Reddit (NYSE:RDDT) is taking the market by storm with a remarkable surge post-IPO, maintaining its upward trajectory despite the looming options launch next week for options traders.
In recent years, IPOs have experienced a lull, overshadowed by a wave of SPACs in the pandemic era. However, with rising interest rates and subdued stock conditions, IPO activity dwindled significantly.
Reddit’s IPO could signify a turning point in the IPO landscape, and three companies are tentatively eyeing a public debut in 2024.
Panera: A Taste of the Past and Future
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Panera has a history in the public sphere, delivering over a 50% return before its delisting following acquisition by German conglomerate JAB Holding Company in April 2027.
Despite this, in comparison, the S&P 500 only yielded a 7.5% return within the same period. As Panera gears up for a relisting, armed with a track record of past performance, investor interest is piqued.
While recent leaks suggest a shift in food quality standards to drive cost savings, Panera’s IPO is still anticipated eagerly. Will the market accept cost-cutting measures, or will demands for quality akin to Chipotle (NYSE:CMG) prevail?
Shein: Styling a New Future
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Fast-fashion giant Shein debates its IPO destination, with the choice laced in ongoing concerns regarding Chinese companies amidst Alibaba Group’s (NYSE:BABA) woes and the turbulent TikTok saga.
However, potential investors need not fret, as access to Shein stock may still be available through ADRs or F-Shares, depending on its listing location. Valued at around $66 billion, Shein’s market cap could soar with recent strategic partnerships, like its venture into physical retail alongside Forever 21 brands.
Discord: Harmonizing Market Potential
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Another potential IPO contender reminiscent of Reddit’s success is Discord, boasting a user base exceeding 200 million per month. While an exact 2024 IPO is not confirmed, indications suggest a move towards profitability with sponsorships, in-game monetization, and expanded developer tools.
With revenue quadrupling to $600 million over four years, Discord appears poised for financial success, offering a unique social media alternative. Noteworthy is its confident stance, declining a $12 billion buyout bid by Microsoft (NASDAQ:MSFT) in 2021, which speaks volumes about its value and potential as an IPO prospect.
