Company Overview - Clara, a buy now pay later company, had a successful IPO, pricing its shares at $40 and raising approximately $1.4 billion, with a market valuation of about $17 billion at the close of its first trading day [1] - The stock opened at $52, reflecting a 15% increase from its IPO price [1] Customer Growth - Clara has reported signing up 700,000 customers for its new debit card, with an additional 5 million people on the waiting list [1] Market Sentiment - There is significant excitement surrounding Clara's market debut, with discussions on the potential for sustained growth and valuation stability [2] - The company's valuation has decreased from $46 billion a couple of years ago to its current $17 billion, indicating a shift in market perception [3]

Today we saw one of the largest IPOs of the year when CLA, the buy now pay later outfit, came public, raising nearly $1.4% billion. This is the biggest deal of the biggest week for IPOs in four years. And it came public with a bang, shooting up 30% at the open before pulling back a bit.So I want to take a real closer look at that. I know you're interested. First, some basics.I called Cla a buy now pay later company like a firm holdings my real favorite in the group but it's a little more complicated than th ...

Core Viewpoint - CLA, a buy now pay later company, had a successful IPO, raising nearly $1.4 billion, marking one of the largest IPOs of the year and the biggest week for IPOs in four years [1] Company Overview - CLA offers various consumer financing options, including a CLA card and a technology platform for tracking spending [2] - Approximately 48% of the top 100 merchants in CLA's markets use its services, and 66% advertise on its network [2] - The company generates about 75% of its revenue from transaction and service fees, with the remaining 24% from interest income on traditional lending [3] Financial Performance - CLA's gross merchandise volume (GMV) grew by 12% in 2023 and 14% in 2024, with a 14% year-over-year increase in the first half of the current year [6] - Revenue increased by 20% in 2023 and 24% in 2024, with a 15% rise in the first half of 2025 and a 21% increase in the second quarter [7] - CLA's transaction margin improved from 36% in 2022 to 48% in 2023 but fell to 43% in 2024 and 38% in the first half of 2025 [8] - The adjusted operating margin transitioned from negative 38% in 2022 to positive 6.4% in the previous year, with a 2.1% margin in the first half of this year [9] IPO Details - The IPO involved the sale of 34.3 million shares, with only 16% coming from the company itself, indicating that it primarily served as an exit for early investors [10][11] - CLA had $5.5 billion in cash and cash equivalents at the end of June, suggesting it does not need the funds from the IPO [12] Valuation Insights - CLA's valuation fluctuated significantly, from $46 billion four years ago to $6.7 billion in 2022, and recently raised funds at a $15 billion valuation [15] - The IPO priced above $40 per share, valuing the company at over $15 billion, and after opening in the 50s, it is now valued at over $17 billion [16] - Projected sales for CLA are expected to reach $3.23 billion this year, reflecting a 15% growth from last year [17] - Compared to publicly traded analogs, CLA's current sales multiple is approximately 5.4 times, while competitors trade at around 6.9 to 7 times sales [18]

IPO Overview - CLA 完成了今年最大的 IPO 之一，融资近 14 亿美元 [1] - CLA 的 IPO 是四年以来规模最大的一周 [1] - CLA 上市首日股价上涨 30% [1] Business Model - CLA 是一家“先买后付”公司，类似于 Affirm Holdings，但业务更为复杂 [2] - CLA 提供各种消费者融资选择，包括 CLA 卡和一个帮助人们跟踪支出的技术平台 [3] - CLA 在其运营的每个市场中，平均有 48% 的前 100 名商户使用 CLA 来促进支付，66% 的商户在 CLA 的网络上做广告 [3] - CLA 的收入主要来自交易和服务费，约占 75%，主要通过从使用其网络的每笔交易中抽取分成 [4] - CLA 还通过商家广告获得收入，并从消费者购买预算工具等服务中收取费用 [5] - CLA 还提供更传统的贷款业务，公司剩余 24% 的收入来自长期融资选择的利息收入 [6] Credit Quality - CLA 的信贷质量数字显示出令人印象深刻的承销标准，即使该过程是完全自动化的 [6] - CLA 的信贷损失准备金占其商品总额的 0.52% [7] - 相比之下，商业银行的贷款损失占总贷款的比例去年平均为 2.92% [7]

