Stocks were down again this week. As I said in my previous update, I view this weakness as a normal pullback after a huge rally for the last five months. I expect this pullback to be short lived and create a new opportunity to buy low. Here’s a link to last week’s update if anyone wants to review.
In the meantime, here’s some good news.
We’ve got a flurry of stock IPOs set to start trading this week.
An IPO is when a stock first starts trading on a stock exchange such as the New York Stock Exchange or the NASDAQ.
Stock IPOs can be a great opportunity to invest in a company early in the game. If that company does well its share price will climb, rewarding early investors with outsized gains.
Netflix (NASDAQ: NFLX) is a good example. Shares began trading on the NASDAQ in 2003. 17 Years later shares are up 48,000%. Put another way, every $1,000 invested in the Netflix IPO is now worth $480,000. Take a look at the big gains below.
Netflix is a rare example – it’s one of the most successful IPOs and not all IPOs do this well. However I see some exciting IPOs set to pop off this week that everyone needs to know about.
Unity Software (U) owns a platform that lets developers make 3D video games. The video game industry is red hot and expected to continue growing indefinitely. From the group this is one of my favorites. Here is a good report if anyone want to learn more.
IPO Launch: Unity Software Aims For $950 Million U.S. IPO
Snowflake (SNOW) is a cloud-based data warehousing company. Here is another good report if anyone wants to learn more.
Why Warren Buffett’s $570 million bet on Snowflake is rarer than any unicorn
Sumo Logic (SUMO) sells cloud based machine data analytics services.
Sumo Logic Plans To Raise Over $310 Million In IPO
JFrog (FROG) is a software development and information technology services company.
IPO Launch: JFrog Proposes Pricey Terms For $405 Million U.S. IPO
Amwell (AMWL) provides telehealth delivery system to healthcare providers in the U.S.
Amwell Proposes Terms For $525 Million IPO
What Should We Expect Moving Forward?
Despite the recent pullback I remain optimistic on stocks. I do not think this is the beginning of larger decline. I think this is a normal and healthy pullback after a huge rally. These pullbacks are usually good for stocks. It gives shares a chance to take a breather. And it also enables investors to add more cash to the market and buy shares when they are down.
While we wait for stocks to recover, in the meantime we’ve got some really exciting stock IPOs ready to hit the Street.
I will be keeping a close eye on these IPOs and contacting my clients to discuss in more detail.
Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading.