Morning Preview: The GrubHub IPO, a Momo-evacuation, and Micron Earnings

1.) The GrubHub IPO ($GRUB) is happening today. They are raising $192 million at a valuation of $2 billion. That valuation is 15x last year’s revenue. Granted, GrubHub has a huge first mover advantage with 28,800 restaurants connected to its app in 600 different cities. How do you think $GRUB will trade today?:

At the IPO price, Grubhub will have a valuation of about $2B. Or almost 15x last year’s revenue $GRUB http://stks.co/s0AqH

— Gordon Bowman (@gordonbowman) Apr. 3 at 09:26 PM

GrubHub prices upsized IPO at $26, above the $23-$25 range $GRUB $IPO #IPO http://stks.co/r0Az0

— Renaissance Capital (@IPOtweet) Apr. 3 at 06:57 PM

 
 

2.) Since the start of March, momentum names across the entire market have been getting crushed. Stocks like FireEye ($FEYE), Yelp ($YELP), Workday ($WDAY), and Splunk ($SPLK) are all down more than 20%. In yesterday’s market wrap we wrote a blog post that talked about this underlying weakness. On StockTwits, we’ve been seeing messages and charts like this on a near minute-by-minute basis. It has even been called a ‘momo-evacuation’:

$FEYE so glad i sold this morning and until this crazy momovacuation subsides I'll be on the sidelines

— Thomas Tutonicus (@tommy2tone) Apr. 3 at 03:45 PM

Momo stocks under pressure again. $WDAY is back to a level of potential support + it's oversold. http://stks.co/j0SoO

— Ivaylo Ivanhoff (@ivanhoff) Apr. 3 at 03:48 PM

More momo destruction $NFLX, $YELP, $AMZN, $GMCR $DDD $ACAD $FSLR $TRIP $BIIB $FEYE $FB $NOW $LNKD $IBB

— Will Cheung (@WillyBuffet) Apr. 3 at 03:20 PM

Today is the day we've been waiting for. If you have a favorite momo name that has been crushed, buy a little today. $YELP $FEYE $SPLK $FB

— BullTrade Corp (@BullTradeDotCom) Apr. 3 at 02:26 PM

 
 

3.) Micron ($MU) jumped 4% yesterday after reporting better than expected earnings. It’s also now nearing its all-time high of $25.68/share. Micron has been trending on StockTwits since it reported earnings. Message volume about the stock is up over 1,000 messages and sentiment currently stands at an incredible 97% bulls vs 3% bears:

Micron ($MU) Target Raised at Needham & Company; Sees 67% Upside http://stks.co/j0SvO

— SIAnalystWire (@AnalystWire) Apr. 4 at 07:42 AM

$MU just did something unusual. It reported EPS for its Feb Q of $0.85 topping RAISED not lowered estimates of $0.76 ($0.53 90 days ago)

— Nick Raich (@TheEarningsScout) Apr. 3 at 04:40 PM

$MU Reports EPS of $0.85 vs. $0.74 estimate. Reports revenues of $4.11B vs. $3.99B estimate.

— marley401 (@marley401) Apr. 3 at 04:14 PM


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