2021 was a strong year for Initial Public Offerings (IPOs) in the United States. In total, there were more than 1,000 IPOs in the US, which raised more than $315 billion. Most of these IPOs were Special Purpose Acquisition Companies (SPACs). In this article, we will look at three of the top 2021 IPOs that could bounce back in 2022.
Rivian (NASDAQ: RIVN) had the biggest IPO in 2021 as the electric truck company raised almost $12 billion. The IPO valued the company at more than $80 billion. Shortly afterwards, the Rivian stock price surged to an all-time high of $180 in November.
Today, the stock has crashed by about 46% while its total market capitalization has declined to more than $87 billion. The decline accelerated when the company published a relatively weak forward guidance in November.
To be clear. On traditional metrics like price-to-earnings (PE) and price-to-sales (PS), Rivian is extremely overvalued. Besides, it has no earnings yet.
Still, with the electric vehicle (EV) theme being in the market, there is a likelihood that the stock will bounce back in 2021. All the company needs is to show that there is a strong demand for its pickup trucks.
Also, it is worth noting that all EV companies have gone through a period of a sell-off. For example, there was a time when Nio almost went bankrupt. Therefore, while Rivian is a risky stock, it might make sense to add a small portion in your portfolio.
Coinbase (NASDAQ: COIN) went public in one of the most anticipated IPOs of 2021. This IPO was notable since Coinbase is the second-biggest cryptocurrency exchange in the world after Binance. It was also one of the biggest firms in the industry to go public.
The Coinbase stock price initially jumped to a high of $430 after going public. It then crashed by more than 50%. Today, it is about 40% below its all-time high.
This performance is easy to understand. The volume of cryptocurrency traded has declined from its highest point in May this year. At the same time, the number of people actively trading cryptocurrencies has declined. Most importantly, competition has increased in the industry.
Still, there is a likelihood that the Coinbase stock price is now oversold and will rebound in 2022.
Oatly (NASDAQ: OTLY) is another failed 2021 IPO. For starters, Oatly is a company that manufactures oat milk and is backed by Oprah Winfrey.
Oatly went public in 2021 and its stock surged to an all-time high of $28.95. Today, the stock has collapsed by more than 74%. It is simple to see why the stock crashed. The company went through a short report that accused the company of misleading investors. The firm has nothing proprietary and competition is also rising.
Still, there is a possibility that the Oatly stock price will bounce back. For one, the company is backed by Oprah, who is one of the most influential people in the US. Also, while competition is rising, the company has a good market share in its industry.
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