As an investor, there are few things more exciting than the prospect of investing in a company that is about to go public. Initial public offerings, or IPOs, can be incredibly lucrative for early investors, as they can provide an opportunity to buy into a company before its stock price skyrockets. In 2017, there were many companies that had their IPO, but only a select few were able to truly excel. In this article, I’ll be taking a closer look at the top performers among companies that had their IPO in 2017, analyzing what made them successful, and examining the factors that contributed to their success.
Read this FintechZoom article: Companies That Had Their IPO in 2016: A Look Back at the Hottest Companies.
Introduction to IPOs and their significance
Before we dive into the specifics of the companies that had their IPO in 2017, let’s first take a moment to discuss what an IPO is and why it’s significant. An IPO is the first time that a company’s stock is offered for sale to the general public. Prior to this, the company’s shares were likely held by a small group of private investors, such as venture capitalists or angel investors. By going public, the company is able to raise a large amount of capital, which can be used to fund growth and expansion.
But an IPO is not just significant for the company going public. It can also be incredibly lucrative for early investors who are able to buy into the company before its stock price rises. This is because, after an IPO, the company’s shares are often in high demand, driving up the price. If you’re able to buy in early enough and hold onto your shares as the price rises, you can make a significant profit.
Read also this FintechZoom article: Investor Alert: Why Companies That Had Their IPO in 2014 Are Still Worth Watching.
Overview of companies that had their IPO in 2017
Now that we’ve covered the basics of what an IPO is and why it’s significant, let’s take a look at the companies that had their IPO in 2017. Overall, it was a strong year for IPOs, with many companies going public and seeing their stock prices rise. Some of the most notable companies to have their IPO in 2017 include:
- Snap Inc. (SNAP)
- Blue Apron Holdings, Inc. (APRN)
- Roku, Inc. (ROKU)
- Stitch Fix, Inc. (SFIX)
- Canada Goose Holdings Inc. (GOOS)
Of these companies, there were a select few that truly stood out as top performers. Over the next few sections, we’ll take a closer look at these companies and analyze what made them successful.
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Review of top performers among companies that had their IPO in 2017
When it comes to the top performers among companies that had their IPO in 2017, there are a few that immediately come to mind. These include:
- Roku, Inc. (ROKU)
- Stitch Fix, Inc. (SFIX)
Both of these companies saw their stock prices skyrocket after their IPO, making them incredibly lucrative investments for early investors. But what made these companies stand out from the rest, and what factors contributed to their success? Let’s take a closer look.
Analysis of the performance of each top-performing company
Roku, Inc. (ROKU)
Roku, Inc. is a digital media player company that allows users to stream content from a variety of sources. The company had its IPO on September 28, 2017 and saw its stock price rise by 67% on its first day of trading. By the end of 2017, the stock price had risen by over 250%.
Related article in FintechZoom: A Look at Companies That Had Their IPO in 2018: From Spotify to DocuSign.
According to [1], in 2017, the entertainment technology company Roku listed its IPO on Nasdaq for $252 million under the trading symbol ROKU. As noted in [2], the company raised $219 million by pricing 15.7 million shares at $14, which was the high end of the $12-$14 target range. On the day of trading, as mentioned in [3], the stock began trading at $15.78. Overall, the ROKU IPO in 2017 was successful in raising a significant amount of capital for the company.
References:
[1] Roku IPO (ROKU): Stock price on opening trade [2] Roku IPO: Company sets 2017 record as shares soar [3] If You Invested $1000 in Roku’s IPO, This Is How Much …So what made Roku such a successful IPO? One factor was the company’s strong financials. In the first half of 2017, the company had revenue of $199.7 million, up from $162.3 million in the first half of 2016. Additionally, the company had 15.1 million active accounts as of June 30, 2017, up from 10.6 million a year earlier.
Another factor contributing to Roku’s success was the company’s position in the market. As more and more consumers cut the cord and turn to streaming services, Roku is well-positioned to capitalize on this trend. The company’s devices are affordable and easy to use, making them an attractive option for consumers who are new to streaming.
Stitch Fix, Inc. (SFIX)
Stitch Fix, Inc. is an online personal styling service that uses data and algorithms to recommend clothing items to its customers. The company had its IPO on November 17, 2017 and saw its stock price rise by 24% on its first day of trading. By the end of 2017, the stock price had risen by over 80%.
One factor that contributed to Stitch Fix’s success was the company’s unique business model. By using data and algorithms to recommend clothing items to its customers, the company is able to offer a personalized experience that is difficult for competitors to replicate. Additionally, the company’s focus on customer service has helped it to build a loyal customer base.
Another factor contributing to Stitch Fix’s success was the company’s strong financials. In the fiscal year ended July 29, 2017, the company had revenue of $977.1 million, up from $730.3 million in the prior year. Additionally, the company had over 2.2 million active clients as of July 29, 2017, up from 1.7 million a year earlier.
Factors contributing to the success of each top-performing company
So what factors contributed to the success of Roku and Stitch Fix, and what lessons can be learned from their success? Let’s take a closer look.
Strong financials
One factor that contributed to the success of both Roku and Stitch Fix was their strong financials. Investors are always looking for companies that are growing quickly and have the potential to be profitable in the long term. By demonstrating strong revenue growth and other key financial metrics, companies can attract the attention of investors and drive up their stock prices.
Unique business models
Another factor that contributed to the success of both Roku and Stitch Fix was their unique business models. Both companies offer products and services that are difficult for competitors to replicate, giving them a competitive advantage. Additionally, their focus on innovation and customer service has helped to build strong brand loyalty.
Positioning in the market
Finally, both Roku and Stitch Fix were well-positioned in their respective markets. Roku is well-positioned to capitalize on the trend of consumers cutting the cord and turning to streaming services, while Stitch Fix is able to offer a personalized experience that is difficult for competitors to replicate.
Other notable companies that had their IPO in 2017
While Roku and Stitch Fix were the top performers among companies that had their IPO in 2017, there were many other notable companies that went public last year. These include:
- Snap Inc. (SNAP)
- Blue Apron Holdings, Inc. (APRN)
- Canada Goose Holdings Inc. (GOOS)
While these companies didn’t experience the same level of success as Roku and Stitch Fix, they still offer valuable lessons for investors.
Factors contributing to the success or failure of companies that had their IPO in 2017
While many companies that had their IPO in 2017 experienced success, there were also some that struggled. Factors that can contribute to the success or failure of an IPO include:
- Market conditions
- Company financials
- Company leadership
- Industry competition
- Consumer demand
By analyzing these and other factors, investors can better understand what makes an IPO successful and how to identify companies that are likely to perform well.
Future outlook for companies that had their IPO in 2017
Looking to the future, it’s important to consider what the outlook is for companies that had their IPO in 2017. While some of these companies are likely to continue to perform well, others may struggle as market conditions change and competition increases. It’s important for investors to stay up-to-date on the latest news and trends in the industries in which these companies operate in order to make informed investment decisions.
Conclusion and key takeaways
Overall, 2017 was a strong year for IPOs, with many companies going public and seeing their stock prices rise. While there were many notable companies that had their IPO in 2017, only a select few were able to truly excel. By analyzing what made these companies successful and examining the factors that contributed to their success, investors can better understand what makes an IPO successful and how to identify companies that are likely to perform well.
Key takeaways include the importance of strong financials, a unique business model, and positioning in the market. By considering these factors and staying up-to-date on the latest news and trends, investors can make informed investment decisions and potentially profit from the next big IPO.
