Chris’ note: We’re in the middle of the biggest IPO market ever. The last time we saw a similar one was during the dot-com boom in the late 1990s and early 2000s.
If you had invested just a few thousand – or in some cases, a few hundred – dollars in one of the big winners of that period… you’d be a millionaire today.
But as tech expert Jeff Brown reveals below, the current IPO market is different… Companies are staying private longer. And everyday investors like you and me no longer have a chance to get in before their most profitable growth.
All hope is not lost, though… if you know where to look. For all the details, be sure to sign up for Jeff’s special event next Wednesday. He’ll teach you how to spot the stocks that still have the potential to turn a moderate investment into a nest egg.
Now, over to Jeff.
The dot-com boom of the late 1990s was a defining moment in history. The excitement of the budding internet led to an explosion of companies going public…
Survivors like Amazon.com (AMZN), Cisco (CSCO), and Qualcomm (QCOM)… and dismal flops like Pets.com, Webvan, and WorldCom.
The failures crashed and lost many investors’ fortunes. But this period also minted 5 of the 10 richest people in the world today.
That’s because, during the dot-com boom, an everyday person could have invested a small stake and turned it into seven figures over time…
For eBay (EBAY), $6,804 turned into $1 million. For Dell (DELL), it took $1,564. And just $486 in Amazon would have made you a millionaire. These are just a few examples from that period.
Today, we’ve entered another “gold rush” period for companies going public…
At the end of last year, The New York Times reported, “Initial public offerings, when companies issue new shares to the public, are having their busiest year in two decades.”
In fact, we saw more than 550 initial public offerings (IPOs) last year… double the number from 2019.
And so far in 2021, 680 companies have already gone public. This flood of IPOs has raised a record-setting amount of capital as well, already reaching $230 billion in the first half of the year.
But the bad news is… the rules have changed. The chance to become wealthy by investing in these newly public companies has nearly vanished…
The 550+ IPOs last year included many popular companies that finally made their moves after years of being private.
Airbnb (ABNB) – the “Uber of lodging” – held its long-anticipated IPO in December.
Palantir (PLTR), a bleeding-edge company that uses artificial intelligence to extract insight from data, went public at the end of September.
Snowflake (SNOW), a data management software company, held a highly publicized IPO in September that was the largest software IPO to date.
But newly public companies like Airbnb, Palantir, Snowflake, and many of the other “hot” stocks the media touted were already mature, multibillion-dollar companies at their IPOs.
For instance, Airbnb is 12 years old, and right now, it sits at a valuation of $88 billion. Palantir is 16 years old and has a valuation of more than $42 billion. And Snowflake is 9 years old and has a valuation of more than $67 billion.
Unless you’re an angel investor who built a position back during the earliest investing rounds, you don’t have a chance of profiting from exponential growth in these companies.
It’s already gone.
In fact, many investors didn’t just miss out on gains… Many who tried to invest in these overhyped companies after their IPOs got burned.
Snowflake’s stock plunged as much as 46% after its post-IPO high. And retail investors who climbed in right at the IPO and held have ultimately realized gains of less than 3% at writing.
But I’m happy to say not all hope is lost for exponential returns… if you know where to look.
We’re not back in 1999. But just like during the dot-com boom, this new IPO frenzy is creating opportunity for investors. And just like with that boom, there will be huge winners and losers.
We’re seeing a splintering in the markets between overvalued companies like Airbnb and Snowflake… and small, promising tech companies where big gains are still possible.
I call these companies “Penny IPOs.”
That’s because these are small companies that still go public early… before they’ve turned into behemoths. And often, Main Street investors can get in at the same prices as – or even better prices than – the venture capitalists. That’s incredibly rare these days.
But because so many different companies are going public right now, it can be difficult to spot these “Penny IPOs.”
That’s why I’m returning to Silicon Valley. To teach you how to pinpoint the best opportunities that are just hitting the markets…
As longtime Cut readers know, I have a background in Silicon Valley. And I’m an active angel investor myself. I’ve personally invested in four unicorns (private companies valued at $1 billion or higher). I’ve also invested in two decacorns (private companies valued at $10 billion or higher).
By my own estimations, I’m sitting on returns of 936%, 14,000%, and even 25,000%.
As just one example, I was an early investor in Coinbase (COIN) years ago, when it was still small and in its developmental stages. At the time, its valuation was $1.5 billion.
It went public in April this year. Since then, its valuation has reached as high as $100 billion. That’s an excellent return… but I’m not planning to sell anytime soon. I believe COIN still has even more room to run.
I don’t say this to brag… but to make it clear that I have experience finding rare, overlooked opportunities.
Lately, I’ve been putting this expertise to work hunting for opportunities where the biggest gains are still possible.
More than five years ago, I started thinking about this dilemma, wondering how I could bring everyday investors the kind of gains you used to have a shot at 20+ years ago.
And I’ve been on a mission to uncover a new list of “Penny IPOs” that can turn your modest investment into a nest egg.
Now I’m giving you the rare chance to join me “in the field” as I put my skills to the test.
So if you’d like to learn more about my list of top “Penny IPOs”… companies that still have the potential to become the next Amazon, Dell, or Cisco… please sign up to attend my upcoming special event.
I’m calling it Silicon Valley “Unlocked.”
There, on Wednesday, June 23, at 8 p.m. ET, I’ll unveil the latest “Penny IPOs” that should be on your radar. The event is completely free to attend.
I’ll even give away the name of one of my favorite still-private “Penny IPOs.”
So please join me that evening for the full story on what these stocks are… how to spot the best ones… and how to start profiting.
Go right here to reserve your spot.
Regards,
Jeff Brown
Editor, The Bleeding Edge