EDITOR'S NOTE
Casper's initial public stock offering shows money-losing companies can still soar in a bull market.
The mattress company's shares surged more than 30% after its debut on Thursday, though they settled lower as the trading day progressed.
Casper had hoped to price its IPO between $17 and $19 a share, but priced it at $12 on Wednesday evening amid criticism that it didn't make money and faced hefty expenses to grow its customer base.
CEO Philip Krim shook it off. "Valuations are just moments in time," he said on CNBC's "Squawk Alley." "It doesn't distract us from building the business we want to build." The Dow touched another record Thursday on strong corporate earnings reports, solid economic data, and an announcement that China would halve tariffs on U.S. imports totaling about $75 billion.
The market has rebounded mightily from the impact of the coronavirus outbreak as investors bet on a successful response. Still, some strategists warn it may not be over.
"Despite this week's equity market rebound we are reluctant to chase short-term momentum," wrote JPMorgan strategist Nikolaos Panigirtzoglou. "There is a significant risk of an unexpected re-acceleration of new coronavirus cases."
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Kamis, 06 Februari 2020
New record for Dow | Casper IPO soars | Did weather boost January hiring?
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