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In this week’s newsletter:
- What Is SpaceX Really Worth?
- FTSE 100 Reshuffle: Aberdeen Returns
- Why Is Bitcoin Plunging?
- Are UK Utility Stocks a Buy as Prime Minister Burnham Looms?
- May’s Top and Bottom Investment Trusts
- Best- and Worst-Performing UK Stocks
- British American Tobacco Underwhelms
The excitement surrounding the SpaceX mega-IPO is building: US equity analysts Nicolas Owens and Suryansh Sharma look at the very loft valuation, while Leslie Norton and Tom Lauricella take care of the corporate governance angle.
Of course, SpaceX is one of three large imminent massive tech floats, including OpenAI and Anthropic. To read more on this, check out our article on the impact of mega-IPOs on indexes here and index strategist Dan Lefkowitz’s analysis of the changing face of the US stock market here.
From global indexes to the UK’s own largest by market capitalization, the FTSE 100 is itself changing. Promotion to or demotion from the FTSE 100 is a bellwether for the health of the UK’s largest companies, and no company exemplifies that in recent years than Aberdeen ABDN. The asset manager, which fell out of the FTSE 100 in 2023, returns two years after Jason Windsor took over as chief executive and a year after the business ditched its widely-mocked “Abrdn” rebrand. To read more about the changes and discover the impact on your portfolios, check out Christian Mayes’ analysis here.
Sticking with UK stocks, we look at the risk of a new Labour prime minister renationalizing utilities. Fund managers think the government would be wise to keep these companies off the books. While higher interest rates are a threat to utility stocks, the energy transition, infrastructure upgrades, and higher electricity prices are supportive of valuations in the medium term.
Elsewhere, James Gard looked at the best and worst performing funds and investment trusts for May. Last month’s standout trust, Polar Capital Technology, is also the best performer for the year to date among Morningstar-rated trusts. Nick Train’s Finsbury Growth and Income is the worst-performing rated trust so far this year.
Ollie Smith and James Gard
