Connect with us
https://tickernews.co/wp-content/uploads/2023/10/AmEx-Thought-Leaders.jpg

Money

Will September breathe much needed life to the IPO market?

Published

on

The IPO (initial public offering) market has been in a downturn for much of the last year amid rising interest rates and the war in Ukraine. Data shows that could be about to change

 
A recent wave of stock sales by companies suggests there will be a wave of IPOs in September, putting an end to a weak market for debuts that has lasted almost two years.

Since the end of April, publicly traded companies and their investors have sold stock worth more than $28 billion through follow-on and secondary sales, according to data provider LSEG Deals Intelligence.

That compares with $7.3 billion over the corresponding period a year ago.

Bankers say this spike bodes well for the IPO market, since both new listings and secondary stock sales rely on strong investor demand.

Since the start of 2022, the IPO market has been in a downturn as investors fear U.S. interest rate hikes following Russia’s invasion of Ukraine.

But volatility has now subsided with investors predicting the Federal Reserve will end its recent spate of rate hikes later this year.

Continue Reading

Money

Central bank expected to ease interest rates as election nears

Published

on

The Federal Reserve is expected to cut interest rates again this week, a move aimed at cooling inflation.

This quarter-point rate cut would bring the benchmark rate to about 4.6%, the second reduction this year.

Analysts expect that additional cuts could come in December, which would benefit borrowers by reducing loan costs.

If Trump were to win the election, economists say his proposals on trade and immigration could reignite inflation.

The Fed is balancing a strong economy and low unemployment with its inflation-calibrated rate cuts.

As Election Day approaches, all eyes are on both the Fed and the presidential race.

Continue Reading

Money

Big Tech pushes AI investments

Published

on

Tech giants like Microsoft and Meta are accelerating AI data center spending, with massive capital pouring into these projects.

Microsoft and Meta reported on Wednesday that AI investments are spiking their expenses, while Alphabet announced similar trends.

Amazon, due to report earnings shortly, is expected to mirror these projections, foreseeing further pressure on profit margins.

Wall Street is getting wary of the financial strain, as each company’s stock took a hit this week despite strong quarterly numbers.

Shares of Meta fell over 3%, and Microsoft saw a 6% drop, underscoring Wall Street’s jitters.

“It’s expensive to keep up with AI technology demands,” says GlobalData’s Beatriz Valle, emphasising a competitive race in AI capacity.

The high-stakes investments are starting to test investor patience in Big Tech’s ambitious AI journey.

Continue Reading

Money

Meta expects strong holiday ad revenue boost

Published

on

Meta’s holiday-quarter forecast beats expectations as AI tools drive growth

Meta Platforms, parent company of Facebook, has forecast holiday-quarter revenue that surpasses market expectations, anticipating a surge in ad spending as the year ends.

The projection comes as Meta’s AI-driven advertising tools and short-form video feature Reels have spurred revenue growth this year.

Meta’s shares dipped 2.5% in after-hours trading, despite a third-quarter profit of $6.03 per share—well above analysts’ forecast of $5.25.

Analysts expect digital ads to have a “blockbuster” year in 2024, helped by improved economic forecasts and steady consumer spending.

Meta, heavily reliant on advertising revenue, stands to benefit from increased holiday marketing as it eyes revenues of $45 to $48 billion this quarter.

The company’s third-quarter revenue reached $40.59 billion, narrowly topping analysts’ estimates.

With interest rates easing, analysts suggest Meta’s ad revenue could continue to thrive into the new year.

As holiday spending ramps up, Meta’s AI investments are paying off.

Continue Reading

Trending Now