Markets Defused aims to give an easy-to-understand and straightforward recap of the day’s most engaging business and stock market news.
- Raspberry Pi shares very much in demand
- Apple shares hit new highs on AI vision
- GameStop shares arrest slide
- Boeing shares down as new plane sales disappoint
- Golden Goose to shine with $2bn stock market IPO
Raspberry Pi shares are very much in demand
Raspberry Pi (LSE:RPI) shares were in high demand on Tuesday, as it rose some 37% on its first day of conditional dealing – after London’s new IPO priced at the upper end of its pricing range.
By the close of Tuesday, the London Stock Exchange entrant was priced at 385.05p.
Originally priced at 280p in the IPO, the share traded as high as 392p.
Conditional dealing is a precursor to the official start of trading on Friday, when retail investors will be able to get hands on the British home-brew PC firm.
The IPO saw a £166 million share offer, largely comprising existing shares held by early-stage investors – though the company did sell a smaller portion of new equity, to raise £31.4 million of new capital.
The IPO is being 'cornerstoned' by Lansdown Partners and Arm Technology Investments (whose parent company, the British semiconductor giant Arm Holdings PLC, provides Raspberry Pi’s processing units).
Raspberry Pi’s listing is seen as a boon for the London Stock Exchange, and the UK’s tech sector.
Apple shares hit new highs on AI vision
Apple Inc (NASDAQ:AAPL, ETR:APC) shares climbed to a new record high, moving above $203, on Tuesday as investors reacted enthusiastically to yesterday’s big AI reveal at the WWDC24.
Changing hands at $205.04 the iPhone-maker’s stock was up around $12.00 or 6.17% for the day.
It comes after chief executive Tim Cook delivered a “flex the muscles moment” as the company kicked off its AI-dominated Worldwide Developers Conference (WWDC) in California.
Cook, with his keynote speech on Monday, ushered in what the company is calling “Apple Intelligence” – a packaged, wrapped-up, and branded version of AI that appears with the customary Apple marketing.
Apple Intelligence essentially comprises a suite of AI tools and capabilities that’s being rolled into the Mac, iPhone, and iPad, plus the Siri personal assistant tech as well as Apple’s other devices.
It will be supported by new in-house AI microchips.
Also, central to the proposition appears to be the new partnership with ChatGPT creator OpenAI, which was formally confirmed amidst the conference.
GameStop shares arrest slide
GameStop Corp (NYSE:GME) shares arrested their slide as Tuesday’s trading progressed, after an initially negative start to the session.
At $26.56, GameStop was up $1.75 or 7.05%.
It comes as the market awaits confirmation of GameStop’s share sale which was announced on Friday evening.
At the same time, Keith Gill (aka Roaring Kitty) and the internet’s ‘meme-traders’ continue to put their focus on the retailer.
Gill on Friday conducted a very high profile livestream broadcast and he also last week revealed a massive $115mln bet on the GameStop share price.
Golden Goose to shine with $2bn stock market IPO
Golden Goose, a luxury shoe company that sells trainers for several hundred dollars a pair, is reportedly aiming for a valuation of $2 billion in a planned stock market IPO later this month.
The company, favored by celebrities including Taylor Swift, is slated to list on the Euronext Milan stock exchange on June 21.
It would be Italy’s largest since digital gaming firm Lottomatica, which floated with a $3 billion listing in 2023.
Golden Goose IPO pricing range has been set between €9.50 and €10.50, which implies a market capitalization of €1.69 billion to €1.86 billion.
Through the IPO, Golden Goose would seek to raise up to €558 million, selling a 30% stake.
Last year, Golden Goose generated €587 million in revenue, reflecting an 18% year-on-year increase, and achieved an EBITDA of €200 million.
The Venice-based company is owned by British private equity firm Permira, which acquired it for €1.28 billion in 2020.
Prior to that another private equity firm, Carlyle, had bought Golden Goose for €400 million in 2017.
Permira's head of Italy, Francesco Pascalizi, described Golden Goose as a "category-shaping luxury company built to resonate with the new generation of luxury consumers."
Chief executive Silvio Campara added that the IPO would bring the company’s shoes to an "even broader audience."
The IPO will see the sale of both new and existing equity, and it is being cornerstoned by Invesco which is taking €100 million of stock.
Boeing shares down as new plane sales disappoint
Boeing Co (NYSE:BA, ETR:BCO) shares were falling on Tuesday as the aircraft engineer’s ailing 2024 appears to be dragging on sales.
The company reported jet delivery and order data for the month of May that failed to meet investor expectations.
In May, Boeing saw four new planes, none of which were for the 737 MAX aircraft – it has not received any orders for this class of jet for two months in a row.
For context, in May of last year Boeing received 69 plane orders.
Nonetheless, Boeing’s order remains robust at 6,200 units.
It comes as Boeing’s output volumes are also being constrained by oversight by America’s Federal Aviation Administration due to increased oversight following an emergency door plug blowout incident on a 737 MAX 9 jet operated by Alaska Air.
Boeing said it delivered 24 jets, including 19 of its 737 MAXs, consistent with the number reported for April, but, below the 50 planes delivered in May last year.
If the same volume is maintained, Boeing would have delivered 72 planes in its second quarter, which would be some way short of Wall Street's projection of 91 jets. In the first quarter, Boeing delivered 83 jets.
Boeing shares were down 2.56% on Tuesday, trading at $185.25.
As the market and regulators continue to scrutinise Boeing, its share price is down some 26% in 2024 to date.