Sep 2, 2021
Initial Public Offerings (IPOs) can be a thing of delight for early investors, or perhaps rather not. Either way, the joy of being able to be an owner in a company you love not only brings with it some sense of accomplishment, but can also earn you some decent profits if you get the price right.
Everyone wants to buy the next Amazon, Apple, Tesla, and many more want to buy it early enough.
Let’s look at some ‘hot stocks’ going public very soon.
The Dublin/San Francisco based payment processing giant might be the biggest IPO in world history. Having raised $600m in its latest funding round, the company’s market cap is pegged at $95billion. Most of the world’s biggest companies use stripe, including Amazon, Google, Shopify, and Microsoft and if not for anything, the company’s infrastructure which addresses reliability, scalability and security headlong is a major reason it’s the most valuable private Fintech in the world. The IPO date is still unknown but we expect to see an initial offering of around $100billion.
Since Roblox went public, it has been a matter of When before Discord follows suit. Gamers have become unexplainably entangled with the app because of its instant voice chat features. Microsoft and two unnamed companies were reported to be pursuing a purchase of Discord, and Discord never agreed to term, further fueling the speculation of an IPO. If the board members are this assured in the future of the company, why shouldn’t we when it goes public?
By the way, Discord made a revenue of around $130 million last year with 140 million customers.
Competing with the likes of McDonald’s and Starbucks is a feat not many can boast of achieving, but Krispy Kreme ranks high amongst Brands in that elite status. After 80 years of sharing delicious tastes from doughnuts to beverages, it might be time to re-enter the public domain. A valuation of $4billion is very feasible, but we’re undecided whether Krispy Kreme can serve their investors’ similar sweetness like they serve their customers.
This proposed $70billion public company can cement its place as one of the successful Amazon-backed companies but has a long way to achieve that. Putting it in perspective, its $70billion valuation makes it more valuable than Ford, BMW, Honda, Ferrari, Suzuki, and Subaru. These all come when the Rivian hasn’t produced any cars. Nothing smells more of ‘Overvalued’ than this. Amazon has promised to order 100 trucks when they come out, and if Rivian can get its Truck specialization right, we may be looking at the Tesla of pick-ups.
Better.com can leverage the recent housing boom to go public. There are claims it would achieve it through a SPAC merger in the fourth quarter of 2021. The Better.com business model is strategically poised to replace traditional mortgage brokers with more efficient digital methods. With increasing home prices, demand for homes would drastically reduce, and it would be interesting to see how this all plays out.
Though past performance cannot gauge future returns, it’s important to know that from 1975 to 2011, 60% of the companies that went public brought negative returns after 5 years. Buying an IPO can be a lucrative investment but get ready to average down when dips happen.
Looking for a stock to buy? See the stocks Horao is recommending.
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