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All three major U.S. stock indexes closed higher for the week, led by the Dow Jones Industrial Average . The Nasdaq Composite added 1.14% while the S & P 500 advanced 1.85% in a relatively quiet week of economic updates. Within the portfolio, Disney and Wynn Resorts released quarterly numbers; we took issue with the stock reaction to both reports. It also raises the stakes around major economic releases, such as next week's consumer inflation report. In the week ahead, earnings season continues — headlined by Walmart on Thursday — and inflation data will dominate the economic calendar.
Persons: We've, Jim Cramer, Dow Jones, we'll, We'll, Stanley Black, Decker, Jack, JACK, Arcutis, Spero, JD.com, Armour, Jim Cramer's, Jim, Carlo Allegri Organizations: Dow Jones, Nasdaq, Disney, Wynn Resorts, Procter, Procter & Gamble, Walmart, CPI, PPI, Club, Home Depot, Biotech Corporation, Music Entertainment, Central Puerto S.A, TeraWulf Inc, Paysafe Group Holdings, QuickLogic Corporation, Kopin Corp, Royalty Corp, Agilysys Inc, Crop Solutions Corp, Inovio Biomedical, Intercorp Financial, Lithium, Argentina ) Corp, Sea, Sony Group Corporation, SONY, Holding, HudBay Minerals, Autolus Therapeutics, Game Technology, Nu Holdings, Dragonfly Energy Holdings Corp, Bakkt Holdings, Prestige Consumer Healthcare, SilverCrest Metals, Inc, Mining Corp, Acurx Pharmaceuticals, Cresco Labs, Dole plc, DOLE, Arcos Dorados Holdings, ARCO, Cisco Systems, Grab Holdings, Copa Holdings S.A, Technologies, Iris Energy, KORE Group, Super, Spero Therapeutics, ZTO, Baidu, Deere & Company, NICE, Lightspeed Commerce, Ship Lease, Canada Goose Holdings, Drainage Systems, Consolidated Water Co, Outlook Therapeutics, Despegar.com, Corp, DXC Technology Company, Flowers Foods, Bruker Corporation, WYNN, CNBC, Foods Locations: Procter &, Central, Cayman, Lithium Americas, Argentina, Manhattan, New York City
Change Healthcare offers payment and revenue cycle management tools, and other solutions such as electronic prescription software. On Feb. 21, UnitedHealth Group , which owns Change Healthcare, discovered that hackers compromised part of the unit's information technology systems. UnitedHealth told CNBC earlier this month that there is "no evidence of any new cyber incident at Change Healthcare." It's just one of the ways Change Healthcare touches cash flow within the health-care sector. A controversial mergerSheldon Cooper | Sopa Images | Lightrocket | Getty ImagesUnitedHealth's ownership of Change Healthcare has raised eyebrows from the outset.
Persons: Omar Marques, Dr, Angeli Maun Akey, Akey, she's, UnitedHealth, I've, Andrew, Mike Bradley, Barbara McAneny, McAneny, Sarah Carlson, Carlson, Sheldon Cooper, Optum, Michael Nagle, Tyler Kisling, Kisling, he's, There's, it's, Purvi, Parikh hadn't, they've, Amit Phull, Phull, Igor Golovniov Organizations: Lightrocket, CNBC, Healthcare, UnitedHealth, U.S . Securities, Exchange Commission, Change, Inc, Bloomberg, Getty, U.S, American Medical Association, AMA, U.S . Department of Justice, DOJ, U.S . Department of Health, Human Services, Wall Street, New York Stock Exchange, Change Healthcare Locations: Gainesville , Florida, U.S, Minnetonka , Minnesota, UnitedHealth's, New Mexico, Boulder , Colorado, California, New York City, UnitedHealth
Reddit CEO Steve Huffman hugs mascot Snoo as Reddit begins trading on the New York Stock Exchange (NYSE) in New York on March 21, 2024. Reddit shares were up 30% to $59.80 at the market's close on Monday. The social media company's stock has been rising ever since it went public last week and raised roughly $750 million from the IPO, of which the company brought in about $519 million. Reddit shares soared 48% when it began trading on the New York Stock Exchange under the stock ticker "RDDT," resulting in a number of moderators and users, known as Redditors, earning millions of dollars as a group. Reddit's IPO came the same week that Astera Labs shares skyrocketed 72% on the day that the data center hardware company made its public market debut on the Nasdaq.
