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Relativity Space raising $500 million at $2 billion valuation from Tiger and others, sources say

Relativity Space’s third generation 3D-printer in its new headquarters, with CEO Tim Ellis standing by for scale.

Relativity

Rocket builder and 3D-printing specialist Relativity Space is raising $500 million of fresh capital in a new round being led by Tiger Global Management, people familiar with the financing told CNBC on Tuesday.

The new fundraise, expected to close in the coming days, would jump Relativity’s valuation to $2.3 billion, those people said. In addition to Tiger Global, Fidelity is also joining the round as a new Relativity investor. Existing investors in Relativity are also expected to be contributing — those include Social Capital, Playground Global, Y Combinator, Bond Capital, Tribe Capital, Jared Leto and Mark Cuban.

Tiger Global, the hedge fund of investor Chase Coleman, has more than $40 billion in assets under management.

Relativity declined CNBC’s request for comment.

Relativity Space conducts a pressure test of a 3D printed tank.

Relativity Space

The company is building the first iteration of its Terran 1 rocket. But unlike other rockets, Relativity is using multiple 3D-printers, all developed in-house, to build Terran 1. The rocket is designed to have about 95% of its parts be 3D-printed, which allows Relativity’s rocket to be less complex, and faster to build or modify, than traditional rockets. Additionally, Relativity says its simpler process will eventually be capable

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Index provider ‘baffled’ at how to add a company of Tesla’s size to the S&P 500, says Cramer

Tesla is joining the S&P 500 in December, but given the electric vehicle company’s size, adding it to the index is no easy feat, said CNBC’s Jim Cramer.

“I think they’re baffled,” he said Tuesday of the index provider S&P Dow Jones Indices. “I really don’t think they know how to handle this … they can’t knock out the smallest [company from the index], it doesn’t do anything. When they balance this … they almost seem to have to make everything smaller,” he said on “Squawk on the Street.”

During early trading on Tuesday Tesla jumped more than 9%, pushing its market capitalization to $415 billion. This places it among the top ten most valuable companies in the S&P 500.

S&P Dow Jones Indices is well aware of the challenge of adding such a large company, and on Monday night said it was considering adding Tesla to the index in two tranches. In a departure from custom, the index provider did not announce who Tesla will be replacing.

Tesla’s addition to the benchmark index further concentrates the S&P 500 among just a handful of names, which Cramer said will not sit well young investors.

“The S&P 500 is old fashioned to these people,” he said of young investors. He noted that young retail investors, who are more involved in

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Walgreens drops 11% to lead drug store stocks lower after Amazon launches pharmacy business

A CVS Pharmacy store is seen in the Manhattan borough of New York City, New York.

Shannon Stapleton | Reuters

Pharmacy stocks fell sharply on Tuesday after Amazon launched its new Pharmacy offering, which includes online ordering and delivery for prescription drugs.

Dow Jones Industrial average member Walgreens Boots Alliance dropped more than 11% in premarket trading. CVS Health shares lost over 8%. Shares of Rite Aid fell 12.8%, while GoodRx stock also declined.

Amazon Pharmacy is available in 45 states and accepts most forms of insurance. Amazon Prime members can also receive discounts on generic and name-brand drugs when paying without insurance, the company said.

Amazon has been building its pharmacy offerings for several years, including acquiring PillPack in 2018. Shares of the tech giant rose 2.4% in premarket trading following the announcement.

The pressure from Amazon comes as pharmacy stocks have already underperformed the broader market in 2020. Shares of CVS are down 1% year to date, while Rite Aid has lost 16%.

The sell-off for pharmacy stocks follows a long pattern of Amazon’s new ventures leading to underperformance among market leaders. When the company announced its deal to buy Whole Foods in 2017, grocery store stocks like Kroger and Costco were hit hard.

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Jay Clayton says he will step down early as head of the SEC at the end of 2020

Jay Clayton, who has led the Securities and Exchange Commission for the past three and a half years that included a number of major changes in financial markets, said Monday he will step down at the end of the year.

“Working alongside the incredibly talented and driven women and men of the SEC has been the highlight of my career,” Clayton said in a statement. His term would have expired in June 2021.

His tenure ends following a period in which the SEC extracted some $14 billion in various fines and agreements with violators of regulatory standards. That included $4.68 billion in fiscal 2020, a new record.

With markets getting increasingly complex and automated, the SEC has been looked to stand as a referee and prevent some of the glitches that became commonplace earlier in the decade.

“The U.S. capital markets ecosystem is the strongest and most nimble in the world, and thanks to the hard work of the diverse and inclusive SEC team, we have improved investor protections, promoted capital formation for small and larger businesses, and enabled our markets to function more transparently and efficiently,” Clayton said.

SEC chairs traditionally step down when an administration ends, and Clayton’s resignation comes two months before Joe Biden will take over as president. Potential successors at the agency include form Manhattan

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What Elliott may be up to with F5 Networks after past success with tech

Traders work the floor of the New York Stock Exchange.

NYSE

Company: F5 Networks, Inc. (FFIV)

Business: F5 is a leading provider of multi-cloud application services that allow its customers to develop, deploy, operate, secure and govern applications in any architecture, from on-premises to public cloud. the Company’s Traffic Management Operating System (TMOS) based offerings include software products for local and global traffic management, network and application security, access management, Web acceleration and various network and application services. These products are available as modules that can run individually or as part of an integrated solution on the company’s purpose-built BIG-IP appliances and VIPRION chassis-based hardware, or as software-only Virtual Editions.

Stock Market Value: $9.8B ($159.46 per share)

Activist: Elliott Associates

Percentage Ownership:  n/a

Average Cost: n/a

Activist Commentary: Elliott has a history as one of the premiere activist investors in technology companies. Their team includes analysts from leading tech private equity firms, engineers, operating partners – former technology CEOs and COOs. When evaluating an investment they also hire specialty and general management consultants, expert cost analysts and industry specialists. They often watch companies for many years before investing and have an extensive stable of impressive board candidates. Elliott filed a 13D on F5 competitor Citrix Systems, Inc. (CTXS) on June 11, 2015 and outlined a plan for the

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