In December 2023, CRISPR received approval from the FDA to treat sickle cell disease (SCD) and beta-thalassemia with its landmark drug, CASGEVY. However, despite this breakthrough, CRSP stock is down 15% in 2024. 

CRISPR’s Breakthrough Treatment

To start, investors should be careful buying CRSP stock as its success depends almost entirely on CASGEVY over the short term. CRISPR currently has 5 other drugs in clinical programs. But, CASGEVY is its only FDA-approved therapy. For investors, this means that CRISPR’s price will likely be very volatile in the short term. Any good news around CASGEVY will likely send the stock soaring, while bad news could do the opposite.

Despite its limited portfolio of approved drugs, CRISPR’s future seems very strong. Its approved drug, CASGEVY, is a potential cure for sickle cell, a debilitating and life-threatening disease. The company also has 15 more drugs in its pipeline including therapies for hemoglobinopathies, oncology, and regenerative medicine.

Additionally, the company is led (and co-founded) by Emmanuelle Charpentier. Emmanuelle received the Nobel Prize in Chemistry for her work on the CRISPR/Cas9 gene-editing system. This just goes to show how cutting-edge CRISPR’s treatments are.

We also can’t discuss CRSP stock without also talking about Vertex Pharmaceuticals (Nasdaq: VRTX). 

CRISPR and Vertex Pharmaceuticals (Nasdaq: VRTX)

Vertex Pharmaceuticals owns 60% of CRISPR’s gene editing therapy for CASGEVY.

Right now, CASGEVY is in a bit of an exploratory phase. It has been approved by the FDA for use in the United States and the United Kingdom. In the US FDA trial, the drug was administered to 31 patients with 93.5% experiencing no major ill side effects. Now, it’s on doctors across the US and UK to recommend this treatment to their patients. When that happens, Vertex will own 60% of all sales and CRISPR will receive 40%.

On one hand, this will undoubtedly take a bite out of CRISPR’s potential profits. However, Vertex and CRISPR plan to charge $2.2 million for CASGEVY treatments. CRISPR’s cut of any prescribed treatments would presumably be 40% of $2.2 million or $880,000 per treatment – still incredibly high for one product.

Additionally, from what I’ve read, Vertex has significantly better commercialization abilities than CRISPR. It’s a bigger company with a much wider influence which will help bring CASGEVY to market and make it more readily available for patients. So, this partnership may actually work out in CRISPR’s favor.

Crispr Technologies Most Recent Quarter

As a cutting-edge biotech company, Crispr Technologies’ income has been all over the place over the last three years.

1. 2023: Annual revenue of $371.2 million and a net loss of $153 million
2. 2022: Annual revenue of $1.2 million and net loss of $650 million
3. 2021: Annual revenue of $914.9 million a net income of $377 million

This type of variability is not uncommon for early-stage biotech companies. These types of companies often spend years churning through investors’ money while they work to develop cures. However, once they’ve developed a viable treatment, revenue and income can go parabolic. Could this be what’s in store for CRSP stock?

Should You Buy CRSP Stock?

Buying early-stage biotech companies is a bit of a gamble.

On one hand, CRSP stock certainly seems poised for a breakout. The company received critical approval for a life-changing drug and yet the stock is down YTD. The company also has a Nobel Prize-winning CEO in charge, which is a great sign of things to come. Crispr Technologies has the potential to do amazing things in the medicinal field over the coming years. If its gene-editing treatments are successful then the stock will undoubtedly soar.

Red Flags to consider. 

For example, how many people will actually buy CASGEVY? According to the FDA, sickle cell impacts just 100,000 people in the US, or 0.0003% of the population. And, for those who have sickle cell, how many will be able to actually afford CASGEVY given its immense price tag of $2.2 million dollars? These questions are difficult to estimate, especially given the US healthcare system’s convoluted use of insurance policies to pay for treatments.

Finally, it’s worth mentioning that CRISPR already trades at a valuation of $4.75 billion. Some could argue that the company is immensely overvalued, considering its reported revenue of just $504,000 last quarter. On top of that, sickle cell affects a small portion of the US population. An even smaller percentage of those impacted will actually be able to afford CASGEVY. Finally, when CASGEVY revenue starts coming in, CRISPR will only receive 40%.

CASGEVY approval could be a sign of positive things to come.

It’s important to remember that CASGEVY is just one treatment for a handful of diseases. But, CASGEVY is also based on cutting-edge gene-editing technology. If CRISPR can use its gene-editing therapies to treat more common diseases – cancer, heart disease, etc – then the company’s $4.75 billion valuation might seem incredibly cheap. Who knows how long this type of diversification might take. But, it’s a very positive sign that CRSP stock has upward potential over the long run.

If you’re interested in buying CRSP stock, it might be wise to consider doing so slowly over time. This can help protect you from dramatic swings in the stock’s price. 

I hope that you’ve found this article valuable when it comes to learning about CRSP stock. If you’re interested in learning about other gene editing stocks click here, or please subscribe below to get alerted of new investment opportunities from InvestmentU.

Disclaimer: This article is for general informational and educational purposes only. It should not be construed as financial advice as the author, Ted Stavetski, is not a financial advisor. Ted also did not own CRSP stock at the time of writing.

