Disruptive Tech Unicorns going IPO by Christmas

Note: Please subscribe for free email trade alerts.

There are several unicorn startups going to get publicly listed before year end. Why not, stocks are ripping. Dow touched all time high of 30,000!!

We are most excited about Roblox and C3.ai IPO and may initiate a position after IPO.

Following are the IPOs we are watching.

DoorDash ($DASH)

DoorDash (DOORD) officially files for a $100M IPO on the New York Stock Exchange after a long period of circling around a public debutn its filing.

DoorDash notes that it is the U.S. category food delivery leader with ~50% market share based on sales. DoorDash generated revenue of $885M in 2019 and and $1.9B in 2020 for the first nine months. The company generated net income of $23M for the three months ended June 30, but has incurred net losses in each year since its founding.

DoorDash plans to offer three classes of stock with different voting shares (Class A common stock will grant owners one vote per share, Class B shares with 20 votes per share and Class C shares with no voting rights).

DASH has produced very strong growth due to the effects of the Covid-19 pandemic, but future growth post-pandemic is a question.

AirBnb ($ABNB)

The company plans to trade on the Nasdaq under the "ABNB" ticker. Airbnb says it is seeking up to $1B in the listing

Revenue was up 32% Y/Y to $4.8B in 2019. For the first nine months of 2020, revenue dropped 32% to $2.5B. Net loss for 2019 was $674M and totaled $697M for the first nine months of this year

The business’s future depends on how society will continue to be affected by the coronavirus, but the company has made moves to adapt. Investors should realize that the travel industry will eventually recover, and Airbnb represents a potential opportunity to buy at a low point.

Roblox Corporation ($RBLX)

Roblox makes freemium games supported with in-app purchases and operates Roblox Studio, a free game creation system that puts the company in competition with recently listed Unity Software

Reuters sources say Roblox is working with investment banks to potentially list early next year at roughly double its recent $4B private valuation

Roblox provides 3D virtual world experiences to over 36M DAUs.

During the pandemic, growth exploded and ~75% of children aged 9 to 12 use the platform.

To continue its growth, Roblox is adding events to capture additional users and hours spent on the platform.

Roblox can go IPO by year end.

C3.ai (AI)

C3.ai (AI) intends to raise $100 million in an IPO of its Class A common stock, according to an S-1 registration statement.

Redwood City, California-based C3 was founded to develop a suite of machine learning software capabilities to help businesses make better decisions and optimize their operations and strategic activities.

Management is headed by founder and CEO Thomas Siebel, who was previously founder and CEO of Siebel Systems until it merged with Oracle in 2006. The AI startup has had strong historical revenue growth — from $92 million to $157 million in the fiscal years ending April 31, 2019 and 2020 — in more recent quarters, its pace of expansion has slowed.

Affirm ($AFRM)

Affirm is a point of sale lender platform. It is working with Goldman Sachs on an IPO offering that values it as much as $10 billion. Affirm gives online shopper the option to pay for purchases in installments through short-term loans. Thousands of merchant websites, ranging from Walmart to Expedia, offer Affirm as a financing option.

Recently $SHOP announced partnership with Affirm. Affirm gets a fee when assisting a merchant with a sale, and also earns interest income on loans. The company is run by Max Levchin, one of the founders of PayPal, alongside Peter Thiel and Elon Musk. Levchin also was a co-founder of Yelp.

The number of shares and price for the offering have not yet been set. Also, in April 2019, Affirm raised $300M in private funding at a $3B valuation.

Subscribe to Alpha Investor

Don’t miss out on the latest issues. Sign up now to get access to the library of members-only issues.