Diamonds and Dogs
AT&T (T) worth $60 a share? Ma Bell is up 3% to a new 52 week high following a $3 billion investment from activist firm Elliott Management. Founder, Paul Singer sent a letter to AT&T asking for a bunch of changes that could unlock value, pushing the stock to a valuation closer to $60 a share or 50% above current levels. AT&T says they are looking forward to engaging with Elliott team and believe many of the actions outlined in the letter are already being executed today.
Revenge of the recent IPOs. Many of the IPOs from money losing companies are coming under pressure. The cannabis stocks have come under pressure since May. The ride sharing stocks, Uber and Lyft, are down over 30% in the last two months. Cloud security solutions company, Crowdstrike (CRWD) is down 10% today and down 30% in the last month. The company reported better than expected earnings and guidance last week, but with the comp any losing money and trading for 20 times next year's sales, investors are no longer willing to pay up for these recent IPOs.
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