The post Getting in on the Gene-Editing Wave: Should You Buy CRSP Stock? appeared first on Investment U.

At the time, Solana was still very much a speculative investment. But speculators who took the chance have seen a huge increase in value of Solana crypto. And this comes despite a drop-off at the end of 2021 and bear market through ’22 and ’23. However, the next several months or so could be just as interesting.

What caught our attention was the three-point plan to revolutionize the way crypto transactions work. At the time, there were a swath of “to-the-moon” rug pulls and scam coins that seemed to be getting released every week. In fact, some estimates suggest that DeFi (decentralized finance) rug pulls and exit scams make up 99% of all fraud in the crypto markets.

But Solana crypto came to the table with a plan. It didn’t just promise to reward investors. The company started making good on its plan. It also happens to be rewarding investors in the process. That’s why we’re so bullish on this relatively new crypto. And we’re not the only ones. Trading volume has been way up on Solana crypto since it skied to upwards of $250 in the fall of 2021.

Naturally, as exposure grows, there will be ups and downs in line with the greater crypto markets. But it’s a lot easier to make an educated guess about a Solana crypto price prediction now… since it appears it’s just starting to warm up.

Succeeding Where Others Fall Short

Solana crypto’s founder famously published a white paper draft that laid out a new timekeeping technique called Proof of History (PoH). This proposal was developed to fix one of the major limitations cryptos like Bitcoin and Ethereum faced in terms of scalability. You see, the time that’s required to reach a consensus on transactions was largely seen as a major drawback. But PoH was a way to automate that whole process… And it could act as a crucial element that would allow crypto networks to scale beyond their previous capabilities.

The white paper generated a lot of attention. It wasn’t long before Solana Labs formed. And it began recruiting engineers from the likes of Qualcomm (Nasdaq: QCOM) and Apple (Nasdaq: AAPL). Within a couple of years, the team had raised $20 million to fund its new crypto network. And less than a year later, Solana crypto was launched.

In the process, the core team behind Solana has proven the success of the PoH model. The records (or “blocks”) for most cryptos are limited in size and frequency. And that can dramatically slow down transaction times. The PoH model fixes this problem. But the Solana network also uses a Proof of Stake consensus algorithm, which helps keep the network secure.

Solana crypto is also currently exploring ways to reduce transaction fees. When these fees were first introduced, they were a means to keep bad actors from overloading crypto networks. But the speed of the PoH model largely reduces this problem. That makes it cheaper to transfer coins from one wallet to another.

And lastly, Solana crypto excels at avoiding confirmation delays… This just means it won’t take as long for deposits to be processed. In fact, Solana has proven to be able to process 50,000 transactions per second, with a transaction fee of just $0.00001. Not too shabby compared to other tokens.

A Solana Crypto Price Prediction: Why It Still Has Plenty of Upside

Despite the wild moves in value and the technical breakthroughs, it’s important to keep in mind one important detail: The Solana crypto network is no longer in its beta stage. Investors now have access to staking rewards – which seems to be the norm these days. But that’s why a Solana crypto price prediction is so hard to pin down.

The upgrade is now live, and it’s anybody’s guess as to how high Solana crypto can go. But it’s certainly not out of the question that it could reach a triple-digit valuation by the end of the year… especially if it stays on its current production timetable and volatility dies down.

Solana has already shaken up the crypto community. And now that more investors are sitting up and taking note, we’ve got a pretty good feeling that Solana’s future is bright. It set out to revolutionize the way crypto transactions take place. We’re seeing it do that in real time now. In the process, it’s making a whole lot of people’s crypto wallets feel a little bulkier these days, with even more to come.

Even now in 2024, it still has tremendous upside. It hasn’t kept up with the surge in bitcoin, it still follows all of the same fundamentals that make it strong, and it could potentially be in line for the next crypto ETF.

The Bottom Line on the Solana Crypto Price Prediction

Part of what makes the crypto markets so fascinating is that they’re driven by innovation. Another part is that they’re knocked back down by headlines. Crypto expert Andy Snyder has long described crypto as the very definition of a headline-driven market. And it’s true. A tweet from the right person can send the value of a token skyward in a moment’s notice. But Solana isn’t some meme-based token. It’s built on a solid foundation. Don’t expect to see a TITAN-type situation here.

This makes a Solana crypto price prediction a lot easier to make. We don’t expect to see Elon Musk or Mark Cuban making statements about it. But we do expect Solana crypto and the network it’s built on to continue down its path of innovation. So as long as the crypto markets stay relatively healthy, Solana should continue its upward trajectory well past the $100 mark. And in a matter of a few years, if it does indeed become one of the standard cryptos – as we think it could – it should be worth a whole lot more than that.

The post Making an Informed Solana Crypto Price Prediction appeared first on Investment U.

What is the Puts vs Calls Ratio?

Definition and Calculation

The puts vs calls ratio is calculated by dividing the number of traded put options by the number of traded call options. A put option is a contract that gives the owner the right, but not the obligation, to sell a stock at a predetermined price within a specific time frame. Conversely, a call option gives the owner the right to buy a stock under similar conditions.

