Investing

9 Top IPOs to Watch in 2020

Robinhood

Robinhood is an online brokerage service that primarily operates through its app. Although this company has only been making news in the past couple of years, it has been around since 2013. This online broker was one of the first to adopt a zero-fee trade policy for its customers, and only recently have the bigger online brokerage firms followed suit.

Over the summer, Robinhood received more financing for its business putting its valuation between $7 billion and $8 billion.

This startup has seen incredible growth over the past couple of years. In the summer of 2018, Robinhood had roughly 4 million users. This number was said to have jumped to 6 million by the end of the year. Currently, Robinhood has over 10 million users, according to Forbes.

While the company has not yet filed with the SEC to come public, Robinhood has been the talk of Wall Street for what the future could hold, especially in terms of getting more millennials into the market. One big question now is how it will differentiate itself in a world where all the top online trading platforms have also capitulated and gone into zero-commission trading.

Postmates

Postmates has risen to popularity as the gig economy has taken off. If Uber and Lyft are glorified taxi services, Postmates is the delivery service equivalent — without the massive valuation. Postmates was launched in 2011 and offers an on-demand delivery service for restaurants and stores that previously did not offer deliveries. Postmates valuation is estimated to be roughly $2.4 billion as of September.

This company was expected to come public in 2019 when it confidentially filed for an IPO with the SEC in February. The S-1 was expected to come later in the year (many reports suggested September) but this never came about. CEO Bastian Lehmann has cited “choppy” market conditions, especially for growth-focused companies, as a rationale for not bringing the company public yet.

One concern for this company is the e-commerce Death Star Amazon, which has been taking the delivery service industry by storm. Big names like FedEx have felt the sting. Even though Postmates is fighting this battle on a more local level, it’s hard to believe that this firm won’t be affected in some way. On the other hand, Postmates is also experimenting with drone and robot delivery in Los Angeles, San Francisco and maybe soon New York.

Casper

Casper might not be a household name but it could prove to be a dark horse IPO in 2020. Companies that sell mattresses may not be exciting, but Casper is one of the first to break into e-commerce, easily differentiating itself from the field in a market that could double within the next five years.

This company has also taken the offensive on social media, enlisting celebrities as hired guns to push their mattresses. Influencers like Kylie Jenner, 50 Cent and even Leonardo DiCaprio are on the payroll, and it seems to be paying off.

Earlier this year, the company had its financials leaked online. According to the leak, Casper projected revenue for 2018 of $373 million with more than $100 million in the third quarter alone, a 49% year over year increase.

After a round of funding in March, analysts are estimating Casper’s valuation at just over $1 billion.