Etsy is Full of Surprises on Wall Street; Party City’s Reason to Celebrate; Netflix Wants to do the Splits of

Profit shmofit!

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

So what if Esty hasn’t made a profit. Why should that minor detail keep it from doubling its IPO? Wednesday night, the company was all set to make its big Wall Street debut with shares priced at $16 a pop. Many considered that to be at the high end of its range, but Esty offered up 16.7 million shares. Then, wouldn’t ya know it, the shares opens up at a whopping $31, giving the company a very robust $1.8 billion valuation. With that kind of money floating around you’d think there’d be some profit in there somewhere but…nah. The Brooklyn-based company pulled in some very crafty revenues, though, of $195.6 million in 2014, a 56% increase over the previous year. Too bad that came with a  $15.2 million loss. Some wonder about the company’s ability to pull in those big Wall Street-pleasing numbers considering its B-Corp status. That basically means it’s a company that truly cares about and promotes social and environmental business practices and causes. But shareholders tend to get a little worried that money-making takes a back seat to such practices. Potatoes puh-tatoes. In any case, the crafty company has about 1.4 million sellers with about 20 million active buyers. Esty makes its cash by charging their craft sellers a fee for all the nifty items they sell.

Raise the roof…

Image courtesy of artur84/FreeDigitalPhotos.net

Image courtesy of artur84/FreeDigitalPhotos.net

Esty is not the only company to make its big board debut. Party goods retailer Party City joined the New York Stock Exchange today at $20.50. While it wasn’t nearly as impressive as Esty’s debut, it was still 21% higher than its IPO price of $17 a share and the company sold close to 22 million shares. The chain currently has 860 stores in North America with 40 more in Canada. And if that’s not enough partying for you, then look out because Party City has plans to open yet another 350 more superstores.  I guess that explains why Party City is the largest party supply store in the country.  Under the convenient ticker symbol “PRTY” the company has a very impressive valuation of $2 billion. If that’s not cause for celebration then I don’t know what is.

Green is the new black…

Image courtesy of digitalart/FreeDigitalPhotos.net

Image courtesy of digitalart/FreeDigitalPhotos.net

And if anyone has a reason to party it’s Netflix whose shares jumped 15% after reporting it added a whopping five million new subscribers in the first quarter, giving the company a grand total of 62.3 million subscribers. Clearly analysts don’t watch House of Cards because they predicted the streaming entertainment subscribing service would only pull in 4 million new subscribers. The company also took in revenues of over $1.57 billion, up 24% from a year ago, while taking 38 cents per share and $23.7 million in profits. Incidentally, profits were down by more than 50% from a year ago when the company pulled in over $53 million at 89 cents per share. But it doesn’t seem like Netflix is too concerned about that since it is looking to do a 30:1 stock split. Got some shares of Netflix? How lucky for you, considering the stock is trading at around $560 a pop.

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One response to “Etsy is Full of Surprises on Wall Street; Party City’s Reason to Celebrate; Netflix Wants to do the Splits of

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