An IPO, or Initial Public Offering, is what happens when a stock is first introduced to the market and the general public can make purchases of the stock. When it comes to IPO investing, consumers have an incredible opportunity, as they can buy a stock at its cheapest point and watch the stock take off. As noted by the experts at Money Morning, “IPOs are exciting for investors because they’re often the first chance to own shares of a young, innovative company. But navigating IPOs is not always as simple as it looks.”
Not all IPOs are successful, but many are. As such, here are five IPOs to watch out for in the upcoming new year.
It’s not every day that a game designed for kids makes an IPO, but when it happens, it is worth paying attention to. Roblox has been around for years as an online gaming platform that essentially allows young kids to create their own games. It has proven to be wildly popular and posted steady growth. At the moment, it boasts almost one million developers and billions of hours every month. All of this has led to steady growth for the company, potentially making it a dream investment opportunity.
Bumble is an online dating platform, offered by the Match Group, a company that operates many online dating platforms, such as Match.com. What makes it different is that it is female-centered – women make the first move. This has created a different incentive for the app and helped to drive an explosion of users to the app. It broke 100 million subscribers in 2020, and as people return to a post-COVID dating market, it appears set for another huge leap in growth.
The tech world has been obsessed with the convenience of late. This means making it as easy as possible for people to do their shopping. Instacart delivers groceries and other items. The app takes advantage of the gig economy to help users get their shopping done. It was set for huge growth in 2020, and then COVID hit, shooting its revenues through the stratosphere. Many users have now found the service and become hooked on the convenience it offers, and as such, the app is perfectly positioned for future growth.
Petco is a solid company, one heavily invested in brick and mortar shopping for our pets. Animals are a growth market in the United States, and Petco has more than 1,500 stores in the country. It has posted solid and steady revenue growth and has ample experience on the market. In other words, it has strong fundamentals that could position it well for continued success.
Nextdoor is a neighborhood-focused app that allows neighbors to set up their own enclosed social networks. These can be used for purposes of chatting, building a social life, resolving neighborhood problems, and more. It has shown steady growth and the ability to thrive in a saturated market, as people seem to enjoy discussing neighborhood issues with each other. At the moment, Nextdoor is available in 268,000 neighborhoods – and that number continues to grow.
IPOs are a hard business and a potential risk for investors, but the above five companies offer relatively steady investments.