Why Nasdaq Could Rise Ahead of Key Unicorn IPOs

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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