Klaviyo Shares Up 9.2% Following IPO – She’s Got The Stocks 21 September 2023

Klaviyo Shares Up 9.2% Following IPO – She’s Got The Stocks 21 September 2023

The Australian stock market recorded its third consecutive day of declines on Wednesday, driven by a drop in materials, energy stocks and technology stocks.

This comes as the market anticipates crucial interest rate decisions from the Bank of England, Bank of Japan, and the US Federal Reserve in the next 48 hours. The S&P/ASX 200 ended 44.2 points or 0.6 per cent lower at 7165.5, with the All Ordinaries showing a comparable decrease.

Meanwhile, in the US the Fed left rates unchanged at 5.25-5.50 per cent. However, projections showed one more rate hike to come in 2023, with fewer rate cuts ahead in 2024, playing into the higher-for-longer narrative. Jerome Powell, chief of the Federal Reserve, mentioned, “We believe we’re nearing our target,” and suggested that a gradual stabilisation is feasible.

US equities finished lower in Wednesday trading, with big tech firms a notable laggard. The Australian market is set to open lower today with the SPI200 down 20 points or 0.28 per cent to 7151.

Trending Now

Tech companies often face legal battles, but now we’re witnessing one of the largest antitrust cases in years. Google is currently defending its search business in Washington against the Justice Department.

The DOJ claims Google engaged in unlawful deals to push out competitors, which negatively impacted consumers and advertisers. For instance, Google pays Apple billions to be the default search on Safari. However, Google argues that they encourage competition by catering to providers and allowing consumers the choice to use other products. It will be weeks before the witness testimony wraps up but, should the judge find against Google, it will be transformative for the industry.

On its New York Stock Exchange debut, martech firm Klaviyo’s shares increased by 9.2 per cent, marking the first significant IPO for a U.S. venture-backed software firm since late 2021.

The stock opened at US$36.75 but dipped to close at US$32.76. Klaviyo, valued at over US$9 billion after pricing its shares at US$30 each, managed to raise US$345 million by selling 11.5 million shares. This valuation slightly decreased from its US$9.5 billion worth in a 2021 private financing round.

On the closing bell on Wednesday NASDAQ-listed Instacart’s shares fell approximately 11 per cent on its second trading day, ending just above their IPO price of US$30. While the stock initially surged 40 per cent to open at US$42, it declined to close at US$33.70, eventually settling at US$30.10 by Wednesday. Instacart’s IPO revived a dormant market, which had slowed since late 2021 due to inflation and rising interest rates.

However, the decline in its stock price indicates investor caution towards tech companies targeting traditional sectors amidst economic challenges. Instacart joins the ranks of gig economy companies like Airbnb, DoorDash, Uber and Lyft on the public market, with only Airbnb proving favourable for investors.

Pinterest surged, recording its best performance since July with a 3% increase. This boost was attributed to its CEO’s optimistic three- to five-year forecast and praise for Pinterest’s advertising tools. The company recently partnered with Amazon for advertising. Early tests indicate ads from this partnership are more relevant, as highlighted by Pinterest’s strategy chief, Martha Welsh.

Expert Views

Naba Banerjee, responsible for Airbnb’s global party ban, has dedicated over three years to tackling party “collusion” among users, identifying “chronic party properties,” and chiefly, developing an AI system to prevent parties. According to CNBC, the AI models look at hundreds of factors, including the reservation’s closeness to the user’s birthday, the user’s age, length of stay, the listing’s proximity to where the user is based, weekend vs. weekday, and whether the listing is in a popular location. CNBC reports “There was a global 55 per cent drop in parties reported on Airbnb between August 2020 and August 2022, according to the company, and since the worldwide launch of Banerjee’s system in May, more than 320,000 guests have been blocked or redirected from booking attempts”.

