What Uber Means for the Stock Market, and How to Trade the Next IPO Like Warren Buffett

The headlines were brutal. St least some of them were. Gizmodo exclaimed, “Congratulations to Uber, the Worst Performing IPO in U.S. Stock Market History.” The story explained that trading had not gone as expected for the ride hailing service. Uber “finally debuted on the New York Stock Exchange today, in the middle of international trade uncertainty and following a massive, international strike by its own drivers, how’d it do? According to University of Florida professor Jay Ritter, Uber’s 7.62 percent decline since hitting the NYSE makes it “bigger than first day dollar losses of any p...
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Tesla Turns to the Markets But It Might Not Help in the Long Run

Tesla (Nasdaq: TSLA) recently announced that it would sell about $2 billion in stock and bonds to help fund its operations after a worse than expected first quarter. Regulatory filings show Tesla plans to raise between $2 billion and $2.3 billion, consisting of $1.35 billion to $1.55 billion in five-year convertible senior notes (debt with a low interest rate of 1.5%-2% that can be converted to stock if the share price rises roughly 30%), plus $650 million to $750 million of common stock. There is little chance of failure since the deal is being managed by Goldman Sachs, Citigroup, Morga...
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Traders Shrug Off Facebook’s $5 Billion Fine

It was a story buried in the hard copy of The New York Times, on page B6 with the headline “Bank Agrees to Settle Mortgage Crisis Claims.” It could have been written in 2009, or 2010. But it is more recent than that, appearing just last week: “More than a decade after the mortgage crisis blew a hole in the United States economy, banks and prosecutors are still sorting out the tab for the damage. The latest reckoning came on Thursday, when Morgan Stanley agreed to pay $150 million to settle claims by the State of California that it misled investors about the risks of mortgage-backed secur...
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Don’t Make These IPO and Trading Mistakes

Trading is challenging and it’s difficult enough to succeed without facing additional problems created by mistakes. Yet, mistakes are possible and might even be common. For example, when there is an initial public offering (IPO) of a hot stock, the mistake could be buying shares of the company. The IPO of Lyft (Nasdaq: LYFT) demonstrates that the initial buyers of a stock could suffer quick losses. There is no assurance of a rapid rebound in these stocks. Snap (NYSE: SNAP) and Twitter (NYSE: TWTR), for example, are both below the IPO prices years after their IPOs. But there are ot...
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Disney Seemed to Declare War on Netflix

Netflix (Nasdaq: NFLX) changed the way we watched according to many analysts. Since television began, broadcasters decided to make programs available for viewing. In the 1980s, viewers achieved some level of flexibility when it became possible to record shows to watch later. DVRs make recording even simpler. But viewers still needed to actively plan around the broadcaster’s schedule. They needed to record the show when it was broadcasted, or they missed it. Netflix changed that and offered viewers true on demand programming options. Shows were available when the viewer wanted them, no advan...
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Tesla Could Finally Be Ready to Break Down

Tesla (Nasdaq: TSLA) is a company that is in the news quite a bit. The company CEO is one of the reasons that Tesla stays in the news so much. According to the New York Post, “Tesla CEO Elon Musk took the rare move of showing up to a court hearing Thursday over his tweeting, which the Securities and Exchange Commission claims is out of control. Lawyers for the SEC are asking [the judge] to hold Musk in contempt of court for violating an agreement he hammered out with the watchdog last year — and which the judge approved — to have his Tesla tweets monitored. … the SEC is asking for the...
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What We Can Learn From Lyft

On Friday morning, Lyft (Nasdaq: LYFT) officially became the first member of Silicon Valley’s sharing economy companies to begin trading on the public markets. Investors were enthusiastic about the company. Initially, the ride hailing service planned to sell shares between $62 and $68. That was the price referenced in the initial regulatory filings. After making that filing, the company began its roadshow. The Process Built Excitement A roadshow is defined by Investopedia as “a series of presentations made in various locations leading up to an initial public offering (IPO). The roadshow i...
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What $9 Billion In Fines For Google Tells Us About Facebook

The news was unsurprising. A regulator levied a large fine against a tech company, as NPR reported, “The European Commission is hitting Google with a fine of 1.49 billion euros (some $1.7 billion) for "abusive practices" in online advertising, saying the search and advertising giant broke the EU's antitrust rules and abused its market dominance by preventing or limiting its rivals from working with companies that had deals with Google. The case revolves around search boxes that are embedded on websites and that display ads brokered by Google. Those ads are powered by AdSense for Search —...
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Apple Could Be the Next GE

Many investors seem to be on the lookout for the next big thing. They want to find the next Warren Buffett or perhaps the next Warren Buffett Stock.  They might be on the lookout for the next Microsoft, or the next Google, or the next Apple. While these are all worthy pursuits, investors should also consider looking out for the next disaster. For example, they could be on the lookout for the next General Electric (NYSE: GE). The stock suffered an extended sell off over more than two years. It’s important to consider what could have happened to avoid making the mistake of holding on t...
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Here’s How to Trade 5G

The next big thing in tech could be 5G. A leading proponent of this technology is President Trump. According to TheHill.com, President Trump recently said in a pair of tweets that he wants the U.S. to beat other nations to rolling out next-generation wireless technology, known as 5G. Source: TheHill.com The political site noted, “Full 5G deployment is still years away, though wireless companies are already making big promises about what the technology will deliver. The new wireless networks, the industry says, will pave the way for advanced technologies like virtual reality and driverles...
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