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| Category | Details |
| Number of companies that went public | Over 160 companies |
| Notable companies that went public | Snap Inc., Blue Apron, Roku Inc., Canada Goose, Cloudera Inc., Carvana Co., Stitch Fix Inc., MongoDB Inc. |
| Number of companies that have been acquired | Several, including Blue Apron and Snap Inc. |
| Largest company that went public | Snap Inc. (raised $3.4 billion) |
In 2017, many companies made headlines as they went public through Initial Public Offerings (IPOs). This was a remarkable year for the stock market, with many firms aiming to attract investors. Companies like Snap and Blue Apron hit the public markets, each with its unique story and challenges. Keep reading to learn more about these companies that had their IPO in 2017.
Key Takeaway
- Several companies went public in 2017, including Snap and Blue Apron.
- The stock market experienced significant activity, with over 160 IPOs in the U.S.
- Investor sentiment was generally positive, despite some companies facing challenges.
Major Events Affecting Stock Markets in 2017
2017 was a year filled with events that influenced the stock market. Here are a few key moments that shaped the IPO landscape:
President Trump’s Inauguration and the Market Reaction
Source: WCCO – CBS Minnesota
On January 20, 2017, Donald Trump was sworn in as the 45th President of the United States. This generated a lot of enthusiasm from investors who believed the new administration’s plans could support business growth.
- The day after the inauguration, stock prices rose sharply as investors welcomed the prospects of tax cuts and less regulation. They felt this could make it easier for companies to operate and become more profitable.
- Expectations were that proposed tax breaks would allow businesses to keep more of their earnings. Reducing red tape was seen as a way to lower costs.
- Sentiment on Wall Street improved notably. Many felt the new leadership would help create conditions where the economy and companies could thrive.
- For the rest of the year, investors paid close attention to how President Trump’s policies were taking shape. This initial boost in optimism at the start of his term helped fuel gains on stock markets.
The market reaction showed how political developments can impact financial markets. By addressing issues important to companies, the inauguration strengthened confidence among investors (1). This example highlights how leadership changes may influence expectations about future conditions.
Macron’s Victory Boosts Confidence in Europe
On May 7th, 2017, Emmanuel Macron emerged victorious in France’s presidential election. For many investors, this outcome eased concerns about uncertainty in Europe.
- Macron was seen as pro-business and supportive of the free market. His leadership style encouraged Wall Street (2).
- With far-right candidates defeated, there was relief the results meant continued political stability in France and the EU.
- Investor sentiment toward the region improved noticeably. Stocks gained as the outcome lifted worries a populist shift might disrupt economies.
Prior to the vote, some feared less business-friendly policies or “Frexit” could destabilize the European market. But Macron’s win confirmed France’s commitment to the EU.
Overall, the election provided reassurance after months of apprehension. The positive reaction highlighted how political developments impact global finance. With risks diminished, investors felt confident putting more money into European companies.
By resolving a major uncertainty, Macron’s victory calmed nerves and strengthened optimism on the Continent’s outlook. The market gains showed the election result was an influential moment for Europe in 2017.
Bitcoin’s Surge Introduces Cryptocurrencies to the Mainstream
Throughout 2017, the price of Bitcoin skyrocketed, climbing from around $900 to over $16,000. This massive increase captured global attention.
- Bitcoin’s gains sparked widespread interest in digital currencies as some saw their potential for investment returns (3).
- More people began exploring cryptocurrencies as an alternative way to manage finances. This introduced new options for investors seeking growth.
- Traditional banks took notice, as some questioned if digital coins might challenge conventional finance in the future.
By demonstrating strong returns, Bitcoin brought cryptocurrencies into the mainstream. It opened the door for further innovation and changed discussions around modernizing currency systems.
Bitcoin’s surge showed digital money had come of age. No longer a niche topic, cryptocurrencies were now part of the worldwide financial conversation. This watershed moment introduced disruption and new potential to traditional investors.
The Federal Reserve’s Interest Rate Increases Pointed to Economic Strength
Throughout 2017, the Federal Reserve raised interest rates multiple times. For investors, this signaled confidence in the U.S. economy.
- While higher rates can push up borrowing expenses, many felt robust growth would lift corporate profits (4).
- Investors welcomed signs the central bank believed the economy was strong enough to withstand tighter monetary policy.
- By gradually normalizing rates, the Fed conveyed optimism about continued expansion. This boosted sentiment on Wall Street.
While rate hikes may modestly increase financing costs, the market saw through to the underlying economic message – one of resilience and potential. Reassured by the Fed’s actions, investors had greater confidence putting money to work in equities.
In raising rates, the central bank communicated its view that fundamentals were sound. This vote of confidence from monetary policymakers encouraged bullishness and further supported the ongoing climb in stock prices.
Strong Economic Tide Lifted Markets Worldwide
Throughout 2017, economies worldwide reported upbeat indicators that fueled bullishness on a global scale.
- The U.S. saw its stock benchmark S&P 500 index climb approximately 21.8% as growth remained on track.
- Strengthening activity in Europe, Asia and other major regions bolstered confidence in the health of the international system.