US media companies are grappling with challenges as actors and screenwriters demand better streaming residuals, wage increases, and AI safeguards, causing industry-wide disruptions. Amid this uncertainty, firms with extensive content and global reach seem better equipped for volatility. Netflix remains a leading force in streaming, witnessing a 34 per cent share increase in 2023 and anticipated further growth. Rosenblatt analyst, Barton Crockett, emphasized the growing strain on traditional pay TV, suggesting an increasingly challenging landscape. Since pioneering the streaming model, Netflix has stood out as a dominant competitor to topple and the main threat new entrants face in the fight to capture consumer attention. It’s also experienced a stellar 2023 as investors rotate back into the beaten-down technology sector. Shares have jumped 34 per cent year to date, with the average price target suggesting it has another 17.7 per cent gain in store. “

Microsoft is narrowing its market value difference with Apple, the world’s largest technology stock, primarily because of its anticipated growth and diminished concerns regarding China. Recently, Microsoft’s stock performance has surpassed Apple’s, which is facing rising tensions with China. Microsoft’s prowess in cloud computing and AI is drawing significant investor interest. “Microsoft has more of what the market wants right now and given where we stand on the pair’s growth prospects, we wouldn’t be surprised to see it overtake Apple,” said David Klink, senior equity analyst at Huntington Private Bank. “We have more faith in Microsoft’s margins, while the cloud and AI are growth areas that can stand the test of time over a decade. We don’t know if the iPhone can do the same,” he said. “It’s hard to make a bear case for Apple, given its services business, but the bull case clearly favours Microsoft.”

Current market trends and major events in 2023 seem to resemble past times. With high inflation, increased oil prices, worker strikes, and political tensions, it feels like the 1970s. Russia’s actions in Ukraine have disrupted global unity. The BRIC alliance is shifting the world’s energy supply dynamics. After the Ukraine situation, while the USA used the dollar as leverage, BRIC nations are now using energy and resources in a similar way. Strikes are more frequent due to rising costs and job insecurity.

Company Spotlight: Weekly Performance 

Company Name Opening price Closing price Change (%) 
Macquarie Telecom Limited (ASX: MAQ) $65.740 $63.100 -4.02% 
REA Group (ASX: REA) $161.150 $160.390 -0.47% 
Atlassian (NAS: TEAM) (USD) $208.890 $200.820 -3.86% 
Xero (ASX: XRO) $119.440 $114.380 -4.24% 
Carsales.com (ASX: CAR) $29.720 $29.310 -1.38% 
NEXTDC (ASX: NXT) $12.720 $12.580 -1.10% 
WiseTech Global (ASX: WTC) $67.320 $68.000 1.01% 
Appen (ASX: APX) $1.365 $1.215 -10.99% 
Airtasker (ASX: ART) $0.195 $0.200 2.56% 
Telstra (ASX: TLS) $3.870 $3.840 -0.78% 
Adobe (NAS: ADBE) (USD) $553.560 $535.780 -3.21% 
Salesforce (NYSE: CRM) (USD) $218.800 $213.030 -2.64% 
Apple (NAS: AAPL) (USD) $174.210 $175.490 0.73% 
Alphabet (NAS: GOOGL) (USD) $136.710 $133.740 -2.17% 
Meta (NAS: META) (USD) $305.060 $299.670 -1.77% 
Microsoft (NAS: MSFT) (USD) $336.060 $320.770 -4.55% 
Amazon (NAS: AMZN) (USD) $144.850 $135.290 -6.60% 
Nvidia (NAS: NVDA) (USD) $454.850 $422.390 -7.14% 
Netflix (NAS: NFLX) (USD) $412.240 $386.300 -6.29% 

 

Latest News

Fighting For ‘Attention’: How To Measure Campaigns In Today’s Content Saturated World
  • Partner Content

Fighting For ‘Attention’: How To Measure Campaigns In Today’s Content Saturated World

When it comes to ad campaigns, have you ever felt you’re ‘fighting’ for your audience’s attention? You’re not alone. Attracting and retaining audience attention in today’s digitally fragmented environment has never been more challenging. In fact, a recent study by Microsoft concluded that the human attention span has dropped to eight seconds – shrinking nearly […]

