In October, it was rumored that the company was looking into an IPO, possibly with a valuation between $4 billion and $5 billion. is a popular website and app that lets neighbors communicate with each other - about lost pets, burglaries, potholes, and recommended handypeople, among other things. The company was reportedly valued around $13.7 billion as of a June financing round. Reportedly, some 85% of American households have access to Instacart delivery, making it a national force. The company appears on many lists of companies expected to go public in 2021. Instacart is one of the success stories of this pandemic period, experiencing a huge surge in demand as many consumers who previously were not interested in grocery deliveries suddenly found themselves in need of grocery deliveries. Once public, it will have deeper pockets with which to compete against Match Group and others. Bumble is reportedly looking to debut on the open markets in February, with a value of around $6 billion to $8 billion. Its dating service is distinguished by a focus on women, letting them make the first move. It's reported that the company has chosen Goldman Sachs as its lead underwriter for its IPO, and that it might debut with a value of around $20 billion.īumble is a dating app with more than 100 million users that has expanded its scope to help its users meet friends and link up with fellow professionals. Robinhood has received a total of $1.7 billion in venture-capital ("VC") funding, according to Crunchbase, from VC businesses such as Sequoia Capital, Institutional Venture Partners, and D1 Capital Partners. It boasted 10 million users in late 2019, and is reported to have added 3 million more accounts in the first quarter of 2020. Robinhood is a relatively new stock-trading platform that, through its easy-to-use app, is gaining popularity - especially among younger, newer investors. Here are five major ones that you might at least observe - and perhaps invest in, if and when they don't seem too overvalued. Still, interest in IPOs persists, and you may want to know what exciting IPOs are expected in the coming year. Many IPO stocks surge well beyond reason initially - delivery service Webvan, for example, debuted in 1999 and was soon valued at more than $6 billion, despite only generating some $5 million in annual revenue. Some such stocks don't even survive their first year - debuted in 2000 and was out of business within a year. Various studies suggest that it's actually unprofitable, on average, to jump into IPOs, and that the better strategy is to give those fresh stocks a year or so to settle down. It's not vital to get into a great company when it IPOs. Netflix debuted in 2002, and those who have held it for only the past decade are up about 1,900%. Consider that Amazon had its IPO in 1997, some 23 years ago, but if you'd only owned it over the past 10 years, you'd be up more than 1,600%, and over the past five years, you'd have more than quadrupled your money - seemingly with plenty of growth still ahead. And even with the ones that do, you can profit quite handsomely getting in a few years or many years after they debut. Yes, the earliest investors in companies such as and Netflix have done phenomenally well, but most companies fresh on the market don't turn out to be the next Amazon or Netflix. (Snowflake shares were recently trading at $323.) The case against IPOsĭespite the appeal of IPO stocks, you're generally best off avoiding them. The shares began trading at $245 apiece, though - giving those privileged buyers an immediate gain of more than 100%. That's the price that insiders and connected investors and institutions were able to buy at. Consider, for example, that Snowflake had priced its initial shares at $120 apiece. When companies that people are excited about debut on the markets, there is often a trading frenzy, sending the shares up sharply in their first few minutes, days, or months. So why would you want to invest in an IPO? Well, because with companies that you're excited about and would really like to own, getting into them as soon as possible seems best, no? Think about all the huge companies we're now familiar with, such as and Netflix: They have rewarded their longtime shareholders enormously - especially those who got in on the ground floor.
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