After a handful of initial public offerings in 2019 garnered historical results for stock market investors, faith in IPO investments have been restored. Investing in IPO’s is still considered fairly high risk (over investing in a more established stock like Apple or Alphabet—the latter of which is almost too high). But the often cheap shares in some of the hottest companies today means that young investors are able to break into the stock trade without risking too much.
Below are five companies that plan to go public in 2020 that we’re keeping an eye on.
Airbnb, the short-term rental company that has disrupted the hotel and travel industries in recent years, plans to file its IPO sometime in the near future. But with scandals and controversies highlighting issues with the company’s model—which depends on loose renter laws and regulations in order to survive. Most recently, the company revealed to be at the center of a scandal wherein Airbnb hosts were able to scam users out of money by creating fake listings in a handful of cities.
Uber and Lyft, two rideshare companies that have changed transportation in the last decade, have failed to profit after listing their IPO’s earlier this year. Postmates took this as a warning sign and held off on listing its IPO in 2019 to make sure it’s ready once it does. The company officially delayed its IPO earlier this year, but many are hoping that the reluctance to go public is a sign that Postmates will be responsible.
Robinhood, the millennial-focused investing app, has become one of the most popular stock market trading platforms in the last couple of years. The app, which focuses on teaching millennials how to make smart investment decisions, has amped up its subscription-based features in the last year in effort to raise more money before going public.
On the surface, what company would be a better investment decision than one that’s sole service is to cater to the stock market? Unfortunately, the company has yet to turn a profit, and some of its features have earned the company criticism from financial regulators in the United States.
No one really expected that the mattress industry would be disrupted with the arrival of tech, but Casper managed to do just that with its affordable (ok this is relative), high quality mattress that consumers can have delivered straight to their door. Plus, it springs out of the box like it’s alive.
The company’s aggressive marketing campaigns (remember when the NYC subway was essentially just a giant billboard for Casper mattresses?) made it a household name around the country within just a few years. Now, the company plans to go public. Casper is, according to stock market blogs, working with finance giants like Morgan Stanley and Goldman Sachs on an IPO that could come before or during 2020.
It was a bad year for Saudi oil companies, but regardless of the drone strikes on Saudi-based oil company Aramco earlier this year, the company is moving forward with its plan to list a potentially record-breaking IPO in the near future.
The public listing of another oil company has been a controversial move for banks in the wake of the climate strike, but the truth is that even if tech made sudden advances to make sustainable energy more accessible and affordable as early as tomorrow we would still be dependent on oil for the foreseeable future. But because Aramco is state-owned by the Saudi government it raises other concerns as to whether or not other political figures in countries like China and Russia can, and should, be able to invest in the American stock market.
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