Persons: Steve Huffman, Snoo, Sam Altman, Reddit, Lo Toney, Toney Organizations: New York Stock Exchange, Reddit's, Astera Labs, Nasdaq, Capital, CNBC Locations: New York
Reddit power users who participated in the company's IPO made millions of dollars as a group in profits after the stock's big jump in its first day on the market. It's a model that was used by companies like Airbnb , Rivian and Doximity to reward their loyal users and customers. In a reply to LearnedButt, Reddit user friskevision wrote, "Although I didn't invest as much as you, I did make a quick $1,500. Reddit user Reepicheepee made a small investment in the shares. The Reddit user Galactic responded, "High-5, fellow DSP dumper," adding, "Never thought this site would make me money, but here we are!"
Persons: Redditors, Drew Vollero, Axios, , LearnedButt, friskevision, Reddit, blackberrydoughnuts, Reepicheepee, follysurfer, subreddit, Steve Huffman, Huffman, Redditor erjo5055 Organizations: New York Stock Exchange, Inc, CNBC, GameStop, AMC Entertainment, Galactic Locations: It's
Reddit shares jumped 48% in their debut on Thursday in the first initial public offering for a major social media company since Pinterest hit the market in 2019. Reddit and selling shareholders raised about $750 million from the offering, with the company collecting about $519 million. This year, Reddit said it plans to recognize roughly $66.4 million in revenue as part of its data licensing deals. Google has also entered into an expanded partnership with Reddit, allowing the search giant to obtain more access to Reddit data to train AI models and improve its products. "I hope they believe in Reddit and support Reddit," Huffman told CNBC in an interview on Thursday.
Persons: Steve Huffman, Lynn Martin, Reddit, Pinterest, Klaviyo, Pinterest's, it's, Alexis Ohanian, Huffman, Redditors, Sam Altman, Condé Nast, Altman's, Altman Organizations: New York Stock Exchange, Astera Labs, Nasdaq, Meta, Google, Reddit, Federal Trade Commission, FTC, Companies, CNBC, GameStop, Tencent, Advance Magazine Publishers Locations: New York, It's, Reddit
It's not just market conditions that have Reddit moderators like Gilbert forgoing the investment opportunity. Reddit has long had a rocky relationship with moderators and the site's most dedicated users, or Redditors. In total, Reddit said underwriters have reserved 1.76 million of the 8 million shares in the IPO for the DSP. Meme stocksOf all companies, Reddit knows something about stock market volatility. However, given the dearth of tech IPOs since the start of 2022, White said Reddit's offering is "probably a little more risky."
Persons: Jonathan Raa, Sarah Gilbert, she's, She's, Airbnb, Doximity, Reddit's, Klaviyo —, It's, Gilbert forgoing, Reddit, Steve Huffman, Gilbert, you've, Alexis Ohanian, Twitch, BuckRowdy, Joshua White, White, FormicaDinette33, subreddits, it's, Wrestlegirl, Maharaj, shouldn't, He's, jeering, Courtnie Swearingen, Victoria Taylor, Swearingen, San, — CNBC's Cameron Costa Organizations: Nurphoto, Getty, New York Stock Exchange, Cornell University's Citizens, Technology, Google, YouTube, Facebook, CNBC, GameStop, AMC Entertainment, Vanderbilt University Locations: New, Chicago, San Francisco
Reddit to raise nearly $750 million in upcoming IPO
  + stars: | 2024-03-11 | by ( Jonathan Vanian | In | ) www.cnbc.com   time to read: +2 min
Reddit aims to raise up to $748 million as part of its upcoming IPO, in which the social media company is seeking a valuation of about to $6.5 billion. The company plans to sell about 22 million shares between a range of $31 to $34 per share, according to a corporate filing released Monday. Investors are closely watching Reddit's upcoming IPO, which will be this year's first major tech stock launch and the first social media IPO since Pinterest went public in 2019. Reddit's annual sales in 2023 were $804 million, which was a 20% year-over-year increase from $666.7 million, according to the company's S-1 filing. It also recorded a net loss of $90.8 million for 2023, which was narrower than the $158.6 million net loss it logged in 2022.
