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Invested $10K- Groupon, Amazon, Twitter, Zynga, GoPro, Fitbit, Snap, Blue Apron

Home General Investing Invested $10K- Groupon, Amazon, Twitter, Zynga, GoPro, Fitbit, Snap, Blue Apron

  • Avatar Tim 
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    Status: Accountant
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    Joined: 09/18/2018

    One out of 8. Seems like everyone know Amazon is doing OK. Some of the charts are jaw dropping. I wonder how many IPO investors are still in?

    https://awealthofcommonsense.com/2019/07/10000/

    I don’t do IPO’s!

     

     

     

    #233689 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
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    Joined: 05/13/2011

    If you do get early access to an IPO, sell that first bump!

    But mostly, the message is don’t buy individual stocks, no matter how compelling the story.

     

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #233715 Reply
    Liked by adventure
    Craigy Craigy 
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    Most of that list are loss product giveaways or one-hit-wonder gadgets.

    It’s hard to see groupon, blue apron as ever being compelling long-term investments.  However I think at the time zynga, gopro definitely could have been seen that way.  Keep churning out new games, relatively unique products with no real competition.  But obviously that has gone south for both.

    Granted, I’ve got a few grand of Spotify stock.  Didn’t buy at IPO but theirs was pretty recent.  I enjoy their product and don’t foresee it becoming less popular, and the value metrics seemed sound.

    LEVEL 1 WCI FORUM MEMBER.

    #233739 Reply
    Avatar Marko-ER 
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    Joined: 03/09/2016

    I also don’t do IPOs, except to sell during the first day bump (lately it’s been never miss).  Motifinvesting has been my choice for early access.

    #233745 Reply
    Avatar EntrepreneurMD 
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    Status: Physician
    Posts: 323
    Joined: 06/10/2019

    While I did fine day trading individual stocks (I paid off my entire medical student debt as a resident day trading in the late 1990’s during the Wintel era), I have always been hesitant to own individual stocks for the long term, so I stick with mutual funds now, and tech/semiconductors has created the most wealth for me over the decades, healthcare/biotech is second.

    I stopped trading individual stocks after I bought Amazon at $42 and sold it at $48. A great short term trade return of almost 15%, but a long term ride to $2,000/share would have been better. I am just more comfortable holding diversified tech sector funds or a Nasdaq indexed funds over the life of a bull run rather than an individual company. Most rather be even more diversified into broader index funds, and this is the easiest passive approach.

    Just as FAANG replaced Wintel for the spectacular run over the last bull cycle, the next group of superstars are better chosen by seasoned professionals or spreading risk into an aggregate index (it will probably still be Nasdaq) rather than by you or I.

    I would never recommend buying an individual stock on IPO day for a long term play. Probably need about 6 months from IPO date to see where the dust settles after the initial euphoria. Generally not a fan unless you get in pre-IPO.

    I find the hardest thing to be exit strategy. I think 96% of Fortune 500 CEO’s surveyed see the next major recession occurring in the next 1-4 years, some feel it has already started in weaker sectors such as manufacturing. Watching very closely but not selling yet. Recessions are sometimes preceded by a period of “irrational exuberance”. Wondering if that will or will not happen this time around. I worry most if inflation starts to rise much above the 2% stated goal, at which point the Fed will not be so market friendly.

    #233758 Reply
    Avatar bean1970 
    Participant
    Status: Physician
    Posts: 550
    Joined: 07/12/2017

    i never intentionally bought an IPO, but i ended up with PYPL in my portfolio because it spun from my EBAY based on the # shares i had.  It’s up 1300% from whatever price they gave us as EBAY investors.  i was able to snag some stuff close to IPO price, for instance SBUX within 5 bucks of the IPO…that’s up 1150% (and before three splits)

    i think the problem now is media hype…when i first started investing there was no 24/7 business cable network or apps or internet to get everyone hyped about an IPO….

    #233873 Reply
    Liked by hatton1
    Avatar mgchan 
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    Status: Physician
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    Joined: 03/23/2016

    The less is not to buy any individual stocks if you have no clue what you’re doing. Groupon, Twitter, Zynga, Snap, and Blue Apron were all hype and had no reasonable path toward sustained profitability.

    GoPro and Fitbit are consumer products with no durable ecosystem.

    Amazon would have been hard to hold onto until AWS became relevant, but at least it was by far the leading online retailer and had at a minimum the Google/Facebook ad model as a potential source of profitability. Even Apple  was only a decent investment until the iPhone (an obvious game changer with a competitive advantage and strong retention rate, unlike GPRO or FIT), and has only been an OK investment since iPhone saturation and the rest of the industry essentially catching up technologically (around iPhone 6S/7).

    Fact is that if you go for a hot IPO in a well known consumer facing company you will be competing with other common investors to buy from the big banks and have very little upside, e.g. Pinterest, Uber, Lyft, AirBnB. If my mom asks me about a new IPO I know it is too well covered and stay away.

    If you do your research, understand the companies, and invest in IPOs that are disrupting industries with a strong competitive advantage and high customer retention rate (e.g. Shopify, Square, MongoDB) you can do very well for yourself. Or find industries that are being disrupted by existing companies, but you have to keep up with the industry trends and exit when the growth story ends (Apple, Nvidia, Arista). Or go for the proven steady but unspectacular 20-30% grower like Abiomed, Paycom, Salesforce, again exiting when they no longer fit the bill. Yes, you risk a 20-30% or more drop in stock price after a bad quarter but if you play it right it will still leave you far ahead of what an index fund will do. If you don’t want to take the time to learn and follow the companies, just invest in a total stock market index or some other broad for “growth”. Diversify into different asset classes if you wish (and actually understand those asset classes). I find it easier to learn a predict outcomes for a handful of businesses with a fairly good success rate than to make heads or tails of macroeconomics and how they affect stock prices.

    #236134 Reply
    Avatar Infinity 
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    Status: Physician
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    Joined: 05/25/2019

    Let me give my thought about the article.

    If we had $80K and invested in these 8 IPOs, now we would have $10M just from Amazon alone.

    That would be my best financial investment.

    In business, some says “You don’t have to be right most of the time, you just have to be right ONE time”.

    PS: I do not buy an IPO.

    #236145 Reply
    Avatar Panscan 
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    Status: Resident
    Posts: 1079
    Joined: 03/18/2017

    Let me give my thought about the article.

    If we had $80K and invested in these 8 IPOs, now we would have $10M just from Amazon alone.

    That would be my best financial investment.

    In business, some says “You don’t have to be right most of the time, you just have to be right ONE time”.

    PS: I do not buy an IPO.

    Click to expand…

    well sure but this isn’t a very representative data set. I don’t think 1/8 of the IPOs you pick are going to completely revolutionize a huge market such as online shopping. something like gopro or blue apron have significantly less magnitudes of potential to start with. amazon is sort of a red herring in that it has/had basically infinite potential.

    #236151 Reply

Reply To: Invested $10K- Groupon, Amazon, Twitter, Zynga, GoPro, Fitbit, Snap, Blue Apron

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