#36 Daily Financial News Round Up - Dec 6,2021
Market Snapshot
Dow Jones is down by 0.17%, S&P500 is down by 0.84%, and Nasdaq Composite is down by 1.92%.
How’s crypto-market?
Bitcoin is down by 2.21% and its price is currently at $48,38578. Terra, XRP, and Solana are the top three traded cryptocurrencies in the last 24 hours. The top 3 gainers are BitTorrent, Bitcoin Gold and Waves. The top 3 losers are Numeraire, Chainlink and Cash.
What news caught my attention?
More companies went public on Nasdaq than NYSE this year. IPOs at Nasdaq raised $191 billion, while new listings at NYSE raised $109 billion. Historically, NYSE always won a larger share of new listings making Nasdaq, the underdog amongst the two exchanges. Nasdaq’s efforts to position itself as an exchange that embraces ESG goals might have helped gain a more significant share of new listings this year.
Activist hedge fund investor - Engine Capital LP sent a letter to Kohl’s urging them to split their businesses into two parts - 1. e-commerce and 2. real estate focussed. This move comes in the wake of Sak’s Fifth avenue’s move to spin-off their e-commerce business from their retail business, which boosted their value. The Saks unit aims to go public next year with a $6 billion valuation- three times its earlier total business value.
My Takeaways:
After making its way through the auto industry, the “breaking up of business into multiple independent parts” trend is coming to the retail sector. This trend goes utterly opposite to Aristotle’s now-famous quote- “The whole is greater than the sum of its parts”, which formed the basis of economies of scale and diversification, leading to the empire-building trend. Is the whole lesser than the sum of its parts?
ESG-focussed exchange attracted more listings catering to those goals, and investors also seem to care about these goals, as the money inflow indicates.