Have You Missed Out On 2021’s Biggest IPOs?

Have You Missed Out On 2021’s Biggest IPOs?
Carl Hazeley

over 2 years ago4 mins

  • Affirm’s strong start to public life could be justified by the hype around buy-now-pay-later companies and the chance it gets bought out.

  • If Bumble keeps hold of its pandemic-won users and adds more through its newer friend and business network verticals, it could be a good bet.

  • Oatly’s a big name in a fast-growing market with sustainability on its side, which could set the stock up for a bright future.

  • Didi Global’s market debut was scuppered by the Chinese government’s recent actions, and it’s hard to invest now without a clear insight into what’ll happen next.

  • Robinhood’s poised to keep growing, but without a clear competitive moat, it might be one to steer clear of in the long term.

Affirm’s strong start to public life could be justified by the hype around buy-now-pay-later companies and the chance it gets bought out.

If Bumble keeps hold of its pandemic-won users and adds more through its newer friend and business network verticals, it could be a good bet.

Oatly’s a big name in a fast-growing market with sustainability on its side, which could set the stock up for a bright future.

Didi Global’s market debut was scuppered by the Chinese government’s recent actions, and it’s hard to invest now without a clear insight into what’ll happen next.

Robinhood’s poised to keep growing, but without a clear competitive moat, it might be one to steer clear of in the long term.

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Venture capital-backed initial public offerings (IPOs) have been a hot ticket for stock market investors this year. But if you’re feeling a severe case of IPO FOMO, fear not: we’ve taken a look at some of the most popular newly listed companies to see whether you still have time to buy into the hype.

Affirm

Affirm went public on January 13th, priced at $49 per share (valuation $11.9 billion). Its stock initially jumped 100% on day one, and – despite some ups and downs – it’s more than held onto those early gains.

Affirm

Should you invest in Affirm?

Affirm is a big player in the fast-growing buy-now-pay-later lending space. And that growth has attracted rivals including Klarna, Square – which just bought Afterpay – and more recently, the likes of Mastercard and Goldman Sachs.

Affirm, then, could hope to benefit from that high growth, given that it’s a large and established player. And that aside, mergers and acquisitions in the space are rife, and Affirm could become a takeover target for an even bigger financial services firm, which could justify an investment now.

Bumble

Hotly anticipated Bumble hit the stock market on February 11th at $43 a share and a value of $8.2 billion. Its share price rose 64% on day one, but it’s drifted since then.

Bumble

Should you invest in Bumble?

The dating app, local friend finder, and networking tool has plenty going for it. The pandemic made online dating one of the only safe ways for people to make new connections, and the industry should continue to boom: Bumble’s IPO prospectus notes that its freemium segment is projected to grow at an annual average rate of 18% across the next four years – newbies the company will be hoping to turn into paying, profitable customers. If Bumble can keep the competition at bay, it could see its share price hit the heady heights of earlier this year once again.

Oatly

Oatly made its stock market debut on May 19th at $17 per share, putting its value at $10 billion. Its first day saw its stock rise a relatively modest 18%, and it was smooth sailing until late June, after which the shares began falling and now sit below their IPO price.

Oatly

Should you invest in Oatly?

Plant-based milk is more popular than ever before, accounting for 14% of total US retail milk sales in 2019 and likely more today. The fastest-growing subcategory is oat milk, which saw sales in America surge 300% last year. And Oatly’s one of the biggest and best-known brands out there, putting it at the forefront of this massive trend. If it can hold off the growing competition, it might follow plant-based peer Beyond Meat into sustainability-focused investors’ portfolios, sending its price back up.

Didi Global

Didi Global went public on June 30th, at $14 a share or a $73 billion valuation. Its shares have since been on a steady downward trajectory, currently sitting at almost half their initial value.

Didi

Should you invest in Didi?

Things have gone from bad to worse for the Chinese ride-hailing super app, and it’s probably worth steering clear of even now. Just days after its IPO, the Chinese government banned new user registrations for Didi’s app in China, and then ordered mobile app stores to remove the app altogether as a matter of national security. With the Chinese government almost impossible to predict, even buying the significant dip in Didi’s shares feels like a 50/50 call.

Robinhood

Robinhood hit the stock market on July 29th at $38 per share and a value of $32 billion. As a hotly anticipated IPO, investors might’ve been surprised to see the trading app end its first day down 8%, but it soon recovered and currently sits comfortably above its IPO price.

Robinhood

Should you invest in Robinhood?

There’s no doubt that Robinhood’s at the forefront of retail trading’s growth, and the company’s recent foray into enabling cryptocurrency trading has just added to that. But there are more competitors out there than any investor cares to count and for my money, Robinhood doesn’t have a true competitive advantage versus any other trading platform. Throw in future potential regulatory hurdles – like the risk that its gamification methods come home to roost – and it’s one I’d be wary of investing in for the long term.

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Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

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