🌐 IPO Resurgence, Cisco-Splunk Deal & Economic Optimism!

With a succession of strong IPOs displaying some real investor positivity and sentiment appearing to improve, things are looking up for the US economy!

Sep 25, 2023

Market Snapshot (Past Week)

S&P500: 4,320.06 (-2.92%)
Dow Jones Industrial Average: 33,963.84 (-1.89%)
NASDAQ Composite: 13,211.81 (-3.62%)
Russell 2000: 1,776.50 (-3.81%)
S&P/TSX Composite index: 19,779.97 (-4.08%)
PHLX GOLD and SILVER SECTOR: 114.58 (-3.44%)

News in the last 7 days

From game-changing mergers to earnings surprises and an uptick in IPO activity, these highlights will keep you ahead of the curve in the NYSE, NASDAQ, and OTC markets. Don't miss out—knowledge is power in the world of investing!

💰 Cisco to acquire Splunk

Cisco Systems Inc. CSCO 0.00%↑ is set to acquire cybersecurity firm Splunk for a whopping $28 billion. This strategic move, Cisco's largest acquisition to date, signals a major pivot toward software and AI-driven data analytics. The deal aims to diversify Cisco's revenue streams, which have been impacted by challenges in its traditional networking equipment business. Splunk, known for its data observability and subscription-based model, will help Cisco focus on security, a sector where spending remains robust. The acquisition has unanimous board approval and is expected to close by the end of Q3 2024.

🍽️ Investor Appetite Returns to Fuel Tech Sector IPOs

The IPO market is experiencing a resurgence, with companies like Klaviyo KVYO 0.00%↑ , Instacart CART 0.00%↑ , and Arm Holdings ARM 0.00%↑ making strong debuts. Klaviyo's shares soared 23% on the NYSE, pushing its valuation to $11.3 billion and raising $576 million in proceeds. Heavyweights BlackRock and AllianceBernstein have each committed to buying up to $100 million in shares. Instacart also impressed with a 12% rise in its Nasdaq debut, marking the first major U.S. venture-backed IPO since December 2021. Meanwhile, Arm Holdings saw a 25% stock price jump, achieving an initial valuation close to $60 billion. Despite these strong starts, all three have experienced some pullback.

💪 Small Business Confidence Soars in Q3

Small business owners show rising confidence, as indicated by a six-point jump in a third-quarter index from the Chamber of Commerce. This boost suggests the economy could be on stable ground as the index nears pre-pandemic levels. The index is based on a survey involving 751 U.S. business owners who manage companies with a workforce of less than 500 individuals. This confidence surge could spill over into the stock market, possibly driving a rise in small-cap stocks.

🏦 Bank of America CFO Upbeat on Economic Outlook

Bank of America's CFO, Borthwick, expresses optimism about the economic landscape, noting that consumers continue to spend. This aligns with the Federal Reserve economists, who have also withdrawn their recession forecasts. Borthwick confirms Bank of America's third-quarter net interest income projection, expecting it to land between $14.2 billion and $14.3 billion.

Market Movement

Quick Bond Breakdown

TLDR: Bill Ackman predicts a rise in 30-year bond yields to 5.5%, citing factors like inflation and national debt. While he acknowledges the possibility of being wrong, the impact of his forecast on the broader economy and Federal Reserve actions remains uncertain. For retail investors, higher yields could mean buying bonds at lower prices but also risk devaluing existing bond holdings.

Last week a relentless surge in Treasury yields sapped demand for risk assets like tech stocks. (Read more at Bloomberg)

0DTE Bets Ramp Up

TLDR: A rising trend in the speculative options space is the use of 0DTE options, which expire within 24 hours. These options offer a cost-effective way to get significant stock exposure—$1,000 for every dollar spent—making them an attractive choice for targeted hedging. The notional trading volume for 0DTE options in the S&P 500 averages a staggering $516 billion a day, but the actual premium paid is a mere $520 million. This opens up new strategies, like using 0DTE options for occasional hedges, even for long-term, buy-and-hold investors.

The Most Popular Options Trade Turns a $1 Investment Into a $1,000 Stock Bet (Read more at Yahoo)

Investing signals

📈 Top 5 gainers in last 7 days

Cybin Inc. CYBN 0.00%↑ - $0.55 (+66.67%) - Shares have skyrocketed on the news that billionaire investor Steve Cohen’s hedge fund Point72 Asset Management purchased almost 19 million shares.
American Oncology Network Inc AONC 0.00%↑ - $17.76 (+64.67%) - Shares have risen due to American Oncology Network, LLC (AON) and Digital Transformation Opportunities Corp. (DTOC) successfully completing their merger, resulting in the formation of a new entity named American Oncology Network, Inc.
Murphy Canyon Acquisition Corp. MURF 0.00%↑- $16.85 (+64.55%) - Shares exploded for the SPAC as they have now merged with Conduit Pharmaceuticals Inc.
MicroAlgo Inc. MLGO 0.00%↑ - $4.78 (+53.21%) - Stock is soaring as investors are excited by the company's development of a new backtracking search software algorithm which they feel will get adoption from large businesses and research institutions.
CF Acquisition Corp. VIII CFFE 0.00%↑ - $16.31 (+47.97%) - Shares have jumped purely on speculative traders. The company is a SPAC so there is anticipation that the company could announce some sort of merger.