Tools: Option Calculator

Formula: Puts vs Calls Ratio = Number of Puts / Number of Calls

Interpreting the Ratio

• Above 1.0: Indicates that more puts are being bought than calls. This suggests that investors are expecting the market to decline, reflecting bearish sentiment.
• Below 1.0: Implies more calls are being bought than puts, hinting at a bullish market expectation.
• Equal to 1.0: Suggests a balanced market view among traders with equal expectations of upward and downward movements.

Significance of the Puts vs Calls Ratio in Market Analysis

The puts vs calls ratio is more than just a number; it’s a powerful indicator of market mood that can signal shifts before they happen.

Bearish and Bullish Indications

• High Ratio (>1.0): A high ratio often predicts a bearish market. It might indicate that investors are hedging against a potential downturn or speculating on a decline.
• Low Ratio (<1.0): Conversely, a low ratio typically signals bullish conditions, suggesting that traders are confident in future market gains.

Market Extremes and Contrarian Indicators

Smart investors watch the ratio closely for extremes. If the ratio reaches unusually high or low levels, it could indicate that the market is due for a reversal. Contrarian investors might use this data to look for buying opportunities in a seemingly over-pessimistic market or to sell when the market appears overly optimistic.

Practical Applications of the Puts vs Calls Ratio

To effectively use the puts vs calls ratio, investors integrate it with other technical tools and market data, ensuring a well-rounded approach to market analysis.

Hedging Strategies

Traders might use this ratio to determine when to hedge their portfolios. A rising ratio could be a prompt to hedge against a potential decrease in market values.

Timing Entries and Exits

The ratio can also help in timing market entries and exits. A sharply increasing ratio might suggest that it’s time to consider taking profits on a bullish position before the expected downturn.

Market Sentiment Analysis

Combining the puts vs calls ratio with other sentiment indicators like the VIX (volatility index), market breadth, and bull/bear polls provides a deeper insight into market psychology and potential movements.

Case Studies

Example 1: The Financial Crisis of 2008 During the 2008 financial crisis, the puts vs calls ratio spiked, as traders rushed to buy puts to hedge against further market declines. Those monitoring the ratio would have seen a clear signal of the increasing bearishness in the market.

Example 2: The Bull Market Rally of 2013 In contrast, during the strong bull market of 2013, the ratio was significantly lower, indicating predominant bullish sentiment as more traders were buying calls to profit from rising stocks.

Conclusion

The puts vs calls ratio is a nuanced tool that, when used correctly, can provide insightful glimpses into market sentiment and potential trends. Traders and investors who monitor this ratio can enhance their understanding of market dynamics, better manage their risk, and position their portfolios strategically in various market conditions.

Read: Puts vs Calls Explained

The post Understanding the Puts vs Calls Ratio: A Key Indicator for Market Sentiment appeared first on Investment U.

MULN Stock, a Quick History

Mullen Automotive is one of the least-talked-about, yet fascinating stock stories of the past few years. Mullen is a Southern California-based electric vehicle company that specializes in commercial trucks. But, what separates Mullen from a lot of other EV companies is its stock volatility. I say this because MULN stock was first listed at around $132,750 per share. Over the course of a few years, MULN stock has soared to a high of $362,925, before plummeting all the way down to just $4.55.

So, I know what you’re thinking – why would any long-term investor be interested in a company that’s this adept at value destruction. And the answer is: They wouldn’t be. I mean, Mullen Automotive lists these three risk factors at the beginning of its Form 10K:

• We have incurred significant losses since inception, and we expect that we will continue to incur losses for the foreseeable future
• We will require substantial additional financing to effectuate our business plan
• We have not yet manufactured or sold a significant number of vehicles to customers. Many of our products are still on the development stage and we may never be able to mass-produce them

Yeah, after reading that, I’m sure investors are just lining up with their checkbooks open. But, short-term traders might be interested in MULN stock for the volatility. After all, there are not many companies whose stock prices can surge this widely in price. To get a better idea of why MULN stock is so volatile, we have to talk about Mullen’s financing strategies.

Mullen’s Financing Strategy

On its Form 10K, Mullen reported just $366,000 in sales for 2023, based on invoicing for 35 total cars. At the same time, it reported $215 million in administrative expenses and over $700 million in financing expenses. In total, the EV startup lost roughly $1,006,658,828. So, what happened?

The team over at InvestorPlace did some digging into these numbers and discovered a few interesting takeaways:

1. Mullen’s enormous financing costs mainly stemmed from the company’s convertible notes.
2. Mullen issued $150 million worth of convertible notes in June 2022 in addition to other promissory notes.  
3. The kicker is that Mullen allowed bondholders to convert their notes at the closing price of common stock while also issuing 1.85 bonus warrants for every share converted. The result was that Mullen Automotive spent $427.5 million to raise $150 million in fresh capital.
4. Mullen used this same strategy a second time, raising $145 million but costing the company $255 million in warrant liabilities and almost $100 million in share issuances. 

