The week ahead: July 13, 2020

Here’s the weekly market summary for the week of July 13, 2020:

Key earnings

  • Pepsi (PEP) on July 13
  • Citigroup (C), Delta Air Lines (DAL), JPMorgan Chase (JPM), Wells Fargo (WFC) on July 14
  • Goldman Sachs (GS), PNC Bank (PNC), U.S. Bancorp (USB), Alcoa (AA), UnitedHealth Group (UNH) on July 15
  • Abbott Labs (ABT), Domino’s Pizza (DPZ), Johnson & Johnson (JNJ), Bank of America (BAC), Morgan Stanley (MS), Netflix (NFLX), Charles Schwab (SCHW) on July 16
  • Ally Financial (ALLY), BlackRock (BLK) on July 17

IPOs

Rackspace preps IPO after going private in 2016 for $4.3B

After going private in 2016 after accepting a $32 per share, or $4.3 billion, price from Apollo Global Management, Rackspace is looking once again to the public markets. First going public in 2008, Rackspace is taking second aim at a public offering around 12 years after its initial debut.

Fintech startup nCino targets ~$2B valuation in impending IPO

nCino, a fintech startup that provides operating software to banks, intends to sell 7.625 million shares in its debut, worth $167.75 million to $183 million at those prices. The startup’s software is what nCino calls a “bank operating system,” providing banking software to help financial entities with lending, customer resource management, account opening and more. It’s a rich space for innovation, given the banking industry’s complexity and wealth.

Coinbase reported to consider late 2020, early 2021 public debut

Reuters reported that Coinbase, a popular American-based cryptocurrency trading platform, could pursue a public debut later this year, or early next year. Even more, Reuters reported that Coinbase may pursue a direct listing for its shares, instead of a more traditional initial public offering. A direct listing allows a company to begin to trade publicly without formally pricing its equity through a bloc sale as happens in initial public offerings.

Recommended reads

New Bronco launching

Ford (F) is holding a major event on July 13 to introduce its new Bronco lineup, which will include two-door and four-door models, as well as a smaller Bronco Sport. Ford is looking to edge into the lucrative off-road adventure segment that Jeep has dominated for decades. Ford execs say the Bronco will have all the off-road capabilities of the Wrangler, but will easier to drive on an everyday basis.

Uber confirms it is acquiring Postmates in an all-stock, $2.65B deal

Uber today announced that it has acquired Postmates in a $2.65 billion, all-stock deal. It plans to run the business alongside its own food delivery business, Uber Eats, keeping the Postmates app running while merging some of the tech and delivery operations at the back end — for example by having drivers delivering orders for both businesses.

Worried About A Stock Market Crash? Here’s How You Can ‘Tail Hedge’ Your Portfolio

Taleb suggests investors ought to be “tail hedging” their portfolios as a result. So ‘what is tail hedging?’ you might ask. The “tail” part of it simply refers to the ends of a normal, bell-shaped distribution curve. These represent events in the market that very rarely occur. In this case, it refers to a stock market crash.

Fintech disruptor SoFi wants to become a national bank — again

SoFi has filed an application for a national bank charter, which would allow it to accept deposits and lend money without traditional bank partners. The fintech company previously applied for a bank license in June 2017 with the FDIC.



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