The Capitalist Investor - Episode 54

IPOs have been all the rage. So in this episode of The Capitalist Investor, we made a list of 15 IPOs that will be launching soon. We share what they are, what their valuation looks like, and whether we would “buy” them or hit “pass.” If you want a candid take on the world of IPOs, don’t miss this episode!

Outline of This Episode

  • [1:07] The 15 hot upcoming IPOs
  • [2:03] #2: DoorDash
  • [4:33] #1: Roblox
  • [5:43] #3: The Wish App
  • [7:07] #4: Airbnb
  • [9:37] #5:
  • [12:43] #7: Bumble
  • [16:11] #8: AppLovin
  • [17:15] #9: Instacart
  • [19:08] #10: ThoughtSpot
  • [20:39] #11: Petco
  • [22:12] #12: UI Path
  • [23:49] #13: Oscar Health Insurance
  • [25:54] #14: Nextdoor
  • [27:27] #15: Ascensus
  • [28:37] Our top picks

DoorDash and Instacart: Clear winners?

DoorDash rolled out priced at $102 a share and has only gone up from there. DoorDash is a game-changer. They’ve been awesome throughout COVID. The problem is that it’s trading at 100x EBITDA. That’s expensive. I think getting in at that price point is crazy—but I said the same thing about Zoom in March. The revenue surged from $587 million in 2019 to $1.92 billion in 2020. This pandemic has signed people up who will continue to use it.

Who doesn’t love Instacart? Your groceries are delivered right to you. My personal pet peeve is that I always seem to get the lazy shoppers. They go in, pick the first thing they see, and get out. If Instacart can perfect their process, it’s a phenomenal service.

Airbnb: Will it soar—or flop?

Who knows if owners are “sanitizing” their homes in between guests. It seems like a bad time for their IPO. But we also realize that a lot of younger people exclusively book Airbnb vacations. Instead of spending money on a beach resort (with resort fees), they’d rather stay in a home. I personally hate Airbnb. You have one bad experience and you won’t go back. We rented a house near a ski resort and their dog’s hair was everywhere—including in the bed. It was disgusting. The process needs to be refined, but the overall model is good.

Affirm: The “Pay at your own pace” lender

Affirm is an online lender that uses AI. This company has more than 5.6 million users and works with Walmart, Wayfair, Peloton, and other big-name companies. The CEO—Max Levchin—pioneered PayPal. Betting on a CEO with a great track record like that is a good move. Not only that, but their revenue is up 93% year after year.

UiPath: Automation is the future

UiPath is a robotic process automation company. Process automation is what drives profitability for companies. The more you can automate things, the more profitable you can become. Some people look at this and say “But there won’t be jobs.” There will be jobs, but it will be a repositioning of jobs. You may not need someone at the register in McDonald’s—but you will need someone at the company working to build the kiosk. UiPath has a $15 billion+ valuation. Automation is essential for many large corporations. Sequoia Capital and Tiger Global are a couple of their major investors, which is huge.

Bonus: Petco is the way to go

We were surprised to find out that Petco wasn’t already public. Petco has a $6 billion valuation and with dog ownership skyrocketing during the pandemic, this could be a good play. It’s difficult to train a puppy when you’re not home—but everyone has been home. It was the perfect time to adopt a pup. It’s an easy-to-understand company that has great potential.

Listen to the whole episode for our thoughts on all 15 upcoming IPOs and whether we think they’re worth a buy—or a hard pass.

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Keep Listening to The Capitalist Investor:
Episode 12:
Fiscal Stimulus Bazooka, Ep #12
Episode 28:
First Investing Experience: Baseball Cards, Ep #28
Episode 44:
Presidential Debates and the Possibility of a Contested Election, Ep #44
Episode 60:
GameStop, Reddit, and the Power of the Retail Investor, Ep #60
Episode 76:
Time Horizon and Its Impact on Your Investment Strategy, Ep #76
Episode 92:
El Salvador Welcomes Bitcoin, Ep #92
Episode 108:
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Episode 13:
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