Three Things (4/12)
Apr 12, 2022
The below content and projections are the opinion of the authors. Any conclusions or takeaways are their own. This should not be considered as investment advice. Investing involves the risk of loss and returns are not guaranteed.
1) Epic Games raises $2 billion as private capital market thaw continues
- The Fortnite-maker is valued at $31.5 billion after this latest capital raise.
- Investors in Epic’s latest round include Sony and KIRKBI, the investment company behind Lego.
- This is Epic’s first fundraise since April 2021, when it raised $1 billion at a $28.7 billion valuation.
Titan’s Takeaway: Epic’s funding announcement made four mentions of the idea that still seems to make investors reach for their pocketbook: the metaverse. And between Shein’s reported fundraise last week and Epic’s round announced this week, private market investors are beginning to move more enthusiastically after the public market sell-off in Q1 cooled sentiment.
2) Shopify to propose stock split, new share class as stock slides amid rising rate environment
- The company’s new share structure would create a “Founder share,” increasing CEO Tobi Lutke’s voting power to 40% from 34%.
- Shopify also proposed a 10-for-1 stock split.
- These proposals will go to a vote at Shopify’s annual shareholder meeting on June 7.
Titan’s Takeaway: Executives and leaders can say that public market fluctuations in a company’s stock price doesn’t matter for the business, but actions speak louder. In the last two weeks, Shopify has altered employee comp plans and now rejiggered its share class structure — coming after a ~60% drop in five months, it appears stock prices do change plans.
3) Elon Musk won’t join Twitter’s board of directors as billionaire’s plans for his stake in the company remain unclear
- Musk was set to join the company’s board on Saturday, April 9, but told the company he would not be taking the seat.
- Twitter CEO Parag Agrawal said in a statement: “I believe this is for the best.”
- Musk still owns 9.1% of Twitter, making him the company’s largest shareholder.
Titan’s Takeaway: The most important detail in Musk’s initial agreement to join Twitter’s board was his promise not to buy more than 14.9% of the company’s outstanding shares. With this agreement appearing to be off the table, the possibilities for the shape the relationship between Twitter and its largest shareholder could take have multiplied greatly.
Cash Management
© Copyright 2024 Titan Global Capital Management USA LLC. All Rights Reserved.
Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.
Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.
Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.
The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.
Cryptocurrency advisory services are provided by Titan.
Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.