Isranomics

Israeli Companies Soar on Wall Street Despite Global Challenges

by | Dec 28, 2023 | Company Reporting | 0 comments

Despite the global economic upheavals in 2023, Israeli companies on Wall Street experienced a remarkably successful year, with the top 10 companies collectively reaching a valuation of over $130 billion. This surge represents an impressive 30% increase compared to the previous year, adding approximately $28 billion to their combined value. Notably, all but one of these successful companies belong to the technology sector, defying earlier predictions of a challenging year for tech stocks.

The exceptional performance of Israeli companies on Wall Street in 2023 is largely attributed to the robust growth of the technology sector. Contrary to expectations, the NASDAQ index and technology stocks, including those from Israel, outperformed leading indices such as the S&P 500 and Dow Jones. Most of these Israeli companies reported double-digit returns, with some even achieving triple-digit growth since the beginning of the year.

The Israeli company with the highest value on Wall Street at present is Mobileye. With a current valuation of $34.6 billion, Mobileye’s stock experienced a 23% return in 2023. This success comes after its Nasdaq IPO in October 2022, initially priced at $16.7 billion. Despite the original concerns about the valuation, Mobileye’s stock soared, leading to one of the most successful IPOs of 2022.

Another top-performer among Israeli companies listed on the Wall Street is a cybersecurity firm Sentinel One that achieved an impressive 89% increase in its stock value. This surge was primarily driven by positive reports and an improved annual forecast. Despite this remarkable growth, Sentinel One’s current value has not yet reached its 2021 IPO level, nor the peak it attained two years ago.

However, it has to be said that the leading sector among the top ten Israeli companies on Wall Street is cybersecurity: Check Point, Cyberark, and Sentinel One. Check Point, the largest and oldest among them, reached an all-time high stock price, reflecting a company value of $17.8 billion. This increase surpassed analyst expectations, with an average target price per share of $147.

A rise in global defence budgets amid regional conflicts has benefited another Israeli company that specialises in the military tech. Elbit Systems, a manufacturer of combat systems, experienced a 33% increase in its stock value in 2023. Elbit’s value surged by over a billion dollars, reaching a total of $4.2 billion.

In conclusion, despite global economic uncertainties, Israeli companies on Wall Street, particularly in the technology sector, thrived in 2023. The stellar performance of companies like Sentinel One, Mobileye, and Check Point showcases the resilience and adaptability of Israeli firms in the ever-evolving landscape of global finance.

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