What a jump for tech stocks yesterday! Facebook up +7,25%. LinkedIn +4,19%. Yelp +5,95%. Yahoo +3,07%. Even Twitter was up yesterday; +1,70%. That`s just a few of them. Many investors saw a huge opportunity and jumped into the market yesterday.
The market was very quiet yesterday, but that was before the release of the Fed Meeting Minutes. Right after the release, we saw a nice move in the markets. This time investors was bullish and most of the tech stocks skyrocketed.
With the rally yesterday, we can see a new bullish trend in the chart, but it is a little bit too early to say that 100% right now. It’s just early in the stage of the new bullish trend. Equities rallied, but Treasuries declined after the minutes eased concern about the timing of future interest-rate increases.
They probably might have to keep the rates at levels below normal for longer because of tighter credit and a slow growth. In addition there will be higher savings. Fed have always said that they will keep the rate low as long as the unemployment rate exceeds 6,5%.
Fed also said that the benchmark interest rate would rise faster than previously forecast. Only the new data that comes in will tell them what to consider when to increase borrowing costs. Bad data coming in later will destroy their plans and vica verse.
The leading domain name registrar Go Daddy has hired JPMorgan and Morgan Stanley to handle an IPO that could occur later in 2014. They provide individuals and businesses with internet services, such as domain name registration and website hosting.
They also have software for functions that include e-mail, e-commerce, podcasting and website creation. Go Daddy boosts some 57 million domain names under management. They targets niche markets the likes of priate domains and reseller programs through affiliates Domains By Proxy and Wild West Domains.
Founder Bob Parsons remains its majority shareholder, while both KKR and Silver Lake have been partners in Go Daddy since 2011. Go Daddy was acquired by KKR, Silver Lake, and VC firm TCV for $2,25B.
Their rival Wix went public last year and soared +7,82% yesterday. Verisign jumped only +1,2%. Wix has a 52 week low of $16,19 and a 52 week high of $32,69. The stock`s 50-day moving average is $26,28. 200-day MA is $25,12. Market cap is $831,7 million.
I personally use Go Daddy and I like their competitive prices and their service. I will look for the IPO and I will wait for Alibaba to come to the exchange later on this year too. That`s gonna be two new stocks for the tech sector in the future.
Reports today:
08:30 a.m EST Unemployment Claims
08:30 a.m EST Import prices m/m
08:30 a.m EST G20 Meetings
08:30 a.m EST G7 Meetings
02:00 p.m EST Federal Budget Balance (Previous: -193,5B Forecast: -76,5B)
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