Flurry of IPO Activity Hits Wall Street

Watch Flurry of IPO Activity Hits Wall Street - Bloomberg on Dailymotion

Transcript

00:00There's an IPO revival sort of underway just to go to the news that online broker eToro shares

00:06are indicated to open at $59.50 from its IPO price of $52. Also remember Ryan Reynolds's

00:14Mountain is considering launching an IPO as soon as this week while Cattle, a Chinese maker of

00:19EV batteries, is poised to raise at least $4 billion in Hong Kong. So it's a global revival.

00:25Let's discuss this with Bloomberg Stocks reporter Matthew Griffin.

00:27And eToro, it's interesting. What a good time to IPO because you look at a rival like Robinhood,

00:32it's up 68% on the year. But eToro is much smaller.

00:36Yeah, I think it's one of the things that investors have on offer here is that eToro is a Robinhood

00:45rival. It's a new way to get exposure to the same kind of retail trading, crypto trading,

00:51real surge that we've seen. At the same time, they are smaller. They offer a pretty considerable

01:00discount to Robinhood. You look at what Bloomberg Intelligence has said, they trade or they're

01:05valued at about five times their sales. That's a significant discount to Robinhood, which is

01:11about well over 10 times on a forward basis. The value stock in that way.

01:15I get that. So does this, is this a bet on the growth in kind of new finance, crypto as a specialty

01:24of eToro and kind of the changing of the guard here? Yesterday, we saw Coinbase replacing Discover

01:31Financial in the S&P 500.

01:33Yes, absolutely. I think it is. And eToro has gone public at what I would call just the perfect

01:39time. You know, right as they were on the road and preparing to go public, you had a surge in

01:44general equity markets, yes, but also a real rally in Bitcoin, in other cryptocurrencies and in the

01:50stocks of Coinbase, Robinhood companies that have exposure. You have that S&P addition. So I think

01:57eToro is set to ride that wave if it continues.

02:00We have like a minute left here, Matt, but you look at CoreWeave for an example. I want to pull

02:05it up here today because you've been pointing out it's been doing so well. It reports earnings

02:08aftermarket today. Private equity-backed company doing this well. Does it bode well for a broader

02:13IPO revival, given that it's those private equity companies that are stuck in the pipeline?

02:19I think it does. I mean, it's hard to know where we go from here. I think the interesting thing is

02:23you've had companies go public. CoreWeave, since the big tariff swings, you've had eToro,

02:29you've had some insurers. These are, you know, with eToro, with the insurers, these are companies

02:35whose revenue does not depend on selling physical goods, so not tariff dependent. But that could

02:40really help open up the market here. And with tariffs being cut now with the U.S. and China,

02:46I think we're potentially in a good place for a broadening of this revival.