Endeavor’s shares are crushing the larger market; Reddit Chatrooms Ponder Buy – Deadline

Shares of Endeavor Group Holdings have surged over the past two days as the company hit a market cap of $ 18 billion, nearly double its initial value of $ 10 billion in SEC documents before the ‘Initial Public Offering.

Volatility is very common with initial public offerings. But as Wall Street assesses the business and outlook for the company, another group of investors, including fans of the popular UFC and Endeavor board member Elon Musk, have started to populate them. discussion forums with questions and tips.

“Everything in EDR stock…. Who needs diversity when you have Daddy White and Papa Musk by your side, ”urged an article on Wallstreetbets – the Reddit chat room that started the gameStop and AMC Entertainment memes stock frenzy. Responses ranged from, “Elon told me it was going for $ 100” to “What is EDR?” to “Ultimate Fighting Championship. You know, the UFC. EDM now owns them and just went public. EDM is HUGE… owned by Ari Gold of Entourage. “

Endeavor shares close higher after first day trading volatility; Up 5% on NYSE debut

An article on the quieter Reddit Stocks chat room noted the IPO and its $ 24 offer price, asking for some thought.

“Geeze, the UFC alone will be worth over $ 10 billion, that could be a great long-term investment,” was one of them.

Another: “It’s overpriced, it’s riding the hype, and once all the Brothers start seeing their initial buy-in drop, they’re going to drop too.” (No financial advice.) ”

And another: “I don’t think it got a lot of publicity. Most people I know didn’t know Endeavor went public, and that includes a lot of stock traders and UFC fans.

It’s not at all clear if or how the meme stock effect that went into effect at the start of this year and then faded out will impact Endeavor. Executives from CEO Ari Emanuel to Chairman Mark Shapiro called the company on Thursday a one-of-a-kind game on entertainment and reopening and a less complicated story than the first time it tried to go public without full ownership of the crown jewel UFC.

Wall Street was cautious ahead of the listing, writing off things like Endeavor’s high debt and its multiple classes of shares that leave outside investors unchecked.

After a few rounds, stocks started to climb on Thursday. They closed 9.37% higher on Friday at $ 27.56 and rose another 1.63% late in trading on a day the S&P 500, Dow and Nasdaq all finished lower.

“IPOs tend to be volatile after their offerings, and this has been especially true over the past year, perhaps due to the increase in transactions by retail investors. Speculatively, there could be retail investors, some of whom may be UFC fans, getting involved in the action, but that’s just a guess, ”said one Wall Streeter.

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