Our portfolio is down nearly 3%. It’s not a good day.
But not for everyone. Two IPOs soared. As usual I didn’t get any. I bet you didn’t either.
An artificial intelligence company called C3.AI (ticket AI) went IPO today.
It opened at $100 each — 138% above the IPO price — and was trading at $102.10 at 12:53 p.m. today, giving the company a market value of about $9.9 billion, according to Yahoo Finance.
By the time I looked at it, it had dropped to $92.80– still not a price that excited me.
I’m not too sure what’s got everyone excited about this company — except the shortage of “hot” new software companies.
I looked at the financials. Total revenue for the six months to October 31 was $81,824,000, up only 11% on the same six months in 2019.
To its credit, it’s losing less money — $14.8 million in the latest six months versus $29.1 million last year.
Former Oracle Corp. executive Tom Siebel, who founded the company said “In the next few years, we’ll be investing in market share,” “We’ll be investing in growth, we’ll be investing in partnerships, we’ll be investing in advancing the technology.”
I guess he’s investing.
He said the company is competing against companies that are trying to build large artificial intelligence platforms for themselves. “Virtually every one of our customers would have tried to build these enterprise AI platforms once, twice or three times and failed,” Siebel said.
He said he doesn’t expect the business to be cash positive for a few years. (Before I’m dead?)
I can’t make a learned assessment of the company’s future. This is one of those companies where the web site is pretty useless. You have to take a demo and listen to the pitch. In that way it’s like Snowflake but I own 101 shares in SNOW and I’m up $6,300. On that “logic” I’m guessing I should buy 100 shares of AI and see if I can snag 100 even lower.
This is sort of gambling — except that the forces of young buyers who crave ownership in these new technology stocks are behind us. The force be with you, etc.
So many tech stocks are on sale today, my propensity would be to nibble at PLTR, OKTA, TSLA, NET, CRWD, ZM and SHOP.
Doordash, another one, went IPO today. It’s trading up 75%. It accounts for half the U.S. prepared-food delivery market, according to Edison Trends. Uber which just bought Postmates to complement its Uber Eats business, is No. 2 with 33% market share.
DoorDash’s year-over-year revenue growth for the first, second and third quarters of this year were 172%, 213% and 268%, respectively. Stunning growth. Thank you Mr. Pandemic.
I can’t get excited by a delivery company. But I’ve been wrong before. It’s doing better (actually less worse) today than AI, viz:
I bought some AI, but not DASH.
How Clean Is the Air on Planes?
CondeNast Traveler did a piece (here) and concluded:
To stay healthy when flying:
+ If you’re concerned about aircraft cleanliness, try booking the earliest flight possible that day. And if your itinerary allows it, consider nonstops rather than connecting flights, to limit your exposure to multiple dirty cabins.
+ Practice social distancing throughout your journey—at check-in, security screening, boarding, baggage claim, etc. Select seats apart from other passengers (often in the rear) and ask to be moved if possible.
+ Some airlines provide PPE, and some don’t. So it’s critical to travel with your own mask, gloves, wipes, and sanitizer.
I’ve read too many sad stories about people getting sick on commercial flights. If I go anywhere, I’m tempted to fly private. Some of my friends do, and the rich ones are still alive!
I can’t speak to many of my friends and classmates.
They are convinced the Democrats stole the election. My favorite quote from them:
+ The Democrats stole the election fair and square.
Although for great lines, I prefer these two:
+ I expected the worst, and it was worse than I expected. — Henry Adams.
+ When God closes a door, then opens another door, you’re probably in prison. (Perhaps you can buy a pardon? Hurry. You have only until January 20.)
Brilliant marketing
Read the words. I found these in my local pharmacy while I was searching for anti-heartburn pills. You get older and have different needs.
From this to incontinence pads, the aisles are close in my local CVS.
Fun cartoon
And now three from the New Yorker
It’s snowing up here. Good to play tennis indoors.
See you tomorrow, so. Harry Newton
