Although it is privately owned, investors should watch ByteDance (BDNCE). The U.S. government is trying to acquire its U.S. operations for just $14 billion.
ByteDance is unlikely to accept the low price. Reuters sources said that the deal would split ByteDance’s U.S. unit into two. Oracle (ORCL), Silver Lake, and other investors would own the first unit. ByteDance would still have heavy involvement of the U.S. entity.
The second unit would see ByteDance wholly owning it. It would have control of its revenue-generating operations. That includes advertising and e-commerce.
Watch Klarna
Last week, Klarna Group (KLAR) traded at an intra-day low of $38.31. KLAR stock lost 6.11%. Short interest is small at 2.42%. Despite the central bank cutting rates by 25 bps, which would help the lending business, investors fled. Stock markets are bracing for macroeconomic headwinds to hurt Klarna’s business.
Anyone who bought KLAR stock after its IPO is underwater. The stock peaked at $57.20, compared to its sub-$40 closing price.
Coinbase (COIN) lost 5% last week. The slump in Bitcoin (BTC-USD) and Ethereum (ETH-USD) hurts the attractiveness of Coinbase’s platform.
On September 18, the firm launched an on-chain lending product. Customers may collect yields of up to 10.8% on their USDC stablecoin holdings. This is a risky offering, since the holding does not always have liquidity. Beware of COIN stock.
