2 Recent IPOs to Watch in 2021
Three of the 10 largest initial public offerings (IPOs) in U.S. history made their debuts in 2020. One of them, Snowflake (NYSE: SNOW), set the financial media ablaze with a huge first-day pop, an unlikely investor, and a valuation reminiscent of the market mania in 1999 and 2000. One stock that didn't make the list of biggest IPOs was GoodRx (NASDAQ: GDRX), which turned the unusual combination of growth and profitability into its own big first-day gain. Both of these company have a metric that investors can use to determine if their early growth stories will remain intact through 2021.
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The financial world was already excited about Snowflake's IPO. Then it was reported that Warren Buffett's Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) had acquired a stake in the company -- it turned out to be about $735 million of stock -- and the shares more than doubled on the first day of trading. The company followed up by posting year-over-year revenue growth of 115% in its first earnings report for the quarter ended Oct. 31, 2020. Its net revenue retention rate, or sales from customers that existed at the same time last year, was 162%. Not only is the company bringing in new customers, but existing customers are spending a lot more than they were last year.
Source Fool.com
