Business & Investment

Nasdaq stocks are overpriced

Nasdaq stocks are overpriced

I look forward to Thursday holidays and weekend shopping across the country. As a result, trading on Wall Street has become relatively quiet. The Nasdaq Composite has recovered from recent losses, with a slight increase of about 0.2%.

Many traditional retailers have been under a lot of pressure this week. However, the situation is better than ever for some companies in the e-commerce world. In particular, Etsy and Global-e Online shares both rose on Wednesday afternoon. Therefore, investors want what they have done so far is just the beginning of a much longer growth surge. Below, we’ll take a closer look at what causes these two strains to move the day before Thanksgiving.

Etsy

Etsy’s share price rose nearly 7% on Wednesday afternoon. The craft and homemade market has gained interest in equities with positive feedback from several Wall Street analysts. Citi analysts first joined and raised Etsy’s pricing target from $ 75 to $ 320 per share. Citi reiterated its stock purchase valuation, saying Etsy was able to generate valuable brand awareness, even as shoppers began to change their behavior in response to the continued development of the fight against the pandemic. In addition, Citi expects investors to reward Etsy with a higher reputation as it demonstrates Etsy’s ability to continue to grow its bottom line.

Analysts generally have high expectations for e-commerce. As traditional retailers face supply chain challenges, Etsy sellers’ more organic production should benefit the market.

Global-e trades

Meanwhile, Global-e Online’s share rose an even more impressive 15%. The e-commerce company has made a strategic acquisition where shareholders are excited about the company’s future.

Global-e has announced the acquisition of FlowCommerce, an e-commerce software provider for cross-border transactions from emerging brands. The company believes that purchases can provide small business customers with access to previously unavailable global e-services. Importantly, the transaction could support a global relationship e with Shopify, which issued a warrant for an investment of $ 70 million at the discretion of Shopify.

Global-e will pay Flow $ 500 million in cash and stock. Performance-based warrants could bring an additional $ 45 million in potential equity compensation. The transaction is expected to close in the first quarter of 2022.

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Nasdaq stocks are overpriced

https://www.financebrokerage.com/nasdaq-stocks-are-riding-high/ Nasdaq stocks are overpriced

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