Hi Reader, here's what you need to know for April 1st in 3:06 minutes.

👋 Come find the official Finimize Club on Clubhouse: join us for today’s show at 6pm UK/1pm NY time to discuss Deliveroo’s first 24 hours on the London Stock Exchange. Join the club

Today's big stories

Deliveroo’s stock tanked on its market debut and retail investors might get burned the worst
A new space exploration exchange-traded fund has hit the market, but it isn’t all it’s cracked up to be – Read Now
Only half of Europe’s professional stock pickers outperformed the market last year, suggesting it might not be worth their effort

Deliverooh

What’s Going On Here?

Deliveroo’s hotly anticipated stock market debut turned up cold on Wednesday as the food delivery firm’s newly public share price ended its first day down 13% – and left its retail investors most at risk of a one-star experience (tweet this).

What Does This Mean?

As foreseen in the Finimize app’s exclusive analysis last week, Deliveroo announced shortly before its initial public offering (IPO) that shares would begin trading at the lower end of expectations. Since recent listings have generally launched at the top of their advertised price ranges, that already suggested there was limited investor appetite for yet another food delivery stock.

Deliveroo nevertheless managed to raise $2 billion as planned, starting Wednesday worth $10 billion. But its valuation immediately fell 30% as the stock market opened for “conditional dealing” of the company’s shares. Deliveroo’s shares recovered some ground by the end of the day – but not before trading was briefly suspended in the wake of wild price swings.

Why Should I Care?

For markets: Investors are backpedaling.
Several high-profile investors have highlighted big risks involved in backing the primarily bicycle-based food delivery company. In the wake of Uber’s enforced reclassification of its UK drivers as “workers”, rather than cheaper contractors, Deliveroo may soon face similarly elevated costs. What’s more, with lockdown restrictions easing and people returning to restaurants, the company’s growth is set to slow. And a chronic lack of profit – another big deliverisk – means Deliveroo may be poorly placed to adapt to potential changes in its regulatory and market environments.

For you personally: Retail investors could get burned.
Spare a thought for those small-time individual investors who were, for once, able to buy directly into Deliveroo’s IPO – but who can’t actually trade their shares until next week. If they respond to Wednesday’s losses by rushing to sell at the earliest opportunity, retail investors could serve up more trouble for Deliveroo’s share price.

You might also like: Our analysis on whether you should buy Deliveroo shares.

Copy to share story: https://www.finimize.com/wp/news/deliverooh/

🙋 Ask a question

2. Analyst Take

Space Stocks Are Going To The Moon

What’s Going On Here?

Space – the final frontier – is an exciting sector to invest in, but there are precious few publicly traded companies operating in the industry.

Ark Investment Management’s new Space Exploration and Innovation exchange-traded fund aims to solve that – but some of its “space exploration” stocks simply don’t fit the bill.

Other funds, meanwhile, have focused on aerospace or satellite communications stocks – which is more of a small step than a giant leap toward space investing.

There are pure-play space stocks coming to the stock market soon, though: it’s worth you knowing where to find them.

So that’s today’s Insight: how you can actually invest in space travel now and in the not-so-distant future.

Read or listen to the Insight here

You never know what’s around the corner

Life is unpredictable: you know that all too well after the past year.

And that’s exactly why you might want to consider protecting the future.

With term life insurance – like that offered by Bestow – you can make sure your family is looked after for as little as $10 a month, just in case something unexpected happens.

One monthly payment could help you leave up to $1.5 million for your loved ones, worst comes to worst. That could mean no loans to pay off, no looming medical bills, no mortgage worries.

It’s super quick to apply – we’re talking five minutes quick – and you’ll get a decision instantly. You can even apply directly from your phone or computer.

Get a quote, and start from just $10 a month.

Get Your Free Quote

Please support our sponsors