Tag: morgan

07
Oct
2020
Posted in technology

Emails: Palantir blames Morgan Stanley for ‘blemished’ direct listing

  • In two emails sent internally this weekend, Palantir Technologies blamed Morgan Stanley for a “failure” that left some employee and alumni shareholders unable to sell their shares when the company made its public debut last Wednesday.
  • The problem stemmed from a glitch with Morgan Stanley’s trading platform Shareworks.
  • In an unsigned email sent late in the evening Sunday, Palantir said it had heard from Morgan Stanley that the bank was in a “war room” all weekend working to determine which shareholders were owed compensation. 
  • A spokesperson for Shareworks at Morgan Stanley said the issue was a “slowness” that “may have resulted in delayed logins into our system.”
  • Visit Business Insider’s homepage for more stories.

Palantir placed blame squarely on Morgan Stanley following a glitch in the bank’s trading software Shareworks on Wednesday, according two unsigned emails sent to “Palantirians” on Saturday and Sunday, which were obtained by Business Insider.

That glitch temporarily prevented some employee and alumni shareholders from selling shares during the tech company’s direct listing.

Morgan Stanley “intends to ‘make people whole’ who were affected by the Shareworks failure,” Palantir wrote in the email from Saturday.

“We have and will continue to put the weight of the company behind protecting our hobbits and helping make sure Morgan Stanley is good to its word,” that email said, referring to employees with a reference to “Lord of the Rings.”

“The issues that we encountered with Shareworks are very frustrating. And while it was a successful listing (we pulled off the near impossible in getting the company listed and out in less than 6 months) it was blemished by Shareworks’ failure,” that email added.

A spokesperson for Palantir declined to comment on the emails. 

A spokesperson for Shareworks by Morgan Stanley told Business Insider that it had “experienced slowness that may

05
Oct
2020
Posted in technology

AppLovin hires Morgan Stanley to lead IPO

A man plays a game on a smartphone.

Brent Levin | Bloomberg | Getty Images

AppLovin, the U.S. mobile app and gaming company backed by private equity firm KKR, has hired Morgan Stanley to lead preparations for an initial public offering (IPO) which could come early in 2021, according to people familiar with the matter.

The company has flirted with the idea of an IPO for years, but had never taken a concrete preparatory step. It is the latest mobile gaming startup to eye a stock market listing, as demand for video games surges among consumers staying at home during the COVID-19 pandemic.

The sources requested anonymity because the IPO preparations are confidential and cautioned that the plans are subject to market conditions.

“Today gaming is a fractured, fragmented market. I think the market will consolidate, and I think AppLovin will be one of those consolidators,” Ted Oberwager, a managing director in KKR’s technology, media and telecommunications team and an AppLovin board member, said in an interview. He declined to comment on the IPO plans.

AppLovin and Morgan Stanley declined to comment.

AppLovin has been profitable since it was founded in 2012 as a mobile games advertising platform. It expects to generate roughly $1.5 billion in revenue for 2020, according to one of the sources, who is familiar with the company’s finances.

By comparison, gaming platform Unity Software went public last month at a valuation of $13.7 billion after reporting revenue for the first six months of 2020 of $351 million. Its shares have risen more than 60% since the IPO.

In 2018, KKR acquired a minority stake in AppLovin for $400 million, valuing the company at $2 billion. AppLovin now expects to command a substantially higher valuation, the sources said.

In 2018, AppLovin also began a media division, Lion

04
Oct
2020
Posted in technology

Stock picks to buy, cheap alternatives to big tech: Morgan Stanley

  • Morgan Stanley says new technologies are feeding into a surge in productivity that will help the economy for years.
  • Strategist Adam Virgadamo says the pandemic will speed up that change, and investors don’t have to buy tech stocks to reap the rewards. 
  • He’s compiled a list of innovators that have been outperforming and look like they will continue to do based on their strategies and investments in their businesses.
  • Visit Business Insider’s homepage for more stories.

New technology has permeated so many industries and transformed business. But when investors want long-term growth, they’re mostly buying the same mega-cap tech stocks.

That’s stayed true even as some experts have warned about the sky-high prices of those same stocks, raising the spectre of the dot-com bubble 20 years ago and the dominance of a handful of giant stocks that hit record levels.

Whether there’s a bubble or not, Adam Virgadamo, a US equity strategist at Morgan Stanley, says investors need to be aware of the alternatives. He writes that technology is contributing to growth and bolstering economic productivity, feeding a secular bull market that dates to 2011 and didn’t end with the coronavirus crash.

“We are in the early innings of a technology-driven, decade-long investment cycle centered on data and digitalization that allows businesses to gain insights and improve productivity,” Virgadamo wrote in a note to clients.

He adds that the pandemic and its after-effects are only going to speed up that shift as companies look for ways to save money.

“[The recession] is a wakeup call to accelerate this digital transformation as companies with a greater digital presence are showing more resiliency in the wake of the pandemic,” he wrote. “We see a clear mindset shift at the executive level from viewing technology as supporting the business to technology becoming the

03
Oct
2020
Posted in technology

European stock picks to buy, avoid in COVID recovery: Morgan Stanley

  • Morgan Stanley research teams, in a research note, outline the activity-based stocks that are still discounted for a post-COVID recovery across five different sectors.
  • Morgan Stanley recommends investors think about individual stocks instead of sectors.
  • “The bifurcation between winners and losers within sectors is arguably best exemplified within Retail – in aggregate, the sector has been a strong outperformer this year, but this largely reflects single-stock stories,” Morgan Stanley’s equity analyst, Jamie Rollo, said in a note.
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  • Visit Business Insider’s homepage for more stories.

Morgan Stanley brought together five separate equity research teams to understand which European activity-based stocks damaged by the pandemic were still discounted for a post-COVID recovery, in a new research note released this week.

The investment bank is thinking ahead to recovery based on its biotech team expecting phase three vaccine results by November and a “broadly available vaccine” toward the end of the first quarter in 2021.

“Once a vaccine is widely available, we expect mobility to pick up significantly and activity-based stocks to benefit,” said Morgan Stanley’s equity analyst, Jamie Rollo, in the report.

The new research report finds that broadly most activity-based sectors seem cheap when comparing the 2022 EBITDA forecast to historic results.

Despite most sectors appearing cheap, Morgan Stanley recommends investors think about individual stocks instead of sectors.

“The bifurcation between winners and losers within sectors is arguably best exemplified within retail – in aggregate, the sector has been a strong outperformer this year, but this largely reflects single-stock stories,” Rollo said.

Sector stock picks

Here are some of the stocks Morgan Stanley recommends considering and avoiding within each sector for a post COVID-19 recovery.

Leisure & Hotel Stocks

1) Sodexo

Sodexo stock on October 2

Sodexo stock on October 2

Business Insider Markets


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