Nasdaq is the biggest
tech-focused index in the world. It is home to leading companies like Apple,
Microsoft, Facebook, and Amazon among others. This week, investors are focusing
on the index as a number of large technology companies prepare to go public.
The first company to go public
will be Lyft, which is a ride sharing company focused mostly in the United
States and Canada. The seven-year old company will go public and seek a
valuation of more than $20 billion. With the Fear of Missing Out (FOMO)
expected, there is a likelihood that investors will rush in this company. In
its filings to regulators, the company reported increased revenues, which
reached more than $2.2 billion in 2018. This will come ahead of the planned
Uber IPO, which is expected to be launched in April.
The second company to watch will
be Pinterest. Pinterest is a social media and commerce company that enables the
users to create visual boards. It was started in 2010 and will be seeking to
raise millions of dollars at a valuation that exceeds more than $15 billion.
The company makes money by advertisements and in 2018, it generated more than
$755 million.
The third company traders will
watch will be Uber, which is one of the largest privately-owned companies in
the world. The company makes money from the commissions it charges its riders,
who operates their riders. In its recent funding, the company was valued at
more than $130 billion, which is a major feat for a company that was started ten
years ago.
Other companies that traders
expect will go public this year will be Slack, Airbnb, Peloton, Cloudflare,
Zoom, and Rubrik. All these companies are valued at more than a billion
dollars.
Therefore, the Nasdaq index will
be closely watched by traders. In recent days, the index has regained most of the
losses suffered in December, when it declined to a bear market. In the past two
days, the index has declined as investors started to worry about the yield
curve. Yesterday, the index reached a low of $7292 before rising to $7377. The
closing price is along the 42-day moving average and slightly above the 21-day
moving averages. The RSI has moved from the oversold level to above 50. The
index will likely continue to move higher as traders wait for the upcoming
IPOs.
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