6 IPOs To Watch In 2020

14 July, 2020 4 min read
markets savien

Summary:
– IPO prices may be great opportunities
– New opportunities are starting become available

Tom Taulli and Linda Killian and the Smiths provide some great literature
– AirBNB, Instacart, and Robinhood are some highly anticipated IPOs

There can be some big money to be made in IPOs for 2020; Facebook (FB) went public in May 2012 at $38 per share, and early investors have been laughing all the way to the bank since. Likewise, The insurance company Lemonade (LMND) entered the stock market for the first time in early July 2020, with an IPO price of $29. As of this writing, the market is pricing each share at $80.42, a 177% return for those lucky enough to nab the initial price. It was one of the most highly anticipated IPOs of the year.

Author and CEO Tom Taulli wrote one of my recommended reads. His book on tactics and strategies for getting great returns by investing in shares the moment they become available is packed with information on how to be successful. I’ve been fortunate enough to buy into an IPO, and I’m glad I have; it takes a bit more work finding the exact date, but the benefits greatly outweigh the effort.

If you weren’t able to get on the train in time, don’t stress; here are 6 new IPOs to expect in 2020.

AirBNB

airbnb

AirBNB has made a noticeable dent in the hospitality industry, and things will likely never be the same. Instead of going to a hotel or motel and paying outrageous prices, clients can apply to stay at someone’s home: they can have they condo, cottage, basement suite, or house all to themselves.

AirBNB has had plans to go public for quite some time, and investors (including myself) have been watching the news carefully to find the exact date it will become available. In my opinion, it is the most watched IPO of 2020.

Robinhood

robinhood

Robinhood has been hailed as a zero-commission trading and investing platform that has gained popularity among late Millennials and early GenZers. CEO Baiju Bhatt has been talking about an IPO since late 2019, and it doesn’t look like the nasty events of this year are going to stop it.

Snowflake

snowflake

Snowflake is a cloud-based data-warehousing startup that was founded in 2012. Officially an IPO Unicorn, it has raised more than $1.4 billion in venture capital. IPO investors have been watching this company closely in anticipation of its offering with the hopes of getting in early.

DoorDash

doordash

I use and love DoorDash. Sometimes I can’t bothered to cook dinner, and I’m feeling too lazy (or don’t have the time) to go out for something to eat. Doordash and it’s competitors have seized control of the niche market of those who would rather spend their time doing something else while someone brings them a meal. It can be a great way of capitalizing on your time while others deliver food, and I am one of many investors who is excited for this IPO.

InstaCart

instacart

Founded in 2012, Instacart owns and operates a grocery delivery service. The company has raised nearly $2.2 billion in venture capital with about $225 million being raised in June 2020. Created using a similar structure as Uber and AirBNB, it can be a great option for clients who do not want to spend time grocery shopping, and for employees who have a bit of extra time and want to earn some extra cash. I’m noticing a trend in new companies here, and Instacart seems to be capitalizing on this trend. I’ll be keeping an eye out for more information as it becomes available and create a post accordingly

Wish

wish

Wish has gained popularity on the Internet through its hilarious and odd recommendations for products users may like (if you need an example, check out Funny Wish Ads and enjoy yourself).

Wish was founded in 2010 and is an American online e-commerce platform that facilitates transactions between sellers and buyers. It has raised about $1.8 billion in venture capital so far, and this 2020 IPO has investors curious.

Final Thoughts

Before I purchase shares of a company, I go through a pretty rigorous screening process; I check financial statements, calculate fundamental ratios, and put the company through a valuation model I learned during my Economics degree.

But the most important question I ask myself is “would I want to build this company for myself?”, and IPOs are no different.

If you don’t understand a company well enough to be able to run it yourself, think twice before buying. Always do your due diligence before investing in equities.

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