Used-Car Marketplace Carvana Sinks 16% on NYSE Debut

Shares of Carvana (CVNA), the used-car online marketplace based in Phoenix, Arizona, are down $2.33, or almost 16%, at $12.67, after the company’s shares debuted on the New York Stock Exchange this morning. CEO Ernie Garcia III was kind enough to talk with me by phone for a little bit following the offering. Garcia previously served as a “financial strategist” at DriveTime, and as managing director of corporate finance, and subsequently “director of quantitive analytics." Carvana’s offering is a little overshadowed today by the surging IPO of another tech name, software distributor Cloudera (CLDR), whose stock is up 20%. Carvana, founded in 2012 as a subsidiary of used car dealer and financing outfit DriveTime, in nearby Tempe, was spun out as its own operation in 2014. The offering had been priced at $15 per share, in the middle of an expected range of $14 to $16, but opened below that, at $13.50.

Snap: First It Has to Grow Up, Says Canaccord

Canaccord Genuity’s Michael Graham today initiates coverage of messaging-cum-camera company Snap (SNAP) with a Hold rating, and a $22 price target, writing that he’s a “fan” of theirs, but the product needs to “evolve,” and Snap is challenged to get the growth required to drive upside to the stock. Snap shares today are up 32 cents, or 1.5%, at $22.33. “We are fans of the Snap platform and believe it will become much more mainstream,” writes Graham. “That said, while Snap's relevancy is very high with young, domestic audiences, the platform may need to evolve to resonate with older and international crowds." “Monetization needs to expand as quickly as we have ever seen to achieve the revenue growth and operating leverage reflected in our model, and this carries significant execution risk."

Cloudera, ‘Hadoop’ Startup, Vaults 23% on NYSE Debut

Shares of Cloudera (CLDR), the startup that has Intel’s (INTC) backing, and gets paid for distributing Hadoop open-source software, have opened for their first day of trading and are surging, up $3.48, or 23%, at $18.48. Cloudera competes with Hortonworks (HDP), and with privately held MapR, among others. The stock opened at $17.80, after pricing at $15, above a […]