Goldman Sachs (GS) Offering Possible 32.98% Return Over the Next 21 Calendar Days

Goldman Sachs's most recent trend suggests a bearish bias. One trading opportunity on Goldman Sachs is a Bear Call Spread using a strike $215.00 short call and a strike $220.00 long call offers a potential 32.98% return on risk over the next 21 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $215.00 by expiration. The full premium credit of $1.24 would be kept by the premium seller. The risk of $3.76 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 55.03 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

UPDATE 1-Goldman launches European ETF business to cash in on passive boom
Thu, 26 Sep 2019 08:01:26 +0000
Goldman Sachs Asset Management launched a European Exchange Traded Fund (ETF) business and its debut product on Thursday as it bids for a slice of the fast-growing market for listed passive investment strategies. A decade of easy money from central banks has made it hard for active asset managers to outperform index benchmarks, driving investors to put more money into cheaper index-tracking products. “Our global clients are demanding more choice in their portfolios and we are excited to complement our existing fund range with ETFs,” said Nick Phillips, head of the international retail client business at GSAM.

Peloton Raises $1.16 Billion in Top-of-Range U.S. IPO
Thu, 26 Sep 2019 01:12:03 +0000
(Bloomberg) — Peloton Interactive Inc. raised $1.16 billion in its U.S. initial public offering, pricing its shares at the top end of its targeted range in a week roiled by more bad news for WeWork and its IPO plans.Peloton sold 40 million shares on Wednesday for $29 each, the home-fitness company said in a statement. The company had marketed the shares for $26 to $29 each.Peloton is valued in the listing at about $8.1 billion based on the outstanding shares as listed in its filings with the U.S. Securities and Exchange Commission.The IPO, the eighth in the U.S. this year to top $1 billion, comes as investors are rattled by the the sudden disintegration of WeWork’s plan to go public in September.As recently as July, the listing by WeWork, renamed the We Co., had been expected to raise about $3.5 billion, a person familiar with the matter had said. Now, co-founder Adam Neumann has resigned as chief executive officer and the company, according to people familiar with its plans, will likely put off an IPO until at least next year.WeWork isn’t the only warning sign for IPO investors.While most of the 11 other companies that have gone public this month priced within or above their marketed range, the largest of them, SmileDirectClub Inc., is trading 32% below its offer price in its $1.35 billion listing.Lowered ExpectationsThe Hollywood entertainment company Endeavor Group Holdings Inc., whose IPO is set to price Thursday, is considering pricing its shares below the marketed range, people familiar with the matter said.The year has seen disappointing performances by several consumer-oriented companies positioning themselves as game-changing tech companies. Most notably, Uber Technologies Inc.’s shares have fallen 30% since May after its $8.1 billion IPO, the year’s biggest.Founded in 2012, New York-based Peloton describes itself as the “largest interactive fitness platform in the world” with more than 1.4 million members.Peloton started out by selling a bike with a screen connected to the internet for showing its own workout programs, both live and recorded. Last year, it started selling a treadmill with a similar offering.Yoga, MeditationIt also has an app that shares its exercise programming with users who don’t own its hardware but are willing to pay a monthly subscription fee for the classes, which include yoga, meditation and strength training.Its basic “connected fitness” subscription costs $39 a month and the bikes start at about $2,000.Like many startups that have gone public this year, Peloton told investors that it will stay focused on growth rather than profitability, but outlined a future path to it.While revenues have been steadily increasing, Peloton still lost $196 million on sales of $915 million during the 12 months ended June 30, according to its filings. That compared with a loss of $48 million on $435 million in sales during the same period a year earlier.Growing BaseIts growth depends on continuing to expand its subscriber base in an increasingly competitive field, as well as keeping current customers.The U.S. is one of the largest markets for connected fitness in the world, and Peloton recently expanded into others that sit high on that list: Canada, the U.K. and Germany. Investors are watching to see whether the company’s success in the U.S can be replicated elsewhere.During its IPO roadshow, Peloton showed a video hinting that it will have new types of equipment.Holders of Peloton’s Class A shares will get one vote per share, while Class B holders will have 20 votes a share, according to the filing.Goldman Sachs Group Inc. and JPMorgan Chase & Co. led the offering. The shares are expected to begin trading Thursday on Nasdaq Global Select Market under the symbol PTON.(Updates with performance of other IPOs in seventh paragraph.)To contact the reporters on this story: Crystal Tse in New York at ctse44@bloomberg.net;Julie Verhage in New York at jverhage2@bloomberg.netTo contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, ;Mark Milian at mmilian@bloomberg.net, Michael Hytha, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

Peloton prices IPO at $29 per share, at high end of expected range
Wed, 25 Sep 2019 23:31:01 +0000
Peloton reportedly priced its initial public offering at $29 per share, Reuters reported Wednesday, citing an unnamed source familiar with the matter. The offering makes Peloton the latest startup valued over $1 billion to tap the public markets.

