BUZ INVESTORS Anticipated Tech IPOs With the year flying by quickly, the chances of more landmark initial public offerings (IPOs) happening in 2017 are getting slimmer. While Snap Inc (NYSE:SNAP) had a wild ride when it hit the public market earlier this year, there hasn’t been much in the way of news concerning other major tech companies launching IPOs in 2017.
With BuzzFeed’s recent announcement that it will hold its IPO in 2018, other companies may be waiting for that calendar switch before going public. This makes tech IPOs in 2018 one of the hottest topics of discussion.
Remember that 2016 was a rather weak year for tech IPOs, at least in terms of volume. That year, 30% fewer companies opted to go public compared to 2015, and 2015 was already on the low side. On the flipside, those few companies that “IPOed” in 2016 (21, to be exact) would have yielded a combined 40% return for an investor heady enough to go all-in with the newly publicly traded stocks. (Source: “Why 2016 Was Actually a Pretty Good Year For Tech IPOs,” Fortune, January 4, 2017.)
The SNAP IPO stock price was set at $17.00, but quickly rose by 41.2% at the open, ending its first day of trading above $24.00 per share. While Snap stock has since fallen off—now down 16% since that whirlwind start—the fervor shows just how much investors want to get in on the IPO market, especially when it comes to tech IPOs in 2018.
That said, let’s look at some some of the most anticipated tech IPOs in 2018.
|List of Potential Tech IPOs in 2018|
With an Airbnb valuation of $30.0 billion, many analysts are closely watching for any news related to a possible Airbnb IPO. While there’s no firm date set, CEO and co-founder Brian Chesky has said that the company was preparing an Airbnb IPO “as soon as possible,” with the caveat that the company did not intend to go public “in the near-term.” (Source: “Airbnb prepping to be IPO-ready, but still has no ‘near-term’ plans,” Wired, November 17, 2016.)
Uber Technologies, Inc. has had a bad case of foot-in-mouth disease, with scandal after scandal hitting the already weakened and exposed public relations (PR) side of the company, which has come to be something of an Achilles heel.
Perhaps one of the companies closest to launching an IPO, possibly even before 2018, Palantir Technologies has been on the radar of many analysts due to its strong leadership and performance.
Chairperson Peter Thiel, alongside CEO and co-founder Alex Karp, is leading the company to prominence on the back of its specialization in big data analytics.
According to TechCrunch, multiple insider sources have said that, despite Spotify’s original plan to make its stock available to the public in 2017, the streaming service is now looking at 2018 as the year to file for its IPO. (Source: “Sources: Spotify may delay IPO to 2018 as it rethinks licensing deals,” TechCrunch, February 2, 2017.)
The unnamed sources said that the delay was intended to buy time for Spotify so it can build up a better balance sheet and work on shifting its business model to improve its profit margins. Much like the situations of many other companies, the Spotify IPO is being hampered by a large accumulation of debt and no clear path to profitability.
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