The company offers Klaviyo, a marketing automation platform that sends personalized and targeted messages. Its products include email marketing solutions to track every click and purchase to optimize campaigns; SMS, a text marketing solution for e-commerce growth and retention; and mobile push solution that reaches customers directly on their lock screen with mobile push notifications.
The company also provides Review solutions to get product reviews, as well as a customer data platform that helps store, analyze and use data at scale. It serves individuals, small and medium enterprises and companies in North America, Western Europe, Australia and elsewhere.
The company priced 19.2 million shares at $30 in late September, valuing the company at just over $9 billion on a fully diluted basis. Klaviyo, which Shopify owns 11% of, traded up to the $39 level before returning back to just above the IPO price. It has rallied some since and is offering investors a very solid entry point.
There is no coverage from Wall Street yet, but it is an excellent bet that the underwriters in the deal will have solid commentary and price targets well above the current trading level. The shares closed over 5% higher on Wednesday at $32.82.
Oddity Tech
This could very well be the home run of the entire group. Oddity Tech Ltd. (NASDAQ: ODD) operates as a consumer-tech company worldwide. It provides beauty and wellness products utilizing its PowerMatch technology. It builds and scales digital-first brands to disrupt the offline-dominated beauty and wellness industries.
The company offers products for face and complexion, eyes and brows, lips and skin care under the IL MAKIAGE brand, as well as hair and skin care products under the SpoiledChild brand.
This company went public back in July and exploded out of the gate after pricing 12.1 million shares at $35. The company finished the first day up 35% to close at $47.53, then traded up to $56 before nose-diving back to $25.81.
Oddity Tech co-founder and CEO, Oran Holtzman, noted earlier this week that the third quarter is expected to be the company’s strongest third quarter ever, exceeding its guidance and allowing Oddity Tech to deliver net revenue growth of at least 58% and adjusted EBITDA of at least $89 million in the first three quarters of 2023.
JMP Securities has a Market Outperform rating and a $66 target price, while the consensus target is $54.43. The stock was last seen Wednesday at $27.10, down 8% despite multiple upgrades across Wall Street.
While the IPO market is still on somewhat shaky ground, the ability for Wall Street to package and get these deals sold shows that there is a growing demand for a market that Wall Street firms would love to see make a strong return. One difference between now and the past is that companies need to be in very solid shape financially to get a deal done, and all these recent deals do check that box. It is important to note that today’s action on four of the five stocks shows investors are very interested in owning these companies at lower entry points.
Originally published at 24/7 Wall St.
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