Hello and welcome back to Equity, TechCrunch’s venture capital-themed podcast where we walk through the numbers driving Silicon Valley each and every week.
This episode, Katie Roof, Matthew Lynley and I — Alex Wilhelm — were joined by NEA partner Rick Yang to dig into the week’s earnings, IPOs, and surprise M&A. It was a packed news cycle, with so much to go over that we left the Reddit deal on the table. Sorry, kids.
First on the docket was Tesla’s quarterly results which pushed its stock up as much as 8 percent in after-hours trading. Tesla is riding high on the recent delivery of its first Model 3 cars, a milestone that has been a long time in the making. We were curious if the new, less-expensive Tesla would undercut sales of Model S and X models, which sport higher prices tags. (Spoiler: Probably not.)
Apple also reported earnings this week, beating analyst expectations and driving its share price to fresh record highs (thematic among the largest tech companies today is their strong recent and sustained financial performance.) But what matters more is that the company signaled to investors that its next quarter’s results will be strong. That implies that the next iPhone will come in September.
Next, we got into the Stitch Fix IPO, which is driving more than a little chatter around the e-commerce space. The firm has filed privately to go public according to TechCrunch reporting, making its future public filing due at any moment. We went around the table asking ourselves, even with our paucity of information, if we’d theoretically buy the company’s shares. Somehow, I ended up on the bullish side of things.
Penultimately, Redfin’s IPO was a barnburner, skyrocketing from its above-range $15 IPO price. The results matter as the firm followed several lackluster IPOs, and recent declines of Snap’s value after its own debut. The IPO window is open if you are in good shape, as always.
And finally, some breaking news: Yelp is selling Eat24 to GrubHub in an all-cash deal. The transaction will see GrubHub accrete to itself even more pieces of the food delivery pie.
We had a good time, and we hope you smile a bit while hanging with us. Stay cool, and we’ll be back in a week!