Should You Invest in that Hot IPO Stock? [Value Any IPO Stock]

Wondering if you should invest in IPO stocks? How do you know how much an IPO stock is worth? In this video, I’ll answer What is an IPO, show you how IPOs work and reveal a technique to value any IPO. Check out the stock simulator and Get a FREE share of stock worth up to $1000 when you open a Webull investing account with a $100 deposit! 🤑 https://mystockmarketbasics.com/webull This year was one of the biggest for new IPO stocks. From Palantir to Snowflake and we’re about to see the AirBnB IPO, investors are rushing into these new stocks. But should you invest in IPOs and how do you know how much you should pay? Valuing these kinds of fast-growing, startup companies was my job as a venture capital analyst and I love the idea of getting in on that ground floor of the next Netflix or Amazon. The problem is, for all the pros of IPO stocks there are also a lot of reasons not to invest. An IPO or initial public offer, is when a private company first issues shares on the public markets. The company usually hires an investment bank to help it value the shares and promote the IPO for investors before it starts trading on the exchanges like the Nasdaq or the NYSE. An IPO is a way for the company to raise money for growth, lower interest rates from its creditors and drum up investor interest. The problem is that many new IPO stocks these days are already giant companies. When I worked as an analyst, we would typically try to IPO a company when it was a $1 billion company or smaller. The early investors made a lot of money but regular Main Street investors could still make money after the shares went public. For example, Apple went public at a market cap of around $500 million and is now a $2 trillion company…that’s a 4,000-fold increase. But recently companies are issuing stock at valuations of thirty- and forty-billion already. Even if $30 billion Palantir grew to $200 billion, that would still only be a 6.7X increase for IPO investors. That’s not to say you can’t make money investing in IPOs but you need to know how to value these stocks. That’s what I’ll show you in this video, how to value any IPO stock, with a technique called public comparables. 2:17 What is an IPO? 2:43 How do IPOs Work? 3:00 Historical IPO Returns 5:00 How to Value Any IPO Stock Join the conversation in our private Facebook Group! https://www.facebook.com/groups/3083628104983203/ My Investing Recommendations 📈 📊 Download this Portfolio Tracker and Investing Spreadsheet! [Community Discount Code] https://mystockmarketbasics.com/spreadsheetdiscount Check out the stock simulator and Get a FREE share of stock worth up to $1000 when you open a Webull investing account with a $100 deposit! 🤑 https://mystockmarketbasics.com/webull Follow the 2021 Bow Tie Nation portfolio on Stockcard and get a special 10% discount with promo code: bowtienation https://mystockmarketbasics.com/stockcarddiscount Free Webinar – Discover how to create a personal investing plan and beat your goals in less than an hour! I’m revealing the Goals-Based Investing Strategy I developed working private wealth management in this free webinar. Reserve your spot now! https://mystockmarketbasics.com/free-investing-webinar My Books on Investing and Making Money 💰 📗 📈 Step-by-Step Dividend Investing http://amzn.to/2aLpFcs Step-by-Step Bond Investing http://amzn.to/2aLpA8p Make Money Blogging http://amzn.to/2kpL6Cr 📺 Crushing YouTube https://amzn.to/2YVCqfi 🙏 Step-by-Step Crowdfunding http://amzn.to/2aS2DRK SUBSCRIBE to create the financial future you deserve with videos on beating debt, making more money and making your money work for you. https://peerfinance101.com/FreeMoneyVideos Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.