Goldman Sachs's most recent trend suggests a bearish bias. One trading opportunity on Goldman Sachs is a Bear Call Spread using a strike $210.00 short call and a strike $220.00 long call offers a potential 18.34% return on risk over the next 28 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $210.00 by expiration. The full premium credit of $1.55 would be kept by the premium seller. The risk of $8.45 would be incurred if the stock rose above the $220.00 long call strike price.
The 5-day moving average is moving down which suggests that the short-term momentum for Goldman Sachs is bearish and the probability of a decline in share price is higher if the stock starts trending.
The 20-day moving average is moving down which suggests that the medium-term momentum for Goldman Sachs is bearish.
The RSI indicator is at 41.28 level which suggests that the stock is neither overbought nor oversold at this time.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for Goldman Sachs
Snowflake IPO Spurs Flood of Wealth for Silicon Valley Elite
Wed, 16 Sep 2020 21:33:32 +0000
(Bloomberg) — Snowflake Inc.’s initial public offering isn’t just creating new fortunes, it’s adding to the wallets of some of Silicon Valley’s biggest names.Iconiq Capital, a multifamily office whose clients include Facebook Inc.’s Mark Zuckerberg, LinkedIn Corp.’s Reid Hoffman and Twitter Inc.’s Jack Dorsey, took part in multiple Snowflake funding rounds beginning in 2017. Its 12% stake in the company, purchased for $245 million, was worth more than $4 billion at the initial offering price of $120. By the end of Wednesday, the same stake was worth a staggering $8.6 billion.Read more: Snowflake soars into tech big leagues with $73 billion valuationShares of the cloud-computing company surged as high as $319 in New York trading before dropping back to close at $253.93. That made it worth $70 billion, about as much as Goldman Sachs Group Inc. and almost six times the $12.4 billion it was valued at in a February fundraising round.Cloud computing “is a secular trend right now,” said Bloomberg Intelligence analyst Mandeep Singh. “We have already seen Zoom, DocuSign and Datadog do well this year. Investors understand the cloud business model well and that makes a high-growth company like Snowflake attractive.”The San Mateo, California-based firm’s top executives also saw their wealth surge. Four of them — Frank Slootman, Bob Muglia, Michael Scarpelli and Benoit Dageville — now own stakes worth a combined $8 billion.Only one of them, Dageville, was a founder. His stake is smaller than Slootman’s, who joined as chief executive officer from ServiceNow Inc. last year.Concurrent with the IPO, former CEO Muglia sold half of his 8.1 million Snowflake shares to Berkshire Hathaway Inc., which is also investing an additional $250 million at the IPO price. Such deals aren’t typically part of Warren Buffett’s play book, although in 2018 Berkshire invested in the initial offering of Brazilian fintech StoneCo Ltd.Buffett’s move boosted the already sky-high institutional interest in the cloud-computing firm, Singh said. It “definitely validates the attractiveness of Snowflake’s IPO,” he said.So far it has been a winning bet for Buffett, with the value of Berkshire’s investment more than doubling by the end of the day.(Updates value of Iconiq’s stake in second paragraph and top executives’ in fifth.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Snowflake Soars Into Tech Big Leagues With $70 Billion Value
Wed, 16 Sep 2020 20:45:26 +0000
(Bloomberg) — Snowflake Inc. soared in a euphoric stock-market debut that transformed the eight-year-old software company into business valued at more than $70 billion.Snowflake’s $3.36 billion initial public offering is a record for a software company and the biggest in the U.S. this year. Its share price soared as much as 166% Wednesday, minting fortunes inside the company and across Silicon Valley.Shares of the cloud-data software maker opened at $245 — more than double its IPO price — in New York trading. That 104% gain at the opening bell was the third-highest such pop for an IPO of $1 billion or more on a U.S. exchange and the biggest since Florida-based equipment rental company Herc Holdings Inc. went public in 2006.Snowflake sold 28 million shares at $120 apiece on Tuesday. They were earlier marketed for $100 to $110 each after the range was boosted from $75 to $85.The shares, which reached as high as $319, closed up 112% to $253.93 in New York trading, giving it a market value approaching six times the $12.4 billion it received in a private funding round in February.Uber, DellThat makes Snowflake, previously a lesser-known firm based in San Mateo, California, more valuable than Uber Technologies Inc., Dell Technologies Inc. and General Motors Co., according to data compiled by Bloomberg.