Partner Content
Women Paving the Path In Tech & Loyalty Share Key Insights
  • Technology

Women Paving the Path In Tech & Loyalty Share Key Insights

In the ever-evolving landscape of technology and loyalty, women are not just breaking barriers but reshaping the future. As we celebrate International Women’s Day and rally behind the theme of investing in women to accelerate progress, we made a conscious choice to forego the statistics that underscore the ongoing journey towards true gender parity. Instead, […]

Empowering Change: Women Leading The Generative AI Revolution In Marketing For International Women’s Day
  • Marketing

Empowering Change: Women Leading The Generative AI Revolution In Marketing For International Women’s Day

The theme for this year’s International Women’s Day, “Inspire Inclusion”, establishes a poignant tone for fostering authentic change. It perfectly mirrors the dynamic landscape of marketing, where change is the only constant. The last third-party cookie has finally crumbled, privacy laws are tightening, and now, Generative AI is quickly ushering in a new era of […]

Stevie-Ann Dovico Moves From NAB To Beyond Bank
  • Fintech

Stevie-Ann Dovico Moves From NAB To Beyond Bank

Stevie-Ann Dovico (lead image), has made the shift to customer-owned, Beyond Bank as its new chief information officer. The announcement came via Linkedin with happy to share that she is “ready to create real impact for and with our people, customers and communities” in her new role. Dovico replaces Fiona Floyd, who left the role […]

Redefining Tech Leadership: Deputy’s C-Suite Now 80% Women
  • Technology

Redefining Tech Leadership: Deputy’s C-Suite Now 80% Women

Deputy, the leading global people platform for hourly work, has announced the appointment of Sejal Patel Daswani (lead image) as its new chief people officer, resulting in a shift in the composition of its senior leadership, with women now making up 80% of the company’s C-Suite. Daswani has led people functions at every stage and […]

Acronis Names Cybersecurity Channel Veteran Kelly Johnson As General Manager For Australia & New Zealand
  • Technology

Acronis Names Cybersecurity Channel Veteran Kelly Johnson As General Manager For Australia & New Zealand

Acronis has appointed Kelly Johnson (lead image)as the new general manager for Australia and New Zealand. Johnson will lead the channel-focused business, strengthening relationships with distributors and supporting partners to meet the cybersecurity demands of modern businesses in the region. With the growing pressure on Australian businesses for cybersecurity and the drive to comply with […]

Aquent Salary Guide Reveals The Gender Pay Gap Persists In Marketing, Design & Technology Fields
  • Marketing
  • Technology

Aquent Salary Guide Reveals The Gender Pay Gap Persists In Marketing, Design & Technology Fields

Aquent has released its 2024 Australian Salary Guide for marketing, design, and technology talent. This year, it explores how marketing, design, and technology roles are expanding, deep dives into gender pay gaps, and examines the movement of salaries year-on-year—both in growth and decline. Paired with Aquent’s 2023 Talent Insights Report, the Salary Guide helps organisations […]

Tech Salaries Continue To Steady Out As Businesses Remain Cautious
  • Technology

Tech Salaries Continue To Steady Out As Businesses Remain Cautious

The hiring market is experiencing significant change, fluctuating between a frenzied candidate-short market and a more cautious employer-driven market, according to Talent’s ‘More Than Money Salary Guide 2024’. Tech and digital salaries continue to steady out but remain strong for key skillsets such as cybersecurity and AI. The report features key salaries, roles and skills […]

Surging Job Satisfaction For Australia’s Young Tech Workers Amid Labour Market Cooling
  • Technology

Surging Job Satisfaction For Australia’s Young Tech Workers Amid Labour Market Cooling

While 2021’s big workplace trend was The Great Resignation, 2024’s big trend is likely to be ‘The Big Stay’ in Australia, concludes modern HR platform HiBob in its latest research of young Australians working in the tech sector. The combination of decreasing Australian job vacancies and a remarkable increase in job satisfaction among Australia’s young tech workers in 2023 […]