So far, 2019 has been a blockbuster year for the first public offering, with some comparing the last frenzy with the IPO boom of 1999.
The IPO ETF of Renaissance Capital (NYSE :), which ended on a high point on Tuesday, has so far risen 37% this year, more than doubling the gain of 16% in the same period.
IPO versus S&P 500 Daily Chart
While high-profile names such as Uber (NYSE 🙂 and Lyft (NASDAQ 🙂 have not been liked by investors since their highly anticipated IPOs, Beyond Meat (NASDAQ 🙂 unexpectedly took over the financial markets with its shares up as much as 580% since the public went in May.
In addition to Beyond Meat, a number of other stock market introductions have more than doubled in appreciation since they became public this year, with more than a dozen now at least 50% since making their trade debut. These three technical unicorns are well positioned to become market leaders in their respective fields thanks to rapid growth and great market opportunities.
1. Zoom in video communication: up 176%
Zoom Video Communications (NASDAQ :), which offers external video conferencing services, saw the shares rise 72% during the first trading day on April 18. The stock ended Tuesday at $ 99.64, an increase of 176% compared to their list price. $ 36, it earns a valuation of $ 26.7 billion.
Unlike many of his IPO colleagues, Zoom is already generating a profit. It earned 3 cents per share as a public company in the first quarter when it published results on June 6. $ 122 million, an increase of 103% on an annual basis.
The positive results were driven by a strong increase in customers by 58% to 58,500. Subscribers who contributed more than $ 100,000 to their 12-month revenue increased by 120% from the same quarter last year to 405.
We expect Zoom to continue to prosper thanks to the strong growth of memberships, putting it in an excellent position as a potential leader in video conferencing.
2. PagerDuty: up 127%
PagerDuy (NYSE 🙂 – a cloud-based digital management platform that supports IT needs of companies – launched its IPO on April 11, with shares rising by nearly 60% during the first trading day. The stock, which closed last night at $ 54.50, has increased by 127% compared to the bid price of $ 24, giving it a valuation of $ 4.2 billion
San Francisco-based cloud computing provider delivered an impressive beat-and-raise quarter as a public company on June 6 and recorded a loss of 22 cents per share on revenue of $ 37.3 million, both better than expected.
Keith Weiss of Morgan Stanley called the first report of PagerDuty "a successful kick-off", as sales growth accelerated to 49% and gross margins improved. "In addition, the IPO appears to have improved PagerDuty's brand awareness because the company has added the most customers in more than two years," he wrote.
PagerDuty has added 468 new customers, well ahead of the consensus estimate of 340. It now has a total figure of 11,680, an increase of 15% on an annual basis.
Despite elevated valuation levels, we expect that PagerDuty will remain one of the best performing names of business software in the market, largely due to the accelerated growth in sales and customer profit.
3. CrowdStrike: a maximum of 125%
Crowdstrike (NASDAQ :), whose cloud-based technology is used to detect and prevent security breaches, made its trade debut on June 12, with shares rising 70%. The stock, which was $ 76.50 yesterday, has won 125% of the $ 34 IPO price, bringing the market capitalization to $ 15.2 billion
Cyber security leader sales in Sunnyvale, California, increased 125% to $ 249.8 million in the fiscal year ended January 31, according to the prospectus, although it recorded a net loss of $ 140 million. It saw subscriptions to its cloud platform twice a year at more than 2,500, and now counts Amazon Web Services, Credit Suisse and Tribune Media among its customers.
Despite elevated valuation levels, CrowdStrike's stock still looks attractive, given the strong demand it has seen for cloud-based cyber security tools.