Persons: Reddit, Redditors, Pinterest, Sam Altman Organizations: New York Stock Exchange, Securities and Exchange Commission, Tencent, Advance Magazine Publishers Locations: Los Angeles , California
Reddit is seeking a valuation of up to $6.5 billion in its upcoming IPO, according to a person familiar with the matter. The Wall Street Journal was first to report on the expected range and valuation. Employees will be allowed to sell Reddit stock during the offering, the source added. Reddit had a private market valuation of $10 billion when it last raised a funding round of $1.3 billion in 2021, according to PitchBook. Reddit's IPO will represent the first major tech offering of the year and the first social media IPO since Pinterest's Wall Street debut in 2019.
Persons: Reddit, Sam Altman's, he'd, Altman, Condé Nast, Alexis Ohanian, Steve Huffman, Airbnb, OpenAI's, John Tuttle Organizations: New York Stock Exchange, Tencent, Advance Magazine Publishers, Securities and Exchange Commission, Google, Reddit Locations: Los Angeles , California, Reddit
The three major averages posted gains for the fourth week in row, lifted by strong quarterly earnings results for most of the Big Tech companies and a strong jobs report. A weaker ADP Employment report on Wednesday provided no read-through to the monster January jobs report Friday. Here's what we're keeping an eye on in the coming week: 1. Earnings: It's another big earnings week head for the portfolio, with 8 more of our companies reporting. Consistency is what we appreciate most from nat gas giant Linde , so we're hoping for another quarter of solid earnings growth Tuesday.
Persons: Estee Lauder, Eli Lilly, Mounjaro, Nelson Peltz, Estée Lauder, Tyson, CARR, Jacobs, Willis Towers Watson, Edwards, Walt Disney, Oscar Health, Philip Morris, Armour, BAX, BILL, Jim Cramer's, Jim Cramer, Jim, George Frey Organizations: Big Tech, Dow Jones Industrial, Nasdaq, PMI, Apple, Starbucks, Procter, Gamble, GE Healthcare, DuPont, Linde, Ford, General Motors, Trian Partners, Disney, ESPN, Wynn Resorts, Wynn, Vegas, Prix, Estée Lauder Companies, Caterpillar, McDonalds Corp, Allegiant Travel, Bowlero Corp, Tyson Foods, TSN, Air Products & Chemicals, IDEXX Laboratories, CNA Financial Corp, CNA, Timken Company, Graham Corporation, Mesa Laboratories, Sphere Entertainment, Loews Corp, Technologies, Vertex Pharmaceuticals, Semiconductors, Simon Property Group, Amkor Technology, FMC Corporation, FMC, BellRing Brands, Crown Holdings, ChampionX Corporation, Golub Capital BDC, Flexsteel Industries, Kilroy Realty Corp, Gladstone Capital Corp, Unibanco, S.A, Snack Foods Corp, Kimball Electronics, Skyline Corp, Cabot Corporation, Simpson Manufacturing Co, Varonis Systems, Co, GE HealthCare, Linde plc, LIN, Spotify Technology S.A, BP, Hertz Global Holdings, AeroSystems Holdings, Toyota Motor Corp, Cummins, CMI, Software Technologies, AGCO Corporation, Carrier Global Corporation, Lear Corp, CONSOL Energy, Centene Corporation, Gartner, Arcbest Corp, CTS Corporation, Energizer Holdings, Hamilton Lane Incorporated, KKR, Precision Drilling Corporation, Frontier Group Holdings, Waters Corp, Alfa Laval, Aramark Holdings