Today, I’m sharing three “A+” fintech companies gearing up to IPO…
Each one has the potential to deliver huge returns when they go public.
As you’ll see, they’re all at different stages in their journey to IPO’ing. But it’s important that you put them on your radar today…
Below, I’ll share some key details on each.
#1) Plaid
I did a deep dive on Plaid back in November 2019 in the RiskHedge Report. In that essay, I explained why Plaid was my #1 fintech “unicorn.” Most people have never heard of it.
You won’t find Plaid in the “app store.” Unlike other fintech “unicorns” like Robinhood, Acorns, and Chime… you won’t see commercials for Plaid on TV.
But Plaid is more important to the fintech space than any of the other companies I just mentioned. It has its “hooks” in 10,000 banks and counting, including giants like Bank of America, JP Morgan, and Wells Fargo.
In short, Plaid serves as a bridge between banks and thousands of apps that involve transferring, spending, or investing money. It’s built out the digital “plumbing” of fintech.
Plaid’s reach is incredible. According to the company, nearly one out of four Americans use Plaid through one app or another.
For example, Plaid allows you to buy bitcoin from your checking account through the app Coinbase. It allows you to trade stocks on Robinhood. It powers popular apps like Venmo and CashApp.
So, I was very much looking forward to Plaid’s IPO. But my excitement was squashed when Plaid announced last year that it was going to merge with payment giant Visa (V).
However, that merger was called off recently due to increased antitrust uncertainty.
In other words, it’s going to stay independent. I’m now expecting Plaid to go public in the next six months, possibly much sooner. It could IPO or go public via a reverse merger —i.e., through a special purpose acquisition company (SPAC).
Plaid will be at the top of my list for IPOs in 2021.
#2) Stripe
Stripe allows companies, big and small, to securely accept payments from anywhere in the world.
It is, without question, one of the world’s most impressive companies.
It serves small and medium-sized businesses as well tech giants like Amazon (AMZN), Shopify (SHOP), Zoom Video (ZM), and Salesforce (CRM).
Stripe is also one of the biggest beneficiaries of the digital transformation and the shift to e-commerce—two trends that have been kicked into high gear due to COVID.
Stripe is a world dominator in every sense of the word. It has the potential to become a $500 billion business one day.
The biggest knock on Stripe is its size. It could easily command an IPO valuation north of $60 billion. That’s way bigger than what I normally target in my IPO Insider advisory. But that doesn’t mean I’ll automatically rule out investing in Stripe.
Ultimately, it depends on the terms of its IPO and the market conditions at that time.
#3) Coinbase
Coinbase is the most important US cryptocurrency company. Its platform allows users to buy and sell cryptocurrencies like Bitcoin, Ethereum, and Chainlink.
Coinbase is a gateway to the cryptocurrency market for 35 million people around the world. It’s already available in 100 countries.
But Coinbase isn’t just expanding its reach. It’s also rapidly growing its top line.
In 2018, the company did $520 million in revenue. That’s about 20% more than it collected in 2017. That’s impressive growth, considering that cryptos were in a brutal bear market in 2018.
I expect Coinbase to report even stronger sales figures before going public. After all, Bitcoin is flirting with record highs, cryptocurrency trading volumes have skyrocketed, and Coinbase’s website traffic surged 64% between October and November.
If Coinbase IPOs soon, it would be the first major cryptocurrency company to do so. Demand for its shares will likely be sky-high.
That said, the real money-making opportunity would likely not be buying shares of Coinbase. It will be investing in smaller cryptocurrency assets. I say this because Coinbase’s IPO would be incredibly bullish for the cryptocurrency space as a whole. The entire market would likely soar on the news of a Coinbase IPO.
Justin Spittler
Chief Trader, RiskHedge
PS: While these three names belong on every IPO investor’s watchlist… they’re still months away from handing out real profits.
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