Archive: private market
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Bitcoin and Startups: Better Revolutionary Assets
By Adam Sharp on January 29, 2021
For the last week, all eyes have been on GameStop (GME). Millions of users from forums such as Reddit’s WallStreetBets have piled into shares and call options of the wounded mall retailer, causing a short squeeze of epic proportions. GME shares rose from less than $4.00 just six months ago to more than $460 this week. Large hedge funds that were short GME…
The Disadvantages of a SPAC Investment
By Andy Gordon on January 20, 2021
Special purpose acquisition companies (SPACs) are enjoying their moment in the sun. They’ve shot into prominence as a way for startups to make an initial public offering (IPO) and join public stock exchanges. They offer founders unprecedented speed. And for some investors — more…
The Strength of Early-Stage Companies
By Adam Sharp on January 5, 2021
We live in a remarkably disruptive time. New technologies are changing the way almost every industry operates. There’s a lot of opportunity for innovative companies to make a big impact. But we also live in a very unique time when it comes to finance and monetary…
Beware Hot Tech Stocks
By Adam Sharp on December 11, 2020
As you might have heard, Airbnb had its long-awaited IPO (initial public offering) yesterday. Like a lot of hot public offerings this year, it was pure insanity. Airbnb’s IPO shares were initially priced at $68 — so that’s the price that a small group of well-connected…
Be Ready for Direct Listings
By Vin Narayanan on December 9, 2020
I’m starting to think IPOs — initial public offerings — are overrated. That’s a really weird thing for an early investor to say. Because for early investors, the IPO is the holy grail. It’s why you invest in startups. An IPO is one of the few moments in…
Invest in Technological Disruption
By Adam Sharp on October 23, 2020
These are strange times, economically and socially. The future seems as uncertain as it’s ever been. At first glance, now might not appear to be a good time to invest in startups. But I truly believe it is. The primary reason I’m still investing…
Choosing Between Startups and Tech Stocks
By Adam Sharp on October 6, 2020
Today we’re going to briefly compare tech stocks with startup investments. We’ve reached a point in the public market where many tech stocks are overvalued by what I would guess is a multiple that ranges from 2x-to-10x. The valuations at this point are simply silly, as…
The Real Lesson of the Snowflake IPO
By Adam Sharp on September 18, 2020
On Wednesday, Snowflake (SNOW) went public in one of the most highly anticipated IPOs ever. Snowflake is a cloud data platform that helps companies efficiently organize and analyze huge databases. The company’s revenue is growing at a rapid 133%…
The New Way to Generate Wealth
By John Fanning on September 9, 2020
Note: A few weeks ago, we welcomed John Fanning to the Early Investing family. Today, we’re pleased to bring you his second column. If you’re not familiar with John, he’s worth getting to know. He was the founding chairman and CEO of napster. He…
The Number One Rule of Investing
By John Fanning on August 19, 2020
Note: We’re pleased to welcome John Fanning to the Early Investing family. John was the founding chairman and CEO of napster. He has an impressive track record as both a founder and startup investor. And he will be sharing his thoughts — and occasional startup recommendations — on…
Startup Insider: Private Markets Surge
By Early Investing on August 10, 2020
Restaurants are struggling. Retailers are declaring bankruptcy. But startups? They’re doing quite well, thank you very much. Many startups have seen increased demand. Their valuations are holding steady. And raising money hasn’t been a problem at all. So why are the private markets surging when everyone predicted doom…
The Power of the Private Market
By Adam Sharp on July 31, 2020
Two amazing American companies went public (IPO’d) in 2004 — Google (GOOG) and Domino’s Pizza (DPZ). Since then, Google (now Alphabet) has become one of the largest companies in the world. Today it’s worth more than $1 trillion. Domino’s is currently valued…
Don’t Fall for Day Trading
By Adam Sharp on June 19, 2020
Day trading is back in a big way. Robinhood, the original free stock trading app, has seen a huge influx of users this year. And I have a strong feeling most of them are new to investing. From Barrons:…
Investors Should Avoid Getting Hertz
By Andy Gordon on June 17, 2020
Hertz is the latest example of baffling investor behavior. On May 22nd (the Friday leading into Memorial Day weekend), bankruptcy rumors caused the car-rental company’s stock to drop 7.5%. The rumors turned out to be true. Hertz officially filed for bankruptcy that night. And by the…
Startup Investing in a Recession
By Adam Sharp on June 16, 2020
The U.S. stock markets are nearing all-time highs. But all is not well with the economy. A huge portion of small businesses are struggling to pay bills. Big corporations are faring better, but they have their own issues that need to be addressed — too much…
Choosing Between Stocks and Startups
By Andy Gordon on June 3, 2020
When it comes to investing, there’s no lack of choices. The trick is making the right one. And those choices look a lot different now than they did before COVID-19 hit. Stock investors, in particular, need to recalibrate their strategies. There are two basic options for…