Generic selectors
Exact matches only
Search in title
Search in content

Best IPO Stocks

Where to purchase IPO stocks?

If you want to purchase shares of a stock in an IPO, you’ll most commonly have to go through a broker. Some firms also let you buy shares at the offering price directly, but this will often mean paying a large commission if you’re buying in reasonably large volumes.

If you are interested in trading stocks that are actually issued already, then there’s no need to pay any extra commission – the brokers may charge you an annual fee instead for maintaining your account. Finally, different online stock brokers provide you a safe and comfortable environment to trade ipo stock.

What are the best IPO stocks of this moment?

Companies like Robinhood (Nasdaq:HOOD), Coinbase (NASDAQ:COIN), Roblox (NASDAQ:RBLX), Airbnb (NASDAQ:ABNB) and DoorDash (NYSE:DASH) are very popular IPO stocks at this moment:

  1. Robinhood (NasdAQ:HOOD)
  2. Coinbase (NasdAQ:COIN)
  3. Roblox (NasdAQ:RBLX)
  4. Airbnb (NasdAQ:ABNB)
  5. DoorDash (NYSE:DASH)

1. Robinhood (Nasdaq:HOOD)

One of the most heard of IPO stock is Robinhood. The company offers commission-free stock trading and has managed to grow its user base to more than 4 million people in the U.S. alone. That’s a pretty impressive number, and it helps that the company is backed by some big names, such as Andreessen Horowitz and NEA.

Robinhood has the numbers to back up all of the excitement. The firm’s first earnings report as a publicly traded company resulted in revenue increasing 131 percent to $565 million and funded accounts growing from 9.8 million to 22.5 million, according to its website. It even made a profit of $57.6 million during the quarter, which is not always the case with IPO stocks.

2. Coinbase (NASDAQ:COIN)

One of the most populair crypto exchange also have their stocks listed on NASDAQ. Coinbase is a digital currency exchange headquartered in San Francisco, California. They broker exchanges of Bitcoin, Bitcoin Cash, Ethereum, and Litecoin with fiat currencies in around 32 countries, and storage of digital currencies in 190 countries worldwide.

While it was up, the price of bitcoin on Coinbase rose from $250 to over $430 in its first trading days. However, following Tesla (NASDAQ:TSLA) CEO Elon Musk’s declaration that his electric vehicle (EV) firm would no longer take Bitcoin payments, the stock and cryptocurrencies in general dropped precipitously.

3. Roblox (NASDAQ:RBLX)

Another great IPO stock is Roblox. The company is a massively multiplayer online game platform with more than 56 million active players and more than 1.5 billion game plays each month. That’s a lot of people, and the company is only getting bigger.

Roblox, which was founded in 2006, has over 8 million developers and 46.6 million daily active users as of July 2019. During the COVID-19 epidemic, Roblox’s growth accelerated compared to a 39% increase in 2019, with bookings increasing 171 percent during 2020 when compared to a 39 percent rise in 2019.

4. Airbnb (NASDAQ:ABNB)

Airbnb is a popular online marketplace and hospitality service, with more than 6 million listings in over 191 countries. The company was founded in 2008 and has since managed to grow into one of the most successful startups in the world.

Airbnb’s IPO launched in December 2020, and on the first trading day, the stock value more than doubled, reaching a $100 billion market capitalization.

By the second quarter of 2021, the firm’s income had already recovered to above pre-plague levels, demonstrating its flexibility. While hotel competitors have suffered, Airbnb’s market share in the sector has expanded considerably during the epidemic.

5. DoorDash (NYSE:DASH

DoorDash is a food delivery service founded in 2013. The company has since expanded rapidly and is now available in over 4,000 cities across the United States.

DoorDash, like Airbnb, completed its IPO in December 2020, and its value increased by 86 percent to $72 billion.

DoorDash has created its own proprietary technology for restaurants to use, with rapid delivery being a top priority. DoorDash has won over big chain restaurants thanks to these efforts, as well as a concentration on the suburbs. As a result, today DoorDash is the leader in the food delivery industry, having surpassed Uber.

1
Market Cap
$15.36B
NasdaqGS
Our score
9.6
★★★★★

0% commission

2
Market Cap
$66.667B
NasdaqGS
Our score
9.4
★★★★★

0% commission

3
Market Cap
$59.487B
NYSE
Our score
9.2
★★★★★

0% commission

4
Market Cap
$107.565B
NasdaqGS
Our score
9
★★★★

0% commission

5
Market Cap
$51.198B
NYSE
Our score
8.7
★★★★

0% commission

How to choose a IPO stock broker?

It’s not easy, but it’s possible. The most important thing is to make sure that you verify whether or not the company offers any physical branches in your area. After all, it’d be mighty inconvenient if you were unable to easily access your account when you needed it most.

Should I buy pre IPO stock?

Investing in pre-IPO stock can be a strategic way to build wealth in the long term. If you manage to invest in the right company at the right time, you can get tremendous returns on your investment .