Corp, FirstService Corporation, Garden Sports Corp, New Jersey Resources Corp, nVent Electric plc, PJT Partners, Resources, Sensata Technologies, Ford Motor Company, Enphase Energy, Grill, VF Corp, Edwards Lifesciences Corp, Gilead Sciences, Lumen Technologies, Cognizant Technology Solutions Corp, Weatherford International plc, Amcor plc, Arrowhead Pharmaceuticals, Advanced Energy Industries, Uber Technologies, CVS Health, Roblox Corporation, Ares Capital Corp, Bunge, XPO Logistics, Scotts Miracle, Gro Company, Berry Global, Flex LNG, Equinor ASA, Griffon Corporation, OneMain Holdings, Brookfield Asset Management, Emerson Electric Co, Hilton Worldwide Holdings, Reynolds Consumer Products, Silicon Laboratories, Brands, Sciences, CDW Corp, Fox Corporation, WYNN, PayPal, Arm Holdings plc, ARM, Axcelis Technologies, Mattel, Paycom, Annaly Capital Management, McKesson Corp, Health Corporation, O'Reilly Automotive, Allstate Corp, Fluence Energy, Power Systems, Digital Turbine, Blue Bird Corp, Everest Group, Omega HealthCare, Coty, COTY, ConocoPhillips, Cameco Corp, Philip Morris International, Spirit Airlines, Hershey Company, Lightspeed Commerce, Aurora Cannabis, Lincoln National Corp, P, Tenet Healthcare Corp, Asbury Automotive Group, Arrow Electronics, Baxter International, PetMed, Boyd Gaming Corp, FirstEnergy Corp, Motorola Solutions, Terex Corp, PepsiCo, Growth, AMC Networks, Owl, American Pipeline, TELUS International, Magna International, Newell Brands, Jim Cramer's Charitable, CNBC, Bloomberg, Getty Locations: U.S, China, Macau, Wynn Macau, Valvoline, VVV, ALFVY, Madison, New Jersey, Gilead, Ceridian, ORLY, Paycor, Aurora, Provo , Utah
Canaccord Genuity is laying out some names poised to capitalize on the new stage of AI set to unfold in 2024. "As we enter 2024, we anticipate a marked shift from businesses creating AI strategies towards executing them, with a focus on measuring and delivering ROI." Here are some of the companies across sectors best situated to take advantage of the next stage of AI growth: Canccord Genuity sees a plethora of opportunities in the technology space beyond the pure play behemoths that prospered in 2024. "In the software security section of the report, we address how our coverage companies are implementing and/or enhancing AI strategies." But technology isn't the only industry poised to benefit from AI tailwinds this year and beyond.
Persons: Susan Anderson, Anderson, Genuity, — CNBC's Michael Bloom Organizations: Microsoft, Nvidia, Nasdaq, Deere
HONG KONG (AP) — Shares edged lower Monday in quiet trading in Asia ahead of a meeting this week between U.S. President Joe Biden and Chinese leader Xi Jinping. On Wall Street on Friday, the S&P 500 jumped 1.6% to 4,415.24. Big Tech stocks were the strongest forces pushing upward on the S&P 500, including a 2.3% gain for Apple and 2.5% rise for Microsoft. The release of the University of Michigan report initially caused Treasury yields to pare their drops, which caused stock indexes to wobble. On Thursday, a jump in Treasury yields knocked stocks lower to break an eight-day winning streak for the S&P 500, one of its longest in the last two decades.
