Because of positive vaccine news and things pointing to a re-opening of the economy, small caps have been in charge lately.
But do you want to know something?
I’m not shying away from hot newly-public tech stocks.
I’m talking about recent IPOs that are capitalizing on digital trends— everything from ecommerce to cloud computing.
They’ve been my bread and butter over the last 9 months, and I’m still bagging gains on them.
Since the end of last week, I’ve taken triple-digit wins on 4 of them, including digital ecommerce monsters CHWY, YETI, and SFIX … as well as, on this hot cloud services provider…*
See I trade IPOs differently than most. I’m not buying and holding them, starting from their debut.
Instead, I’m trading options on them and looking to get in and out within a period of just a couple weeks.
Check out which of these recent IPOs I’m watching this week, which could all catch a holiday e-commerce bounce.
- Revolve is a fashion brand and ecommerce powerhouse, founded by two millennials, that sells apparel and footwear. The company is a social media sensation, driven by Instagram influencers.
- Revolve caters to their marketing efforts to “special social occasions”— think Coachella Music Festival— so it could get a bounce as the economy reopens
- RVLV held its IPO in 2019 and has been on a steady climb upwards since it’s lows around $7 in March. In the most recent earnings report, there were some notable features. Net income doubled to $19.4 million and free cash flow leapt by 86% to $13.8 million. The stock has been the recipient of numerous analyst buy reiterations and upgrade over the past couple months.
- RVLV showed strong momentum last week, leading into Black Friday. Black Friday foot traffic was down by 52% in actual stores, but e-commerce sales are at a record high. Consumers spent $9B on websites that day, a 22% increase from the previous year.
- RVLV is currently approaching 52-week highs at 24.41. If the stock crosses that level, it’s bullish and I want in
- Fiverr is an Israeli online marketplace that supports the gig economy. Freelancers can use the platform to offer services to customers around the world.
- The company recently announced expansion into Latin America through Brazil and Mexico. That’s following successful entries it’s already made into Europe (Germany, France, and Spain, among others)
- As online holiday sales reach record highs, Fiverr is set to benefit. The company facilitates many holiday themed services— logo, poster, and brochure designing, in addition to photoshop editing and content marketing.
- Earnings estimates for FVRR are rising, as the stock has been outperforming within the retail-wholesale industry as a whole
- FVRR has been steadily gaining ground throughout the month of November and recently broke all-time highs around $190. I’ll be looking immediately for possible entries this week.
Unity Software (U)
- Unity is a game engine that supports 25 platforms and allows people to crate and operate 3D applications and immersive experiences
- Unity’s platform is used by over 50% of mobile, console, and PC games. Not only that— of the top 100 game development companies, 94 of them are customers of Unity
- Growth of mobile gaming is one of the most promising and lucrative areas for investors to bet on now. According to the Newzoo report, mobile gaming revenue could account for almost half of the overall gaming market this year
- Though price history is not long, U is showing strong performance in relation to some other hot tech IPOs. It gained 121% since its debut, as compared to PLTR (147%) and Snow (117%)
- Much like the other stocks mentioned today, I think Unity could catch a bounce since games fit within the realm of holiday shopping. I’m seeing a strong possibility to ride a continuation of momentum.
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Whether or not I actually trade RVLV, FVRR, or U will depend on how the market opens today.
If I do decide to trade them, my premium IPO Payday subscribers will be the first to find out here.