Investing

8 Companies That Had Their IPO in 2016: Best and Worst Performers

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2015 saw highs and lows in the market, with the end of the year ending on a slide. The start of 2016 followed the same trend until February, but then everything turned around. Both the S&P 500 and Dow finished the year up, with the S&P 500 up 11.96% and the Dow up 13.4%. The reason investors like to keep track of these two index tools is because they keep track of the largest companies on the stock market. Whenever the large companies are doing well, the smaller ones usually do. If the ones at the stop are struggling, the lesser-known companies are going through it. 

The S&P 500 uses the top 500 companies on the market to get a broad picture with more data. The Dow only focuses on 30 of the largest companies to get their data from. Both have their value, given the huge difference in total companies kept track of. More often than not, both of these indexes are up at the end of the year, which shows growth in the market. If they’re ever down, that’s a sign of what’s to come. The most notable example of this was their being down in 2008, followed by the housing market crash. Even this year, we can see who’s done well so far

2016 was also a great year to go public. Smaller companies like going public because it offers a much easier way to raise capital to invest in the company, compared to trying to get loans. Going public works out for some companies, but it can also be a kiss of death for others who don’t use that investment money properly. 

Best Performer: BlackLine Systems

  • Opening Date: October 2016
  • Opening Price: $23.70
  • Current Price: $56.14

With how technology is growing and becoming more a part of our everyday lives, it’s important to make sure things like the cloud are secure. When it comes to finances, that importance is heightened. BlackLine Systems (NASDAQ: BL) is one of the leaders in financial software services for the cloud. They work with companies like Costco (NASDAQ: COST), Netflix (NASDAQ: NFLX), Google (NASDAQ: GOOGL), Under Armour (NYSE: UAA), and many more. The stock price is reflective of a company that appears to be continuing on the right track. When BlackLine Systems first went public in October 2016, they were trading for $23.70. As of November 17, 2023, it’ll cost you $56.14 for one share. 

Worst Performer: Trivago

  • Opening Date: December 2016
  • Opening Price: $11.85
  • Current Price: $2.70

Everyone in the world wants to travel and see as much of the world as they can. Unfortunately, it can be stressful trying to book flights, hotels, car rentals, and excursions. Sites like Trivago (NASDAQ: TRVG) were designed to make this process as easy as possible. The idea was excellent, but this market appears to be over-saturated with tons of different options. Trivago doesn’t offer anything that makes it truly stand out compared to the competition, and its stock price has suffered. When they first went public in December 2016, Trivago was selling for a price of $11.85. There was some hope at first that the stock could do well, as it rose to a price of $23.66 by June 2017. However, that’s as high as it ever got and the fall in value has been quick. As of November 17, 2023, you can purchase one share for $2.70.

Best Performer: Red Rock Resorts Inc. 

  • Opening Date: April 2016
  • Opening Price: $18.64
  • Current Price: $44.52

The itch to travel to fun places like Las Vegas is higher than ever, now that people have a larger appreciation for it. If you stay off the strip, you’re probably going to stay at a Stations Casino. Red Rock Resorts Inc (NASDAQ: RRR). is a publicly traded company that owns part of Stations Casinos. Around the Las Vegas area, there are 16 hotel and casino options. Locals also love going to stations to gamble whenever they play, thanks to the ease of getting there and neighborly feeling. The stock price of Red Rock Resorts Inc. reflects this, as it’s gone from $18.64 in April 2016 to $44.52 in November 2023. The stock doesn’t appear to be losing traction, since locals will always frequent these casinos.  

Worst Performer: Secureworks

  • Opening Date: April 2016
  • Opening Price: $14.00
  • Current Price: $5.97

Cybersecurity is a booming industry that’s working daily to keep up with those trying to attack individual people and entire countries. Secureworks (NASDAQ: SCWX) is one of the companies that was tasked with doing what they can to keep everyone as safe as they can. They were founded in 1998 and decided they wanted to go public in 2016. The first price in April of that year was $14.00. The reason it was so low is cybersecurity wasn’t as big of a deal then as it is now. They had ample opportunity to grow and have had multiple peaks where they showed how valuable they were. Unfortunately, the stock has plummeted to $5.97 as of November 2023 and doesn’t appear to be heading back toward the heights it once reached. 

Best Performer: Trade Desk

  • Opening Date: September 2016
  • Opening Price: $2.77
  • Current Price: $66.47

Social media has taken over the world and how we interact with each other. Someone from Argentina can see what someone from Ireland posts in a matter of moments. The most popular accounts on social media are even profitable, so much so that it’s become an actual career. One thing that comes along with living in the digital age is online marketing and advertising. Trade Desk (NASDAQ: TTD) is a company that produces software to help companies reach users who spend time in the online world. They’re one of the largest brands, along with DoubleClick and Facebook Ads. When the company first went public in September 2016, the market was unsure of the demand for them. This led to the opening price of $2.77. As of November 2023, they’re being traded for $66.47, a substantial leap. They also have been one of the steady risers in the market without much dip. 

Worst Performer: CMC Markets

  • Opening Date: February 2016
  • Opening Price: $240
  • Current Price: $93.90

It’s hard to be looked at as a poor-performing stock when you’re being traded for $93.90, which is what CMC Markets (LON: CMCX) is as of November 2023. However, when your opening price in February 2016 was $240, it appears things haven’t gone exactly to plan. This isn’t to say CMC is a bad stock or has a bad outlook. The foreign exchange service was once worth $536, so the opportunity for growth and a rebound is there. The stock has been on a downward trail, though, for the last two and a half years. The foreign exchange market was once a booming industry but appears to have slowed. Don’t look too down, whenever there are foreign finances involved, there are always ups and downs. Hopefully, they can figure it out and turn it around. 

Best Performer: Twilio

  • Opening Date: June 2016
  • Opening Price: $26.30
  • Current Price: $63.11

We can now communicate with people halfway around the world using our cell phones. Getting pictures from people when they’re on vacation is commonplace. You might want to text the person sitting next to you if there’s something you want to tell them but don’t want to say out loud. Companies like Twilio (NYSE: TWLO) help provide the technology and tools necessary to communicate via text message, phone call, or any other way you might do so. In June 2016, the company officially went public and was going for $26.30 per share. There was a right time to sell this stock, as it once reached a height of $439 in February 2021. Today, it’s dropped significantly but has still outperformed its opening price with a share value of $63.11. It’s also been steady around this point with no signs of falling anytime soon. 

Worst Performer: NantHealth

  • Opening Date: June 2016
  • Opening Price: $278.10
  • Current Price: $0.36

Before NantHealth (OTCMKTS: NHIQ) went public, they were a company valued at over $1.6 billion. They figured it would be worth going public and did so in June of 2016. The first offer for this company was $278.10. This was the highest it ever was and has only fallen since then. The company specializes in software solutions for healthcare in the corporate world. Today, the company is only selling for $0.36. You read that right. 36 cents is what its share is. Hopefully, they figure out how to get back to where they once were, but it doesn’t appear this will happen.

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