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Today's big stories

The UK announced plans to change its stock market listing rules
Here are the pros and cons of investing in fast-growing milk brand Oatly when it hits the stock market – Read Now
US grocery delivery app Instacart revealed it’s doubled its valuation for the second time since the pandemic began

Cool Britannia

What’s Going On Here?

The UK announced on Wednesday that it’ll act fast on proposed changes to make the country a totally dope place for young, fast-growing companies to list their stocks.

What Does This Mean?

With London-based listings only accounting for around 5% of all global stock market debuts between 2015 and 2020, the UK is well and truly on the back foot – not to mention at risk of losing investors’ money to frontrunners and up-and-comers alike (think New York and Amsterdam). A report released Tuesday, then, proposed a couple of changes to help the country raise its game. First, it recommended letting founders hold onto more control of their businesses than they get to at the moment. And second, it suggested making the rules around special-purpose acquisition companies (SPACs) – the back-in-vogue investments that use the money they raise to buy another, usually private, company – more favorable.

Why Should I Care?

Zooming out: SPACs are going global.
The UK’s not the only country hoping to woo SPACs: Hong Kong – which has previously kept them off limits – is thinking about finally giving them the A-okay. And it’s easy to see why it might’ve changed its mind, with investors having put $60 billion into SPACs in the first two months of this year – already more than 70% of 2020’s total.

For you personally: Retail investors still have to wait in line.
The review was just as noteworthy for what it didn’t include – namely proposals that would get retail investors more involved in initial public offerings, despite a recent push from the UK’s three biggest trading platforms. That means institutional investors are still the only ones that get to buy in at the company’s listing price, while retail investors will generally have to wait to buy shares at a premium once it starts trading.

You might also like: Everything you need to know about SPACs before investing.

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2. Analyst Take

Should You Milk Oatly’s IPO For All It’s Worth?

What’s Going On Here?

Plant-based milk is more popular than ever, accounting for more than 14% of total US retail milk sales.

And nothing is rising more in popularity than oat milk, which became the fastest-growing plant-based milk after American sales surged by more than 300% last year.

At the forefront of that trend is Sweden’s Oatly, which is now looking to hit the US stock market with a $10 billion initial public offering (IPO).

That’s a fivefold valuation increase in under a year, probably because Oatly’s stock suits several sustainable investment themes currently being chased by billions of dollars.

Just look at Beyond Meat – another sustainable, plant-based food company that’s seen its stock price rise by almost 500% since its IPO less than two years ago.

So that’s what we’re talking about in today’s Insight: should you get into Oatly’s hotly anticipated IPO?

Read or listen to the Insight here

“Dump your brokerage,” says… Michael Bolton?

Okay, so admittedly we didn’t see this one coming.

Public.com – an investing social network – thinks you should move on from your current brokerage, and they’ve enlisted Michael Bolton to convince you to do just that.

That’s right: the bronzed balladeer Michael Bolton, rolling out his latest power ballad about… payment for order flow.

Because that’s just it: Michael knows that Public is a free investing app that doesn’t sell your trades to third parties.

And he knows Public will even pay for the transfer fees from your old brokerage to help you break up with them once and for all.

Move on with Public, and start with $10 in free stock.

Get the App

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Super Food

What’s Going On Here?

Is it a bird? Is it a plane? Nope: it’s Instacart’s valuation, which the grocery delivery app revealed earlier this week has doubled twice since the pandemic began.

What Does This Mean?

In a time when everyone’s trying to avoid the local store as much as possible, Instacart’s found a lucrative niche in grocery delivery: the company has increased orders sixfold, added hundreds of thousands of new workers, and raised almost $1 billion from investors since last March.

In fact, a new financing round this week valued the private company at $39 billion – up from $18 billion last November, itself up from $8 billion before the pandemic. That officially makes Instacart the second-biggest private US startup, just behind Elon Musk’s SpaceX. No surprises, then, that it’s reportedly preparing to hit the stock market sooner rather than later (tweet this).

Why Should I Care?

Zooming in: Is Instacart flawed?
On the face of it, Instacart’s impressive valuation makes sense when you consider that the US grocery industry is worth as much as $1.3 trillion. But that market slims down real fast when you’re at the bottom of the food chain: Instacart picks up groceries for delivery after the retailer has stocked the shelves and after it’s paid by shoppers. In other words, after the retailer’s made its already notoriously low profit. That leaves Instacart with a market worth just $45 billion, and makes it difficult – if not downright unlikely – that it’ll earn enough profit to justify its valuation.

Zooming out: … is Instacart really flawed?
Instacart is facing fierce competition on all sides too – whether from delivery apps like Uber, online grocery players like Walmart and Amazon, and, of course, grocery retailers themselves. The latter in particular might’ve been galvanized by the pandemic to start investing more in their own ecommerce systems – and if they get them right, those customers might be able to ditch the app altogether…

You might also like: How to profit from startups like the professionals.

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💬 Quote of the day

“I often quote myself. It adds spice to my conversation.”

– George Bernard Shaw (an Irish playwright, critic, and political activist)

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Public.com: your perfect match?

We here at Finimize are a romantic lot, and you deserve nothing less than your perfect investing app.

So if this is you…

✔️ You’re into investing and keen to learn more

✔️ You love talking to friends about business trends

✔️ You’re looking for a community that goes deeper than “Stonks!”

Then Public.com might tick all your boxes…

✔️ Public is one part social network, one part investing app

✔️ Public offers fractional shares of 1,000s of stocks and ETFs

✔️ Public has a social feed for sharing ideas, along with group chats for investing clubs

Download Public today, and start with a $10 in free stock.

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Disclaimer: *This is not investment advice. Offer valid for U.S. residents 18+ and subject to account approval. See Public.com/disclosures.

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📚 What we're reading

Music: the next gold? (The Guardian)
A drone that’s 10x stronger than the competition (Parallel Flight)*
How to capture carbon (National Geographic)
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🌎 Finimize Events

♻️ Not all ESG metrics are created equal

It’s true: some ESG metrics matter more than others. But how can you tell the difference, and how can you measure ESG anyway? You’re right to ask – and Bloomberg’s Karen Ho will have your answer at next week’s The Key To Understanding ESG.

💆‍♀️ The Investor Mindset: 1pm New York Time, March 5th
🛴 Investing In Scooter And Bike-Sharing: 1pm UK Time, March 8th
♻️ The Key To Understanding ESG: 1pm UK Time, March 9th
👣 Invest Your Money, Save The Planet: 6pm UK Time, March 9th
📲 What’s Next For Tech: 6pm UK Time, March 10th
🏦 The Next Decade in Banking: 6pm UK Time, March 11th
💰 The Evolution Of Crypto: 6pm Dubai Time, March 12th
🕶 Investing in Virtual Reality & 5G: 6pm New York Time, March 16th
👌 The Three Most Important Metrics In Investing: 6pm UK Time, March 18th
💉 Investing In Healthcare: 6pm UK Time, March 22nd
🤑 A Guide To Crypto In 2021: 6pm UK Time, March 25th
🎙 Finimize Monthly Town Hall: 1.30pm UK Time, March 26th

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Finimize - 🚀 Instacart to the moooon

Today's big stories

Cool Britannia

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Should You Milk Oatly’s IPO For All It’s Worth?

“Dump your brokerage,” says… Michael Bolton?

Super Food

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Public.com: your perfect match?

♻️ Not all ESG metrics are created equal

Older messages

⚠️ Don't panic just yet

🏃‍♂️ The 3 question exit strategy

🚨 Ray Dalio's bubble warning

🇪🇺 Small stocks, big potential

📈 UBS backs growth stocks

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