Let's head over to the floor of the New York Stock Exchange where our own Leslie Picker is joined by Piachi. He is head of uh DMM floor trading at Citadel Securities. Leslie, hey Mike.Yeah, those shares set to open imminently essentially as you mentioned. It's indicated to open between 52 and $53 per share, which would be significant upside from that $40 per share that this company priced at uh last night. Uh Peter, as you mentioned, he is in the middle of getting these shares ready to open.He's known as th ...

Core Viewpoint - The company is set to open its shares at a price between $52 and $53, significantly higher than the $40 pricing from the previous night, indicating strong market demand and a positive reception for the IPO [1][4]. Company Overview - The company is a 20-year-old firm that has been rumored to go public for some time, with previous attempts to launch an IPO being delayed due to market volatility [2][3]. - It operates in the buy now pay later and fintech space, with strong growth reported at 21% year-over-year on the top line [5]. IPO Details - The IPO priced $3 above the initial range and is expected to open approximately 30% higher, implying a valuation of about $20 billion, which is below its private market valuation in 2021 but above 2022 levels [4]. - The IPO raised over a billion dollars, indicating a healthy public market environment and strong investor interest [6][12]. Market Dynamics - The IPO market is showing signs of recovery, with larger IPOs trading above their issuance prices, suggesting a favorable environment for upcoming deals [8][10]. - The demand for this IPO was characterized by a mix of retail and institutional interest, with more institutional flow observed during the opening [7][8]. Valuation Insights - The initial trading showed a 34% increase from the IPO price, which is considered a successful outcome in the investment banking community [9][10]. - Only about 17% of the float was primary issuance, indicating that most shares sold were from existing shareholders rather than new capital raised by the company [12].

We see the extraordinary valuations of generative AI enabling companies. Is that really where the activity still is. Is there room and oxygen in the room for others.I think that's where the majority of the activities we see, about two thirds of our deals are in the DNA space, but it also other big areas that are still very active. We still do a lot in healthcare. There's a lot in fintech.So it's not all jenn-air. The other thing is that Jenn-air is becoming everything. You know, they're talking about health ...

Business Model & Revenue - 97% of the company's business is from 0% interest financing options funded by merchants [2] - The company is bringing customers to merchants, which is an important part of its business [1] Market Opportunity & Competition - The company sees a huge opportunity to disrupt the credit card industry [3] - The company considers credit card companies as its competitive set over time [2] - The company has signed 700,000 card customers in the US in the last 6 weeks [3] - The company has 5 million people on the waiting list for its card product [3] Consumer Benefits - The company is saving consumers billions because they are not revolving on credit cards and paying high interest rates [2] - The company's 0% financing option is tremendously more affordable compared to a credit card [2]

Klarna Opens Up 30% In First Of Three Fintech IPOs Expected This Weekhttps://t.co/uxiLmAD06O https://t.co/qkoecnfLCE ...

Economic Outlook & Tariffs - Wells Fargo observes stable consumer spending year-over-year across wealth levels, with lower-income consumers spending savings accumulated pre-pandemic [4] - Middle market customers across the country express satisfaction with addressing trade inequities, accepting uncertainty for a more competitive environment [5] - The market initially overestimated the impact of tariffs, with ultimate levels being more moderate and businesses adapting, leading to a better environment for banks [6] AI Impact - AI's impact on job count is still early, primarily seen in technology and coding, with companies focusing on productivity rather than headcount reduction [5] - Oracle expects cloud infrastructure revenue of $18 billion this year, a 77% increase, driven by AI demand [1] - Oracle signed four multi-billion dollar contracts in the latest quarter, including with OpenAI and Google [1] Fanatics Business Performance & Strategy - Fanatics' gaming division aims to contribute 40% of the company's profits within five years [1] - Fanatics is now the third-largest player in the US sports betting market, experiencing rapid growth due to a better value proposition [7] - Fanatics plans to distribute $1 billion in fan cash next year, aiming for lower margins but higher volume through customer loyalty [8] - Fanatics' collectibles business is projected to exceed $3 billion, driven by securing rights from sports leagues and player associations [10] IPO Market & Fintech - Online lender CLA priced its IPO at $40 a share, valuing the company at $15 billion [2] - The IPO window is now open, reflecting animal spirits and major averages closing at new highs [2]

Core Viewpoint - Klarna Group, a company focused on the "buy now, pay later" (BNPL) model, made its debut on the US stock market with a significant stock price increase of over 30%, reaching $52.3 after opening at an IPO price of $40 [1] Company Overview - Klarna Group is headquartered in Stockholm, Sweden, and was founded in 2005 by Sebastian Siemiatkowski and two partners [1] - The company provides online and offline payment, installment, and checkout solutions to consumers and merchants [1] - Klarna operates in multiple countries globally [1] Market Context - Klarna's competitor, Affirm Holdings, has seen its stock price rise by over 40% this year [1]

Core Viewpoint - Klarna's IPO in the U.S. opened at $52, significantly above the initial offering price of $40, indicating strong market interest and demand for the company's shares [1] Summary by Categories Company Performance - Klarna's IPO debut price of $52 represents a 30% increase from the IPO issuance price of $40, showcasing robust investor confidence [1] Financial Implications - Sequoia Capital is projected to gain $2.7 billion from this IPO, highlighting the substantial financial returns for early investors [1]

Core Insights - Klarna's IPO raised $1.37 billion, valuing the company at $15 billion, highlighting the growth of the buy-now, pay-later (BNPL) sector [1][2] - A significant portion of consumers, nearly 40%, are unaware that BNPL usage will soon affect their credit scores [1][5] Company Overview - Klarna has expanded its user base to over 111 million globally and partnered with more than 790,000 retailers [2] - The popularity of BNPL services is evident, with three-fourths of surveyed U.S. adults relying on such options [2] Industry Trends - BNPL services are increasingly replacing credit cards for younger generations, allowing consumers to manage large purchases through smaller payments [3] - However, there are risks associated with overextending oneself financially, as consumers may struggle to manage multiple payment schedules [4] Consumer Awareness - A survey indicates that 30% of U.S. adults have used at least one BNPL service, reflecting its growing acceptance [2] - The impending inclusion of BNPL data in FICO scores starting this fall raises concerns for consumers who may not be prepared for the impact on their credit [5]

What do you think is is does it mean for the European markets given they decided to list in the US. >> You know, uh for me this is a moment again for CLA thinking about uh how they can really take advantage of of the opportunity in front of them. They're building out like they're new.They're in early in the US and so being in the US, you know, IPOing in the US makes a lot of sense for the brand recognition, reputation. and then they can benefit from what is a much much larger stock market, larger uh economy ...