“So far, so good,” Snowflake Chief Executive Officer Frank Slootman said in an interview. “IPOs for us are milestones along the way. They’re not endpoints. We needed to do this for a number of reasons, especially to raise the stature of the company in the marketplace.”Slootman said that he’s spent a year speaking with institutional investors about backing Snowflake, and now hopes they will maintain large stakes for at least five to 10 years. He wanted shareholders who weren’t just looking for “momentum,” he added.Comparing an IPO to the switch from college football in the U.S. to the pros, he said, “I sometimes refer to it as we go from playing on Saturday to playing on Sunday.”MORE: Snowflake IPO Creates Flood of Wealth for Silicon Valley EliteWith IPOs roaring back after a spring lull as the coronavirus pandemic hit the U.S., Snowflake’s listing is this year’s largest on a U.S. exchange by an operating company, according to data compiled by Bloomberg. That excludes the $4 billion raised in July by a special purpose acquisition company, or SPAC, backed by billionaire investor Bill Ackman.U.S. IPOs are having a busy week as 21 companies are expected to price their offerings raising more than $10 billion combined, according to the data.JFrog JumpsJFrog Ltd., which makes tools for software developers, closed up 47% to $64.79 after jumping as much as 75% in its trading debut Wednesday following a $509 million offering. Also on Wednesday, Unity Software Inc. elevated the price target to raise as much as $1.2 billion its IPO set for Thursday.Snowflake’s IPO attracted Warren Buffett for a rare investment. Berkshire Hathaway Inc. and Salesforce Ventures, an arm of Salesforce.com Inc., have each committed to buy $250 million of the company’s Class A common stock in a private placement. Berkshire also agreed to buy 4 million shares in a secondary transaction, according to Snowflake’s filing.Founded in 2012, Snowflake is a challenger to Amazon.com Inc. as a provider of data warehouse technology, which compiles information from different systems so clients can analyze it together in the same place. In the fiscal year that ended Jan. 31, Snowflake’s revenue soared 174% to $264.7 million compared with the previous year, the company reported. In the sixth months ended July 31, the company lost $171 million on revenue of $242 million.Data ‘Exploding’“Data is exploding,” said Carl Eschenbach, a partner at Snowflake investor Sequoia who’s also on the software company’s board. “There is no centralized data cloud other than Snowflake that can combine all of that data and give you the business insights you want in a very fast way.”Eschenbach added, “We are still in the early innings of companies moving their data to the cloud.”Daniel Elman, an analyst at Nucleus Research, said Snowflake’s IPO surge is a culmination of the broader success of cloud-based companies.“Momentum has been building where cloud has gone from a proof of concept or for things that were less critical to companies realizing it will enable a much more agile and modern architecture and working style,” Elman said in an interview.Snowflake’s offering was led by Goldman Sachs Group Inc. and Morgan Stanley. The company’s shares are trading on the New York Stock Exchange under the symbol SNOW.(Updates with CEO’s comments in seventh paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Goldman Sachs names new co-COO of global TMT banking: memo
Wed, 16 Sep 2020 19:33:33 +0000
O'Brien, formerly co-head of the bank's TMT M&A team, will hold the role with Jung Min, Goldman Sachs global head of TMT Nick Giovanni wrote in the memo to staff, the contents of which were confirmed by a bank spokesperson. O'Brien, 43, joined Goldman Sachs in 2000 and was named partner in 2018.
Dow Jones Rises On Dovish Fed Announcement; These Stocks Among Day's Leaders
Wed, 16 Sep 2020 19:23:27 +0000
The Dow Jones Industrial Average moved higher as the Federal Reserve announced interest rates will remain near zero until at least the end of 2023.
Dow's 270-point climb highlighted by gains for shares of Chevron, Walgreens Boots
Wed, 16 Sep 2020 18:02:00 +0000
DOW UPDATE Shares of Chevron and Walgreens Boots are trading higher Wednesday afternoon, sending the Dow Jones Industrial Average into positive territory. Shares of Chevron (CVX) and Walgreens Boots (WBA) have contributed to the blue-chip gauge's intraday rally, as the Dow (DJIA) is trading 270 points higher (1.
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