This Year’s Hottest Tech IPOs: A New Wave of Tech Giants

Yesterday, co-working giant WeWork (which recently rebranded to The We Company) announced that it confidentially filed for an IPO in December. WeWork will join a growing class of tech firms that have recently gone public. Uber, Lyft, and Pinterest are some who have recently announced plans to trade publicly.

Interest in technology companies is growing as they have huge growth potential. Still, most of the new tech IPOs companies have limited profitability and most still lose money.

Here are the technology companies that have recently announced or have just gone through an IPO.

💻 Technology

Lyft (LYFT-Q)
Uber’s biggest competitor. Their valuation has become reasonable and is considered a soft buy by analysts. They are currently hiring for their new Montreal office, and they are looking to expand their services to more Canadian locations. Their biggest competition, Uber, who will be going public this week, will put pressure on Lyft’s price.

Lyft (LYFT-Q) — Stockchase

Lyft vs. Uber Technically, the better time to get in is when they start to show positive divergences. Hint of that, but it's not conclusive. No analysis to show that one is better than the other. Suspect they'd follow the same seasonality as technology. Wait until you see signs of selling exhaustion, which is not…

stockchase.com

Zoom Video Communications Inc. (zm-q)
A communications company that offers remote conferencing services using cloud computing. It’s gained 120 per cent since its IPO in April, exceeding Pinterest and Lyft in evaluation.

Zoom Video Communications Inc. (ZM-Q) — Stockchase

It has had a huge run. If you have made some money, take your initial money off the table. The valuation will come down at some point for sure.

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Pinterest Inc. (PINS-N)
Pinterest started trading publicly on the same day as Zoom Video Communications and has risen 49 per cent. They received a neutral grading following reports that the user base is particularly supportive of monetization. Analysts expect Pinterest to go towards e-commerce.

Pinterest Inc. (PINS-N) — Stockchase

It has delivered all its pre-IPO targets, though the stock has disappointed. Good revenue growth rate and moving towards profitability. Great potential in e-advertising. Pinterest has moved past Snapchat as America's third-most popular social marketer. They report earnings tomorrow. (Analysts’ price target is $27.00)

stockchase.com

Slack (SK-N)
The workplace chat app applied to the SEC to begin publicly trading this month. They are doing a direct public offering, meaning that existing privately-held shares will be sold to the public, and the price will be determined as such.

Slack (WORK-N) — Stockchase

It is a work-from-home beneficiary. It is anyone's guess what will happen in the short term. There has been a real rotation out of the high fliers recently. It is priced for perfection so any earnings report that isn't stellar could cause a sell-off.

stockchase.com

Lightspeed POS (LSPD-T)
A Montreal based POS company that recently went public. They are considered a smaller Shopify. They have great revenue growth with good recurring revenue. A high growth company.

Lightspeed POS (LSPD-T) — Stockchase

This company has really peaked his interest and he took a position recently. He thinks they will achieve profitability soon. You can build a position on weakness. He took a half position, while he continues to learn about the company. Their customers are in the industries that have been hit the hardest. He is impressed…

stockchase.com

Pagerduty (PD-N)
The DevOps software platform’s stock price has nearly grown 60 per cent since it’s IPO. They offers a subscription service that facilitates communication between software developers and operators. Investors are looking more closely to companies that serve the IT needs of businesses.

Pagerduty (PD-N) — Stockchase

Got stopped out. Still a big fan. On demand, system maintenance and monitoring. Great business model. He would be looking to get back in. A buy at these levels.

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🛍 Consumer

Beyond Meat Inc. (BYND-Q)
The meat replacement product has just gone public last week. They specialize in vegan meat that is sold in the meat department in the grocery store. Their demand has been growing, especially with A&W offering the widely popular Beyond Meat burger.

Beyond Meat Inc. (BYND-Q) — Stockchase

There is a lot of competition to this company. MFI-T for example, is much cheaper than BYND-Q which has not yet proved it can make money. They are expensive and risky.

stockchase.com

Uber (UBER-N)
The ride-hailing service is preparing for the biggest IPO since Facebook in the US with 180 million shares, expected to bring in about $10.35 billion. The company also operates a food delivery service, business fleet, urban bike program, freight system, and research and development.

Uber (UBER-N) — Stockchase

For the long term The big money has already been made here by private equity investors. But Uber is still growing as a duopoly (with Lyft). It's breaking even on an EBITDA basis and not losing money as some think, but Uber Eats is losing money. Uber enjoyed double-digit growth before the virus, and will…

stockchase.com

🚚 Industrials

Airbnb (AIRBNB-Q)
The hospitality service startup is preparing for their IPO and should debut on the stock market by the end of the year. They have experienced a great rate of growth. The estimated evaluation for the IPO is at 30 billion dollars.

Airbnb (AIRBNB-Q) — Stockchase

Airbnb plans IPO for later this year (end of June has been mentionned). It's an IPO that is long expected.

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WeWork – A coworking and workplace rental company. Last year, they doubled their revenues although it’s been unable to continue at the same rate in 2019. They announced that they are preparing to trade publicly, and investors are watching closely as the growth potential is immense.