- As countries prospered, more individuals felt reassured putting money to work in equity markets seeking returns.
By keeping the economic momentum moving forward, nations fueled optimism that supported market ascents across the board. With data pointing to continued expansion, investors embraced opportunities virtually everywhere.
This widespread tide strengthening portfolios far and wide. The synchronised global growth highlighted financial markets’ ability to rise on the current of a thriving worldwide economy.
Notable IPOs of 2017
Source: pexels.com (Photo by: Alesia Kozik)
1. Snap Inc. (SNAP)
- Country: United States
- Stock Exchange: NYSE
- Industry: Social Media
- IPO Price: $17
- IPO Date: March 2, 2017
Snap Inc. had a big debut in 2017. The company raised $3.4 billion, which was impressive. Many investors were excited about Snap’s potential. They believed in its popular app, Snapchat, and its unique features.
However, Snap faced challenges soon after going public. User growth slowed down, and competition from Facebook became a real issue. Facebook copied some of Snapchat’s features, which worried investors.
- Key Points:
- Snap’s initial success was strong, but it didn’t last.
- The competition made it hard for Snap to keep growing.
- Investors started to question the company’s future.
Despite the challenges, Snap Inc. remains an important player in social media. Its journey shows how quickly things can change in the tech world.
2. Blue Apron Holdings Inc. (APRN)
- Country: United States
- Stock Exchange: NYSE
- Industry: Meal Kit Delivery
- IPO Price: $10
- IPO Date: June 29, 2017
Blue Apron had a tough time after its IPO. The company started with a lot of excitement, but things quickly changed. After going public, Blue Apron struggled to keep customers.
Many people tried the meal kits but didn’t stick around. This led to a drop in the stock price soon after the debut. Investors became worried about the company’s ability to grow.
- Key Points:
- Customer retention became a big issue for Blue Apron.
- The stock price fell as concerns grew.
- Investors were disappointed with the company’s performance.
Blue Apron’s experience highlights the challenges in the meal kit industry. It shows how important it is to keep customers happy and engaged.
3. Roku Inc. (ROKU)
- Country: United States
- Stock Exchange: NASDAQ
- Industry: Streaming Services
- IPO Price: $14
- IPO Date: September 28, 2017
Roku had a fantastic IPO in 2017. The company’s shares surged right after going public. Investors were excited about the shift toward streaming services.
Roku’s platform allows people to watch their favorite shows and movies easily. This growing trend caught the attention of many investors.
- Key Points:
- Roku benefited from the popularity of streaming.
- The company gained a lot of investor interest quickly.
- Its strong performance showed how important streaming had become.
Roku’s success reflects the changing way people consume media. The company is well-positioned in a booming industry.
4. Canada Goose Holdings Inc. (GOOS)
- Country: Canada
- Stock Exchange: NYSE
- Industry: Apparel
- IPO Price: $12.78
- IPO Date: March 16, 2017
Canada Goose had a successful IPO in 2017. The company is known for its luxury winter apparel, especially its warm jackets. There was a growing demand for these high-quality products.
The strong performance of Canada Goose showed that people were willing to spend on luxury items. Investors were pleased with the company’s growth potential.
- Key Points:
- Demand for luxury winter clothing helped Canada Goose thrive.
- The stock price remained strong after the IPO.
- Investors saw a bright future for the brand.
Canada Goose’s success highlights the appeal of luxury brands. It shows how quality and reputation can drive growth in the market.
5. Cloudera Inc. (CLDR)
- Country: United States
- Stock Exchange: NYSE
- Industry: Technology
- IPO Price: $15
- IPO Date: April 28, 2017
Cloudera had a strong start with its IPO. The company focuses on data management and analytics. Many investors were interested in its innovative solutions.
However, Cloudera faced tough competition in the tech space. This competition affected its stock performance after the initial excitement.
- Key Points:
- Initial interest in Cloudera was high.
- Competition in the tech industry posed challenges.
- Investors remained cautious about the company’s future.
Cloudera’s journey shows the importance of staying ahead in technology. It highlights how competition can impact even the most promising companies.
6. Carvana Co. (CVNA)
- Country: United States
- Stock Exchange: NASDAQ
- Industry: E-commerce
- IPO Price: Not specified
- IPO Date: April 27, 2017
Carvana is known for selling used cars online. The company experienced growth after its IPO. Many people liked the idea of buying cars from home.
However, Carvana faced scrutiny about its business model. Some investors were concerned about how sustainable its growth would be.
- Key Points:
- Carvana’s online model attracted many customers.
- Growth was promising, but questions arose about the business.
- Investors needed to see more stability for long-term confidence.
Carvana’s experience shows the potential of online car sales. It also highlights the need for a solid business plan to ensure lasting success.
7. Stitch Fix Inc. (SFIX)
- Country: United States
- Stock Exchange: NASDAQ
- Industry: E-commerce
- IPO Price: Not specified
- IPO Date: November 17, 2017
Stitch Fix had a successful debut in 2017. The company offers an online styling service that sends personalized clothing to customers. Many people were excited about this unique shopping experience.
