Is the Stock Market in Denial? Michael Burry Points to 2000 and 2008

On October 6, Spyre Therapeutics (SYRE.O) shares fell 4.1% to $88.90 in pre-market trading after the company priced a $350 million follow-on offering. The biotechnology firm announced late Monday that it was issuing approximately 4.1 million shares at $85 per share, an 8.3% discount to its last closing price. The company plans to use the net proceeds to advance its programs in gastroenterology, rheumatology, and dermatology, as well as to move a new project—SPY072—into later-stage development for the chronic skin disease hidradenitis suppurativa, among other uses. Jefferies, TD Cowen, Leerink, and Stifel are acting as joint book-running managers for the offering. On September 30, Merck’s (MRK.N) tulisokibart achieved success in a dermatology clinical trial, after which SYRE shares climbed about 5%. Analysts noted that the trial data supports SYRE's experimental candidate targeting the same signaling pathway. Headquartered in Waltham, Massachusetts, SYRE had around 88.2 million shares outstanding prior to the offering. As of Monday’s close, the stock had risen 183% year-to-date. According to LSEG data, 16 of 17 analysts rate the stock a “strong buy” or “buy,” with one analyst rating it “hold.” The median price target is $123. (For the convenience of non-English speakers, Reuters provides automated translations of its reports. Automated translations may contain errors or lack necessary context; Reuters makes no guarantee regarding the accuracy of machine translations and provides them for readers’ convenience only. Reuters accepts no liability for any damage or loss resulting from the use of automated translation.)

October 6 — U.S. chipmaker Advanced Micro Devices (AMD.O) saw its shares rise 1.5% in pre-market trading, reaching $641.10. CEO Lisa Su stated that as AMD races to meet surging demand in the artificial intelligence sector, the company plans to significantly boost chip supply by 2027 (link). Su also noted that AMD is working closely with memory chip manufacturers to ensure sufficient supply; her remarks come ahead of her scheduled visit to South Korea later on Tuesday. At least two brokerage firms, including Citigroup, have raised their price targets for the stock, according to data compiled by LSEG. Out of 56 brokerages, 47 rate AMD as a “buy” or higher, and 9 rate it as “hold”; the median price target is $616, per LSEG data. As of yesterday’s close, the stock has gained over 100% year-to-date. (For the convenience of non-English speakers, Reuters provides automated translations of its reports into several other languages. As automated translations may contain errors or lack necessary context, Reuters does not guarantee the accuracy of these texts and provides them solely for readers’ convenience. Reuters accepts no liability for any damages or losses arising from the use of automated translations.)

Profits of the New York securities industry are expected to surpass 90 billions USD, exceeding last year’s record of 65.1 billions USD, with bonuses potentially reaching all-time highs; underwriting income has increased by 68%, contributing 26.3 billions USD to state finances.

Citi (C.US) is shortening the time required for investment banking analysts to be promoted to associates in order to attract and retain top talent in a highly competitive job market.