Mullen is required to report these non-cash charges as “real” expenses – even though they mainly exist on paper. The real cost is for shareholders, who experience dilutions in the value of their shares. In other words, Mullen kept releasing new shares to raise more money, which made existing shares less valuable. InvestorPlace estimates that if you owned 1% of the company in 2023, your stake would have been diluted 98.7% by year-end to an ownership stake of just 0.0133%. 

I’m genuinely not sure why the company did this. I can’t imagine that it was an accident. So, I’d assume that the company’s management was just doing everything and everything to keep the lights on. But, at the same time, the company paid CEO David Michery $48,879,463 in stock awards, along with a salary of $750,000 in 2023. 

MULN Stock Price

Another issue plaguing Mullen Automotive is that its stock price keeps tanking. A company’s stock is essentially a way for it to raise money. If the stock price is soaring then so will the company’s valuation, which makes it easier to raise more money (by issuing more shares) or borrow money at attractive rates. For example, the GameStop Short Squeeze actually helped reinvigorate the company.

However, the reverse happens when a company’s stock price is falling. A lower market valuation makes it harder for the company to attract investors or borrow money. The stock can even be delisted from exchanges if the stock price falls below a certain level.  It’s a bit of a doom spiral downward.

Should You Buy MULN Stock?

As mentioned, almost no rational investor would want to buy Mullen Automotive stock for the long term. This is mainly because the company has a proven history of diluting its stock price and destroying its value. But, the company’s stock price experiences crazy fluctuations, which means there may be some opportunity for traders.

Mullen Automotive’s stock is inherently volatile because it’s such a small company. It currently has a market cap of just under $30 million and an average volume of 740,000. In other words, the company is fairly cheap and there are not a lot of shares trading hands each day. This creates the opportunity for massive swings in the value of shares. 

It’s fairly common for share prices of smaller companies to swing 20%, 30%, or even more in a single day. But, these types of price swings almost never happen for bigger companies. For example, companies like Boeing (NYSE: BA) or McDonald’s (NYSE: MCD) would rarely ever move more than 10% or more in a single day. 

With this in mind, you may be able to take advantage of dramatic changes in Mullen’s stock price, assuming you have information on the company that other investors don’t. If you know something that others don’t, then there might be an opportunity to buy/sell shares before the market reacts to the news. To do this, I’d recommend following along closely with the company on social media. You can sometimes hear about major updates that take place at the company before they are picked up by news outlets. This gives you the opportunity to arbitrage the information and make the corresponding trade.

I hope that you’ve found this article valuable when it comes to learning about MULN stock and whether or not you should buy it. If you’re interested in reading more, please subscribe below to get alerted of new articles from InvestmentU. 

Disclaimer: This article is for general informational and educational purposes only. It should not be construed as financial advice as the author, Ted Stavetski, is not a financial advisor. 

The post Why Aren’t More People Talking About MULN Stock? appeared first on Investment U.

What is TaaS – Transportation as a Service?

Not long ago, owning a car was a mark of adulthood. It was a sign of independence, as well as a way to get to and from work. Over the years, this situation has gradually started to change. Urban areas have grown, which has made public transportation more common. Thanks to carbon dioxide levels, mankind is now searching for ways to reduce our carbon footprint. TaaS is one potential solution.

TaaS is a new mindset. Instead of focusing on car ownership, TaaS involves renting vehicles and similar practices. For instance, Uber and Lyft are both examples of TaaS. Instead of having to own your own car, you can use a ridesharing app to hire a car when you need a ride.

TaaS is also called Mobility as a Service (MaaS). While TaaS may involve an app like Uber and a human driver right now, this will not always be the case. In just one to two years, Goldman Sachs expects the first semi-autonomous car to become commercially available.

TaaS is important because today’s cars spend most of their time parked. Across the globe, the typical vehicle is idle during 95% of the day. Connected cars and rideshares can get rid of this idle time. Instead of multiple people using their cars to commute to work each day, the same people could rent a car and forego car ownership.

What is TaaS Technology?

In many cities, TaaS vehicles will be available 24 hours a day. While the average person only uses their car about 4 percent of the time, a TaaS vehicle will typically be used for 10 times more minutes each day. TaaS will work like public transportation does today, but it will blend private transportation providers into a gateway like an app. Then, people can access the gateway whenever they need to reserve and pay for a ride.

If you drive 15,000 miles per year, you can expect to spend an average of $8,469 a year on your vehicle. You have to pay for car insurance, gas, maintenance costs and car payments. By switching to TaaS, you could save hundreds or thousands of dollars per year.

Other than saving money, many people choose TaaS to get more free time. If you do not have to drive on your commute, you can work on something else. Then, you can enjoy spending time with your family once you return home. During your commute, you can also spend time learning a language, reading a book or enjoying your favorite hobby. In 2018, the average American spent 225 hours commuting. To put this in perspective, it only takes 480 hours to learn Spanish. And It takes around 45 hours to drive from the Atlantic Ocean to the Pacific Ocean.

TaaS has already been adopted by a wide variety of companies. DoorDash, GrubHub, Amazon Prime Delivery and Postmates already deliver products to homes across the country. Through WaiveCar or Turo, you can even lease your personal vehicle or find a vehicle you can lease. Other car rentals like Getaround, Zipcar and aGo will let you rent a vehicle whenever you need it. Meanwhile, Ridesharing, GoNanny, Uber, Zimride and Lyft offer rideshare services.

