Which of these will do their IPO in 2011?

By: ispeculatornew
Date posted: 12.31.2010 (5:00 am) | Write a Comment  (6 Comments)

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I can’t complain, the sector that I study and spend most time tracking down is the internet stocks sector which has been growing steadily in the past few years. While Amazon, Ebay and Yahoo used to be the big players, there are now plenty of challengers that create more opportunities. You can already take a look at the stocks that I follow and that I consider when doing trades on IntelligentSpeculator. That being said, I’m always very excited about new stocks becoming public. I have been very public about my feelings towards some of these companies but the truth is that many of them would be great investing opportunities.

Here are some of the stocks that could turn public in 2011!

Facebook: I’ve already mentioned Facebook often describing it as the best opportunity out there.  While I hope the company will turn public in 2011, I was the first one to say that I would wait if I were in Mark Zueckberg’s shoes. There are many reasons to go public though and eventually Facebook will move ahead. As a potential investor, my fingers are crossed!

Zynga: Zynga, the gaming company continues to gain steam and while its status is not as “hot” as Facebook’s, it is one of the more likely candidates to go public as it continues to gain market share. The company is estimated to be worth $5 billion and could easily attract enough investors to make the jump

Twitter: The other major social force has been working hard on proving it had a business model and while IPO rumors are much more silent, it could be tempted to raise funds in order to better compete with Facebook. I remain skeptical about Twitter as a stand alone business and think that being purchased by a company like Google could be a great way to better leverage its huge user base. But I might be wrong and Twitter executives probably have a lot of ambition.

LinkedIn: Personally, I do not see LinkedIn going public right now but out of the 3 major social networks, LinkedIn is probably the one that has had the most success in proving its business model and could become a very serious competitor for players such as Monster Worldwide (MWW). I can already see a trade opportunity of Long LinkedIn & Short Monster!!

Groupon: The coupon company was valued at less than $2 billion earlier this year but just refused a $6 billion offer from Google and seems to be gaining new momentum every single day! By refusing the offer, Groupon is probably giving the answer to what most of us were wondering.. is it for sale? No. So then, Groupon will need to raise funds very quickly and going public would be the easiest way of getting that done.

Hulu: The Netflix (NFLX) competitor wannabe has had some success but it certainly looks like the movie and tv studios that are backing it want to get others involved instead of being the only ones putting up the money. I’m not a big believer in Hulu would there is no doubt that having Hulu as a listed company would bring interesting possibilities.

DemandMedia: The content company that I have often compared to Yahoo and AOL has tried to move ahead but seems to have some “questionable” accounting methods which is certainly not very reassuring to potential investors. Because of that, DemandMedia‘s IPO is currently delayed until further notice.

Which ones will turn public in 2011?

Do you have any opinions?:)

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6 Comments

  1. Comment by Zavi — December 31, 2010 @ 7:34 am

    I think that Zynga and Hulu might do their IPOs in 2011. I don’t think that Facebook neither Twitter, two major players will go there right now. Groupon did a huge marketing move by refusing the offer and I guess they still want to remain independent.

    Will see how tech trends will evolve in 2011 😉 Really exciting!

  2. Comment by nate — December 31, 2010 @ 6:03 pm

    With respect to Groupon, I thought they just did a $500M placement. So they don’t really need to raise more funds for the time being.

  3. Comment by IS — January 1, 2011 @ 7:31 am

    @Zavi – Agreed on both Zynga & Hulu!!

    @nate – I see your point but the Wall Street Journal yesterday ran a piece saying that despite the recent financing round, Groupon was planning an IPO for late 2011.

  4. Comment by Zavi — January 5, 2011 @ 1:28 pm

    What do you think about the special purpose vehicle proposed by GS to invest up to $1.5 billion in Facebook!!! No need to present any public financial statements!! SEC is investigating for now…

    What’s your opinion about all of this? Twitter, LinkedIn and many internet companies are also being creative now to raise new capital!

  5. Comment by IS — January 5, 2011 @ 9:06 pm

    @Zavi -Very interesting and I have a lot to say, expect a post about it next week:)

  6. […] $75 billion as it continues to race towards $100 billion and what will certainly turn out to be the most anticipated IPO in a very long time. Just 9 months ago, I had discussed the choice between owning 1/5 of Google or […]

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