Is the US IPO market coming back to life?
Instacart sold 22 million shares at $30 each in an initial public offering on Monday, raising $423 million in the process. The offering, which values the grocery delivery company at around $10 billion, is the second high-profile IPO in a matter of days, after British chipmaker Arm had made its trading debut on the Nasdaq stock exchange last Thursday. With Klaviyo, a marketing automation company, also planning to raise up to $550 million in its initial public offering on Tuesday, this week is a clear sign of life from the U.S. IPO market, which had dried up completely in 2022 after a record-breaking 2021. According to Dealogic data analysed by EY, IPO activity already picked up slightly in the first half of the year, as companies raised $10.1 billion in 63 initial public offerings in the U.S., compared to $4.7 billion in 51 IPOs in the first six months of 2022. With inflation looking likely to have peaked, rate hikes nearing an end and equities having rebounded from last year’s lows, the market backdrop looks more positive now that it did at any time in the past 18 months. Source: Statista
A tale of 2 markets: S&P 500 "big AI" stocks 12-month forward P/Es vs. S&P 500 "ex-big AI" stocks 12-month forward P/Es
Source: TME, Macrobond
Long Big tech is now the most crowded trade in the latest Global Fund Manager Survey by BofA
Short China equities comes next.
Corporate profit margins jump to highest level in 73 years 👀
Source: Bloomberg, Barchart
US High Yield spreads moved down to 3.78% this week, the tightest we've seen since April 2022
Source: Charlie Bilello
The top 3 country equity ETFs in 2023:
1) Argentina $ARGT: +34.7% 2) Greece: $GREK: +32.5% 3) Nigeria $NGE: +29.8% Just like everyone predicted. Source: Charlie Bilello
Heat map of the S&P 500's $SPY performance so far in 2023
Source: Evan, Bloomberg
Top five stocks by market cap are c.50% of Nasdaq-100 Index market cap
Source: SG
