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Stocks Responsible for the Latest Rally in IPO ETF
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The IPO market just had its best week since January, as the prevailing negative outlook regarding the likelihood of interest rates remaining "higher for longer" has shifted to a positive outlook. There is now confidence that the worst has passed as the jobs data came in at weak for the month of October and bets that the Federal Reserve won’t hike rate in December and January strengthened.
Renaissance IPO ETF (IPO - Free Report) surged 7.4% last week as compared with the S&P 500’s gains of 5.9%. High-growth tech and fintech mainly made this possible, with buy-now-pay-later (BNPL) lender Affirm (AFRM - Free Report) soaring 32.5% on an expanded partnership with Amazon. Notably, Affirm takes more than 1% of the IPO ETF.
Below we highlight a few more stocks that made the last week’s rally possible for the IPO ETF.
The stock takes about 6.26% of the fund. The company reported revenue of $558.16 million, up 16.8% over the same period last year. EPS came in at $0.07, compared to $0.01 in the year-ago quarter. The reported revenue represents a surprise of +0.64% over the Zacks Consensus Estimate of $554.61 million (read: Palantir Soars on Upbeat Earnings & Outlook: ETFs to Benefit).
Looking ahead, Palantir expects to see continued growth, forecasting fourth-quarter revenue to be between $599 million and $603 million. This optimistic outlook extends to their full-year revenue guidance, which has been raised to between $2.216 billion and $2.22 billion, up from a previously projected $2.212 billion.
The stock DASH takes 5.55% of the ETF. It is another earnings winner. DoorDash reported a GAAP loss of 19 cents per share in third-quarter 2023, narrower than the year-ago quarter’s loss of 77 cents per share. The figure beat the Zacks Consensus Estimate by 57.78%.
Revenues increased 27.2% year over year to $2.16 billion and surpassed the consensus mark by 3.52%. The impressive growth was driven by strong performance in total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increasing contribution from advertising.
The stock makes up for 2.84% of the fund. The second-largest cryptocurrency platform reported solid third-quarter earnings on Nov 2. It topped estimates on both earnings and revenues. Adjusted loss per share came in at 1 cent, much better than the Zacks Consensus Estimate of a loss of 54 cents. Revenues climbed 15% year over year to $674 million and edged past the estimated $657 million.
Airbnb holds the top position of the fund with about 11.56% exposure. Airbnb reported third-quarter 2023 earnings of $2.39 per share, which beat the Zacks Consensus Estimate by 14.9% and jumped 33.5% year over year.
Revenues of $3.4 billion increased 18% on a reported basis and 14% on a forex-neutral basis, respectively, year over year. The top line also surpassed the consensus mark by 0.98%. For fourth-quarter 2023, the company expects revenues between $2.13 billion and $2.17 billion, implying year-over-year growth in the band of 12-14% on a reported basis, in line with the Zacks Consensus Estimate of $2.17 billion.
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Stocks Responsible for the Latest Rally in IPO ETF
The IPO market just had its best week since January, as the prevailing negative outlook regarding the likelihood of interest rates remaining "higher for longer" has shifted to a positive outlook. There is now confidence that the worst has passed as the jobs data came in at weak for the month of October and bets that the Federal Reserve won’t hike rate in December and January strengthened.
Renaissance IPO ETF (IPO - Free Report) surged 7.4% last week as compared with the S&P 500’s gains of 5.9%. High-growth tech and fintech mainly made this possible, with buy-now-pay-later (BNPL) lender Affirm (AFRM - Free Report) soaring 32.5% on an expanded partnership with Amazon. Notably, Affirm takes more than 1% of the IPO ETF.
Below we highlight a few more stocks that made the last week’s rally possible for the IPO ETF.
Palantir Technologies Inc. (PLTR - Free Report) – Up 23.7%
The stock takes about 6.26% of the fund. The company reported revenue of $558.16 million, up 16.8% over the same period last year. EPS came in at $0.07, compared to $0.01 in the year-ago quarter. The reported revenue represents a surprise of +0.64% over the Zacks Consensus Estimate of $554.61 million (read: Palantir Soars on Upbeat Earnings & Outlook: ETFs to Benefit).
Looking ahead, Palantir expects to see continued growth, forecasting fourth-quarter revenue to be between $599 million and $603 million. This optimistic outlook extends to their full-year revenue guidance, which has been raised to between $2.216 billion and $2.22 billion, up from a previously projected $2.212 billion.
DoorDash Inc. (DASH - Free Report) – Up 29.2%
The stock DASH takes 5.55% of the ETF. It is another earnings winner. DoorDash reported a GAAP loss of 19 cents per share in third-quarter 2023, narrower than the year-ago quarter’s loss of 77 cents per share. The figure beat the Zacks Consensus Estimate by 57.78%.
Revenues increased 27.2% year over year to $2.16 billion and surpassed the consensus mark by 3.52%. The impressive growth was driven by strong performance in total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increasing contribution from advertising.
Coinbase Global (COIN - Free Report) – Up 19.1%
The stock makes up for 2.84% of the fund. The second-largest cryptocurrency platform reported solid third-quarter earnings on Nov 2. It topped estimates on both earnings and revenues. Adjusted loss per share came in at 1 cent, much better than the Zacks Consensus Estimate of a loss of 54 cents. Revenues climbed 15% year over year to $674 million and edged past the estimated $657 million.
Airbnb (ABNB - Free Report) – Up 4.7%
Airbnb holds the top position of the fund with about 11.56% exposure. Airbnb reported third-quarter 2023 earnings of $2.39 per share, which beat the Zacks Consensus Estimate by 14.9% and jumped 33.5% year over year.
Revenues of $3.4 billion increased 18% on a reported basis and 14% on a forex-neutral basis, respectively, year over year. The top line also surpassed the consensus mark by 0.98%. For fourth-quarter 2023, the company expects revenues between $2.13 billion and $2.17 billion, implying year-over-year growth in the band of 12-14% on a reported basis, in line with the Zacks Consensus Estimate of $2.17 billion.