Innovative companies around the world are continuing to get listed on public stock exchanges. Technology IPOs remain rampant in the US. Several IPOs are announced every year, but very few companies survive. Here are the best IPOs of 2018. These new stocks present excellent investment opportunities.
Eventbrite Inc (NYSE:EB)
Eventbrite Inc (NYSE: EB) is one of the hottest IPOs of 2018. Eventbrite is a US-based ticketing and event management website. Given the huge growth prospects amid the migration of ticketing and event management online, Eventbrite is a strong investment opportunity. The company’s revenue in 2017 came in at $202 million. In the first half of this year, revenue increased by 61% year over year to reach $142 million. The company has made about 9 acquisitions over the last five years. These acquisitions include Ticketfly from Pandora. The Ticketfly acquisition essentially made Eventbrite a market leader in online ticketing. Eventbrite priced its initial public offering at $23, selling 10 million shares to raise $230 million.
Dropbox Inc (NASDAQ:DBX)
Earlier this year, Dropbox priced its IPO above expectations; at $21 per share, selling 36 million shares and raising $756 million. This was the biggest tech IPO after Snap’s in 2017. The IPO gave Dropbox a market cap of about $8.2 billion. Dropbox has an impressive growth rate. As of 2017, the company’s revenue was $1.1 billion. In August, Dropbox reported better-than-expected second quarter results. The company also reported strong growth for its paid subscriber base. Revenue in the quarter increased by 27%. The company has 11.9 million paying users at the end of the second quarter, up from 9.9 million reported in the same quarter a year ago.
Spotify Technology SA (NYSE:SPOT)
Music streaming service Spotify went public earlier this year with a bang. On its first trading day, Spotify stock closed trading at $149.01, valuing the world’s largest streaming music service at $26.5 billion. As of early 2018, Spotify has over 70 million subscribers. The company earns about $5 billion a year in revenue. Spotify business model has some issues because the company has to pay big royalties to music companies like Universal Music Group, Sony Music Entertainment. But the company has started solving this problem, as it renegotiated its deals to cut losses.
Docusign Inc (NASDAQ:DOCU)
DocuSign is one of the most innovative companies of 2018. The company provides electronic signature technology and transaction management services for facilitating electronic exchanges of contracts and signed documents. On its first trading day the stock surged 37% from its initial-public-offering price of $29. The company raised $629 million overall. The IPO valued the company at over $6 billion, more than double the valuation the company secured in 2015. In June, the company reported first quarter results. The company reported adjusted profit of 1 cent a share on sales of $155.8 million, or a 37% increase from the year-ago quarter.
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Author does not have investment in stock discussed in this article.