The week of Oct. 28 to Nov. 1 was quiet until Oct. 31, when concerns over the growth potential of tech stocks and AI led to a market shift. Despite strong earnings from Microsoft and Meta, both stocks declined–Microsoft by 6% after warning of slower cloud growth, and Meta by 4.1% citing higher capital expenditure forecasts.
While earnings momentum stayed positive, with many companies exceeding expectations, analysts forecast a 5.1% rise in S&P 500 earnings for Q3, based on reported results and pending reports, according to FactSet.
In The News Record’s latest stock market review, we spotlighted stocks to watch and provide insights from a University of Cincinnati (UC) venture capital expert on how students can get involved in the market.
Reddit Inc. (RDDT)
Reddit (RDDT), a social media platform home to thousands of online communities, is the tenth most popular in the United States. Based in California, the company reported a net income of nearly $30 million for the third quarter, beating analysts’ expectations and boosting investor confidence.
RDDT went public on the Nasdaq in March 2024.
● This week, RDDT stock surged 39%, from $80 to $120 per share, reaching an all-time high.
● Reddit shares surged 48% on their first day of trading on the New York Stock Exchange, with the IPO raising approximately $750 million for the company and existing shareholders in just one week after becoming public.
Madrigal Pharmaceuticals (MDGL)
Madrigal Pharmaceuticals (MDGL), a Pennsylvania-based biopharma company, develops treatments for cardiovascular-metabolic diseases and non-alcoholic steatohepatitis (NASH). In October, the company announced it had completed enrollment in a trial for Rezdiffra, a treatment for patients with compensated NASH cirrhosis. Positive results could make Rezdiffra the first approved medicine for compensated cirrhosis patients, expand its patient base and potentially support full approval for noncirrhotic NASH.
MDGL went public on the Nasdaq in June 2018.
● This week, MDGL stock saw a 51% increase, climbing from $215 to $320 per share and reaching an all-time high.
● Last year at this time, stock prices ranged from $126.15 to $137.40.
Fiverr International (FVRR)
Fiverr International, headquartered in Tel Aviv, is the top freelance platform in the United States for buying and selling digital services. In its third quarter financial report, Fiverr reported a revenue increase of 8% year-over-year, earning $99.6 million.
The company claims it has “a clear strategy for driving growth catalysts amid the uncertain macro environment.” Especially as it reworks business strategies and foundations to appeal to larger customers and integrates GenAI technology into its offerings.
FVRR went public on the Nasdaq in June 2019.
● This week, FVRR stock increased by 34%, rising from $24 to $31 per share.
● The highest stock valuation occurred in February 2021, when the price reached $323.10.
Lemonade Inc. (LMND)
Lemonade, a New York-based platform for handling insurance claims and premiums, exceeded revenue forecasts with $137 million, coming in 8% higher than expected. The company reported $48 million of net cash flow in its third quarter, and recently appointed experienced tech company C-suiter Maria Angelidou-Smith to its Board of Directors, effective Oct. 31.
LMND went public on the Nasdaq in July 2020.
● This week, following its third quarter results, LMND stock rose 31%, from $18 to $25 per share.
● The highest stock valuation was $183.26, which the insurance company hit in January 2021.
Interface Inc. (TILE)
Interface, based in Arizona, specializes in the design, production and sale of carpet tiles, luxury vinyl tiles and rubber flooring. This week, Interface reported net sales of $344.3 million, up 10.7% compared to last year. The company was also named a Reuters Sustainability Award Winner in mid-October for its decision to go ‘all in’ on becoming carbon negative without offsets.
TILE went public on the Nasdaq in April 1983.
● This week, TILE stock jumped 29%, moving from $17 to $23 per share.
● Last year at this time, stock prices hovered around $9.35.
Expert review: Director Kate Harmon
Investing at a young age can set the foundation for long-term financial growth. It allows young investors to take advantage of compound interest, helps build the discipline and knowledge needed to navigate the markets and make informed decisions as they develop habits that lead to greater financial security and independence later in life.
Kate Harmon, executive director of UC’s Center for Entrepreneurship and assistant vice president of the 1819 Innovation Hub, shared insights into UC’s venture capital program.
“Companies that are venture-backed create the most jobs in the country,” she said.
Bearcat Ventures, a student-led organization, manages more than $1 million and invests in UC-affiliated startups. This “evergreen” fund reinvests all profits, acquiring preferred stock through SAFE note investments in seed-stage companies.
Investment opportunities are sourced via web submissions and a deal-flow team that actively attends events. If a company is profitable, based in Cincinnati and affiliated with UC, it undergoes rigorous evaluation by 14 professional venture capitalists before a vote.
In its first year, Bearcat Ventures invested in two companies: Tembo, a data software company founded by UC alumnus Ry Walker, achieved profitability for the fund just two months after investment; and Band Connect, a physical therapy product that has also garnered investor confidence notably due to its ties with the U.S. Air Force.
For students interested in joining Bearcat Ventures, they must first complete the Venture Capital Structure & Strategy course taught by professional venture capitalist Tim Metzner. Then, students may apply to join the fund as members.
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