Posts: 956
Threads: 10
Joined: Feb 2018
Reputation:
10
Wow the IPO market has been horrible the last 6 months. I know some of you bought a few names like CHWY, LYFT and UBER.
My question is do you still own the names and are you buying more?
None of these companies make a profit and haven't since they have been in business. Its a risky bet to own these names. No?
Comments.....
Posts: 2,411
Threads: 54
Joined: Jul 2013
Reputation:
34
Sold LYFT at $48 when I saw how poorly the business (along with UBER) was doing.
Not sure how either are ever going to make much in actual profits.
Posts: 460
Threads: 2
Joined: Sep 2019
Reputation:
4
I stay away from the IPO market unless its a company with great prospects and are actually making a profit. I think the last IPO I bought was Alphabet. So its been a while lol.
My wife and I order from Chewy all the time, but don't own the stock. I may take a look at it of it should fall to $15 range. Analyst upgrades means nothing in this day and age.
I agree UBER and LYFT may never make a profit.
Posts: 1,024
Threads: 8
Joined: Aug 2018
Reputation:
16
Also, we really don't have enough data to evaluate the success of recent IPOs. FB took over a year to get back to its IPO price, and is up 500% since then, far outperforming the S&P 500.
Posts: 1,024
Threads: 8
Joined: Aug 2018
Reputation:
16
This is also not a group of investors likely to be heavily playing the IPO space. More than 90% of my holdings pay a dividend, and the vast majority of those have a healthy multi-year track record of paying and raising their dividends.
IPOs can be fun for gambling, though. The only one on the horizon that I intend to jump on is Airbnb, once they finally get around to it.
Posts: 1,873
Threads: 35
Joined: Jan 2016
Reputation:
6
IPO's are a crap shoot especially in the short term and the then you have the lockup expiration. You cant really evaluate them unless its 2- 3 years out. UBER and CHWY could do well over the long haul. We could all be sitting here wishing we bought at these 52 week lows lol. You just never know. And like most I don't dabble in these stocks since they don't pay a dividend.
However I have been watching PINS and just like Otter will keep a close eye on Airbnb.
Posts: 789
Threads: 15
Joined: Nov 2013
Reputation:
5
Other than BYND, I don't think any of those mentioned here are investable businesses. Not enough there, there.
Posts: 6,404
Threads: 47
Joined: Aug 2018
Reputation:
63
I would give them a more serious look if I could get in on day one before they are at 1000 price to sales. OK maybe they aren't THAT bad but it is tough to enter early on unless you completely check fundamental analysis at the door.
