Hi all, Julie here.

Hope everyone enjoyed the holiday weekend! We had an extra holiday in the Verhage-Greenberg household: it’s Jordan’s birthday! We celebrated with birthday cake ice cream sandwiches from Launderette, cookies that my parents sent us, and BBQ from Franklin’s (yes, that Franklin’s). It was delightful. All of these things have absolutely nothing to do with today’s topic, but I wanted to make your mouth water before diving in.

Going public. If you’ve been reading my newsletters lately (which most of you do, and I thank you for that), you’ve heard that there are a lot of companies that are going to go public soon. Robinhood, Better.com, Marqeta, NerdWallet (rumor), and others rumored as well (Dave). And today, the team at SoFi went public via a SPAC and rang the bell at the Nasdaq (congrats to all of our SoFi/Galileo readers).

And if you’ve been following us for a while, you’ll remember that 2020 had a good number of public listings for our sector as well. Affirm, Bill.com, Lemonade, and more. So, I thought it would be fun to go back and check in on how those listings are doing. Full disclosure, I own a few shares of Affirm (literally a few, and I bought a fair bit after the IPO). In alphabetical order:


Today's Partner, Public

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Affirm

  • IPO, January 2021
  • Priced at $49
  • Opened around $90
  • Traded as high as $146
  • Currently trading at $61
  • Up 25% from IPO price, Down 32% from where it opened

Bill.com

  • IPO, December 2019
  • Priced at $22
  • Opened around $38
  • Traded as high as $196
  • Currently trading at $152
  • Up 590% from IPO price, Up 300% from where it opened

Coinbase

  • Direct Listing, April 2020
  • Priced at N/A
  • Opened around $342
  • Traded as high as $430
  • Currently trading at $241
  • Down 30% from where it opened

Lemonade

  • IPO, July 2020
  • Priced at $29
  • Opened $50
  • Traded as high as $188
  • Currently trading at $91
  • Up 214% from IPO price, Up 82% from where it opened

Metromile

  • SPAC, November 2020
  • Priced at N/A
  • Opened around $10 when announced
  • Traded as high as $20
  • Currently trading at $8.57
  • Down 14% from where it opened

Opendoor

  • SPAC, June 2020
  • Priced at N/A
  • Opened around $10 when announced
  • Traded as high as $39
  • Currently trading at $15
  • Up 50% from where it opened

Rocket Cos.

  • IPO, August 2020
  • Priced at $18
  • Opened at $18
  • Traded as high as $43
  • Currently trading at $18
  • Unchanged

This raises a few points to me.

  1. If you’re going to buy an IPO, SPAC or Direct Listing, be ready for volatility.
  2. This shows why it can be very helpful to your potential returns if you can buy at the IPO price rather than where the stock actually starts trading. It will be interesting to see how new offerings from Robinhood, Public and others impact their customer growth and acquisition. Also very interested in seeing if places like Schwab, TD and others start getting in on the game of offering select customers access to IPOs early.
  3. Of course, part of the reasons these stocks have pulled back has little to do with their own fundamentals and a lot to do with retail traders taking profits and changing their bets on where the biggest returns will be as the economy reopens. It could also have a little to do with people trying to lock in gains prior to a higher capital gains tax getting passed, though it looks like that might be retroactive and ruin this plan anyways.

Have you bought any of these companies? Did you buy the day they began trading or did you wait for a dip like I did with Affirm (though it’s still lower now than when I bought it)? Do you think there will be increased pressure for brokerages to start offering select access to public offerings? Ping me by simply replying to this email! 

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