Are Unicorn IPOs Good Investments?

Many so-called unicorns have or will come to market in 2019, but should investors get excited about them, or would they be better served taking a wait-and-see approach?

David Brenchley 29 April, 2019 | 2:59PM
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Uber logo, Uber IPO, unicorns, stock market, FAANGs, Lyft

This year has been dubbed the year of the Unicorn IPO, with many Silicon Valley-based start-up firms listing in the US, to fervent retail investor interest.

Those that have come to market before the end of April have had good to excellent first-day returns, with $24 billion ride-hailing app Lyft (LYFT) surging 25% initially before closing up 8%. Elsewhere, $12 billion photo-sharing app Pinterest (PINS) was up 28% at close of its first day. Video conferencing firm Zoom (ZM) finished its first trading day up 72% and is now worth $17 billion.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Allianz Technology Trust Ord313.02 GBP0.81Rating
Alphabet Inc A2,816.00 USD0.00Rating
Baillie Gifford American B Acc2,140.49 GBP1.54Rating
Facebook Inc A364.72 USD0.00Rating
Lyft Inc Class A52.18 USD0.00Rating
Pinterest Inc54.77 USD0.00Rating
Premier Miton Global Sust Gr C Acc327.80 GBP0.09Rating
Scottish Mortgage Ord1,398.54 GBP0.51Rating
Twitter Inc62.47 USD0.00Rating
Zoom Video Communications Inc287.68 USD0.00Rating

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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