One of the biggest reasons why investing is so exciting is the fact that there is no shortage of newly public companies to choose from. These debuts are always intriguing since no one knows how the market will actually value the shares after the stock starts trading. With that said, there are plenty of IPO’s that are overpriced for their debut and end up falling victim to too much hype. That’s why it’s difficult to have a lot of conviction in an IPO during its early days of trading, as there’s always the possibility that the underwriters have inflated the price or that insiders are going to cash in on their shares following the lockup period.
With that said, it never hurts to get familiar with some of the newest companies to hit the market, as these recent debuts can offer immense upside at some point. The IPO market remains as strong as ever while 2021 winds down, which is why we’ve put together a list of 3 intriguing IPO stocks for investors to watch.
These names could be the market leaders of tomorrow, so it might pay off to learn a little about what makes them stand out. Rivian (NASDAQ:RIVN)
This is one of the rare cases of a hyped-up IPO stock that has actually rewarded early investors who bought on IPO day, as Rivian has rallied over 48% since making its debut last week. The American electric-vehicle startup is absolutely worth getting acquainted with, although it might make more sense to let shares cool off a bit before buying. Rivian, which is backed by the almighty Amazon, offers something a bit different in the electric vehicle
space as the company’s lineup includes larger vehicles like the R1T pickup truck and R1S SUV.
It’s worth noting that Amazon has plans to order 100,000 Rivian electric delivery trucks for its fleet and that Rivian reportedly might be building a new vehicle and battery plant near Atlanta which would dramatically improve its manufacturing capacity. While it's easy to get caught up in the hype surrounding this well-funded EV startup, investors should pump the brakes on their expectations as the company has plenty of preorders yet only expects to deliver 1,000 vehicles by the end of the year. On Holding (NYSE:ONON)
This Swiss-based athletic shoe company is another intriguing IPO for investors to get familiar with, especially since the company will deliver its first earnings report since going public on Tuesday. On Holding, also known as On Running, provides innovative footwear
and sports apparel and distributes its product through independent retailers and global distributors. The brand has gained a lot of traction in the running community thanks to On’s award-winning CloudTec innovation, which reduces impact and provides a lightweight running sensation.
According to the company’s website, On Holding has sold over 17 million products to date in over 60 different countries. There’s a lot to like about the company’s growth story as well, as On Holding saw its revenue jump by 59% year-over-year in 2020 to reach $459 million. Additionally, e-commerce revenue is very important for these types of companies, and investors should definitely be attracted to the fact that its direct-to-consumer revenue increased by 141% year-over-year in 2020 to reach $173 million. While shares haven’t quite run away to the upside yet for this new IPO, the upcoming earnings report could be a big catalyst to watch out for. Backblaze Inc (NASDAQ:BLZE)
Investors can easily recognize the immense potential of companies involved in cloud computing
, which is a big reason why Backblaze should catch your attention. The company offers a cloud storage platform that makes storing, using, and protecting data easier for people in today’s digital age. Backblaze’s products are consumption-based and very attractive for businesses, developers, IT professionals, and individuals that are working with a lot of data on a regular basis.
The company offers two cloud services through its storage cloud, Backblaze B2 Cloud Storage and Backblaze Computer Backup. It’s one of the most affordable cloud-storage offerings out there, which is certainly a strong selling point to consider. Backblaze had around 500,000 customers in over 175 countries along with $65 million in ARR as of H1’21. Investors have been scooping up shares in droves following the company’s debut last week, which tells us that there is still plenty of appetite for high-growth cloud stocks. A strong debut from such a small valuatoin company certainly commands attention, so make sure to keep an eye on this one going forward.
Before you consider Rivian Automotive, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Rivian Automotive wasn't on the list.
While Rivian Automotive currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.
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