Profit Pregame

How You Should Play Wall Street’s Recent “Blizzard”

Winter is here? Not so fast…

The SNOW IPO is officially live.

What’s happening?

A blizzard has hit Wall Street – not a literal one. But a flurry of investors has run to the newest IPO on the market. Snowflake is the newest IPO to hit the market – and it happens to be the biggest software IPO in history.

Snowflake was founded in 2012 and was built to help companies manage data they store on the cloud. Firms use the cloud to store and process large amounts of information. Snowflake works with companies such as Capital One Financial Corp. and videogame maker Electronic Arts Inc.

And earlier this week – the company went public, opening an IPO. And on its first day, the IPO more than doubled – surpassing the expectations of Wall Street and investors alive. And at one point, we saw SNOW climb 150%., eventually closing on the day up nearly 112%.

Where’s the money?

The company sold 28 million shares and raised nearly $3.4 billion from the IPO. The impressive debut makes Snowflake the largest software IPO ever as it easily bypassed Dell’s 2007 IPO, which raked in nearly $1 billion.

And Snowflake isn’t alone in this buzzing IPO world. It joins the list of companies expected to go public before the end of 2020, including Airbnb, Palantir, and Doordash. And it seems as if 2020 will be packed with more high anticipated IPO celebrations.

But before you go chasing SNOW – or any IPO for that matter – I have something I want you to know.

How can I get some?

I’ve said it once, and I’ll repeat it – I think we’re looking at a possible market top. And I believe that the SNOW IPO is another piece of proof to support that theory…

Let’s look at this logically – SNOW just became the largest software IPO in history after losing money. On top of this, it is now trading over 100 times sales, not profits, sales. That’s an alarming fact – and one all investors should be paying attention too instead of running blindly into this deal.

Truthfully, when, not if, we see the stock market rollover, I guarantee the first thing we’ll see sold is a high growth, high valuations such as SNOW. So, here’s how to play the current “blizzard” we see hitting Wall Street.

You don’t. If you got into the IPO before the rush drove, it’s price to an unthinkable price – I would be taking my 100% profit and moving on. But if you didn’t get in, I would look to short it, but only once the options market opens.

40% of New Yorkers Are LEAVING the City (and It’s Driving This Software Company’s Sales through the Roof)

From $33 million to $250 million to a projected $1.5 billion in 2021… this tiny startup is soaring – and it’s all on the tailwinds of urban flight. Right now, the founder of this startup is ready to explain his curious business model, why demand for his software is soaring, and exactly how you can get involved. Click here for all the details.

In the spotlight: Another round of job reports…

Another week has almost passed, and new jobs numbers are in.

Here’s what we saw…

Another 860,000 Americans filed for first-time unemployment benefits last week. That makes another week of declining numbers – but the question now is, is it falling fast enough? While weekly claims have obviously improved since mid-August, it’s been a slow and uncertain process. And it looks like the bounce-back could be running out of steam.

Now, despite this slow fall, continued jobless claims were significantly down from last week. Counting workers who have filed for benefits at least two weeks in a row came in at 12.6 million. But – and isn’t there always a “but” lately- these numbers don’t include claims filed under the government’s various other jobless aid programs.

For instance, Pandemic Unemployment Assistance program provides benefits for those who aren’t usually eligible like the self-employed. Claims for PUA benefits stood at 658,737 last weeks, down from the prior week – but once again, a slow decline nonetheless.

With that said, this report is always an important indicator of where we’re at in the economy – and investors didn’t seem to feel optimistic about the new numbers. We saw the market in red, and it’s painting an uncertain portrait of the future. But no worries, we’ll be navigating this market together – one step at a time.

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