Note: Figures from StockAnalysis.com - Settings: Market Cap > $100M, Stock Price > $1, Period last 7 Days. All prices are correct as of pre-market on 25 September.

📉 Top 5 losers in the last 7 days

QuantaSing Group Ltd QSG 0.00%↑ - $2.09 (-65.16%) - The stock has plummeted due to a poor fourth-quarter earnings report last week.
ARS Pharmaceuticals, Inc. SPRY 0.00%↑ - $3.96 (-45.45%) - The FDA declined to approve the nasal spray for allergic reactions that would have been the first needle-free treatment which forced the shares to fall to record lows.
Travere Therapeutics, Inc. TVTX 0.00%↑ - $7.85 (-42.66%) - Share slumped due to mixed phase 3 trial results regarding Filspari which is their therapy treatment for kidney disease.
Mondee Holdings, Inc. MOND 0.00%↑ - $4.38 (-38.48%) - Share price has been falling for some time due to underwhelming earnings and downgrades from brokers but this trend seems to be changing as the company has done share re-purchase and has had buy rating reiterated from Roth Mkm with a price target of $10.
Canopy Growth Corporation CGC 0.00%↑ - $0.84 (-37.79%) - Stock is down this week due to a private placement to raise a further $50M.

Note: Figures from stockanalysis.com - Filters: Market Cap > $100M, Stock Price > $1, Period Last 7 Days. All prices are correct as of pre-market on 25 September.

Thank you for reading Investing Intel. This post is public so feel free to share it.

Stocks trending in Google search

In addition to Klaviyo Inc KVYO 0.00%↑ and Splunk Inc SPLK 0.00%↑, here are some of the top stocks trending in Google Search in the past week.

American Battery Technology Co

U 0.00%↑
Share Price: $36.32
Weekly Change: -5.56%
Google Search Interest: Breakout

American Battery Technology Company (ABTC) just turbocharged its growth trajectory by securing a coveted spot on the Nasdaq Capital Market. This monumental move amplifies ABTC's credibility and opens the floodgates to a sea of new investment opportunities. Previously tucked away in the OTCQX market, ABTC now joins the big leagues, showcasing its groundbreaking technologies for battery minerals manufacturing and lithium-ion battery recycling.

Avinger Inc

AVGR 0.00%↑
Share Price: $9.71
Weekly Change: +53.64%
Google Search Interest: +1,350%

This medical device company saw its share price rocket last week following the launch of its vascular disease treatment system. The company boasts that its Tigereye ST device is the world’s only intravascular image-guided, catheter-based system for diagnosis and treatment of vascular disease. As such, its share price has climbed up from record lows.

Instacart Inc

CART 0.00%↑
Share Price: $30.00
Weekly Change: -23.75%
Google Search Interest: +450%

Having joined the NASDAQ in an IPO on Tuesday, online retailer Instacart saw its share price jump from $30 to $34 on its first day of trading. However, declines set in as the week bore on. The company’s core business is as an online grocery order service, but now also incorporates advertising and AI technology.

Rumble Inc

RUM 0.00%↑
Share Price: $4.86
Weekly Change: -25.80%
Google Search Interest: +150%

Free speech content platform Rumble has seen its share price dented by fallout from the Russel Brand controversy, where the comedian and self-help guru has been accused of a slew of rapes and sexual assaults. Rumble refused to drop Russell Brand from its platform, leading high-profile advertisers like Burger King and HelloFresh to cut ties. Rumble claims to be “immune to cancel culture” but losing advertising revenue could seriously harm the business.

T2 Biosystems Inc

TTOO 0.00%↑
Share Price: $0.25
Weekly Change: -33.33%
Google Search Interest: +90%

This diagnostics expert had a rocky week, with its share price dropping amid concerns that it will be able to continue as a going concern. However, it had begun the week in a buoyant fashion following the receipt of FDA approval for its molecular blood test for the detection of pathogens such as plague. Even so, with serious doubts about the company’s ability to even make it to the end of the year, it appears many investors want out.

Alternate investing signals

r/WallStreetBets

We’re using QuiverQuant to tell you the stocks generating the most interest in the world’s most influential online investment community. The week’s hottest are below:

NVIDIA Corp

NVDA 0.00%↑
Mentions: 651

This semiconductor giant continued to provoke discussion on the forum. Perhaps most notably in the last week, users noted that Goldman Sachs, which cut the stock’s price target right before it exploded in value across 2023, has just hiked its NVDA price target. Suspicious users are taking this as a sign that the firm is looking to sell its position.

Tesla

TSLA 0.00%↑
Mentions: 496

The electric vehicle giant is the centre of multiple discussions around buying TSLA puts, which effectively amounts to betting against the stock. These discussions only intensified after CNBC’s Jim Cramer appeared to back the stock to rally.

Apple

AAPL 0.00%↑
Mentions: 188

Finally, tech giant Apple remained a major topic of discussion. Some users jokingly argued that Fed Chief Jerome Powell’s decision to read from an iPad, rather than his usual sheaf of paper, was a sign that the firm would rally soon enough.

Meme of the week

We work hard to bring you new investing ideas and opportunities each week - please support us by sharing this newsletter with friends or family so we can help others with their investing journey!

Investing Intel