🦄 Where are all the IPOs?

…and BuzzFeed shows the perils of Facebook dependence [Disclosures](   IPO times have changed [Spencer Platt/Getty Images]   Yesterday’s Market Moves   Dow Jones 34,359 (-1.29%) S&P 500 4,456 (-1.23%) Nasdaq 13,923 (-1.32%) Bitcoin $42,366 (-0.005%) Dow Jones 34,359 (-1.29%) S&P 500 4,456 (-1.23%) Nasdaq 13,923 (-1.32%) Bitcoin $42,366 (-0.005%) Hey Snackers, The banker who drops bangers just got his big break: [Goldman Sachs]( CEO David Solomon (fka: DJ D-Sol) will be spinning his EDM set at [Lollapalooza]( this summer, the same weekend as Doja Cat and Kygo. Stocks dropped yesterday as oil spiked to its highest level in two weeks as Russia’s war on Ukraine enters its second month. Float IPOs have dried up after last year’s IPO-palooza, and banks are taking a nearly $5B hit There’s an IPO drought… and it’s leaving Wall Street thirsty. Big banks like [Morgan Stanley]( [Chase]( [Bank of America]( Goldman, and [Citi]( make big bucks from helping companies go public. But as initial public offerings have slowed to a trickle, fees have shriveled: - Fewer offerings, less champagne: The Big Five investment banks have [earned]( just $645M from IPO fees this year, compared to $5.3B at this point last year (don’t cry for the banks: their profits mostly come from other services, like wealth management). - Boom to bust: Last year companies [raised]( a record $286B through 1K+ IPOs, or three IPOs per day. Already this year there was a 25-day stretch without a single IPO, the longest dry spell in five years. A perfect storm… Last year, IPO conditions were ideal: booming markets, low interest rates, confident investors, SPACs, and online roadshows made listing easy. But the clouds have rolled in and most of last year’s IPOs are trading [below]( their listing prices (not encouraging for prospective IPO’ers). Some other reasons for the reversal: - Too many IPOs: We may be seeing "demand pulled forward" — aka some companies that would’ve IPO’d this year already did last year. - Too many options: VCs are sitting on [record]( cash piles, giving startups easy access to private $$ — and one less reason to tap the public markets. - Too much uncertainty: Now public-curious companies have to navigate the effects of war, a newly hawkish Fed, and bearish markets. THE TAKEAWAY IPOs prefer calm weather… and right now the weather in public markets is anything but. Companies that can afford to are choosing to delay going public until conditions improve: last month fintech biz Acorns [canceled]( its offering last minute because of “market conditions.” Instacart and Stripe also recently said they planned to stay private, dashing investors’ IPO dreams, at least for now. Trending BuzzFeed’s first earnings: newsroom cuts, resignations, and the dangers of depending on Facebook Took the Harry Potter sorting quiz... still not a wizard. Investors weren’t feeling the magic this week when HuffPost owner [BuzzFeed]( dished up its first public earnings. On the plus side, annual [sales]( were up 24% from 2020. On the not-so-plus side, revenue was still $100M short of what investors expected. BuzzFeed shares are down 40% [since]( its December IPO. 10 reasons your cat’s grumpy… Like most digi-media companies, BuzzFeed makes money through strategically placed ads — alongside “Seinfeld” quizzes and spring break shopping listicles. But a decade ago, the company built out a legit newsroom (think: major investigative reports). Last year BuzzFeed’s global news division even won a [Pulitzer](. But like many newsrooms, BuzzFeed News bleeds money, to the tune of $10M a year. Now: - Close: Some shareholders want BuzzFeed to ditch its news biz entirely, saying it could add $300M to its market cap. - Shrink: BuzzFeed instead wants to cut costs by offering buyouts (the prelude to layoffs) to [dozens]( of news staffers. Three top editors have already quit. - Pivot to video: The company says it can help offset news losses by growing its e-comm biz, including producing and monetizing more vertical TikTok-esque videos. THE TAKEAWAY Self-reliance is hard to achieve… in the digi-media economy. Publishers like BuzzFeed rely on clicks from [Facebook]( and YouTube to drive traffic — and a single algorithm change could crush their numbers. Last year BuzzFeed warned that a heavy reliance on social-media platforms could hurt its business, and it has. In its earnings call, its CFO repeatedly mentioned that its audience was abandoning Facebook, where the bulk of its e-com traffic comes from. What else we're Snackin' - [Jab]( [Moderna]( says it will ask for emergency authorization for its low-dose Covid vaccine for kids under 6 — the only age group not yet eligible. A green light would give Moderna a leg up on rival [Pfizer](. - [Cheerio]( Cereal-aisle heavyweight [General Mills]( reported higher-than-expected earnings thanks to price hikes and continued home-cooking demand. Shares spiked 4% as investors slurped it up. - [Chew]( [Beyond Meat]( and [Pepsi]( have collabed to create a meatless jerky made from mung beans and peas. After spiking in 2020, sales of plant-based meat in grocery stores barely rose last year, while snacking is still going strong. - [Speed]( [Nvidia]( will debut a next-gen superchip next year specifically for data centers, saying it sees a total addressable market of $1T for its line of processors. - [Build]( [KB Home]( shares fell 5% after the homebuilder missed on earnings, sales, and homes completed, blaming supply-chain snarls and labor struggles for delaying construction. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. The Snacks Daily Podcast Nike tells the pros “Just Do It.” Now Adidas is telling amateurs “Just give it the old college try.” [Tune in]( to hear how Adidas plans to challenge Nike with the help of 50K college athletes. Snack Fact Of the Day [Madeleine Albright, who died yesterday at 84, was the first woman to be US secretary of state]( Thursday - Weekly jobless claims - March Madness: Sweet 16 round begins - Earnings expected from: PetroChina, China Life Insurance, Nio, Darden Restaurants, Mister Car Wash, and Movado Authors of this Snacks own: shares of Moderna, and Pfizer ID: 2094073 Robinhood Snacks newsletters and podcasts reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC (Member [SIPC]( and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. They are for informational purposes only, and are not a recommendation of an investment strategy or to buy or sell any security, digital asset (cryptocurrency, etc) in any account. They are also not research reports and are not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robinhood Markets, Inc., Robinhood Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk including the loss of principal and past performance does not guarantee future results. [Robinhood Terms and Conditions]( • [Disclosure Library]( • [Our Editorial Principles]( • [Contact Us]( • [FAQ]( [Manage Your Subscription Preferences](