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

This and Uber benefited from California voters rejecting proposition 22 which would have classified their drivers as employees, which would have increased their costs. Lyft shot up today.

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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

Stockchase Research Editor: Michael O'Reilly This is a bit of a contrarian play. After hitting highs over $550 per share in mid-October, ZM is now trading just above $355 -- over 35% cheaper. Although vaccines are rolling out, it could be that remote meetings may still be necessary until late summer. Other competitors have emerged…

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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

Likes the product. Concern is one of scale. How much bigger can it be, and how compelling is the product? Likes the cyclical aspect of increased ad revenues. Better ways to get access to those revenues, such as Google or a media content library owner.

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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

Mission is to eliminate email, to lead to higher productivity. Interesting product. Being acquired by Salesforce, in a huge deal. He worries about competition from MSFT Teams. Post-pandemic, businesses are going to be consolidating and eliminating vendors.

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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

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. There is still risk for volatility, but 5i cautions against selling just because it is up. Maintaining appropriate weighting still makes sense though. The company has done many things right and it fits well for growth and momentum investors although it is quite expensive on…

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

The competition is coming, so that's a big problem. That's why they're under pricing pressure now.

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

How does this keep rising during lockdowns? Yes, because Uber Eats keeps it going, a crusher. Once there's a consolidation in the food delivery business and more people get vaccines, this will be a winner.

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🚚 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 (ABNB-Q) — Stockchase

An amazing company but you buy this anticipating massive growth in many years. This could very well happen. But any value investor can't bet on this at these high PE levels. Already it has a $100 billion market cap. It's pure speculation.

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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.