What Are the Consequences of Transportation as a Service?

The first car dealership in the United States was established in 1898. Since that time period, dealerships have followed a fairly basic business model. To prevent automobile manufacturers from competing with dealerships, many states required dealerships to serve as the middleman. Through TaaS and self-driving cars, this entire business model may change. Eventually, manufacturers may even sell vehicles directly to consumers.

If consumers purchase a vehicle at all, it will only be for a short period of time. While there are many ways that TaaS could be implemented, one option is for a self-driving car developer like Tesla or Google to own an entire fleet of self-driving cars. Then, the customer can pay per mile or minute. Because self-driving cars do not require a human driver, the cost of renting a vehicle will drop significantly.

Lower demand for vehicles means that there will be decreased demand for parking lots and garages as well. Normally, parking lots earn money by renting out parking spaces by the hour, day or month. If people pay for rides instead of owning cars, the need for parking lots would be almost eliminated.

Is TaaS a Good Investment?

Companies that sell self-driving cars are likely to perform well if TaaS leads the way forward. Other manufacturers may struggle because fewer people will be purchasing cars. Additionally, companies that run parking lots and garages will end up earning less. Eventually, many parking lots and garages in big cities may be sold and converted.

TaaS is conveniently built around four macro trends. Other than environmental, social and corporate governance (ESG) investing, it incorporates connectivity, the gig economy and electric vehicles. Eventually, the TaaS industry will become an $8 trillion marketplace as it expands into areas like drone delivery, freight, distribution, food delivery and personal transport.

These trends are already taking place. As more people turn to TaaS options, car sales have fallen. Global vehicle sales dropped by 22% in 2020. Even without the pandemic, auto sales fell by 4% in 2019. This decline was the first time in a decade that vehicle sales dropped.

TaaS Could Be 10x Cheaper

According to some estimates, TaaS will be 10 times cheaper than traditional car ownership. Unlike traditional car ownership, you will not have to change the oil or look for a parking spot. Already, the market is responding to these changes. In 2009, Uber initially opened up. Within just seven years, Uber was already booking more rides than the entire American taxi industry.

The iGeneration has fueled the surge in TaaS usage. Back in 1983, more than 50% of teenagers had a driver’s license by the age of 16. In 2016, only 25 percent of teenagers had a license by the same age. These young people are using TaaS to hang out with friends, go to restaurants and visit their favorite shops.

Ultimately, the biggest takeaway is that investors and cities need to prepare now. As the transportation industry adapts and changes, everyone else will have to adjust as well. From fewer parking garages to reduced vehicle sales, TaaS is going to have a major impact on specific industries. While the overall impact of TaaS is going to be positive, there will be significant growing pains along the way.

Disrupters Reshape Industries

The following ideas come from Trends Expert Matthew Carr who has been closely following (TaaS) technology as a service and its broader impact.

Over the past couple of decades, we’ve witnessed disrupters completely reshape industries. Facebook (Nasdaq: FB) and Twitter (NYSE: TWTR) launched new ways for humans to communicate and interact. Social media is now one of the most powerful advertising platforms in the world.

The streaming service Netflix (Nasdaq: NFLX) not only created a model that dozens of other companies now emulate but also produces some of the best content out there. The studio receives scores of Oscar, Golden Globe and Emmy nominations and awards each year.

E-commerce giants Alibaba (NYSE: BABA) and Amazon (Nasdaq: AMZN) are the templates that the whole retail industry looks to replicate. Tesla (Nasdaq: TSLA) is pulling the entire automotive industry toward mass electric vehicle adoption.

In real estate, there’s Opendoor Technologies (Nasdaq: OPEN) and Zillow Group (Nasdaq: Z). And in finance, there’s Bitcoin and the defi movement. Not to mention the potential for blockchain. The list goes on and on. Many early investors in each of these disrupters have been rewarded with life-changing returns.

What are the TaaS Stocks?

Now, in TaaS, Uber (NYSE: UBER) and Lyft (Nasdaq: LYFT) have flipped the ride-hailing industry on its head. In fact, long-coveted taxi medallions in New York and other cities have plummeted in value. And these two stand to benefit in the continued expansion of TaaS over the next couple decades.

But these companies are far from equals. Lyft posted annual revenue in 2021 of $3.2 billion and is projected to leap more than 41% to $4.33 billion in 2022.

Uber – thanks to Uber Eats and its recent acquisition of Drizly – posted revenue of $17.4 billion in 2021 and is projected to see 2022 revenue jump 28% to $22.32 billion.

And in the American ride sharing market, Uber is the more dominant force. It currently controls 68% of the market, while Lyft holds the rest.

But what’s amazing is, that very few consumers use both. This is an interesting data point. You see, many Americans rely on subscriptions to Netflix, Hulu, Disney+ and Amazon Prime Video. Though, when it comes to ride-sharing, only 10% of consumers use both Uber and Lyft.

