Consistent Rate Cut Outlook Sparks Uptick in Risk Appetite [Learn Premium Weekly Review]

This week, two new IPOs, $Astera Labs(ALAB.US)$, and $Reddit(RDDT.US)$, in the U.S. have caught the market's attention with significant price gains on their first day of trading. The successful listings of these companies may also provide a good starting point for technology companies that have postponed their IPO plans.

- $Astera Labs(ALAB.US)$ was founded in 2017 and specializes in manufacturing connectivity hardware for cloud computing data centers. Their products are essential for any NVIDIA H100 chip. High-performance chips, such as the $NVIDIA(NVDA.US)$ H100 GPU, have extremely high data transfer speed and efficiency requirements.

According to its IPO filing, $Astera Labs(ALAB.US)$ reduced its net loss to $26 million on revenues of $116 million in 2023, compared to a net loss of $58 million on revenues of $80 million the previous year. This demonstrates Astera's rapid growth and reasonable profitability. 📈

- $Reddit(RDDT.US)$ has garnered attention from retail investors due to two trending elements: AI technology and being a MEME stock.

In terms of AI, apart from its own AI developments, the fact that OpenAI CEO, Altman, is one of its shareholders adds to its AI allure.

$Reddit(RDDT.US)$ is also one of the birthplaces of MEME stocks, which are stocks hyped by retail investors on the internet and social media platforms, with the game retailer $GameStop(GME.US)$ being one of the most famous examples. Reddit’s Wallstreetbets forum is a hotspot for discovering MEME stocks. 🎯

In the short term, a new stock listing may experience significant price volatility, with sharp increases and decreases being common, which poses considerable risk. So, we should have a well-thought-out trading plan, including set take-profit and stop-loss orders. Long-term investors, on the other hand, need to focus on the future performance of the company.

Given the aerospace industry's paramount focus on safety, $Boeing(BA.US)$ dismal start to 2024 is unsurprising. Since the year's start, Boeing's share price has plummeted by 30%, wiping out more than $40 billion in market value and lagging behind the performance of major US stock indices. Consequently, market sentiment is currently delicate, and it may take a while for investors to fully digest the adverse developments. 🥶

The two giants in its field: $Palo Alto Networks(PANW.US)$, which has the highest market value, specializes in firewalls, and offers a diverse range of products, aimed at securing enterprise IT servers; second-ranked $CrowdStrike(CRWD.US)$, is known for endpoint defense, operating as a pure-play SaaS software company focused solely on providing endpoint defense solutions. In comparison, while Palo Alto is larger, CrowdStrike has a faster growth rate, higher valuation, and greater growth potential and may catch up with or even surpass Palo Alto.