Persons: Joe Biden, Xi Jinping, Biden, Xi, Australia's, Doximity, Powell, , Brent Organizations: Asia Pacific Economic Cooperation, U.S . Federal Reserve, Nikkei, Dow, Nasdaq, Big Tech, Apple, Microsoft, Federal, University of Michigan, Fed, CME Group, Federal Reserve, Treasury, U.S . Locations: HONG KONG, Asia, Tokyo, Hong Kong, Seoul, U.S, pare
The 13-year-old company has introduced a free service called DocDefender that can scrub a physician's personal contact information from the internet. The technology scans dozens of the most common websites where a doctor's information might reside and automatically initiates the removal process. Two months after the workshopping event, Doximity conducted a survey of more than 2,000 doctors and found that 85% of them worry about whether patients will access their personal information online. The service will be available to all doctors on Doximity starting Wednesday, and will expand to nurse practitioners and others over time. 'Opportunity to think very long term' In addition to reaching more than 80% of U.S. doctors, Doximity says it's also used by 50% of nurse practitioners and physician assistants.
Persons: that's, Doximity, Amit Phull, We've, Phull, Jeff Tangney, he's, I've, it's, Azlan Tariq Organizations: New York Stock Exchange, NYSE, CNBC Locations: San Francisco, Doximity, Chicago
In Customer relationship management software, the CNBC Investing Club owns Salesforce (CRM). Again do not dismiss this one and Alteryx (AYX) as I think that there is real weakness in this quarter's enterprise software market. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB.
Persons: WEN, Jim Cramer's, Jim Cramer, Jim Organizations: Palo Alto, JPMorgan, CNBC, Club, Mizuho, Datadog, Bloomberg, Boston, Citi, Barclays, Brands, RBC, Holdings, PepsiCo, Jim Cramer's Charitable Locations: Wells
Check out the companies making the biggest moves in premarket trading:Western Alliance — Shares popped 12% premarket after Western Alliance said its deposit growth for the current quarter exceeded $2 billion as of May 12, up from the $1.8 billion in deposit growth for the quarter through May 9. Target also said it expects sales to remain sluggish in the current quarter, marked by a single digit decrease in comparable sales. Zions Bancorporation — The Salt Lake City-based bank added 4.7% as regional banks moved higher in premarket trading, led by Western Alliance. It guided for between $2.00 and $2.06 EPS for the current quarter, above analysts' forecast of $1.96. Doximity — The medical software stock dropped nearly 10% premarket, one day after the company issued weak guidance for the current quarter.
Musk said that although he expects an economic downturn for the next 12 months, Tesla is well-positioned for the long run. Western Alliance — Western Alliance popped 15% after the regional bank said deposit growth so far this quarter surpassed $2 billion as of May 12. Target — Shares of the big-box retailer rose more than 2% after the company topped Wall Street's earnings expectations for its fiscal first quarter. It also topped expectations for first-quarter comparable sales, per StreetAccount, but its revenue missed estimates. Keysight Technologies — Shares popped more than 7% after Keysight Technologies topped earnings expectations for the fiscal second quarter.
Club earnings this week include Palo Alto Networks (PANW), TJX Companies (TJX), Nvidia (NVDA), Pioneer Natural Resources (PXD) and Coterra Energy (CTRA) as well as Bausch Health (BHC). Deere (DE) price target raised to $398 per share from $364 at Bernstein, which keeps market perform (hold) rating. Mizuho likes the Twilio (TWLO) pivot and takes price target up to $90 per share from $75. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Expedia — The travel company's stock toppled nearly 8% after falling short of analysts' revenue and earnings expectations for the recent quarter. Yelp — Yelp's stock jumped 4% after fourth-quarter revenue beat analysts expectations, according to Refinitiv. Deutsche Bank — Shares fell 3% after Bank of America downgraded Deutsche Bank to underperform from neutral, saying the European bank is "struggling to improve profitability." The decline in shares came despite a top-and-bottom line beat on analysts' expectations, according to FactSet. Adjusted earnings before interest, taxes, depreciation and amortization for the fourth quarter came in below analysts' expectations, according to FactSet.
