sectors and into small-cap shares and other sequestered stocks in sectors such as banking. That churn has seen investors rush out of richly valued market darlings such as Tencent Holdings Ltd and Meituan. Shanghai-listed spirit maker Kweichou Moutai Co Ltd, a popular bet on China's rising consumerism, has plunged 25% from its Feb. 18 high.
Ark Funds CEO and Founder Cathie Wood joined Benzinga’s “Raz Report” last week and discussed the history of Ark Funds. Wood also shared some of the reasons why Ark Funds owns several positions. Wood on Nano Dimension: Several of the Ark Funds ETFs hold positions in Nano Dimension (NASDAQ: NNDM). “Originally it used to call itself a 3D printed circuit board company,” Wood said. Now, Nano Dimension has broadened the view of itself into a 3D-printed-technology device company, she said. One of the important things about the Nano Dimension story is their contracts they are winning from defense agencies. “We always look for where the defense is putting their money,” Wood said. Wood said she is very impressed with new management at Nano Dimension and points out that the founder is still very involved. Ark Funds: The Ark Next Generation Internet ETF (NYSE: ARKW) owns over 5.8 million shares of Nano Dimension worth $45.8 million. The Ark Autonomous Technology & Robotics ETF (NYSE: ARKQ) owns over 7.1 million shares of Nano Dimension worth $55.4 million. Nano Dimension represents 0.6% and 1.6% of ARKW and ARKQ respectively. Related Link: 15 Big Ideas In Disruptive Innovation According To Cathie Wood’s Ark Funds See more from BenzingaClick here for options trades from BenzingaChamath Palihapitiya's 14 SPAC, PIPE Deals: Tracking Lifetime Performance — And The Past Week'sChamath Palihapitiya Shares Lessons Learned After Tough Week For SPACs© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The last week has been a tough one for investors in many growth stocks. SPACs is one segment that was hit particularly hard. Lessons Learned From Palihapitiya: SPAC King Chamath Palihapitiya shared on Twitter Inc (NYSE: TWTR) how much he lost in the week and his thoughts on the SPAC market. “It’s been a super tough week for me and I’m sure a super tough week for some of you as well. Here is how I’m doing after Friday and what I’ve learned...” Palihapitiya tweeted. The investor broke down his lessons learned during the week as follows: “The first thing I tried to do yesterday was take a step back and try to see the bigger picture,” he said. Palihapitiya went on to say that March 2020 could be a guide as markets were down 20% then. Is this current market environment the same or different? Palihapitiya asks. He said he looked at his relative performance vs the S&P500, which breaks down as 3.6% compared to 2.3%, or 56% above the benchmark. He said he's not a "huge fan" of these numbers. “I re-questioned my goals and concluded my strategic view is still right: that inequality and climate change investments are a once in a lifetime opportunity to make hundreds of billions of dollars AND do the right thing," he said. “I freed up some capital by selling some shares in $SPCE so I can keep investing at scale without impacting my pace and strategic view.” Palihapitiya added that he hated selling the shares but had to do it after his balance sheet shrank by nearly $2 billion during the week. Palihapitiya also said he has not sold any shares of any other SPAC he’s launched. He went on to say that investing is hard, he is not perfect, and he is trying to learn just like his audience and followers on Twitter. “Be resilient and keep fighting,” he said. Markets are volatile and unforgiving, Palihapitiya added. Companies that do valuable things tend to see their value reflected in gains. “Find a way to make sure you are comfortable with what you own and if not, don’t be afraid to make changes. Prices are temporary but your peace of mind should not be,” he said. Palihapitiya ended his tweet with the Persian adage: “This too shall pass.” Related Link: 5 Things You Might Not Know About Chamath Palihapitiya Sale of Virgin Galactic Stock: The tweet from Palihapitiya came after he was in the news Friday for selling his personal stake in Virgin Galactic Holdings (NYSE: SPCE). Palihapitiya sold 6.2 million shares for around $211 million, according to Business Insider. It follows a similar sale in December. Palihapitiya still owns 15.8 million shares in Virgin Galactic through Social Capital Hedosophia, the company that Palihapitiya and partner Ian Osborne used to take the space tourism company public via SPAC. “I sold 6 million shares for $200 million, which I am planning to redirect into a large investment I am making towards fighting climate change,” Palihapitiya told Business Insider in an emailed statement. The investment will be made public in the next few months. It’s been a super tough week for me and I’m sure a super tough week for some of you as well. Here is how I’m doing after Friday and what I’ve learned... pic.twitter.com/fX5YHdqBv6 — Chamath Palihapitiya (@chamath) March 6, 2021 Disclosure: Author is long shares of SPCE. See more from BenzingaClick here for options trades from Benzinga3 Former SPACs Report Earnings: What Fisker, Velodyne Lidar, Virgin Galactic Investors Should Know© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This week, investors will be eyeing new inflation data, which will offer a look at whether prices have already begun to creep up as some have feared ahead of a major economic reopening. A highly anticipated direct listing for the vide0 game company Roblox is also on deck.
Ark Funds CEO and Founder Cathie Wood joined Benzinga’s “Raz Report” this week and discussed the history of Ark Funds. Wood also shared some of the reasons why Ark Funds owns several positions, including in DraftKings Inc (NASDAQ: DKNG). Wood on DraftKings: Wood told Benzinga that DraftKings is becoming accepted as a platform for sports betting as the public grows more comfortable with the activity. “We do think sports betting is losing its taint,” Wood said. The fund manager sees more states turning toward legalizing sports betting, especially as many face huge deficits, Wood said. Wood used New Jersey as an example of the success states can have. The state is a mature market and DraftKings’ revenue was up 100% in the state. “New Jersey was very telling to us," she said. Ark Funds: DraftKings was added to two different Ark Funds beginning in February. Ark Next Generation Internet ETF (NYSE: ARKW) owns around 1.4 milion shares of DraftKings worth $88.1 million. Ark Fintech Innovation ETF (NYSE: ARKF) owns around 546,000 shares of DraftKings worth $33.8 million. DraftKings represents around 1.2% and 0.8% of ARKW and ARKF, respectively. Price Action: Shares of DraftKings finished the week down 6.24% at $59.52. Related Link: DraftKings And Dish Network Partner On Sports Betting, TV Integration See more from BenzingaClick here for options trades from BenzingaFuboTV Shares Pop On Caesars Partnership, Access To Additional States For Sports BettingHorizon Acquisition Corp SPAC Jumps 20% On Potential Sportradar Merger© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.