EBay CEO Devin Wenig Steps Down in Ongoing Operating Review
Wed, 25 Sep 2019 19:30:09 +0000
(Bloomberg) — EBay Inc. Chief Executive Officer Devin Wenig is stepping down amid pressure from activist investors to break the company apart.Scott Schenkel, EBay’s chief financial officer, was appointed as interim CEO, the company announced Wednesday. EBay said it will seek a permanent CEO and consider internal and external candidates. Shares fell less than 1% to $39.28 at 3:27 p.m. in New York.Paul Singer’s Elliott Management Corp., which owns a 4% stake in EBay, demanded in January that the company make “urgently needed” changes, including selling assets, such as ticket-selling site StubHub and the Classifieds Group, and buying back shares. In March, EBay reached an agreement with Elliott and another activist investor, Starboard Value, to appoint two new directors and undertake a strategic review of its portfolio assets. EBay said Wednesday it would provide an update this fall on the ongoing review, which is being conducted with the assistance of Goldman Sachs & Co.Wenig was fired after he failed to grow EBay’s marketplace platform and clashed with the board about not wanting to sell the classifieds business, according to people familiar with the matter.“In the past few weeks it became clear that I was not on the same page as my new board,“ Wenig said in a tweet. “Whenever that happens, it’s best for everyone to turn that page over.”Wenig, 52, took over EBay following its split with PayPal in 2015 and made bold promises of returning the marketplace to prominence. To compete against Amazon.com Inc., Wenig tried to freshen EBay’s image with younger shoppers, made the site easier to navigate and harnessed artificial intelligence to give EBay merchants real-time insights about what shoppers want and how much they’re willing to pay. But the results have been slow to appear and EBay has continued to watch Amazon grow at a much faster pace and gobble up more market share and customers.EBay’s financial reports have also shown paltry growth this year, with revenue increases of only 2% in the first two quarters and analysts expect no increase in the third quarter and a decline of 1% in the fourth, according to estimates compiled by Bloomberg. Gross merchandise volume — the value of all goods sold on EBay properties — fell 4.4% to $22.6 billion in the second quarter from a year earlier.EBay reaffirmed Wednesday its full-year guidance for 2019 of revenue growth of 2% to 3%, adjusted earnings per share of $2.70 to $2.75 and net EPS of $1.97 to $2.07 per share.Wenig had tried to differentiate EBay from Amazon by emphasizing that EBay didn’t compete with sellers by selling it’s own similar products and he downplayed the importance of fast shipping, saying EBay wasn’t the place for shoppers who want paper towels in an hour. Instead, Wenig highlighted EBay’s inventory of unique items.(Updates with information about Wenig’s firing in fourth paragraph. An earlier version of this story was corrected to reflect a company error in the financial guidance.)\–With assistance from Scott Deveau.To contact the reporters on this story: Molly Schuetz in New York at mschuetz9@bloomberg.net;Spencer Soper in Seattle at ssoper@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Robin AjelloFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

Goldman Is Cutting Its Loan Exposure to SoftBank's Vision Fund
Wed, 25 Sep 2019 18:26:10 +0000
(Bloomberg) — Goldman Sachs Group Inc. is seeking to offload a portion of its stake in a $3.1 billion credit line it helped arrange for SoftBank Group Corp.’s Vision Fund, according to people with knowledge of the matter.The New York lender has approached other financial institutions to take on some of its lending commitment to decrease its risk, said one of the people, who asked not to be identified because the talks are private. Goldman has been looking to cut its exposure to the facility for the last few months, one of the people said.The bridge facility, which Goldman and Mizuho International began arranging last year, enables the behemoth investment vehicle to more quickly pounce on transactions. The loan was syndicated to other banks including Standard Chartered Plc, Citigroup Inc., Barclays Plc and Royal Bank of Canada, according to a SoftBank presentation in May.Goldman is offering the debt at prices slightly below par, the people said. While it’s not uncommon for lead banks to syndicate their share of loans, Goldman already reduced its exposure in May by bringing in additional lenders. Now, the firm is looking beyond the existing group, and at least one of the original 10 lenders isn’t interested in boosting its exposure, one of the people said. Goldman is offering to sell the credit line in pieces as small as $50 million, one of the people said.Stalled IPOGoldman indicated to the Vision Fund when it committed to the loan that it would look to reduce its exposure over time, said a person close to the fund.Representatives for Goldman Sachs and SoftBank Vision Fund declined to comment.SoftBank has suffered a string of bad news this week, from the stalled initial public offering of one of the Japanese company’s biggest wagers, WeWork, to fresh doubts over the sale of its debt-laden mobile phone company, Sprint Corp. The cost to protect against nonpayment by SoftBank in the credit-default swaps market jumped Wednesday, according to ICE Data Services.Goldman Sachs has deep ties to SoftBank, working with the company to raise a second Vision Fund and advising founder Masayoshi Son’s businesses on several deals in recent years.SoftBank’s first Vision Fund, which counts Saudi Arabia’s Public Investment Fund as its largest investor, has backed firms including messaging software company Slack Technologies Inc., ride-hailing giant Uber Technologies Inc. and embattled office-sharing startup WeWork. It’s also invested in 10X Genomics Inc., whose shares have jumped since it went public this month, and Guardant Health Inc.Read more: SoftBank backers rethink role in next Vision Fund on WeWork\–With assistance from Sridhar Natarajan.To contact the reporters on this story: Archana Narayanan in Dubai at anarayanan16@bloomberg.net;Gillian Tan in New York at gtan129@bloomberg.netTo contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, ;Alan Goldstein at agoldstein5@bloomberg.net, Steven Crabill, Michael J. MooreFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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