As fears of overexposure to the China trade dispute in the microchip and semiconductor sectors are being proven wrong, the market rallies. Investors are realizing that the banned Chinese company, Huawei, is not as tightly woven into those sectors as it had feared, and strong demand for chips will be driven on by the pending rollout of 5G technology. This means that those entire sectors are currently undervalued. As the new 5G upgrade cycle promises to keep demand high for years to come, there’s one company in this sector whose sales are up 24% since the market rally, and whose earnings are doubling nearly every three years – meaning huge growth potential if you latch on now. Click here to watch.
If all you did was look at the headlines, you’d think this is a terrible time to invest in initial public offerings (IPOs).
Just take a look at this recent riff from Forbes, “Why WeWork Won’t Work! – Hello Neumann!,” or Bloomberg’s announcement, “Endeavor Makes Last-Minute Call to Yank IPO as Conditions Sour.” Big time financial news is clearly in love with the idea that anyone getting hyped up for a big name IPO is just setting themselves up for disappointment.
On paper, that narrative makes sense.
WeWork’s attempt at an IPO saw an optimistic estimated valuation of $47 billion falling to less than $14 billion before the offering was abandoned entirely. The loss was so devastating that the CEO resigned over it.
Not only that, but Peloton Interactive Inc. (PTON) dropped 11.2% in its first day of trading on Sept. 26, a decline which, according to The Wall Street Journal, directly influenced the decision of talent firm, The Endeavor Group, to also put off its own new stock debut out of fear of poor market conditions.
But what the media isn’t telling you is that tech and life sciences firms are still IPO leaders. That segment of the market is actually doing quite well overall.
- You Can Handle the Market’s Recent Chaos with These Two Techniques
- This Aerospace Play Can Bank You Lofty Profits from NASA’s Lofty Goals
- Cash in on the Most Disruptive Tech on the Market with Only One Investment
- The Small-Cap Backend Cannabis Play Set to Disrupt a $1.2 Trillion Global Industry
- Why It’s Time to Buy Into $377 Billion “App Economy” With This Cloud Leader
- Three Choppy-Market Tools That’ll Help You Capture Profits No Matter What the Market Does
- The One Investment You Need to See Past the “Don Quixote of Tech’s” Giants
- Two Big Tech Opportunities While Congress Scrutinizes