Latest TaaS Technology Companies to Watch

But there’s a new disrupter about to go public. Joby Aviation (NYSE: JOBY) is hoping to bring some of this sci-fi magic to millions of commuters. Over the past 10 years, the company has developed a zero-emission, all-electric, vertical takeoff and landing (eVTOL) aircraft designed to leapfrog traffic congestion.

Each aircraft will carry one pilot and four passengers for journeys of anywhere from 5 to 150 miles at a top speed of 200 mph. These are the taxis of the future. The next evolution in ride-hailing after Uber and Lyft. In fact, Uber was working on this idea but sold its segment to Joby in December. And it agreed to make a $75 million investment in the company.

Joby’s eVTOL taxi concept received a $394 million investment from Toyota (NYSE: TM) as well. The company’s goal is to save 1 billion people an hour of commute time each day and to accomplish this in an environmentally friendly way.

Joby plans to have commercial passenger aircraft in operation as early as 2024. And once these are up and running, its business should, literally, take off.

Revenue Forecasts

The company forecasts it will make $721 million in revenue by 2025. And it projects that number will more than double by 2026. By then, the company believes each aircraft will generate $2.2 million in annual revenue with roughly 850 plans in service.

Over the next decade, Joby plans to have a total of roughly 14,000 vehicles generating $20 billion in revenue. It expects to have a presence in at least 20 cities worldwide, with recurring revenue from its aircraft segment accounting for more than 50% of annual sales.

These are lofty forecasts. But Joby is further ahead than its competitors are. Joby went public through a merger with the special purpose acquisition company (SPAC) Reinvent Technology Partners (NYSE: RTP).

This deal valued the company at $6.6 billion. That seems steep considering there is no real revenue yet. But the opportunity for the air mobility market is upward of $500 billion in the U.S. Globally, this opportunity is forecast to top $1 trillion.

TaaS is not only the future of transportation, it’s one of the most dominant forces in the market right now. But over the next couple of years, it’s going to evolve rapidly and you could get in on the ground floor.

Stay tuned for the latest investing news on TaaS and other emerging technologies.

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This long-anticipated move comes after a period of rapid growth, making the Instacart IPO one of the most watched events of the year.

Instacart IPO: The Business

Founded in 2012 by CEO Apoorva Mehta alongside Max Mullen and Brandon Leonardo, Instacart has emerged from its San Francisco roots to dominate the North American online grocery market. Now available in over 5,500 cities, the service reaches 85% of U.S. households and more than 70% of Canadian households, partnering with over 700 retailers across more than 40,000 stores.

Originally focusing on groceries, Instacart has since expanded its offerings to include a broad range of products such as prescriptions, office supplies, electronics, and more, catering to the evolving needs of its users.

Pandemic Accelerated Demand for Online Ordering

The COVID-19 pandemic served as a catalyst for Instacart, driving unprecedented demand for its services. With the addition of more than 15,000 new store locations to its platform, Instacart solidified its position as a crucial service for millions during the pandemic, offering no-contact delivery options to ensure safety and convenience.

Instacart Slashes $39 Billion Valuation

Despite its success, Instacart faced valuation adjustments. After reaching a $39 billion valuation in early 2021, the company recalibrated to $24 billion in March 2023, reflecting the volatile market conditions and investor sentiment shifts. However, this adjustment did not deter its march towards an IPO, showcasing the resilience and adaptability of Instacart’s business model.

Instacart IPO Confidential Filing Details

Instacart’s journey to its IPO was marked by a confidential filing with the Securities and Exchange Commission (SEC), leading to its public offering of 22,000,000 shares of common stock at $30.00 per share on September 18, 2023. This offering included shares sold by both Instacart and certain selling stockholders, emphasizing the company’s robust market presence and future growth potential.

The shares, trading under the ticker symbol “CART” on the Nasdaq Global Select Market, highlight Instacart’s transition into a public entity, with Goldman Sachs & Co. LLC and J.P. Morgan leading the offering as book-running managers.

About Instacart

Instacart’s mission to revolutionize grocery shopping in North America has positioned it as a pivotal player in the technology and retail space. By offering an extensive marketplace that connects customers with retailers, Instacart facilitates a seamless online shopping experience, supported by a network of dedicated shoppers.

Looking Ahead: Post-IPO Growth and Innovation

With its IPO successfully completed, Instacart is poised for further expansion and innovation, aiming to enhance its service offerings and solidify its position in the market. The company’s adaptability and customer-focused approach will continue to drive its success in the evolving grocery delivery sector.

Investors and market watchers remain bullish on Instacart’s prospects, looking forward to its continued growth and impact on the grocery delivery industry.

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Investors’ anticipation for the VinFast IPO culminated as the company began trading on August 15, 2023. This marks a significant milestone for the Vietnamese EV automotive company, signaling its ambitious stride into the global market.

Here’s an updated look at what this means for VinFast and potential investors.

VinFast IPO: A Milestone Achieved

About VinFast

VinFast, a pioneering EV automotive company based in Vietnam and a key component of the Vietnamese conglomerate Vingroup, has made its name by offering an ecosystem of EV products.

As of its latest update, VinFast has expanded its model offerings and solidified its presence in the United States.

