3 main IPOs to watch today
May 21, 2021
6 min read
This story originally appeared on StockMarket
Do you have these IPOs on your watch list now?
As the stock Exchange exploded in the past year, initial public offerings (IPOs). 2020 was a banner year with 480 companies going public in the United States. This is more than any year in the previous two decades. With more stocks doubling on the first day of trading than ever before, it’s no secret that investors are excited about the latest stocks to go public on the stock market today. With all the attention that Shares introduced on the stock exchange get, it’s no wonder investors are looking for the next major IPO stocks to buy that could offer huge returns.
If you are a retail investor in Robin Hood, there is good news for you. Along with commission-free transactions and an easy-to-use platform, Robinhood enables its investors to participate in IPO stocks as part of its latest move to democratize retail investing. The company is expanding IPO Access, a new product that will allow investors to buy shares of companies at their IPO price before entering the public market.
Admittedly, the IPO market has been hot. The recent IPO of Roblox (NYSE: RBLX) and Coinbase (NASDAQ: PIECE) saw investors offer more than 50% of their opening price. With so many companies going public, it’s impossible to keep track of them all. But here are a few companies that went public this week. Notably, these companies did not go public in a bull market, which could make them better value stocks to consider.
Main IPOs to Watch Right Now
Swedish plant-based milk substitute Oatly finally hit the public market on Thursday. Oatly stock ended the day up more than 18% after the company’s public debut. For the uninitiated, the company is a pioneer in the field and the leading seller of oat-based milk in the world. The company was already a big hit in Sweden before gaining popularity in the US market. By joining forces with Starbucks (NASDAQ: SBUX) to provide its plant-based milk substitute, the company quickly gained considerable attention.
Since its fiscal year ended Dec.31, 2020, the company’s revenue has increased 106% to $ 421.4 million. Being a start-up business, it’s no surprise that the business has yet to achieve profitability. This is usually because he invests a lot in himself. But once the global activity accelerates, the growth of its turnover could justify its reinvestment. As long as customer demand is huge, the lack of profitability is not a concern.
It should also be noted that a number of notable investors have invested in Oatly. They include former Starbucks CEO Howard Schultz, state-backed China Resources, and Blackstone. With Oatly’s large and growing customer base and having its products at major retailers such as Walmart (NYSE: WMT) and Target (NYSE: TGT), the outlook for this consumer company remains good. The company is also not resting on its laurels and has broadened its portfolio to offer other new products. That’s not to say that consumer interest in plant-based foods and beverages continues to be strong. Given the company’s ambitious management plan, would you also be keen to buy OTLY shares?
Like Oatly, Procore Technologies also debuted as a state-owned company on Thursday. For starters, Procore Technologies is a cloud-based construction software company based in Carpinteria, California. As a result, investors are betting on Procore’s ability to innovate in one of the âoldest, largest and least digitized industries in the world.âThe ease of collaboration and efficiency that entrepreneurs get from the company’s technology is one of the main reasons investors bid on PCOR stock on Thursday. On its first day of public listing, the PCOR share closed more than 30% higher.
“We have seen the progress of our industry’s recovery quarter after quarter and thought it was a good time to debut despite the daily fluctuations in the market,Â»Craig Courtemanche, Founder and CEO of Procore Technologies
Perhaps the most exciting part of Procore’s business is the market opportunity. According to the company, the construction industry is responsible for around 13% of global economic output. But Procore is not alone in this niche sector, Oracle and Autodesk (NASDAQ: ADSK) are formidable competitors in this space. The advantage of the Procore platform is that users can still easily share files and collaborate effectively even if the other parties are using Autodesk software. This is why Procore continues to record steady growth despite increasing competition. That said, it’s safe to say that Procore is sticky. In addition, the company’s business is expected to benefit from favorable industry winds over the next decade. Although the company has skyrocketed on its first day of trading, PCOR stock is still worth adding to your watchlist.
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Squarespace, which sells tools that make it easier to build and publish websites, went public a day before Oatly and Procore Technologies. The company also went public via a direct listing rather than raising capital through an IPO. Essentially, insiders can start selling right off the bat and don’t have to wait for the block to expire. This could help explain why the company’s stock price fell on the first day of trading. Despite its day one decline, SQSP stock rebounded on Thursday. And that reversed the losses on his first day of public debut.
For the strangers, website building and the all-in-one e-commerce platform started in 2003. It now has over 1,200 employees and several offices in major cities. In addition to website building tools, the company also offers search engine optimization tools and services to create an e-commerce channel for businesses.
Company founder Anthony Casalena reportedly told CNBC’s “Squawk Box” on Wednesday, “A direct listing that suits us as Squarespace has been a profitable business for several years and we don’t need to fundraise in this eventâ¦ Our thinking was to continue with the direct listing, to give people the opportunity to buy themselves. they want to buy it, sell if they want to sell. The great thing about direct registration is that no one today suffers from unnecessary dilution.âIf you’re interested in investing in a new IPO stock that’s profitable right now, would SQSP stock be right for your portfolio?