Are you curious about the latest companies that went public in 2017? Initial Public Offerings (IPOs) can be an exciting opportunity for investors to get in on a company’s ground floor. In this blog post, we’ll take a closer look at some of the most talked-about IPOs from last year and examine whether they were worth investing in or not. From Snap Inc to MuleSoft, keep reading to learn more about these up-and-coming companies!
What is an IPO?
An IPO, or Initial Public Offering, is a process in which a private company offers shares of its stock to the public for the first time. This allows the company to raise capital and expand its operations by selling ownership stakes in itself.
To make an IPO happen, a private company will typically work with investment banks that help it prepare for going public. The investment banks will assist with tasks such as determining the appropriate share price, underwriting the offering, and marketing the stock to potential investors.
Once an IPO is launched, members of the general public can purchase shares of stock in the new publicly traded company. These shareholders become owners of a small piece of the business and are entitled to share in any future profits or losses.
However, investing in an IPO comes with risks. Because these companies are often untested on public markets and have limited operating histories available for analysis – they may be more volatile than established businesses. As always you should do your due diligence before investing your hard earned money into any venture whether it’s through an initial offering or not.
Should You Invest in an IPO?
Investing in an IPO can be tempting, especially when you hear success stories of companies like Facebook and Google. However, it’s important to do your research before making any investment decisions.
Firstly, remember that investing in an IPO is a high-risk venture. These companies are usually new to the market and have limited financial history for investors to analyze. This means that there may be greater fluctuations in stock prices than with established companies.
Secondly, consider whether the company has potential for long-term growth or if it’s simply a trendy fad. It’s important to look at the company’s business model and its competition within the industry.
Thirdly, determine if the price offered by the IPO is reasonable compared to other similar stocks on the market. Just because a company is going public doesn’t necessarily mean it’s undervalued or worth buying.
Understand your own risk tolerance as an investor. Investing in an IPO can lead to potentially high returns but also significant losses – only invest what you’re comfortable losing.
Investing in an IPO requires careful consideration and research before taking action.
Companies That Had Their IPO In 2017
Snap Inc
Snap Inc, the parent company of Snapchat, had one of the most talked-about IPOs in 2017. The company made its debut on March 2nd and raised $3.4 billion in its initial public offering.
Snap’s unique feature is that it has a younger user base than many other social media platforms, making it an attractive option for advertisers looking to reach a younger demographic. However, Snap’s growth has slowed down significantly since going public, with Facebook-owned Instagram stealing some of their thunder.
Despite this setback, Snap continues to innovate and release new features such as augmented reality lenses and games within the app. They also recently introduced Spotlight – a TikTok-like feature where users can upload short-form videos for others to watch.
Snap remains an interesting case study in the world of tech IPOs and will be worth keeping an eye on as they continue to navigate competition and evolve their platform.
Blue Apron
Blue Apron is a meal kit delivery service that had its initial public offering (IPO) in 2017. The company was founded in 2012 and quickly gained popularity as an easy way for people to cook meals at home without having to go grocery shopping.
Blue Apron offers customers the option to choose from a variety of weekly menus, each with pre-measured ingredients and step-by-step recipe instructions. This makes it simple for even beginner cooks to create delicious meals at home.
Despite its early success, Blue Apron has faced some challenges since going public. The company has struggled with high customer acquisition costs and competition from other meal kit services like HelloFresh and Home Chef.
However, Blue Apron has continued to innovate by partnering with popular chefs and launching new products such as its wellness line. The company also recently announced plans to expand into the on-demand food delivery space through partnerships with Grubhub and Uber Eats.
Although Blue Apron may have faced some obstacles in recent years, the company’s commitment to innovation and providing convenient meal solutions suggests a promising future ahead.
Stitch Fix
Stitch Fix is an online personal styling service that went public in 2017. The company offers a personalized shopping experience to its customers, using data and algorithms to recommend clothing items based on their preferences and style.
One of the unique features of Stitch Fix is that it doesn’t require any monthly subscription fee or commitment from its users. Customers only pay for the items they decide to keep, while the rest can be returned free of charge.
The concept behind Stitch Fix has proven successful, as the company reported $977 million in revenue in 2018. Additionally, since going public, Stitch Fix’s stock price has more than doubled from its IPO price.
Stitch Fix’s success shows that there is a demand for personalized shopping experiences that cater to individual tastes and preferences. With more consumers turning towards e-commerce platforms for their shopping needs, companies like Stitch Fix have found innovative ways to provide a convenient and tailored approach to online retail.
AppDirect
AppDirect is a cloud service commerce platform that helps businesses to sell and distribute software online. The company had its IPO in 2017, making it one of the most successful tech companies to go public that year.
The AppDirect marketplace offers a range of products and services from various vendors including Microsoft, Google, Box, DocuSign and more. Businesses can easily purchase and manage these products through a single platform which simplifies their operations.
One of the key features of AppDirect’s platform is its ability to integrate with other business systems such as CRM tools like Salesforce or accounting software like QuickBooks. This allows for seamless management across multiple functions within an organization.
AppDirect also offers customized solutions for different industries such as telecommunications or finance. These solutions are tailored to meet specific needs of each industry while leveraging AppDirect’s advanced technology stack.
AppDirect’s innovative approach towards cloud service commerce has helped many businesses streamline their operations and increase sales. With continued growth expected in the coming years, it will be interesting to see how this company continues to evolve and shape the future of e-commerce.
CrowdStrike
CrowdStrike is a cybersecurity company that had its IPO in 2017. It provides endpoint security, threat intelligence, and cyber attack response services to businesses and governments worldwide. The company specializes in identifying sophisticated threats and preventing them from causing damage.
CrowdStrike’s Falcon platform is highly regarded in the industry for its ability to detect and respond to even the most advanced threats. Its cloud-based architecture enables it to collect vast amounts of data from endpoints across an organization, which it analyzes using artificial intelligence algorithms.
The company’s revenue has grown rapidly since its founding in 2011, with a reported $481 million in fiscal year 2020. CrowdStrike has also received numerous awards for its innovative approach to cybersecurity, including recognition as a leader by Gartner Magic Quadrant.
CrowdStrike’s successful IPO highlights the growing importance of cybersecurity in today’s digital age. As more organizations move their operations online, protecting against cyber attacks becomes increasingly critical.
MuleSoft
Overall, 2017 was a successful year for IPOs with several companies going public and experiencing significant growth. While investing in an IPO can be risky, it can also lead to substantial returns for investors who do their research and make informed decisions.
One such company that went public last year is MuleSoft, a software company that connects various applications and data sources. MuleSoft’s IPO opened at $17 per share on March 17th, 2017, and closed its first day of trading up almost 47% at $24.75 per share. The company raised $221 million in the offering.
Since then, MuleSoft has continued to climb higher in the stock market. In April of this year, Salesforce announced their acquisition of the company for approximately $6.5 billion dollars.
Investing in an IPO requires careful consideration and analysis before making any decisions but it can potentially lead to great rewards if done correctly. As we have seen from the companies mentioned above – Snap Inc., Blue Apron, Stitch Fix, AppDirect,CrowdStrike,and MuleSoft – there are certainly opportunities available for those looking to invest in new companies through initial public offerings.