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4 top IPO stocks in April 2021
With the boom in tech stocks, IPOs have also increased. 2020 was a record year with 480 companies going public on US stock exchanges. And on the first day of trading, more stocks doubled than ever before. It seems like 2021 is on a similar path. With all the attention IPO stocks get, it's no wonder investors are looking for the next top IPO stock that could generate huge returns.
IPOs can be exciting for investors as they often give them the opportunity to get into the ground floor of a stock. For example, consider how much early investors made from stocks like Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL). Those tech stocks turned $ 1,000 into $ 1 million. However, not every IPO is a good investment. Not every IPO will be Amazon or Apple, and we have to be very clear about that.
For those new to the stock market, you might be wondering what an IPO really is. An IPO occurs when a privately held company makes its shares available for trading on public exchanges such as the New York Stock Exchange. An IPO can give existing shareholders the opportunity to cash out and take profits. However, the goal of going public is usually to give companies easier access to funding that can be used to fund business expansion. Companies like Robinhood, Stripe, and Nextdoor are considering major IPOs. With all the IPO stock hype, do you have those IPO stocks on your watchlist on the stock market today?
Top IPO Stocks To Buy (Or Avoid) In April
First on the list, Coinbase made a sweeping public debut on Wall Street on Wednesday. The COIN share rose to $ 429 and briefly reached a market value of over $ 100 billion. Coinbase's IPO is certainly a significant opportunity for crypto investors as it will be the first company to specialize in cryptocurrencies to go public.
For those unfamiliar with Coinbase, the company is a cryptocurrency exchange and plans to focus on investing to support digital asset scale and success. So if Bitcoin or other cryptocurrencies find widespread adoption, the user base would likely multiply. In that case, you might be looking at a multi-excavator that is being manufactured. It cannot be denied that Coinbase is based on interests in cryptocurrencies that have seen wild price fluctuations.
With millions of verified users and currently profitable, Coinbase expects significant growth. The company expects significant sales, user and net income growth for the remainder of 2021. If you're optimistic about the crypto space but don't want to buy coins at all, would the COIN stock be an attractive investment option given the increasing interest in cryptocurrencies?
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Next up is Roblox, a video game platform that has grown spectacularly since it launched in 2004. The game currently has an average of over 30 million active users per day. RBLX stock hit an all-time high of $ 82 on Tuesday after announcing a partnership. But the stock returned gains on Wednesday as the broader market came under pressure.
In detail, Roblox announced that it would enter into a partnership with the well-known toy manufacturer 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 gamers is that NERF and Monopoly include a code that users can use to redeem virtual items.
The blasters will hit US shelves this fall, while the Roblox Monopoly is already available for pre-order at Hasbro Pulse. This could potentially generate a lot of revenue for Roblox when the toys hit the market. It will also be able to attract new users and keep them current. Given the excitement, will you add RBLX stocks to your list?
Coursera is a leading online learning platform for higher education. Coursera was founded in 2012 and has quickly become a household name for online learning. The platform currently has over 77 million registered users. What is impressive is that it has already worked with over 200 universities and industry educators to offer courses to the public. Since the company's shares debuted in late March, COUR is up over 10%. The pandemic certainly benefited Coursera as registered users increased by over 60% in 2020. Income also increased over 50%.
What makes Coursera attractive and practical is its comprehensive, flexible and affordable learning solution. 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 as well. In the past few years, Coursera has improved its game and now offers Bachelor and Master degrees at prices between $ 9,000 and $ 45,000. Both college students and working adults can now graduate from the convenience of their computer.
Coursera currently has over 380 corporate customers, an increase of over 50% compared to 2019. Coursera appears to be on a path that can potentially appeal to the global marketplace. While traditional inpatient training may not fade, it comes with a higher cost. With the advancement in education, could COUR stock be a good buy now?
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Last on the list, home rental startup Airbnb could be a good IPO stock to watch as the economy re-opens. The company has been disrupting the hotel and short-term property rental markets for years.
However, it's not surprising that Airbnb's business was hit by severe travel restrictions in 2020. However, the company has proven to be quite resilient. The company reported sales of $ 3.4 billion in 2020, a 30% decrease from 2019.
The pent-up demand for travel is clearly there and the ongoing vaccinations give hope that it will reopen soon. However, some might still be cautious when going to more populated areas. This is where Airbnb has an advantage over hotels. Additionally, Airbnb offers a cheaper vacation experience that only encourages travelers to use its platform. Airbnb is sure to be set for strong growth when the economy picks up again. With that in mind, would you add ABNB stocks to your portfolio today?