Which of the Latest IPOs Are Best For Your Portfolio?
IPOs have been making headlines throughout the first half of 2019. Lyft, Pinterest, and Uber are all huge names that have gone public this year. Many other large companies are working toward doing the same. But not every IPO is a great bet. For example, Lyft truly didn’t live up to the hype when it launched. So you want to be cautious. If you want to know which IPOs deserve your attention, here are a few worth exploring.
Okta is a Software-as-a-Service (SaaS) company that helps businesses keep their cloud-based data secure. While Okta’s IPO date was in 2017, there is still a ton of potential for growth hear. Its customer base has climbed steadily each year. This includes in the $100k+ customer segment. Plus, Okta tends to become ingrained in its customer’s landscape. Which makes them less likely to make a switch once they hop on board.
Another company with an IPO date in 2017 that you shouldn’t ignore today is Roku. The Roku platform is an incredibly popular method for streaming to televisions and is increasingly being sold as a built-in system in TVs. Roku is steadily adding customer accounts and nearly 8.9 billion of hours were streamed through them in Q1 2019 alone.
Plus, Roku has a range of income streams, including cuts from streaming giants like Netflix, and popular rental and purchase platforms, such as Amazon. The new Disney streaming service is also going to be stream-able through Roku devices. These collaborations have created another connection to the entertainment giant. Roku even gets a cut of the ad revenue from YouTube videos people watch through the platform.
Since data is king for many companies, businesses that help them manage it are primed to make waves in the market. MongoDB. They had their IPO date in 2017. The company is a market leader in the data management space. Plus, MongoDB Atlas – a fully managed cloud-based database solution – has experience rapid growth (over 300 percent per year). This database solution will likely still be popular for the foreseeable future.
With an IPO date earlier in 2019. PagerDuty began as a solution that helps ensure only the right IT personnel at a company ae “paged” when an issue arises that needs to be addressed. Over time, additional service options were added. With these developments, PagerDuty is gaining popularity. This is especially true for companies who are open to spending $100k+ to secure their services.
Another tech option is CrowdStrike. Before its June 12 IPO, the company was highly known in the cybersecurity space, partially for being the company that investigated the 2016 Democratic National Convention service hack. The company uses a variety of cutting-edge technologies. It’s share prices have been strong. With cybersecurity being a top concern for many, CrowdStrike is well-positioned to thrive.
IPOs Can Be Very Volatile
It’s important to note that IPOs can be particularly volatile, especially early on. Plus, just because a name is recognizable doesn’t mean it will garner success. Lyft and Pinterest have both taken dramatic tumbles even though nearly everyone is aware of them. So you can’t rely on name-recognition when cultivating your portfolio. Instead, consider your risk tolerance and only invest if you are comfortable.
Do you have your eye on any recent IPOs? Tell us about it in the comments below.
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