Before you try your hand at investing in pre-IPO stock, make sure that you understand the risks involved. Because they are not publicly traded until after they go public, there’s no way to know how many shares are available for sale, how much demand there is for the company’s stock or what price it will open at on its launch.

Risks of IPO stocks

There are risks with investing in ipo stocks. The most obvious risk is that the company goes bankrupt or declines in value after you buy shares. This happens sometimes – the global economic crisis of 2008 was a major factor in many companies going out of business.

IPO stocks can go down as well as up, which means it’s possible for an IPO stock to drop below the price at which it started trading. This is known as “flipping.” Ultimately, there’s no way to know how the company will perform in the future, so you are taking a risk with your investment.

Where to find new IPO stocks

Where can you find new ipo stocks to invest in? One way is to visit an investment website, where you can find announcements of upcoming IPOs. It’s possible for companies to research which websites are the most popular amongst investors and make sure they get their announcement out there.

How much does it cost to buy IPO stocks

Investing in IPOs can be expensive, but there are a cheap ways to do it. You can also purchase tender offer shares directly from the company if you are very comfortable with the way in which they conduct their business, although this is somewhat rare in modern times.

You will notice that retail investors aren’t typically able to participate in pre-IPO stocks, because there’s no incentive for companies to offer stock to the general public. Instead, they sell their shares through investment banks like Goldman Sachs or Morgan Stanley.


★★★★★
Reportlab score

★★★★★
Reportlab score

★★★★★
Reportlab score
Learn moreLearn more (review)Learn more (review)
Fees
$0
Per trade
Fees
$0
Per trade
Fees
$0
Per trade
Minimum Deposit
$50
Minimum Deposit
$50
Minimum Deposit
$50
Promotion
$50 – $5.000
Check conditions
Promotion
1 free stock
Check conditions
Promotion
1 free stock
Check conditions

etoro logo

Our score
★★★★★

degiro logo

Our score
★★★★★

ig logo

Our score
★★★★★

Newsletter

Table of Contents

etoro logo

Our score
★★★★★ 10/10

0% commission

Frequently asked questions

An initial public offering, or IPO, is the first time that shares of a company are offered for sale to the public. Once an IPO occurs, company stock is listed on a stock exchange and is available for pretty much anyone to buy.

An IPO is essentially a fundraising method used by large companies, in which the company sells its shares to the public for the first time. Following an IPO, the company’s shares are traded on a stock exchange. Some of the main motivations for undertaking an IPO include: raising capital from the sale of the shares, providing liquidity to company founders and early investors, and taking advantage of a higher valuation.

Most IPOs go up and surge on their first opening day because on the opening day there is no one to sell the stocks immediately as compared to older IPOs so the company gives 3 days for the investors to invest and on the fourth day it releases it’s share price after investors invest.

If you participate and buy stocks in an IPO, you become a shareholder of the company. As a shareholder, you can enjoy profits from sale of your shares on the stock exchange, or you can receive dividends offered by the company on the shares you hold. IPO or Initial Public issues is open to all retail investors.

Advantages:

  • Fundraising. The most often cited advantage of an initial public offering is money
  • Exit opportunity
  • Publicity and credibility
  • Reduced overall cost of capital
  • Stock as a means of payment
  • Additional regulatory requirements and disclosures
  • Market pressures
  • Potential loss of control

The biggest downside for the IPO investors is dealing with volatile price fluctuations. It can be hard to stay invested when the value of your shares plummets. Many stockholders don’t stay calm when prices tumble. Rather than valuing the business and buying accordingly, they look to the market to inform them.

Grey Market IPO is an unofficial market where individuals buy/sell IPO shares or applications before they are officially launched for trading on the stock exchange. As it is an unofficial over-the-counter market, there are no regulations around it. All transactions are done in cash on a personal basis.

You might also like this:

Reportlab authors

Rebecca Nunes
Rebecca Nunes

Rebecca has a passion for cryptocurrencies and is happy to tell you more about them

Freddy Agard
Freddy Agard

Freddy writes a lot about the stock & equity market and its various options

Josh Harrison
Josh Harrison

Josh has been running in the world of cryptocurrencies since the early days.

Stephen Johnson
Stephen Johnson

Stephen knows a lot about financial products, he writes on several topics

What is Reportlab about?

Reportlab is a website where you can research stocks, cryptocurrencies, get investment tips and find the latest news about financial markets.

  • Our comparison tools, research articles and reviews are easy to read, use and totally independent. This makes sure that you know everything from A to Z about your potential investment.
  • Our financial review and comparison site is aimed at the entire European market. This means that we compare products and services online on the most important features. In addition, with us you quickly know where and how to buy stocks or cryptocurrencies.

Our mission

We believe that no one should have to pay too much unnecessarily for their financial products. Therefore, we make it easy for you to find realiable, trusted brokers that can help you with specific investments like stocks and cryptocurrency.

Helping you with investing

If you have difficulty making a investment choice, our comparison option will help you on your way. Another option is reading one of our in depth reviews or guides to gain more information about certain investments or brokerages.