An Initial Public Offering (IPO) happens when a stock first starts trading on an exchange. This is an exciting event for investors because it creates an opportunity to potentially buy low when the company is still small. If the company does well, shares should move higher and early shareholders should do very well.
2020 was a red hot year for IPOs. Many IPOs are up huge in just the last three months. For example:
Lemonade (LMND) + 197%
Corsair Gaming (CRSR) +52%
Unity Software (U) +50%
Take a look at the chart below.
Today – I see two new stock IPOs that get me excited and I want my clients to know about them.
Bumble (NASDAQ: BMBL) is a leader in the high-growth online dating industry. Founded in 2014 and headquartered in Austin, Texas, Bumble has filed to go public at the end of February. This is an exciting IPO because Bumble has been delivering impressive sales growth. Here are some more details from Business Insider.
The filing reveals Bumble generated $488.9 million in revenue in 2019, representing a 35.8% year-over-year increase. The firm generated $376.6 million in revenue between January 29, 2020 and September 30, 2020.
Bumble has 42 million monthly average users and 2.4 million paying users, per the filing.
Here’s a link to the full story if anyone wants to take a look.
Coinbase is a leader in the high-growth crypto currency industry. Founded in 2012 and Headquartered in San Fransisco, California, Coinbase has been thriving for the last few years as Bitcoin and other leading cryptocurrencies gain popularity. Here are some more details from Fortune.
There has been speculation in recent weeks that Coinbase, aided by a white hot market for Bitcoin and other cryptocurrencies, could be valued as high as $75 billion. The last time Coinbase publicly disclosed its valuation was following a Series E funding round in 2018 that priced the company at $8 billion.
Coinbase’s IPO date is expected to occur in late February or early March. The event is also expected to be significant because the price for Coinbase is likely to inform to value of numerous other cryptocurrency companies.
These are two exciting IPOs that are set to go off in the next 4-6 weeks. I wanted to give everyone a heads up ahead of time so there is plenty of time to prepare.