The Daily Chase: Reddit set to IPO today
BNN Bloomberg
Here are five things you need to know this morning.
Reddit IPO ready for launch: Social media website Reddit is set to go public today, as the company’s investment bankers have priced shares at US$34 apiece before they trade on the NYSE today. That’s the high end of the range they had projected and they will bring in $748 million to the company’s coffers. The IPO values the entire company at just over $6.4 billion, which is down from a peak of almost $10 billion reached during a funding round in 2021. When the shares start trading publicly this afternoon, it will be the culmination of the most hotly-anticipated IPOs in recent memory. The shares will trade under the ticker RDDT and in the short term at least seem destined for meme-stock status. The company took in more than $800 million in revenue last year, but lost $90 million. Philip Young, portfolio manager with Cidel Asset Management, told BNN Bloomberg’s The Street on Thursday that from advertising, to data monetization, the company has many ways to boost its top and bottom line. “If it’s going to be a successful stock, the company really has to show it can increase that number and they have a number of different avenues that they can take to approach this,” he said.
Gold tops US$2,200 an ounce: The price of gold has set a new all-time high, as the most heavily traded bullion contract hit US$2,214 at one point early Thursday morning. Gold has surged in recent years as high inflation devalues currencies and has pushed up investor demand for assets like gold to preserve capital. The catalyst for gold’s surge in the short term appears to be the Fed rate decision on Wednesday, where the U.S. central bank reiterated it is on track for three rate cuts this year. That will devalue the U.S. dollar, which will push up the price of gold. Lower rates will also hurt interest-bearing investments and make gold look comparatively more attractive.
Couche-Tard earnings disappoint: Shares in TSX-listed Alimentation Couche-Tard will be one to watch today as the global convenience store giant posted disappointing earnings results after the bell on Wednesday. The company missed analyst expectations on profit and revenue, saying it saw weaker customer traffic just about everywhere. Fuel sales fell in Europe and North America, while merchandise revenue per store, such as food and cigarettes, dropped in all three of the company’s geographic segments. That’s the first time that’s happened in more than a decade. The stock has been a market darling for that long and more, with the value of the shares doubling over the last five years and quadrupling in the last 10. It will be interesting to see how investors react to a rare miss from a slow and steady long-term performer.
Facing a $1.4 billion deficit shortfall, the provincial government says its large-animal vet service will be privatized over the next three years.
Facing a $1.4 billion deficit shortfall, the provincial government says its large-animal vet service will be privatized over the next three years.
Jurors wade through daunting evidence in high-stakes Meta trial about social media risks to children
A stream of testimony and evidence has been presented in a New Mexico case exploring what Meta knew about the effects of its platforms on children.
Markets in Canada and the U.S. continued to trade lower while oil went up late morning on Friday as inflationary fears prevailed among investors.
Gold prices fell by 1.8 per cent on Friday as the dollar strengthened on a report that the United States will deploy extra troops in the Middle East, fanning concerns of higher oil prices, inflation, and with it, elevated interest rates.
Canada’s federally backed farm lender is offering financial aid to farmers, agricultural businesses and food companies hit by the spike in fertilizer and energy prices, it said on Friday.
Statistics Canada says retail sales were up 1.1 per cent at $70.7 billion in January, led by sales at motor vehicle and parts dealers.
As Qatar reels from an Iranian attack that has hobbled its giant natural gas company, its boss, who doubles as the country’s energy minister, says he had warned officials and executives of just such a danger should Iran’s own sites be hit.
Top Picks from Greg Newman, Senior Wealth Advisor & Portfolio Manager, Newman Group, ScotiaMcLeod
Dan Tobon outlines key market wildcards, including geopolitical risks, AI disruption and shifting investor sentiment.
U.S. stocks are sinking Friday as hopes wither on Wall Street for a possible cut to interest rates by the Federal Reserve this year because of the war with Iran.
Pinterest CEO Bill Ready called on world leaders to ban social media for youth under 16 in a LinkedIn post on Friday.
Wall Street is stumbling toward the finish line of a fourth straight losing week on Friday, but an ease in oil prices is taking some of the pressure off stock markets worldwide.