Global IPO markets have been running hot in 2021, setting new records in terms of volume and proceeds.
One of the best predictors of future performance is past performance. Investors interested in how recent IPOs might fare in 2022 may consider reviewing how the hottest IPOs of 2020 performed in 2021.
Many of the companies that made public debuts in 2020 faced (and are still battling) lingering uncertainty amid COVID-19 concerns. Still, some have managed to trend higher for most of the year.
Here is a look at how five of the most highly anticipated IPOs from 2020 performed this year.
IPO Date: Sept. 16, 2020
Current Stock Price: $332.31
52-Week Range: $184.71–$405
YTD Performance: +18.09 percent
Snowflake’s proposed IPO range was listed at $75 to $85 per share. The stock opened for trading at $245 per share, giving the cloud software company a valuation of $67.94 billion, more than five times its private valuation of $12.4 billion at the beginning of 2020.
It was halted for volatility multiple times before closing the day at $253.93. The Berkshire-backed company is the top performer year-to-date among the five hottest IPOs of 2020.
IPO Date: Dec. 10, 2020
Current Stock Price: $156.31
52-Week Range: $124.91–$219.94
YTD Performance: +6.48 percent
Airbnb shares were initially priced at $68. The stock opened for trading at $146 per share and closed at $144.71, valuing Airbnb at a whopping $86.5 billion, which was more than twice as much as the company anticipated. Airbnb is the world’s largest online alternative accommodation travel agency, also offering booking services for boutique hotels and experiences.
IPO Date: Dec. 9, 2020
Current Stock Price: $148.86
52-Week Range: $110.13–$257.24
YTD Performance: +4.28 percent
DoorDash’s proposed IPO range was $90 to $95 per share. The company ended up pricing its shares at $102, but the stock opened for trading at $182 and closed at $189.51, giving the company about a $60-billion valuation.
DoorDash is an online food order demand aggregator that is seen as a pandemic beneficiary, yet its year-to-date performance remains lackluster after the stock began falling from the $250 level a month ago and has yet to find its footing.
Unity Software Inc.
IPO Date: Sept. 18, 2020
Current Stock Price: $136.91
52-Week Range: $76–$210
YTD Performance: -10.79 percent
Unity is another stock that performed well in 2021 before trending consistently lower over the last month or so.
The company priced its shares at $52, but the stock began trading at $75 per share before pulling back and closing the day at $68.35. Still, the stock closed well above the IPO price, giving the video game software developer a valuation of roughly $18 billion.
Unity has become more talked about recently as investors anticipate the company’s role in the metaverse. Unity provides a software platform for creating and operating interactive, real-time 3D content.
Palantir Technologies Inc.
IPO Date: Sept. 30, 2020
Current Stock Price: $19
52-Week Range: $17.06–$45
YTD Performance: -19.47 percent
Palantir is the only company on this list that made its public debut via direct listing. It’s also the worst performer year-to-date. The stock saw significant gains before the end of 2020, which positioned it for an uphill battle.
During its public debut, Palantir shares opened for trading at $10 before closing the day at $9.50, giving the data analytics company a valuation around $16 billion. Palantir makes products for human-driven analysis of real-world data. The company has continually said that it expects revenue growth of 30 percent or greater through 2025.
By Adam Eckert
© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.