Morning Preview: A Microsoft Anniversary, The Candy Crush IPO, And Wealth In America

Today is a very special day in stock market and technology history. On this day in 1986 Microsoft went public. We tip our hat to @jasonzweig who was one of the first to share a link to this historic anniversary below:

this day in financial history (1986): Microsoft goes public in a $61 million IPO at $21 a share #WSJ $MSFT

— Jason Zweig (@jasonzweig) Mar. 13 at 08:25 AM

Speaking of IPOs, the Candy Crush maker, $KING, has filed for its IPO and new reports are saying that its valuation will start at $7.6 billion. It’s remarkable if you think about the contrast in $MSFT’s IPO in 1986 at $61 million and now $KING’s IPO today at $7.6 billion. You might hear several comments about $KING’s overvaluation but yesterday we saw two great comments from @ampressman possibly stating otherwise:

Candy Crush IPO price is far from frothy. King had $2 bln of revenue and $568 mln of profit. At $7.6 bln value that’s a P/E of 13 $KING

— Aaron Pressman (@ampressman) Mar. 12 at 09:17 AM

Zynga has lost almost $600 mln last 3 years. Candy Crush’s King had profit of almost $600 mln last year alone. #Different $ZNGA $KING

— Aaron Pressman (@ampressman) Mar. 12 at 09:18 AM

$GOGO, the largest and arguably only in-flight Internet company, reported earnings early this morning and as a result has been trending on StockTwits since pre-market trading began. One of the interesting things about $GOGO right now is that Steve Cohen’s SAC has a 5% stake. That alone makes it an earnings report worth watching:

$GOGO 2013 revenue of $328.1MM up from $233.5MM in 2012 (41% yoy) — guiding $400-$422MM for 2014 (21% yoy low end 28% high end)

— Chris Art (@moenchart) Mar. 13 at 08:27 AM

Everyone will be watching Herbalife ($HLF) today. Yesterday it was revealed that the FTC opened a civil probe and we wrote a great piece about it. Herbalife plummeted after the civil probe was announced, but there were some dip buyers as highlighted in this chart. How do you think $HLF will trade today?:

$HLF Daily chart, nice lower wick now. Dip Buyers just can't help themselves

— PresidiumCapital (@PresidiumCap) Mar. 12 at 02:12 PM

Here is a chart you have to see. It shows how disposable income as a percentage of total net worth is at one of its lowest levels in history. You might find this shocking. And especially when the Federal Reserve recently reported that U.S. household net worth hit an all-time high above $80 trillion. This chart truly highlights the liquidity crunch happening on Main Street right now:

Disposable Income as a % of Household Net Worth is @ the 2nd lowest level in history $SPY $SPX

— J. Lyons Fund Management, Inc. (@JLyonsFundMgmt) Mar. 13 at 08:00 AM

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