South Korean AI cloud services provider Elice Group experienced a sharp 32% decline on its first day of trading, marking the worst debut for a company that raised over $100 million in an initial public offering in the country, according to Dealogic data. The stock closed at 60,500 won, well below its IPO price of 90,500 won, giving the company a market value of approximately 674 billion won.
The company raised 201.1 billion won ($150 million) in its IPO, with plans to allocate most of the proceeds toward developing portable modular data centres and related infrastructure. The disappointing debut has intensified concerns among investors about whether heavy spending on AI infrastructure can generate sufficient returns.
Other AI-linked stocks, including CoreWeave and Nebius Group, also initially fell on Tuesday before recovering later in the session. Investors are increasingly scrutinizing customer contracts, committed revenue, and profitability as AI infrastructure spending continues to rise. Recent setbacks for planned listings by Australia's Firmus, Blackstone-backed AirTrunk, and SoftBank's SB Energy have added to worries about investor appetite for such offerings.
Oil Prices Retreat From Five-Month Highs
Oil prices slipped on Tuesday after reaching five-month highs, as traders weighed diplomatic efforts involving Iran and Pakistan against ongoing security risks in the Middle East. Brent crude futures declined 0.27% to $109.25 a barrel, after touching $111.99 earlier in the session. US West Texas Intermediate crude futures for November delivery fell 2.48% to $101.09.
Iranian President Masoud Pezeshkian discussed mediation efforts and regional developments with Pakistan's army chief, Field Marshal Asim Munir, in Tehran, according to Iran's Nournews. However, continued Houthi attacks on Saudi infrastructure and reports of attacks on at least 18 vessels over two weeks kept supply concerns elevated. Saudi authorities had not immediately confirmed the Houthi claims, and Reuters could not independently verify them.
ING analysts noted that oil prices remained supported by a significant risk premium amid the volatile situation.
General Motors Shares Fall Despite Earnings Beat
General Motors shares dropped more than 7% on Tuesday, even though the automaker reported stronger-than-expected third-quarter earnings and revenue. Adjusted earnings per share reached $3.70, beating analysts' estimate of $3.63, while revenue increased nearly 3% year over year to $50 billion.
GM narrowed its 2026 adjusted earnings before interest and taxes forecast to $14.5 billion-$15.5 billion, compared with the previous range of $14 billion-$16 billion. It also raised its adjusted automotive free cash flow outlook to $11.5 billion-$12.5 billion. However, the company expects commodity inflation of approximately $2 billion, including higher logistics and DRAM chip costs. GM also announced a multiyear $20 billion share repurchase programme.
GE Aerospace Raises 2026 Profit Forecast
GE Aerospace raised its 2026 adjusted earnings forecast to $8-$8.10 per share from $7.65-$7.85, supported by demand for aircraft engine repairs and spare parts. Third-quarter revenue rose 16% to $14.12 billion, while adjusted earnings reached $2.25 per share, above analysts' expectations of $2.01. Commercial engines and services revenue increased 21%.
Despite the earnings beat and improved outlook, GE Aerospace shares fell more than 3% in trading. Investors weighed inflation, weaker cash flow, and rising oil prices. Free cash flow declined 14% to $2 billion, while margins in the commercial engines and services segment fell 10 basis points. The company also warned that supply chain constraints could continue to affect production and deliveries.
Higher fuel costs could prompt airlines to reduce flights, potentially weakening demand for maintenance and replacement parts. However, GE Aerospace's commercial services backlog of more than $170 billion provides support for its longer-term growth outlook.
This article is for informational purposes only and does not constitute financial advice.
