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By Alex Eule
| Friday, December 11 New
vs. Old. It was a good week to
be a shiny new company. Everything else was left behind. All three
major indexes fell on the week, with the large-cap S&P
500 down
1%, snapping a two-week winning streak. And yet, new
issues soared. Today, the excitement came from health care, with four
companies trading for the first time. The highlight was AbCellera
Biologics. The company isn't a
traditional biotech -- it sells an AI-powered R&D platform to speed
up drug discovery. Sounds like something we could use. Sure enough, the
stock finished the day up 195%. Barron's Luisa
Beltran has much more on health care's big day
of IPOs. For the rest
of the market, though, there was still plenty to worry about. New York City
said it was shutting down indoor dining, bringing yet more fears about
broader economic shutdowns. Talks around a stimulus bill still
haven't produced a real compromise, though Congress did manage to
pass a spending bill averting a government shut down for one week. That's
something, I suppose. Given the
world, perhaps it's no surprise that investors are starved for new ideas --
and distractions. "Investors are desperate for growth, and they don’t
care what it costs," Eric Savitz wrote in summing up the big
week for IPOs. Eric
spoke to the CEO of Snowflake, a cloud
software company whose stock has been on fire since its own IPO in
September, about the crazy prices investors are paying these days. His
quote is good reminder for us all: A stock is
worth exactly what somebody wants to pay for it. Everything else is
just entertainment and conjecture. |
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Watch our TV
show Fridays on Fox Business at 10 p.m. or 11:30 p.m. ET; Saturdays at 10
a.m. or 11:30 a.m.; or Sundays at 7 a.m., 10 a.m., or 11:30 a.m. This week,
see an interview with Strauss
Zelnick, CEO of videogame maker Take-Two
Interactive. DJIA: +0.16% to 30,046.37 The Hot
Stock: Walt Disney +13.6% Best Sector:
Communication Services +0.6%
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