Last year, investors witnessed a booming IPO market that saw a record 407 companies make their public debuts. Some of that momentum has clearly carried over into 2021, as we are still seeing tons of new companies issuing shares to the public for the first time. What’s great about the current IPO
market activity is that there are so many exciting new companies to choose from. Some of these stocks have the potential to become true market leaders, while others are destined to fall into obscurity. That’s why it's so important to do your research and make sure you are on board with a company’s vision before jumping in.
It can be tough for investors to keep up with the constant flurry of new IPO stocks, which is why we’ve handpicked three that really stand out at this time. These companies all recently made their public debuts and could be worth checking out now. Let’s take a deeper look below. Squarespace (NYSE:SQSP)
After a weak direct listing debut back in May, Squarespace stock has rallied over 16% from its $50 listing price and could be a great tech stock to watch in the coming weeks. The company offers an all-in-one website building and e-commerce
platform that helps businesses and independent creators build their online presence. Squarespace’s platform makes it easy to create aesthetically pleasing websites from scratch and gives customers everything they need to sell physical products, subscriptions, content, or services online. The company also offers strong marketing solutions like email campaigns and search engine optimization tools to drive traffic.
Squarespace generates revenue with a subscription-based model and has delivered 20 consecutive quarters of subscriber growth, which is certainly impressive given that there are plenty of competitors like Wix in this space. The company saw its revenue increase by 20% year-over-year in 2020 to $621 million and has reported positive net income since 2016. This is a fast-growing tech stock to get familiar with now, and it will be interesting to see if the company’s notable growth in 2020 was a result of the pandemic or a sign of an emerging leader. Coursera Inc (NYSE:COUR)
Sometimes, an IPO benefits from so much hype after it debuts that it surges during the first few trading sessions only to pull back sharply as early investors unload their shares. That looks to be the case with Coursera, as the stock hasn’t exactly set the market ablaze after reaching a high of $62.53 back in April. Although Coursera is well off of its highs, investors should potentially view the dip as a great buying opportunity in this innovative growth stock.
This company is aiming to revolutionize the way that we are educated, as it has developed one of the leading remote learning
platforms. It provides an easy way for learners and educators to connect virtually and take advantage of educational content that is relevant and accessible. With the way that digitalization is taking over so many different aspects of our lives, it's easy to see remote learning becoming the number one way that people are educated in a few short years. The company’s platform also has a robust career skills segment that businesses can use to keep their employees at the top of their game. Finally, Coursera is a recent IPO that is worth a look as it counts legendary investor George Soros as a buyer, and the company has seen its revenues triple between 2017 to 2020. Monday.Com Ltd (NASDAQ:MNDY)
Another new IPO that just made its debut this week is Monday.com, a workplace management software maker based in Tel Aviv, Israel. What makes this company’s cloud-based platform unique is that it allows companies to create and customize their own applications and work management software. Most of the work management software out there is very rigid and doesn’t allow for people without serious coding experience to handle custom application development easily. With the Monday.com platform, almost anyone can build software applications and work management tools that fit the needs of an organization.
Monday.com has already received funding from Salesforce.com and Zoom Video Communications
, with each company purchasing $75 million in the company’s shares. The growing company has posted impressive top-line figures over the last few years, including year-over-year revenue growth of 106% from 2019 to 2020. While the stock might be volatile during its first few weeks of trading, it’s definitely one to keep an eye on if you are a growth-oriented investor interested in a potentially groundbreaking software company.
Before you consider Squarespace, 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 Squarespace wasn't on the list.
While Squarespace currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.
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