Facecoin, Slack and loss-making IPOs
A quick note here with a few thoughts on technology
IPO companies with economic moats
I use Slack every day at work. It is an essential internal communications tool for my job. And, as such, I see it as a company with relatively high…
IPOs, a global rebound and Tariff Man
The IPO market is hot
As I wrote last night, IPO conditions right now seem nearly ideal for growth companies to come to market. The appetite for loss-making companies shows us that public investors are willing to overlook losses as long as…
2019 may be the best time to IPO
Growth matters, profits don't
Nearly 7,000 scooters appeared to be active in Los Angeles County in January, having logged a ride in the previous two weeks. By April, more than 5,500 of those same scooters appeared to be removed from active…
Brief thoughts on the jobs report
Today's jobs report in the US showed some fairly bullish headline numbers. Not only did the unemployment rate did to a 49-year low of 3.6%, but the monster 263,000 job addition was bolstered by net revisions of 16,000, bringing the total to…
Melting Up?
Tesla
On Thursday, I wrote that "Tesla has been forced to pony up for those converts. They now have $2.2 billion, $1.5 billion less than at the end of the last quarter. I think the need for more capital is a question of when, not if. But if…
Hippie-punching MMT
I have been trying to organize a decent exchange on MMT on the new financial media platform Real Vision. My first attempt got dropped because the conversation wasn't forward looking, diving into the issues people care about, namely the…
Green light for the Fed, bullish data out of China and the Eurobonds solution
Let me pick through the news stories today with a few thoughts of mine on what's happening in the markets and the economy. And I want to start with inflation.
Inflation Picks Up, but Still Below Fed’s 2% Target - WSJ
The Fed’s preferred…
The huge beat in US GDP growth
This is going to be real quick. The Q1 GDP numbers came out. And they were a huge beat, showing 3.2% annualized growth versus an expected 2.0%. Even the bullish Atlanta Fed nowcast undershot this at 2.7%.
If you look at how the quarter…
Re-acceleration, but for how long?
After the Fed overtightened in 2018, it reversed course abruptly. And risk assets have cheered the Fed's volte face with a V-shaped surge to new highs. And, coincidentally (since Fed policy acts with a lag), the economic data have turned up…
The Best of Times
Yesterday, in the US, the S&P 500 and the Nasdaq indices hit record highs. And the Dow Jones Industrial Average is not far behind. Financial markets are doing well.
In the real economy, for weeks now I have suggested that the signs of…