Earnings season continues next week, with Club holdings Linde (LIN), Emerson Electric (EMR) and Walt Disney (DIS) all set to report. Similarly, shares of Meta Platforms (META) have surged over 20% since CEO Mark Zuckerberg reassured investors Wednesday evening that 2023 would be the technology giant's "year of efficiency." The bull case is further supported by continued signs inflation is easing, a still-robust job market and the breadth of market-buying activity since the start of the year. Lastly on Wednesday, the Fed's Federal Open Market Committee raised the federal funds rate by 25 basis points, in line with expectations. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
World Wrestling Entertainment — The wrestling entertainment stock surged 21% after WWE announced that founder Vince McMahon is returning to its board of directors and that the company is exploring strategic moves. R1 RCM — Shares of the healthcare technology firm soared more than 11% after the company raised its revenue outlook for 2023. Costco Wholesale — Shares of the big-box retailer jumped more than 6% after it reported solid sales numbers for December. First Solar — Shares of First Solar rose more than 4% after Wells Fargo upgraded it to overweight, saying Europe's energy crisis and the Inflation Reduction Act in the U.S. will boost demand for solar energy. Bed Bath & Beyond — Shares plunged 20% after the retailer warned it was running out of cash and was considering bankruptcy.
With a stock price down 45% in the last year, though, it may soon find itself on the other side of the table. But it has $732 million in cash on hand, with zero debt, and analysts are projecting 16% revenue growth. This year, though, Varonis has come back to earth — its stock price has sunk over 57% in the last 12 months. However, with strong projected 2023 revenue growth of 18.6%, Zuora remains a strong target for PE firms. Its stock price has been hammered, going down about 40% this year and making it the subject of mergers-and-acquisitions chatter.
With a stock price down 45% in the last year, though, it may soon find itself on the other side of the table. But it has $732 million in cash on hand, with zero debt, and analysts are projecting 16% revenue growth. This year, though, Varonis has come back to earth — its stock price has sunk over 57% in the last 12 months. However, with strong projected 2023 revenue growth of 18.6%, Zuora remains a strong target for PE firms. Its stock price has been hammered, going down about 40% this year and making it the subject of mergers-and-acquisitions chatter.
Following a recent meeting with management, the firm said it is increasingly confident in Walgreens' strategy to transition to a healthcare services company. JPMorgan said Intel will participate in an overall industry rebound, but at a slower pace due to competitive pressures. Duolingo (DUOL) – Duolingo shares fell 3.2% in the premarket after reporting revenue for its most recent quarter fell slightly short of analyst forecasts. LegalZoom (LZ) – LegalZoom rallied 15.4% in premarket action following better-than-expected quarterly results from the online provider of legal documents and advice. Beazer Homes (BZH) – Beazer rose 1.6% in premarket trading after its quarterly earnings and revenue came in above Wall Street consensus.
Doximity — The online platform for medical professionals skyrocketed more than 27% after the company reported better-than-expected quarterly results. Walgreens — Shares rose 6% after an upgrade to buy from hold Deutsche Bank, which said it liked Walgreens' merger and acquisition plans. Duolingo — Shares of the foreign language learning platform lost 10% after the company reported revenue below expectations while also posting a smaller-than-expected quarterly loss. Wynn Resorts — The casino stock jumped more than 8% after China said it would ease some Covid restrictions, trimming quarantine time for international travelers by two days. General Motors — The automotive giant's stock jumped more than 6.3% after Citi reiterated the company as a top pick.
Club holding Wynn Resorts (WYNN) jumps 5% in the premarket after a 4.5% pop Friday. UBS downgrades Caterpillar (CAT) to neutral (hold) from buy; cuts price target by $5-per-share to $230, which is silly. Outback Steakhouse owner Bloomin' Brands (BLMN): two price target boosts, Citi and Barclays. Barclays: LyondellBasell (LYB) downgraded to equal weight from overweight (hold from buy), cut price target to $82 per share from $95. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
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