Upcoming IPOs – Which Should you Watch For?

As more startups become popular and go from private to public, you may want to jump on board and ride the wave with them. Last year was a  year of so many new IPOs that it’s hard to keep track. Which are worth your time and money?

Check out our list below.

Postmates

While it feels like we’re seeing delivery companies popping up everywhere, Postmates is a force to be reckoned with. Initially set to debut in 2019, the company delayed until 2020. Was that the best move? Will it take off faster than Instacart and Doordash? Only time will tell, but we know it’s an IPO we’re looking at long and hard for the time being.

Asana

Collaborating from anywhere around the world is the new norm of the working world. While its popularity started before the pandemic, it popularity increased tenfold since everyone started working from home. While it has plenty of competition already, Asana has one thing that other companies don’t have – the co-founder of Facebook as its co-founder. Will that push it over the edge of its competitors? Only time will tell.

Wish

Online shopping has always been big, but when you can shop online and save a ton of money, it’s a win-win for everyone. With Amazon as its fiercest competitor, Wish has its work cut out for it. But it seems like they are up for the challenge. Unlike Amazon, Wish focuses on un-branded and low-cost items – the stuff everyone can quickly fill up their cart with without thinking twice. If Wish remains untouched, it will hit the market this year, giving investors a way into a popular marketplace.

Instacart

The pandemic certainly helped Instacart, and probably in ways it never imagined. When stores closed, and no one wanted to go into the essential stores, they called upon Instacart. While it’s yet another delivery company, it operates in a different niche, focusing on groceries rather than restaurant food. If the popularity continues, you may want to jump on board the Instacart demand and get a piece of the pie.

Robinhood

Robinhood made history by being one of the first brokers to offer zero-commission trades. While more brokers offer it now, Robinhood still has a good chunk of the industry under its spell with more than 10 million users to date. While it may be up for some fierce competition, Robinhood has a niche that other brokers don’t have, and is an IPO you should keep an eye on.

Albertsons

The owner of grocery stores Safeway and Jewel Osco plans to go public very soon. Even though the grocery store chain has been around for years, it’s just now going public. With grocery stores busier than ever and facing a much higher demand than before the pandemic, now may be a great time to jump on board this newly public stock.

Understanding IPOs

IPOs or Initial Public Offerings are the welcome home party for stocks just going public. It’s a big deal for companies as it’s the first time they go from a privately owned company to a publicly owned company. As more investors buy into the company, they have ownership in it, which is a vast difference for companies that are used to being privately owned.

When IPOs are set to be released, you can buy them through your broker. Don’t be fooled by the IPO offering price, though. That’s not the price you’ll pay. Like any publicly traded stock, you’ll pay the market price at the time of the trade, which is usually much higher than the IPO price. Only a select few, such as employees and individual investors, can pay the IPO price.

Like any stock, buying an IPO is a risk. Make sure you do your research. Don’t get caught up in the excitement of buying the stock and assuming it will take off. There’s no guarantee that any stock will do great, even existing stocks. It depends on the market and how investors receive the news of the IPO. Just because you think it’s a great deal doesn’t mean all investors believe the same.

Diversify your portfolio with established stocks as well as IPOs to ensure that you don’t put all your eggs in one basket. Have different assets in your basket, so if one does poorly, you don’t lose everything that you’ve invested.