April 16, 2021
6 min read
This story originally appeared on StockMarket
4 Top IPO Stocks To Watch In April 2021
As tech stocks have boomed, so have initial public offerings (IPOs). 2020 was a record year with 480 companies going public on U.S. stock exchanges. And more stocks doubled in their first day of trading than ever before. It would seem as though 2021 is on a similar track. With all the attention that IPO stocks are getting, it’s no wonder investors are looking for the next top IPO stock to buy that could deliver tremendous returns.
IPOs can be exciting for investors, as it often offers them the chance to get in on the ground floor of a stock. For example, consider how much early investors made on stocks like Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL). These tech stocks have turned $1,000 into $1 million. Having said that, not every IPO is a good investment. Not every IPO is going to be Amazon or Apple, and we have to be very clear on that.
For those who are new to the stock market, you may be asking what an IPO really is. An IPO is when a privately-held company makes its shares available for trading on public exchanges such as the New York Stock Exchange. An IPO may provide an opportunity for existing shareholders to cash out and take profits. But the goal of going public is usually for companies to have easier access to funding, which may be used to fund business expansion. Companies like Robinhood, Stripe, and Nextdoor are all mulling for big IPOs. With all the buzz surrounding IPO stocks, do you have these IPO stocks on your watchlist in the stock market today?
Top IPO Stocks To Buy [Or Avoid] In April
First up the list, Coinbase made a rousing public debut on Wall Street Wednesday, with COIN stock rising as high as $429, briefly giving it a market value over $100 billion. The Coinbase IPO is certainly a momentous occasion for crypto investors as it is the first company specializing in cryptocurrencies to go public.
For those unfamiliar with Coinbase, the company is a cryptocurrency exchange and plans to focus on investments to help digital assets scale and succeed. So, if Bitcoin or other cryptocurrencies achieve widespread adoption, the user base would likely multiply. When that happens, you could be looking at a multi-bagger in the making. There is no denying that Coinbase rests on interests in cryptocurrencies, which have seen wild price swings.
With millions of verified users and currently profitable, Coinbase is looking at significant growth ahead. The company said it anticipates meaningful revenue, user, and net income growth through the rest of 2021. If you are bullish about the crypto space but are not interested in buying any coins at all, would COIN stock be an attractive investment option to ride on the increasing interest in cryptocurrencies?
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Coming up next, Roblox is a video game platform that has grown spectacularly since it started in 2004. The game currently has on average over 30 million daily active users. RBLX stock surged to an all-time high of $82 on Tuesday after it announced a partnership. But the stock gave back its gains on Wednesday as the broader market was under pressure.
In detail, Roblox announced that it will enter into a partnership with popular toymaker Hasbro (NASDAQ: HAS). The partnership will introduce a range of Roblox-inspired NERF blasters and a Roblox version of Hasbro’s iconic Monopoly board game. What makes it exciting for players is that the NERF and Monopoly come with a code for users to redeem virtual items.
The blasters will hit US shelves this fall while the Roblox Monopoly is already available for pre-order on Hasbro Pulse. This could potentially generate a lot of revenue for Roblox when the toys launch. It will also be able to attract new users and retain current ones. Given the exciting development, will you be adding RBLX stock to your list?
Coursera is a leading online learning platform for higher education. Started in 2012, Coursera has grown rapidly to become a common name for online learning. The platform currently has over 77 million registered users. Impressively, it has already partnered with over 200 universities and industry educators to provide courses to the public. Since the company’s shares debuted at the end of March, COUR is already up over 10%. The pandemic certainly benefited Coursera as registered users were up over 60% throughout 2020. Revenues also grew above 50%.
What makes Coursera attractive and practical is its comprehensive, flexible, and cost-effective learning solution. The flexibility is certainly important for users who have a full-time job. For students who need a cheaper alternative to college, Coursera has that covered too. In recent years, Coursera has upped its game by now offering bachelor’s and master’s degrees priced between $9,000 to $45,000. Both students and working adults can now get their degrees all through the convenience of their computers.
Coursera also currently has over 380 enterprise customers which are up over 50% compared to 2019. It does seem that Coursera is on a path that can potentially address the global market. While traditional brick and mortar education may not fade away, it does come with a higher cost. As the education space advances, could COUR stock be a good buy now?
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Last on the list, home rental start-up company Airbnb could arguably be a good IPO stock to watch as the economy reopens. The company has already been disrupting the hotel and short-term property rental markets for years.
That said, it is no surprise that Airbnb’s business was affected in 2020 with strict travel restrictions. However, the company has proven to be quite resilient. The company reported 2020 revenues of $3.4 billion which is only down 30% compared to 2019.
Pent-up demand for travel is clearly there and the ongoing vaccinations provide hopes of a speedy reopening. However, some could still be cautious about going to more densely populated areas. This is where Airbnb has an advantage over hotels. Adding to that, Airbnb also offers a more affordable vacation experience which only encourages travelers to use its platform. Airbnb is certainly poised for strong growth when the economy reopens. With that in mind, would you be adding ABNB stock to your portfolio today?