Palantir IPO & Presidential debate

For the day ahead, I’ll be watching out for the Palantir IPO, Micron Technologies earnings and the first presidential debate between Donald Trump and Joe Biden.

 

So really Palantir - ticker PLTR - will be a direct listing not a proper IPO. The listing is expected to value Peter Thiel’s company at over $20 billion but as is often the case with tech companies when raising money - it is still unprofitable.

 

Recent IPOs have done very well with the most ‘doubling’ - that’s a 100% gain in the stock price - since the dot com bubble. However, direct listings last year didn’t capture the imagination of investors. Slack is up only 5% from its reference price and it took a jump in user growth during lockdown and signing Joe Rogan for a podcast to get people excited about Spotify.

 

Micron Technologies stock was left out in the cold during this year’s giant tech rally. The shares are down 9%, under-performing the S&P 500. Falling memory prices are hitting the semiconductor-maker, bringing down earnings per share estimations from $12 last year to closer to $3.

 

The presidential debate happens well after the market close on Wall Street so its a risk-event for Wednesday that requires attention on Tuesday. Trump is arguably the more market-friendly candidate, but markets are now banking on a Biden win.

 

A big upset by Trump could unearth some market volatility as investors re-price a possible Trump second term - or maybe worse - a contested election result and even bigger delays until the next stimulus package gets passed.

 

 

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