S&P 500 retreats from record high 📉

The market took a breather on Thursday after America's benchmark index closed at a new record high on Wednesday.

Author

Adam Garcia
May 16, 2024

Good Afternoon! 

Hey, everyone. It's Adam from Elite Trade Club. 

Here’s what moved the market today.

Markets 📈

Stocks reversed course after a record-setting performance by the S&P 500 on Wednesday. U.S. indexes posted modest declines on the trading session.

  • DJIA [-0.1%]

  • S&P 500 [-0.2%]

  • Nasdaq [-0.2%]

  • Russell 2K [-0.6%]

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Market-Moving News 🔎 

Courtesy of CNBC.com (©2024 CNBC)

💰Figma's Valuation Soars Amid Adobe Fallout

Following Adobe's abandoned acquisition bid, cloud-based design tool company Figma announces a tender offer allowing investors, including current and former employees, to sell shares at a valuation of $12.5 billion. While this marks a 25% increase from the 2021 fundraising valuation, it falls short of Adobe's $20 billion acquisition offer in 2022, which was terminated due to regulatory concerns.

Tender Offer 💰
Figma anticipates the tender size to range between $600 million and $900 million, with backing from over 25 investors, including A16z, Sequoia, and Kleiner Perkins. This move underscores investor confidence in Figma's growth potential and market positioning.

Market Presence 🌐 
Figma boasts a widespread user base, with tens of thousands of employees at tech giants like Microsoft, Google, Oracle, and Salesforce leveraging its software. Notably, Microsoft's substantial investment in Figma's deployment underscores its significance within the industry.

Financial Evolution 📉 
Figma's valuation trajectory reflects the evolving landscape of tech financing, characterized by fluctuations in market sentiment. Despite facing challenges stemming from the 2022 market downturn, Figma's resilience and strategic initiatives position it for continued growth and innovation.

Acquisition Fallout 🛑 
While Adobe initially pursued Figma as a strategic addition to its portfolio, regulatory hurdles led to the deal's dissolution in December. Notably, Adobe agreed to pay Figma a $1 billion breakup fee, underscoring the complexities of M&A transactions in the tech sector.

Top Winners and Losers 🔥

Lucy Scientific [LSDI] $1.59 (+211%)
surged after a sell-off in Wednesday’s session.

Faraday Futures [FFIE] $1.65 (+134%)
continued to rally in an epic “meme stock” short squeeze that has driven shares up by 3,000% over the last four sessions.

Jiade [JDZG] $8.32 (+104%)
rallied a day after completing its NASDAQ IPO.

Gamestop [GME] $27.67 (30.0%)
continued to pullback after a “meme stock” rally earlier in the week.

Siyata Mobile [SYTA] $2.54 (27.0%)
published its Q1 financial results and announced the resignation of its chairman in a Form 6-K filing.

Rekor Systems [REKR] $1.38 (24.1%)
posted weaker-than-expected earnings & revenues on its Q1 financial report in Wednesday’s after market.

That's it for today! Please, write us back, and let us know what you think of the Closing Bell Roundup. We're always eager to hear feedback from our members!

Thanks for reading. I'll see you at the next open! 

Best Regards,
— Adam G.
Elite Trade Club

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