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Upcoming Wall Street debuts: here’s who will debut at the end of the year

There are several companies in the U.S. that are warming up their engines to go public by the end of the year. What are the new hypo on Wall Street?

Let’s go in order:

The New Hypo at Wall Streat: Airbnb

Airbnb, a leading company in the short-term rental industry. According to company plans, the IPO is expected to raise $2.5 billion. The company will be listed on Nasdaq under the initials “ABNB.”

The pandemic and the resulting social distancing provisions severely affected the tourism industry, thus travel and hospitality, so much so that Airbn had to lay off 25 percent of its employees.

Contrary to expectations, however, Airbnb has also experienced an encouraging rebound in recent months, driven mainly by increased bookings during the summer period (albeit below the company’s standards).

In fact, the U.S. giant managed in the last quarter to post a net profit of $219 million on total revenues of $1.65 billion. The latter was down 19 percent from 2019, when the company’s revenues were at 1.65 billion.

The profit figure, however, is for investors – ahead of the IPO – a sign of the company’s resilience. In fact, Airbnb has rarely closed quarters with a plus sign: it had happened, in the past, only in the second half of 2018 and the third quarter of 2019.

The company’s goal is to differentiate itself from other competitors such as Booking and Expedia. Indeed, the document submitted by the company states that Airbnb guests “are not transactions, but active members of our community. […] It’s a vicious circle, hosts attract guests, and guests attract hosts.”

The goal now is to capitalize. Airbnb is aiming to raise $2.5 billion through the sale of shares, while the valuation-according to the latest prospectus-is expected to be around $35 billion (up from private valuations that had never exceeded $31 billion).

As for stocks, the price range will be $45-50.

The new hypo in Wall Streat: Doordash

In the plans of Doordash’s top management is a $2.8 billion raise that would allow the company to reach a valuation of $32 billion.

DoorDash, a leading food delivery company, revs up its engines ahead of its Decemberstock market debut (NYSE index).

DoorDash’s IPO prospectus, delivered by the company itself to the U.S. Securities and Exchange Commission (SEC), revealed the excellent health of the company, undoubtedly one of the many companies that have benefited from the various lockdowns.

As of September 30 of this year, in fact, DoorDash reported revenue of $1.9 billion, up $587 million from the first nine months of 2019.

The 33 million shares the company planned to offer on the market are expected to be in a price range of $75-85.

The New Hypo at Wall Streat: Roblox

Roblox Corp. is planning an initial public offering in the wake of the gaming industry‘s strong momentum as millions of teenagers are glued to their mobile devices during the COVID-19 pandemic.

The California company’s game platform features a variety of “3-D digital worlds” created by users and developers.

Roblox (RBLX) confirmed that it is experiencing tremendous momentum from isolated users during infection prevention policies against coronavirus. The company is trying to attract a wider, older audience to continue to grow even when things return to normal.

Roblox plans to trade under the ticker “RBLX” on the New York Stock Exchange (NYSE).

The company said that more than half of its 31.1 million daily users are under 13 years old.

However, the company aims to be a brand that serves all ages. A tangible sign of this perspective is that the user group aged 17-24 grew faster than the average age group of 13 in the nine months ended September 30, 2020.

When the pandemic hit the world and the United States, the growth of Roblox exploded. Shut-in teenagers have flocked to the online community. The number of daily users increased by 82 percent in the past 12 months, and the average user used the service for more than two and a half hours a day.

In detail, in the first nine months of 2020, Roblox said the number of average daily users rose to 31.1 million from 17.1 million in the same period of 2019.

Similarly, total hours spent on Roblox more than doubled to 22.2 billion in the first nine months of 2020, compared with 10 billion in the same period in 2019.

Roblox makes money using a virtual currency called “ Robux ” which users purchase to upgrade avatars and make purchases, but which developers also use within the platform.

According to the company’s top management, however, the Covid effect will soon fade and a decline in users and sales is expected.

The new hypo at Wall Streat: Wish

Wish, an online marketplace specializing in the sale of cheap Chinese products, joins the list of companies aiming to debut on the stock exchange by the end of the year.

Documents published by Wish reveal some valuable details about the health of the company led by CEO Piotr Szulczewski.

In the first nine months of the year, prospectus in hand, Wish reported revenue of $1.75 billion, an increase over the same period last year of 32 percent. Losses, however, reached $176 million, up 5 percent from 2019.

According to the San Francisco-based e-commerce company’s disclosure, the number of items shipped during the past twelve months was 640 million, with customers (70 million) in more than one hundred countries.

The platform, just as happened to U.S. Big tech, from Amazon to Netflix, has benefited greatly from the restrictions implemented this year. Indeed, competition from physical stores has been greatly eased.

On the other hand, the company also highlighted the negative impact of the pandemic on its business, with the spread of the virus weakening the distribution chain and slowing down shipping times.

Now, it is time to capitalize. The numbers pitted by Wish will allow investors to consider the stock once it goes public: the company, according to reports in the Financial Times, aims to raise between $25 billion and $30 billion with its IPO.

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