Looking at Recent IPOs with Strong Growth Potential We’ve seen some exciting new IPOs recently. What are their growth prospects? Here’s an objective look into these.
IPOs provide great investing opportunities since you get to invest in stocks that are in their initial stages of going public. With online stock trading you can make these decisions and buy and sell stocks from the comfort of your home.
In the weeks following their IPO, these stocks have shown significant growth potential. In some cases, they have much longer term growth. Let’s look at some recent IPOs:
Lemonade ($LMND) •
This insurance stock uses artificial intelligence (AI) for claims approval online.
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That sets it apart from competing insurance companies that aren’t fully digital.
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After 4 years in operation, Lemonade acquired 1 million customers by December, 2020.
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Gross earned premium grew 104% in 2020’s third quarter.
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Gross loss ratio reduced 8 percentage points to 72% from the prior year.
Airbnb ($ABNB) •
The company provides a marketplace for room and house rentals around the world
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Since its IPO in December 2020, the stock price has risen 45%
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However, gross booking volume (GBV) reduced 39% in 2020’s first 9 months
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Revenue dipped 32% during the pandemic
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Company currently operates at a $700 million loss for 2021’s first 9 months
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The loss, however, is an improvement by $375 million from the prior year period.
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Company’s performance was affected by the pandemic
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Addressable market, however, is expected to be worth $3.4 trillion
Affirm Holdings ($AFRM) •
First IPO of 2021
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The company provides a credit card alternative
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“Buy now, pay later” option enables customers to make big purchases
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Affirm earns through merchants’ payment processing fees and customer interest payments
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Revenue for 2021 rose 93% over 2020’s prior-year period
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Gross merchandise volume rose 77%
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Peloton Interactive, Affirm’s largest sales partner, makes up around 30% of sales
Advanced stock trading brokers can enable you to make informed decisions through userfriendly direct access platforms. In selecting IPOs, expert opinions also help.
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