It’s been only three months into the year, and we have already seen two popular and much-loved companies going public — Spotify and Dropbox. Holding the shares of companies whose services we frequently use is a brand investment, as much as a monetary investment. This psychology kicks in every time a popular name goes public with its shares.
But there are still a few companies that we wish to go public this year (so that we can prestigiously flaunt their shares in our portfolio.) Let’s take a look at these.
Lyft
The ride-hailing service market is undoubtedly in its initial stages. A report by Goldman Sachs had predicted that the market would witness a staggering 700% growth between 2017 and 2030.
While the pioneer of this service, Uber, was messing around with scandals and management changes, it allowed enough space for Lyft to double its momentum.
Lyft is especially attractive with a $10 billion valuation and the backing of search giant Google (GOOGL). The prospects of Lyft partnering with Google’s self-drive technology company Waymo make the company a sure-shot bet. According to reports, Lyft posted gross revenue of $483 million in the first half of 2017, compared to around $3 billion reported by Uber in the same period. However, Uber posted a loss to the tune of $2 billion during this period.
Airbnb
We all have used Airbnb at some point in time. And if you have been traveling enough, you know they are quite EVERYWHERE! It’s astonishing how the company has turned so ubiquitous with over 3 million listings in a matter of just ten years! As an icing on the cake, the company was starting to turn profitable by 2016. Quite the profile of an ideal IPO candidate!
Meanwhile, company officials had recently claimed that they do not plan to go public this year, as they are only half-ready for this big step. The company also underwent a management rejig at the time of this announcement. However, if things go well, the company may file for IPO by the end of this year, and you may then carry a bit of Airbnb on your first trip next year!
Buzzfeed
You probably have Buzzfeed open on another tab right now. This might be the only site that encourages you to invest your precious time in reading. The company has been growing in revenue and user base over the past few years and currently has a valuation of about $1.7 billion. It has over 650 million users and is turning profits.
In November last year, the company said it expects revenue to fall 15-20% below the set goal due to low advertising revenues. Speculations were rife that this would put any IPO plans in jeopardy though company officials have not yet given a statement. Given the challenges currently faced by the media industry, Buzzfeed is unlikely to be risk-free if it goes public. And yet, Buzzfeed will give you 10 (or even more) reasons why you should buy their stock.
The company has been growing in revenue and user base over the past few years and currently has a valuation of about $1.7 billion.
With over two billion boards, Pinterest is one of the largest social media platforms — and one of the most innovative as well. From the company’s recent course of actions, we can understand that it is planning for an IPO soon. The company had recently hired a chief for corporate and business development, as well as a new CFO.
With over 200 million monthly active users, and more than half of it from outside the US, this company has the potential to follow the path of Facebook (FB) and Twitter (TWTR) post a successful IPO.