The company’s foray into the public market comes after initially delaying its IPO to the fourth quarter of 2022. However, VinFast successfully began trading on August 15, 2023, introducing investors to new opportunities within the EV sector.

VinFast’s EV Models: An Overview

VinFast’s lineup has evolved to meet consumer demand and regulatory standards for electric vehicles:

• VF 8: This five-passenger mid-size electric SUV offers up to 317 miles of range and features a rapid charging time from 10-70% in just 24 minutes. Starting at $41,000, the VF 8 combines affordability with performance and style.
• VF 9: The larger, seven-passenger full-size electric SUV boasts a range of up to 301 miles on the standard battery, with an option for a larger battery extending the range to 422 miles. The starting price is set at $56,000, offering luxury and space for a larger family or group.

Both models are equipped with 15-inch touchscreens and advanced driver-assistance systems, underscoring VinFast’s commitment to safety and innovation.

The unique battery leasing program remains a cornerstone of VinFast’s strategy, aiming to make EVs more accessible through a monthly leasing fee rather than a one-time purchase cost.

Manufacturing and Expansion

VinFast’s strategic move to set up an EV manufacturing plant in North Carolina, announced last year, is underway. This initiative aims to strengthen its market presence in the U.S. and streamline the supply chain for its EVs.

By localizing production, VinFast anticipates mitigating supply chain disruptions and accelerating delivery times for its North American customers.

Looking Ahead: VinFast’s Future Endeavors

As VinFast stock trades publicly, the company is poised to accelerate its mission of providing sustainable and accessible electric vehicles worldwide. With the VinFast IPO successfully launched, the company’s focus will likely shift towards expanding its product line, enhancing its battery leasing program, and meeting its production goals in North Carolina.

Investors and consumers alike are watching closely as VinFast navigates the competitive landscape of the EV market. With a promising start and strategic investments in technology and infrastructure, VinFast is well-positioned to carve out a significant share in the EV industry.

For those interested in the VinFast IPO and the company’s future prospects, staying informed about their developments and market performance is crucial. As VinFast continues to innovate and expand, it represents an intriguing option for investors keen on the EV space.

FAQ:

Q: Why is the VinFast IPO significant for investors and the electric vehicle market?

A: The VinFast IPO is significant for several reasons. Firstly, it marks the first major public offering by a Vietnamese automaker on the global stage, highlighting the growing influence of Southeast Asian companies in the international market. Secondly, it represents a significant opportunity for investors to participate in the rapidly expanding electric vehicle (EV) sector, which is seen as key to the future of transportation. VinFast’s unique business model, including its innovative battery leasing program, positions the company as a potentially disruptive player in the EV industry, offering a new approach to vehicle ownership and sustainability.

Q: Can you explain how VinFast’s battery leasing program works and its benefits?

A: VinFast’s battery leasing program is designed to lower the upfront purchase price of its EVs by removing the cost of the battery, typically the most expensive component of an electric vehicle. Instead of buying the battery, customers pay a monthly leasing fee for it. This program can significantly reduce the initial cost of acquiring an EV, making electric vehicles more accessible to a broader range of consumers. The leasing fee covers not only the use of the battery but also guarantees its performance and offers a replacement if it falls below a certain capacity threshold, thereby addressing one of the key concerns consumers have about EV battery life and replacement costs.

Q: What future plans does VinFast have following its successful IPO?

A: Following its IPO, VinFast plans to accelerate its global expansion and increase its presence in key markets, especially in North America and Europe. The company is focused on scaling up production capabilities, including advancing the construction of its EV manufacturing plant in North Carolina, to meet growing demand. This facility is expected to significantly enhance VinFast’s production efficiency and reduce delivery times for customers in the United States. Additionally, VinFast aims to expand its EV lineup, exploring new models and possibly entering new vehicle categories. The company also continues to invest in research and development to innovate its technology, improve vehicle performance, and enhance the overall customer experience. By doing so, VinFast aspires to strengthen its position in the competitive EV market and contribute to the global transition towards sustainable transportation.

The post VinFast IPO: VinFast Begins Trading in August 2023 appeared first on Investment U.

Reddit’s IPO: What you need to know

Social media is a massive industry and some social media companies print money by showing highly-targeted ads to users. For investors, social media is also a fairly consolidated industry with only a handful of names to invest in. Here are the social media companies that are currently competing with Reddit for eyeballs:

• Meta Platforms (Nasdaq: META): The owner of Facebook, Instagram, WhatsApp, and Messenger.
• YouTube (Nasdaq: GOOG): The world’s largest video-sharing platform and second-largest search engine. Owned by Google.
• Snap, Inc (Nasdaq: SNAP): The owner of the popular photo-sending app, Snapchat.
• Pinterest: A popular photo-sharing social media app.
• X (Formerly Twitter): Privately owned by Elon Musk.
• TikTok: Privately owned.

Here’s how Reddit currently stacks up against the competition:

• Reddit’s Valuation: Reddit is seeking a valuation of $6.5 billion. Meanwhile, Meta Platforms is worth roughly $1.2 trillion, Snap is worth just under $20 billion, and Pinterest is worth $23 billion. This puts Reddit on the lower end of the spectrum compared to other social media platforms.

