Our unconflicted and objective approach to IPO research protected investors from losing 39% of their assets in 2021. Figure 1 provides details.
The IPO warnings in a recent CNBC feature on our common-sense approach to research saved investors 16%.
Figure 1: Performance of IPOs/Direct Listings Published on in 2021: Through 12/15/21[1]
| Ticker | Company | Publish Date | Performance | S&P 500 Performance | Vs. S&P 500 |
| HNST | The Honest Company | 5/4/21 | -63% | 13% | -76% |
| BMBL | Bumble Inc. | 2/10/21 | -54% | 20% | -74% |
| MQ | Marqeta Inc. | 6/7/21 | -47% | 11% | -59% |
| HOOD | Robinhood Markets Inc. | 7/19/21 | -49% | 7% | -56% |
| SQSP | Squarespace Inc. | 5/17/21 | -40% | 15% | -55% |
| DIDI | Didi Global Inc. | 6/21/21 | -49% | 4% | -53%* |
| COIN | Coinbase Global Inc. | 3/5/21 | -32% | 14% | -46% |
| SG | Sweetgreen Inc. | 11/15/21 | -41% | 0% | -41% |
| BIRD | Allbirds Inc. | 9/27/21 | -31% | 6% | -37% |
| COMP | Compass Inc. | 3/29/21 | -24% | 11% | -35%* |
| WRBY | Warby Parker | 9/13/21 | -20% | 8% | -28% |
| GTLB | Gitlab Inc. | 10/8/21 | -13% | 7% | -20% |
| DNUT | Krispy Kreme | 6/25/21 | -2% | 10% | -11% |
| EDR | Endeavor Group Holdings | 4/28/21 | 12% | 12% | 0% |
| RIVN | Rivian Automotive | 10/25/21 | 8% | 1% | 7% |
| Average | -30% | 9% | -39% |
Sources: New Constructs, LLC and company filings.
*Performance measured through date position was closed. We closed DIDI on 8/18/21. We closed COMP on 8/18/21.
All of our research leverages more reliable fundamental data[2] that overcomes flaws with legacy fundamental datasets to provide a more informed view of the fundamentals of companies and a new source of alpha.
Our stock picks regularly earn a #1 ranking across multiple categories. Most recently in December, SumZero ranked us #1 in Last Twelve Months, Long, Value, Large-Cap, Small-Cap, and Consumer Discretionary.
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This article originally published on December 16, 2021.
Disclosure: David Trainer, Kyle Guske II, and Matt Shuler receive no compensation to write about any specific stock, sector, style, or theme.
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[1] Performance of IPOs for which we published a report prior to the company’s IPO is tracked from the opening price for each IPO’s first trading day.
[2] Three independent studies prove the superiority of our data, models, and ratings. Learn more here.