Technology

4 Formerly Red-Hot IPOs Have Huge Long-Term Upside Potential Now

Corsair Gaming

For anybody big into esports and gaming, this company is very familiar. Corsair Gaming Inc. (NYSE: CRSR) designs, markets and distributes gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East and the Asia Pacific.

The company offers gamer and creator peripherals, including gaming keyboards, mice, headsets, and controllers, as well as capture cards and studio accessories. It also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as pre-built and custom-built gaming PCs. Its PC gaming software includes iCUE for gamers and Elgato’s streaming suite for content creators.

The company sells its products through a network of distributors and retailers, including online retailers, as well as directly to consumers through its websites. With the summer break around the corner, this could be a solid idea.

The street-high $55 Wedbush price target accompanies its Overweight rating. The $48.33 consensus target is also well above the most recent close at $32.42 a share.

PubMatic

This company had another explosive IPO that blew up out of the gate, traded higher and has come back in some. PubMatic Inc. (NASDAQ: PUBM) provides a cloud infrastructure platform that enables real-time programmatic advertising transactions worldwide. The company’s solutions include PubMatic Cloud, which offers a customizable platform as a service to deliver a proprietary solution; openwrap and openwrap OTT, the Prebid-powered header bidding solution; openwrap SDK, which is an in-app header bidding technology; and media buyer console.

PubMatic also provides RTB advertising technologies, digital advertising inventory and real-time creative scanning for ads. Furthermore, the company offers audience encore for audience data transaction, and cross-platform video for multi-integration support for video bidding. Its platform supports an array of ad formats and digital device types, including mobile app, mobile web, desktop, display, video, over-the-top, connected television and media.

Top analysts see PubMatic as an ad-tech winner with multiple drivers, including the shift to programmatic advertising, buyers consolidating spend around fewer supply-side players and growth in new verticals like Connected TV. Some across Wall Street believe 20% or more revenue growth over the next two years is achievable and could be conservative.

JMP Securities has an Outperform rating and a street-high $64 price target. The consensus target is $60.33, and shares pulled back almost 9% on Tuesday trade to close at $47.51.


Some of these stocks are down more than 50% from the highs printed not long after their debuts. We have kept a close eye on all four to see when the insider selling starts to diminish and, in at least one case (for C3.ai), it appears to be almost over. Aggressive investors with a longer time frame could make some huge gains with a little patience. With that noted, the current market appetite for aggressive momentum plays is weak now, so caution is warranted, as is scale buying positions.