Despite some concerns over profitability, investors were eager to support the brand. Stitch Fix’s model appealed to those looking for convenience and style.
- Key Points:
- The online styling service attracted a lot of interest.
- Investors were hopeful despite profitability concerns.
- Stitch Fix showed that innovation can lead to success.
Stitch Fix’s journey highlights the power of personalization in retail. It demonstrates how new ideas can capture the market’s attention.
8. MongoDB Inc. (MDB)
- Country: United States
- Stock Exchange: NASDAQ
- Industry: Technology
- IPO Price: Not specified
- IPO Date: October 19, 2017
MongoDB made waves with its IPO in 2017. The company offers innovative database technology that many businesses find useful. Investors were drawn to its potential for growth.
The demand for MongoDB’s services showed how important data management is today. Many companies need efficient ways to handle their information.
- Key Points:
- MongoDB’s technology attracted strong investor interest.
- The company is well-positioned in a growing market.
- Its innovative solutions highlight the need for modern data management.
MongoDB’s success reflects the increasing importance of technology in business. It shows how innovation can lead to strong market performance.
IPO Performance Showed Varied Results in 2017
Source: pexels.com (Photo by: Anna Nekrashevich)
The year offered examples of companies that successfully launched and those facing challenges after going public.
- Roku capitalized on the streaming boom, seeing investor enthusiasm propel its shares higher. Demand for the platform boded well.
- Canada Goose benefited from luxury winter wear’s popularity. The brand delivered stability and future potential that reassured shareholders.
However, some IPOs struggled to satisfy investors:
- Snap faced issues retaining users in a crowded social media field, sparking worries.
- Blue Apron saw its stock decline as customer retention proved difficult.
Overall, 2017 hosted over 160 US IPOs raising $39.5 billion, signaling investor appetite. But performance showed the importance of adapting to shifting conditions. The varied outcomes serve as reminders that public markets can magnify both opportunity and risk for new entrants. Continued responsiveness remains key.
Key Takeaways from the 2017 IPO Landscape
The IPO market saw varied fortunes for new companies entering the public arena. Certain industries flourished as supportive trends emerged, while others grappled with challenges.
Roku and Canada Goose benefited from growing demand in their respective sectors, fueling shareholder optimism. Their success demonstrated how prevailing conditions can lift newcomers.
At the same time, Snap and Blue Apron encountered difficulties retaining users and customers. Their struggles highlighted risks and served as reminders that popularity does not guarantee stock market support.
Overall, 2017 hosted over 160 US IPOs raising $39.5 billion, evidence of investor enthusiasm for fresh opportunities. However, performance outcomes were mixed.
Going forward, these learnings may influence how firms approach public listings. Both opportunity and uncertainty were on display. Continued responsiveness to shifting dynamics will likely remain important for companies navigating public markets.
The varied IPO landscape of 2017 provided takeaways that could shape future public debuts across diverse circumstances. Close study of outcomes may help both firms and investors alike.
Conclusion
In conclusion, 2017 was a significant year for IPOs, with notable companies like Snap and Blue Apron entering the public markets. While some thrived, others faced challenges, reflecting the ups and downs of the stock market. This year set the groundwork for future public offerings, showing that the IPO landscape can change quickly.
FAQ
How did tech IPOs perform on Wall Street during their first trading day in 2017?
Tech companies like Delivery Hero saw varied results on their day of trading. While some tech IPOs exceeded their offering price, others faced challenging market conditions. The technology sector’s performance influenced how these companies fared in the public market.
What were the standout life sciences and tech companies going public that year?
Notable IPOs included Denali Therapeutics and UroGen Pharma in life sciences, while tech IPOs featured companies like Rovio Entertainment, known for Angry Birds. The Motley Fool highlighted these as interesting cases for the public domain.
How did real estate companies like Invitation Homes and Newmark Group adapt to market share challenges years ago?
These companies faced varying market conditions during their IPOs. Invitation Homes, backed by private equity, focused on revenue growth and expanding their customer base. Newmark Group emphasized their data analytics capabilities to strengthen their position in capital markets.
What impact did Hong Kong and San Francisco-based companies have on the global select market?
Companies from these tech hubs influenced the Nasdaq global IPO landscape. Their long term performance showed interesting patterns in both the Hong Kong stock exchange and New York stock exchange markets.
How did venture capital influence the period of time between companies going public and their return since IPO?
Parent companies and private equity firms played crucial roles in determining the price per share and gross proceeds. The annual revenue and number of shares offered often reflected both market share expectations and technology sector trends.
What factors affected common stock performance in the public companies during that time?
Market conditions, trading day volatility, and autorenew packs impacted share price movements. Companies focused on building a strong customer base while adapting to public market demands.
References
- https://trumpwhitehouse.archives.gov/briefings-statements/the-inaugural-address/
- https://theconversation.com/french-president-emmanuel-macron-wins-re-election-a-victory-with-deep-challenges-181843
- https://www.technologyreview.com/2019/11/04/132066/one-bitcoin-whale-may-have-fueled-the-currencys-price-spike-in-2017/
- https://www.businessinsider.com/how-the-fed-raises-interest-rates-2017-12