Group 1: Oracle's Strong Performance - Oracle shares surged by 40%, marking the largest one-day increase since the 1990s, driven by a robust forecast for its cloud infrastructure business [5][10][27] - The company expects cloud infrastructure revenue to grow by 77% this fiscal year, reaching $18 billion, with projections of $32 billion next year and $144 billion by fiscal year 2030 [19][27] - Analysts have raised price targets for Oracle, with estimates reaching as high as $400, reflecting confidence in the company's long-term competitive position in the AI infrastructure market [47] Group 2: Market Reactions and Economic Indicators - The Dow Jones Industrial Average saw a slight decline of about 73 points, while the S&P 500 and Nasdaq Composite reached new record highs, indicating mixed market reactions [2][3] - Wholesale inflation unexpectedly declined, reinforcing expectations that the Federal Reserve may cut interest rates in the upcoming meeting [3][27] - The technology sector, particularly driven by Oracle's performance, emerged as the best-performing group, with the XLK sector index up 2.3% [4][3] Group 3: Competitive Landscape and Future Outlook - Oracle's focus on performance and speed in cloud services is seen as a competitive advantage, allowing it to potentially undercut rivals on costs [15][16] - The company is positioning itself as a disruptor in the AI and GPU market, which could lead to a larger book of business than competitors like Google in the future [17][18] - The demand for AI infrastructure is expected to remain strong, with no signs of slowdown, indicating a robust growth trajectory for Oracle and similar companies [20][22] Group 4: Tariff Developments and Market Implications - President Trump is advocating for new tariffs on China and India, with the Supreme Court agreeing to fast-track a case regarding the legality of these tariffs [51][52] - The potential for tariff refunds has raised questions among investors, with implications for Treasury markets if significant refunds are issued [54][56] - The ongoing trade dynamics between the U.S. and China are expected to remain stable in the near term, as the U.S. administration seeks to balance its trade strategies [65][66]

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 ...

Investment & Shareholding - Sequoia is selling 21 million shares in the IPO and will retain a stake of more than 20% after the debut, making it the largest shareholder [1] - Sequoia first invested in the company 15 or 16 years ago [2] Company Overview & Vision - The company, initially an alternative payments company based in Sweden, has grown significantly [3] - The company's vision is to save consumers time and money, and help them have more control over their finances [4] - The company has over 100 million consumers and over 100 billion in GMBB across 26 countries [3] Growth Strategy - The two main vectors of growth are a card in every wallet and availability at every checkout [5] - The company aims to partner with big merchants like Walmart, eBay, and Airbnb, as well as major global PSPs [6] Market & Competition - The company aims to break through the credit card wall [6][7] - Gen Z sees a lot of value in using the company's services as opposed to traditional credit cards [9] - Despite its brand recognition, the company's share in fintech in the US is still small [10]

Company Overview - Sequoia is selling 2.1 million shares in the IPO and will retain a stake of over 20%, making it the largest shareholder [1] - The company, initially a small alternative payments firm based in Sweden, has grown to serve over 100 million consumers and has a gross merchandise volume (GMV) exceeding $100 billion across 26 countries [3] Vision and Evolution - The founder, Sebastian, has maintained a consistent vision since the company's inception, focusing on saving consumers time and money while providing them with more control over their finances [4] - The product suite has evolved, but the core value proposition remains appealing, especially to younger consumers [5] Growth Opportunities - The two main growth vectors identified are achieving a CLA card in every wallet and ensuring CLA is available at every checkout [5] - Partnerships with major merchants like Walmart, eBay, and Airbnb, as well as global payment service providers (PSPs), are crucial for expanding consumer access to CLA [6] Market Dynamics - There is a notable shift in consumer preferences, particularly among Gen Z, who see value in using CLA over traditional credit cards [9] - Despite the rise of alternative payment methods, traditional credit card companies continue to perform well, indicating potential coexistence rather than outright displacement [10]

IPO & Market Performance - The IPO was priced above the offered range at $40 [1] - Demand for the company is substantial due to its presence in the fintech ecosystem and the early stage of the buy now pay later market [1] - Some companies that IPOed this year, like Figma, E Toro, have pulled back significantly from their highs, with Figma down approximately 63% from its highs [6] - Profit-taking is expected after stock run-ups, and the underwriter is Goldman Sachs, alongside JP Morgan and Morgan Stanley [7][8][9] Company Strategy & Growth - The company is pivoting towards becoming a retail bank [2][3] - The company's tools enable consumers to manage cash flows and avoid high credit card debt [4] - The company is expanding its banking franchise in the United States, the UK, Sweden, and other parts of the world [4] - The company is in 26 countries and continues to expand into new markets [9] Financial Outlook - The company has had five consecutive quarters of profitability and expects more profitable quarters ahead [2] - Positive news is expected from the company's earnings reports in the third and fourth quarters of this year [9] - The company is considered a compelling investment compared to its competitors, and the investor may add to their position if the stock stays down [10]

What’s behind the boom in buy now pay later https://t.co/HwlD6Bib3j ...