Back in Business: The Return of IPOs & Top Traded Counters in March 2024 April 17, 2024
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At a glance:
- Major indices continue to hit record highs
- Peak rates are expected, with rate cuts anticipated
- Initial Public Offerings (IPOs) are making a comeback
- Top traded counters in March include NVDA, TSLA and AMD
| NASDAQ | DOW JONES | S&P 500 | |
| Month Open | 16,109.83 | 38,989.51 | 5,098.51 | Month Close | 16,379.46 | 39,807.37 | 5,254.35 | Monthly return | 1.67% | 2.10% | 3.06% |
The bull market is in full swing, with major US indices reaching all-time highs, spurred by optimism in artificial intelligence (AI) and bets that peak interest rates are behind us with rate cuts on the horizon. This optimism has fueled an impressive bull run with the S&P 500 up nearly 10 percent since the start of the year. With these tailwinds and investor sentiment remaining buoyant, IPO activity should pick back up in 2024, especially if the Federal Reserve begins to cut rates. Data shows that IPOs on US exchanges have raised over US$7.9 billion this year, marking a 129% increase compared to the same period in 2023.
Here’s a look at some of the year’s notable IPOs:
JSC Kaspi.kz (NASDAQ: KSPI.US)
Based in Kazakhstan, Kaspi provides the Kaspi.kz Super App for consumers and the Kaspi Pay Super App for merchants and entrepreneurs. As the leading provider of consumer-centric services in Kazakhstan, Kaspi is committed to enriching lives through the development of pioneering products and solutions that transform payment methods, shopping experiences, and personal finance management1.Boasting an average of 14 million monthly active users2 Kaspi.kz made its debut on the stock market under the ticker symbol KSPI on 19 January at US$92.
Reddit (NYSE: RDDT.US)
Renowned for its diverse communities and user-generated content, Reddit made its highly anticipated debut on the stock market through an IPO. This IPO drew significant attention, propelled by Reddit’s distinctive role in shaping the social media realm and its profound impact on internet culture. Moreover, the San Francisco-based entity reportedly entered an agreement with Alphabet’s Google to leverage its content for training the tech giant’s AI models. Notable among its shareholders is Sam Altman, CEO of OpenAI, who holds the third-largest share at 8.7%.3RDDT IPO-ed at US$34 on 21 March.
Astera Labs (NASDAQ: ALAB.US)
The listing of Astera Labs coincides with the rising prominence and influence of AI. The semiconductor connectivity firm exceeded expectations by raising US$713 million and surged 72% during its trading debut. Founded in 2017, the company is at the forefront of semiconductor connectivity solutions, aiming to propel AI and machine learning adoption across cloud computing environments. It has attracted attention from significant investors, including Intel’s venture arm, and boasts support from funds affiliated with Fidelity, which hold a 6.4% stake4
ALAB IPO-ed at US$36 on 20 March.
A couple of other highly anticipated upcoming IPOs for this year include the fast-fashion powerhouse Shein and the innovative shapewear brand Skims, launched by Kim Kardashian.
Shein, the China-based online retailer that has revolutionised fast fashion, has reported soaring profits, now exceeding US$2 billion, and is currently awaiting regulatory approval for its listing, aiming for either the New York or London stock exchanges. Headquartered in Singapore, Shein has rapidly become one of the most lucrative fashion companies worldwide. Up to this point, Shein has confidentially filed for an IPO in the US, but the exact timing of its market debut remains under wraps.6
On another front, another fashion brand potentially poised for an IPO in 2024 is Skims, founded by Kim Kardashian in 2019. Centred around the principles of body positivity and inclusivity, the brand has already achieved profitability5. Remarkably, the brand recently concluded a funding round that raised US$270 million, pushing its valuation to US$4 billion. While the date for Skims’ IPO is still pending, the appointment of a chief financial officer in 2022 signifies the brand’s serious preparation for its stock market launch6.
To summarise, the IPO market holds hope for rejuvenation in 2024. This follows a period of muted activity in 2022 and 2023, primarily due to rising inflation and interest rates that increased funding costs and market volatility, making IPO pricing challenging. However, with inflation receding and a softening of interest rates, there is a hopeful outlook for a revival in IPO ventures.
Top traded Counters in March 2024
NVDA:
In March 2024, Nvidia (NVDA) experienced a volatile month, ultimately closing with a 9.82% increase. During the month, Nvidia hosted its annual GPU Technology Conference (GTC), where CEO Jensen Huang unveiled the latest advancements in AI technology.
