Aug 8, 2017, 12:23 pm EDT
IPOs have many advantages. Just some include: much more exposure; a windfall of cash; the stock can be used as currency for acquisitions; and employees will have an opportunity to get liquidity.
But of course, there are notable risks as well. And we are seeing this with Snap Inc (NYSE:SNAP).
It seems that the shares are in free-fall. Since hitting a high of nearly $30 in early March, SNAP stock is now at a lowly $12.65. During this period, the company has lost about $16 billion of market cap. This is actually more than the value of Twitter Inc (NYSE:TWTR)! Read
Jul 31, 2017, 3:53 pm EDT
A StitchFix IPO may be happening in the near future.
The personal styling service announced that it has filed paperwork to go public in a confidential manner. Here are seven things to know about the StitchFix IPO:
The company has filed for an IPO under a special “IPO on-ramp” provision that falls under the 2012 Jumpstart Our Business Startups Act (JOBS Act). The provisions give the company the option of going through its review process with the Securities and Exchange Commission in a confidential manner.
StitchFix is reportedly looking for a valuation in the $3 billion to $ =4 billion range.
Katrina Lake is the company’s CEO, and she will be one of the few women to lead a company as it goes public. Only 3% of companies to IPO between 1996 and 2014 were led by women.
StitchFix announced revenue of $730 million in fiscal 2016.
The company has had some recent moves lately as COO Julie Bornstein left the company last month, while CFO Paul Yee joined its ranks last month.
StitchFix has been around for five years, and it consists of sending consumers boxes of clothing based on their beauty style. Subscribers then try on the clothes, keep what they like and send back what they don’t need. StitchFix recently rolled out a men’s business.
This isn’t the only company of its kind to consider going public at the moment as Rent the Runway may be making a similar move soon. Read
Jul 31, 2017, 10:55 am EDT
Today is lockup expiration for Snap Inc (NYSE:SNAP). And yes, it looks like Wall Street is not too thrilled. In early trading, Snap stock gave back 3% to $13.41, before settling at a 1% loss as of this writing.
For those unfamiliar with the treacherous world of initial public offerings, the lockup is a contract that prohibits insiders — such as founders, employees and directors — from selling their shares for a certain period of time. The main reason for this is that an IPO often needs time to get seasoned in the marketplace.
Snap stock has had an interesting public life so far — down about 20% from its IPO and 54% from its all-time high — so it’s worth reading into what the ultimate impact of the lockup expiration may be. Read
Jul 28, 2017, 1:12 pm EDT
Redfin Corp (NASDAQ:RDFN) provided the world of tech IPOs with some good news amid a pretty tough slog. Redfin’s initial public offering went live Friday with an offering of 9.2 million shares at $15 each, and RDFN stock jumped 36% in early morning trade. pulled off a standout IPO, with the shares up 36% in early trading.
Lead underwriters on the deal were Goldman Sachs Group Inc (NYSE:GS) and Allen & Company.
Today, I’ll give you an introduction to Redfin, and look at its prospects going forward following its successful IPO. Read
Jul 27, 2017, 10:21 am EDT
Not long ago, the buzz was that Snap Inc (NYSE:SNAP) represented a major threat to Facebook Inc (NASDAQ:FB). The belief was that FB was losing its innovative edge as well as losing relevance with the younger generation.
But of course, things have turned out differently — and quickly. Since coming public in early March, SNAP stock is off about 41%. Yet during this period, FB stock is up about 20%.
Now it’s important to keep in mind that IPOs often undergo quite a bit of volatility. A prime example is actually FB. For the most part, it took some time for investors to get a sense of the company’s prospects. More importantly, Mark Zuckerberg took swift actions to transform his company to being “mobile first.” Read
Jul 17, 2017, 2:06 pm EDT
During the summer of 2014, GoPro Inc (NASDAQ:GPRO) pulled off a red-hot initial public offering. The company priced its IPO at $24, and GPRO stock spiked by nearly 50% on its first day of trading. That was only the start, as GoPro shares fetched about $87 within a few months.
And that, unfortunately, was the peak.
Since that time, GoPro stock has been a gut-wrenching experience for shareholders. Those unlucky few that have held on the whole way down now sit on shares worth just $8 each. Read