• Reddit’s User Base: Reddit reported having 267.5 million active weekly users and more than 100,000 active communities. While impressive, this still puts Reddit on the smaller side compared to the likes of Facebook, YouTube, Instagram, or TikTok. All of these platforms have roughly 1 billion users or more.

Takeaways From Reddit’s IPO Paperwork

I took the liberty of scanning the Reddit IPO paperwork for you. Here are the main takeaways:

• Reddit posted a 2023 revenue of $804 million, up from $666.7 million in 2022.
• Redditors tend to become more engaged on the platform as time passes
• 76% of people think that people post honest and truthful things on Reddit, according to an internal survey. This was higher than Facebook, Instagram, Snapchat, TikTok, X, and YouTube.

How Does Reddit Make Money?

The first question that all investors should be asking when deciding whether or not to invest in a company is: how does that company make money? In Reddit’s case, it makes 98% of its money from advertising. In general, this consolidation of revenue isn’t a great thing in a company that you’re going to invest in, since it means the company is not diversified. But, this type of consolidated revenue is pretty standard for social media companies.

Reddit has a three-step plan to acquire new revenue sources:

• Advertising: Reddit’s current primary revenue source.
• Data licensing: Reddit plans to start selling data for AI to be trained on (this phase of the plan is already underway).
• User economy: Over time, Reddit wants to expand and profit from its community of users by charging people to access the community (this phase is down the road). 

Right now, the most exciting part of the Reddit IPO is hearing more about its plans to leverage AI. Let’s talk more about that.

Reddit’s AI Run

With 1 billion posts and 16 billion comments as of December 2023, Reddit offers a plentiful data source for companies that want to train AI algorithms. Reddit is essentially a massive treasure trove of data that can be leveraged to train LLMs. Reddit is already capitalizing on this and has secured a deal with Google worth roughly $60 million per year. This deal will give Google real-time access to Reddit’s data.

Reddit feels so strongly about its data that it calls itself, “One of the internet’s largest open archives of human experiences.”

Another fun fact from Reddit’s IPO filing is that Sam Altman, CEO of OpenAI, owns roughly 7.6% of Reddit – more than CEO Steve Huffman. Apart from Altman, Reddit’s next biggest shareholders are Advance Publications (which owns Condé Nast) and Tencent.

Reddit IPO: Should You Invest?

I wouldn’t. Reddit has been around for 20 years and has never turned a profit. Yes, its revenue has been growing consistently for years. But, its user base is still fairly small compared to other social media platforms. This doesn’t seem like it will change anytime soon as it’s unlikely for people to suddenly start flocking to an older platform out of nowhere.

Additionally, I can say with certainty that Reddit is going to start slowly declining in popularity after going public. This is because public companies have an obligation to show shareholders increasing quarterly profits. This obligation means that Reddit’s management will be forced to come up with new ways to squeeze money from the platform. In most cases, this results in a worse experience for users.

Inevitably, Reddit will start implementing things like monthly subscriptions, paywalls to access certain communities, and paid account upgrades – all things that people hate. While these decisions might create a short-term bump in profits, they will ultimately discourage people from using the platform.

The Case Against Reddit and AI

With this Reddit IPO, the company is hoping to take advantage of the recent AI bull market and juice its valuation. But, is Reddit really a viable database of information that will be valuable to AI companies?

Reddit is pretty much entirely anonymous. Plus, a large bulk of its content is just comments reacting to news stories or other people’s posts. Yes, there are definitely valuable posts here and there. But, I’d argue that the large majority of Reddit’s content is just white noise. When you consider that it’s anonymous white noise, I get even more confused about how this could power AI algorithms.

That said, I’m not an expert on Large Language Models (LLMs). And, Reddit has already landed a major contract with Google which speaks to the viability of its data. But, I just don’t see how anonymous Reddit comments are really valuable for training AI.

Reddit IPO: Too Much Turbulence

If you’re going to invest in Reddit, that’s totally up to you. But, I’d at least wait until the turbulence from the IPO has settled down.

As a general rule of thumb, IPOs tend to be particularly volatile. It’s fairly common for IPO stocks to either soar or slump in value in the weeks after going public. This happens because it’s the first time that the company’s finances are made public and the market needs to work out how to value the company.

Reddit’s IPO might be particularly volatile for two reasons:

1. User Ownership: Reddit has set aside close to 2 million shares for moderators and users. This could negatively affect the stock if few users decide to buy it.
2. r/WallStreetBets: If this massive investing subreddit decides to go against Reddit then it could also be a massive headwind for the stock.

Many Redditors are unhappy that the company is going public. In fact, there have already been widespread boycotts related to the company management’s decisions. While it may be unlikely, there is a chance that Redditors will attempt to drive the stock’s price down so that it gets delisted and, ultimately, is taken private again. Again, this is unlikely – but not impossible.

I’m staying away from the Reddit IPO, but I’ll definitely be watching the stock closely to see what happens! If you’re interested in reading more, be sure to subscribe below to get alerted of new articles.

Disclaimer: This article is for general informational and educational purposes only. It should not be construed as financial advice as the author, Ted Stavetski, is not a financial advisor. Ted also does not own shares of Reddit.

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