One of these advancements is its Blackwell platform. This cutting-edge GPU is hailed as the “world’s most powerful chip,” ushering in what the company calls “a new era of computing.” Compared to its predecessor, Hopper, the Blackwell GPU boasts an impressive 30-fold increase in capability and efficiency7.
Another highlight from the conference was Nvidia’s collaboration with Apple to integrate the Omniverse into Apple’s newly launched VisionPro virtual reality headset. The Omniverse, Nvidia’s pioneering computing platform, empowers individuals and teams to develop 3D workflows and applications, marking a pivotal step in advancing immersive technology8.
Status: Neutral
Support: US$837 – US$861
Resistance: US$947 – US$974
TSLA:
March proved to be a challenging month for Tesla (TSLA), as the stock recorded a decline of -13.25%. The company faced multiple hurdles, including supply chain disruptions caused by militia attacks on shipping routes in the Red Sea and a significant power outage last a week at its Berlin Gigafactory9. Additionally, increased competition from Chinese EV makers added further pressure on the stock.
Tesla’s woes were compounded by a drop in vehicle deliveries during the first quarter, marking the first annual decline since 2020. Vehicle production also saw a decrease of approximately 1.7% compared to the previous year .10
Looking ahead, investors await Tesla’s next earnings call scheduled for 23 April.
Status: Neutral
Support: US$152 – US$165
Resistance: US$177 – US$184
AMD:
Advanced Micro Devices (AMD) experienced significant volatility in March. The stock price reached a 52-week high on 8 March but retreated by over 15% shortly thereafter. A key event impacting AMD was the US government’s decision to block the sale of an AI chip designed specifically for the Chinese market. This action is part of a broader US policy intensifying the scrutiny on exporting advanced technologies to China. Although the chip in question was less advanced than AMD’s products in other markets, it was deemed too powerful by the US Commerce Department, reflecting ongoing tensions between the US and China11. In 2023, China accounted for 15.1% of AMD’s revenue .12
Status: Neutral
Support: US$172 – US$189
Resistance: US$215 – US$227
The table below shows the consensus ratings and average ratings of all analysts updated on Bloomberg in the last 12 months. Consensus ratings have been computed by standardising analysts’ ratings from a scale of 1 (Strong Sell) to 5 (Strong Buy). The table also includes several analysts’ recommendations to buy, hold, or sell the stocks, as well as their average target prices.
| Security | Consensus Rating | BUY | HOLD | SELL | 12 Mth Target Price (US$) |
| Nvidia Corporation (NASDAQ: NVDA) | 4.76 | 89.60% | 10.40% | 0.00% | 978.27 |
| Tesla, Inc (NASDAQ: TSLA) | 3.18 | 31.70% | 45.00% | 23.30% | 196.89 |
| Advanced Micro Devices (NASDAQ: AMD) | 4.4 | 76.70% | 20% | 3.30% | 199.39 |
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Reference:
- [1] “https://ir.kaspi.kz/about/mission/
- [2] “https://ir.kaspi.kz/about/ecosystem/”
- [3] “https://www.bloomberg.com/news/articles/2024-02-22/openai-s-altman-listed-as-major-reddit-shareholder-in-ipo-filing”
- [4] “https://www.bloomberg.com/news/articles/2024-03-20/astera-soars-46-after-713-million-ipo-snapped-up-on-ai-demand”
- [5] ” https://www.kiplinger.com/investing/stocks/upcoming-ipos”
- [6] “https://www.nytimes.com/2023/07/19/business/dealbook/skims-kim-kardashian-fundraise.html”
- [7] “https://nvidianews.nvidia.com/news/nvidia-blackwell-platform-arrives-to-power-a-new-era-of-computing”
- [8] “https://blogs.nvidia.com/blog/omniverse-apple-vision-pro/”
- [9] “https://www.fool.com/investing/2024/04/02/why-tesla-stock-lost-13-in-march/”
- [10] “https://www.cnbc.com/2024/04/02/tesla-tsla-q1-2024-vehicle-delivery-and-production-numbers.html”
- [11] “https://www.reuters.com/technology/amd-hits-us-roadblock-selling-specific-ai-chips-china-bloomberg-reports-2024-03-05/”
- [12] “Bloomberg”
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About the author
Global Markets Desk US Dealing Team
The Global Markets Desk US Dealing team specialise in handling the US Markets in the Global Markets Desk.
Their responsibilities and capabilities extend from managing and taking orders from clients trading in the US market, to content generation, Technical Analysis and providing educational content to POEMS clients.
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