Today, Vizio (NYSE:VZIO) made its debut on the New York Stock Exchange. Initially listed at $21 per share, Vizio stock has struggled to maintain any sort of positive momentum. At the time of writing, shares are trading more than 15% below their opening price.
Source: Tero Vesalainen/ShutterStock.com
This move may have surprised some investors, as this has been a hotly anticipated IPO.
With that in mind, let’s dive into a few things investors should know about Vizio stock right now.
Investors in Vizio Stock Are Buying More Than a TV Company
- Vizio is a big player in the high-definition television market in the U.S. The company grew its device sales to $1.9 billion last year.
- The company was founded nearly 20 years ago, and has become one of the top three best-selling TV brands in the U.S.
- Its IPO priced the company initially at a $3.9 billion valuation.
- Accordingly, Vizio was able to raise more than $250 million from the offering. The company hopes to use these funds to grow its burgeoning streaming platform.
- SmartCast, Vizio’s streaming platform, allows the company to capture impressive ad revenue from its streaming products.
- Indeed, the company touts SmartCast’s value proposition as a strong one. By allowing advertisers to connect with relevant consumers, Vizio is hoping it can continue to gain market share in the digital streaming space.
- Growth in the company’s streaming business grew 133% last year. While this segment still accounts for less than 10% of the company’s total revenues, the higher-margin growth this segment provides has intrigued many investors.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.
