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ClearTips is not a public-market-focused publication. We care about startups. But public technology companies can, at times, provide interesting information about how they are performing in the broader technology market. So we pay what we might call the minimum viable focus for the former startup that made it all the way to the IPO.
Then there are the Big Tech companies. This list is well known in the United States: Facebook, Alphabet, Microsoft, Apple, and Amazon. And, in a series of results that could indicate a hot market for startup growth, they had a good first quarter of 2021. You can read our notes on their results here and here, but this is just part of the story.
Yes, Big Tech’s financial results were good – as they have been for some time – but how shocking Big Tech’s recent performance has proved to be for their valuations as the numbers are lost amid general earnings losses.
Microsoft fell as low as the $ 135 per-share range last March. Today it is worth $ 252 and change. Alphabet traded below $ 1,070 per share. Today the search giant is valued at $ 2,410 per share.
The huge share-price appreciation results that Apple is now worth $ 2.21 trillion, Microsoft $ 1.88 trillion, Amazon $ 1.76 trillion, Alphabet $ 1.60 trillion and Facebook $ 0.93 trillion. This is approximately $ 8.4 trillion for five companies.
Back in July of 2017, I wrote a piece stating that their total value had reached the $ 3 trillion mark. He became $ 4 trillion in mid-2018. And then it more than doubled in the next three years or so.
Mile UdlandA reporter from our sister in Yahoo Finance’s publication has at least part of the puzzle written this week. Here is Udland:
And while it seems that almost every earnings story has followed this same arc, the data also confirms that it’s not just our imagination: corporate earnings have never been in line with expectations.
The team’s data published on Thursday in Refinitiv showed that the rate at which companies were anticipating and the extent to which they were beating expectations through the results on Thursday morning was the best on record.
So earnings are beating road estimates more often and at higher odds, than ever before? This makes recent stock-market appreciation less worrying, I think. And it helps explain why startups have been able to raise so much capital in the United States recently, as they have in Europe, and why private-market investors are pouring so much capital into fintech startups. And that’s probably why Zomato is going public and why we are still waiting for the start of Robinhood.
This appears to be the case when the underlying business is firing on all cylinders. Just don’t forget that no business cycle is united, and no boom is forever.
An insurtech interlude
An expansion of the Exchange’s recent report about fintech funding, and our roundup from the last week of the InnerTech startup round, a few more notes on the latter’s startup net, which can largely be seen as part of the larger financial technology world.
This time we will hear from Excel’s John Locke about his investment in The Zebra – which has recently raised even more capital – and the Insurtech space more widely.
Asked how the Insurtech marketplaces such as The Zebra have been able to raise much money in the past year, Locke said it is a mix of “insurance carriers” […] Finally ready to embrace the marketplace and design integrated consumer experiences with the marketplace, “comparison shopping” with the greater consumer and, ultimately, the quality of growth and revenue.
The zebra, Locke said, “is still growing at ~ $ 120M + revenue north of 100% at run-rate.” This means that it can go in public whenever it wants.
But on that matter, there has been some weakness in the stock market for some public insurance companies. Are you worried about the lock? He is neutral-to-positive, stating that his firm “does not think all companies in the market will work, but still thinks ‘Insurtech’ will take market share from incumbents over the next decade.” Fair enough
And Excel is still considering more deals in the space, as others are. Locke said that the enterprise market for Insarchtech investments is “definitely more aggressive” this year than last year.
Various and varied
Closed today, some things we did not find in that case:
- Productboard raised $ 72 million c. C. Closed First, this is a very big round. Second, yes, Tiger led the deal. Third, the product management software company today has about 4,000 customers. this is too much. Add this company to its IPO list from two years to now.
- Chinese bike-sharing startup Hello is going public in the United States. We are going to bring it back on Monday, but its F-1 filing is here. The company generated revenue of $ 926.3 million in $ 109.6 million in gross profit, and a net loss of $ 173.7 million in net loss. Yowza.
- Darktrace went public this week. I know of this because it sponsors an F1 team that I accept, but it recently entered our world as a UK-listed company. After Deliveroo moved to Kerplat, the resounding success of the Darktrace listing could make Britain a more attractive place on the list than it was a week ago.
- And, after all, what could be drone delivery, perhaps, coming in last? UK-listed venture capital group Draper Esprit led a $ 25 million round in Manna, which intends to distribute grub to use unmanned drones in Ireland. “Manna sees a huge appetite for a greener, quieter, safer and faster delivery service,” UKTN reports.
A long, awkward week. Be sure to follow the exchange’s writing team’s second dinner: Anna Heim. Alright! Chat next week!