2019: The Year of Big-Name IPOs
As we have concluded the year of 2019, where we saw yet again a new all time high for the S&P 500. This year has been quite exciting for traders that trade big and small name stocks. For instance, we saw Apple and Tesla with new all time highs and also more unknown companies, like Lamb Weston, trading at newer highs. 2019 was also the year of interesting companies going public. In this article we will highlight some of them.
Beyond Meat Inc ($BYND):
Listed on the Nasdaq on May 2nd, 2019, it surprised many hesitant investors to enter the fake meat industry as the stock rose 64.44% in the first week of trading. The stock opened at 46USD and after roughly 3 months we saw the stock trade at over 200USD. However, this plankton party was short lived because after a surprise on their quarterly earnings rapport on July 29th of 112.5%, the stock started the climb downwards and has been continuing its downtrend towards the 75USD levels. An interesting company to be publicly listed in 2019 with all the concerns of the millennials to quit eating meats to protect the environment. The stock has certainly been in the spotlight on the news this year and still analysts vary in opinion whether it is a good investment.
Uber Technologies Inc ($UBER):
Uber has been a bad investment if you bought at the IPO price. The stock opened below the IPO price at 42USD and currently trades at 29.50USD. The company is not profitable, yet many people believe in the company's success of revolutionizing the taxi-industry. Listed on the 10th of May, we saw its largest competitor Lyft ($LYFT) being listed before Uber on May 29th. Similar to Uber, they provide people with taxi-services and therefore fall within the same category in technology services. These companies move in a highly correlated, with a 0.69 correlation on a monthly return basis, and likewise Lyft hasn't had a great first year either, opening at 87.24USD and currently trades at 43.50USD.
Peleton Interactive Inc ($PTON):
Peleton is a company that gives customer services to those that want to exercise by bike from home. They went public on the 26th of September and it received great attention to many investors looking for new investment opportunities. The stock hasn't been as volatile as Beyond Meat, Uber, or Lyft and is therefore being considered a better investment, of course to those that dislike volatility. Yet, the company opened at 27USD and currently trades at 27.69USD. We saw it trade as high as 37.02USD. It could be a very interesting stock to keep on the watch-list for 2020 as the company's revenues keep growing and the company is still realizing a loss on a quarterly basis. The turning point when the company becomes profitable and manages to continue its growth in revenues by attracting new customers and provide different services will be interesting.
Kura Sushi USA Inc ($KRUS):
For those that have missed this IPO, it is surely an interesting stock to watch for the coming years. The stock opened at 14.89USD on August 1st and currently trades at 26.34USD. This restaurant chain that focuses on Japanese foods is growing quickly with customer incentives as their rewards pass where people get a $5 coupon for every $50 spent. With locations in Las Vegas, Chicago, Atlanta, New Jersey, and more they have managed to spread their restaurants across East, Middle, and West America. It will be interesting to see this restaurant chain grow its market share in North America and potentially enter other countries as well. The company manages to be profitable but will be expecting a loss in their earnings report on January 29th, 2020. If one tracks the restaurant market, one knows that there are periods where everyone decides to eat pizza or suddenly burgers are a big hype. If your portfolio consists of stocks like Domino's Pizza, McDonald's, and Chipotle, you could bring down your portfolio risk by adding Japanese foods to the mix with Kura Sushi.