IPOs are a terrific location to start searching for promising new companies to invest in. These newly public firms usually create an impression in the market with inflated growth projections and correspondingly high valuations.
Not every stock in an initial public offering (IPO) will succeed. But early investors in businesses like Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) have become extremely wealthy. Nonetheless, this article will look at the top initial public offerings (IPOs).
Top Initial Public Offerings
Many independent studies are necessary when deciding which new initiative to invest in, whether it's a stock IPO. Since the idea and business strategy are likely new, the investor is probably investing money into them.
The following sections provide an in-depth examination of many intriguing upcoming initial public offerings (IPOs).
Robinhood Markets
For many people, Robinhood's (NASDAQ:HOOD) IPO in 2021 was the most anticipated of the year. This game-changing online broker is one of the most discussed businesses in the financial sector right now. New young investors have entered the market thanks to Robinhood's no-commission stock trading and simple smartphone interface.
This aided the surge in cryptocurrency prices and the GameStop (NYSE:GME) and AMC Entertainment (NASDAQ:AMC) stock rallies. In addition to the statistics to back up the claims, Robinhood also has a lot of fans. Revenue increased by 126% to $1.45 billion during the first three quarters of 2021.
And the number of funded accounts increased by 120% to 22.4 million by the third quarter of 2021. After a great start, the price has fallen, but amid doubts about its potential to become a big participant in cryptocurrency. And as certain important indicators decreased after the Dogecoin (CRYPTO: DOGE) explosion in the second quarter of 2021.
However, by the end of 2021, the corporation had introduced cryptocurrency wallets, proving that it wasn't completely ignoring the hottest new financial trend. Despite the debate and potential for regulation surrounding Robinhood, it's safe to say that this game-changing startup will continue to revolutionize how people invest.
Stripe
Stripe, which began operations in 2009, now generates more than $7.6 million yearly revenue. More than four thousand people work for this payment processing firm, which counts Amazon and DoorDash among its clientele.
Stripe was founded twelve years ago by John and Patrick Collison, who has since overseen the company's consistent expansion. Despite widespread speculation, the corporation has made no official announcement about going public. Co-founder John expressed his delight with the company's current status as a private entity.
However, "the corporation has recruited a legal firm to examine the first steps," as reported by Reuters. If the company's creators make the call, Stripe's initial public offering (IPO) would be among the largest in history.
Instacart
It was widely expected that Instacart would go public in 2021. Still, the company decided against it because its leaders believed it was more necessary to "concentrate on expansion" and "broaden its offerings" than to hold an IPO. A second possible explanation is that they looked at the success of previous initial public offerings and decided against it.
However, the company's revenue growth skyrocketed during the epidemic and is expected to expand by another 10% in 2021. It indicates that there is a great deal of room to develop before an IPO is necessary.
The firm is also responsible for 75% of all US supermarket transactions made via a third-party intermediary. As Instacart looks to expand, don't be shocked to see it purchase a grocery chain. The company may be learning from Amazon's failures with its acquisition of Whole Foods a few years ago.
Chime
Chime is an expanding finance firm with an admirable business plan. Chime is an online financial services provider that targets low-income and unbanked consumers by eliminating discriminatory practices like overdraft fees and account minimums.
Chime's business strategy is built on the provision of Visa Inc. (V) debit cards to its customers, and the company profits from the interchange fees generated by these cards' usage. Although it operates in a noble industry, Chime is not immune to market pressures, and the $25 billion firm was anticipated to go public in the first part of 2022.
For the IPO, Chime reportedly chose Goldman Sachs, which was reported by Barron. But Barron's also claimed at the end of May, citing sources, that the IPO would not happen in 2022. Though it seems unlikely, Chime might come back this year if investor optimism returns to the stock market soon.
Reddit, which has been online since 2005, is a prominent social media platform where people from all over the globe can talk about everything from politics and cryptocurrency to technology and vacation destinations. This community is especially well-known for its part in the 2021 meme stock saga.
In which stocks of businesses, including Gamestop and AMC, were artificially inflated by users of the WallStreetBets subreddit. But Reddit wants to be taken seriously, so in late 2021, it applied to be listed on the stock market. A March 2022 launch date was announced, but this has been pushed back.
More specifically, a NASDAQ listing for Reddit is anticipated with a value of $10 billion to $15 billion because of the tech-focused nature of the NASDAQ market. If you're looking for a good IPO stock, this is definitely one of the top candidates right now.
Conclusion
Prices for initial public offerings (IPOs) have skyrocketed as the market reaches its all-time high. Certain businesses have already announced their plan to go public. And when it comes to corporations, it seems everyone is eager to become public.
This year, the market is predicted to be optimistic, and many unexpected businesses will go public. Keep in mind that the market is in a constant state of change. This means that you should always study the company's brief before deciding whether or not to invest in it.
