The 10 Largest U.S. Tech IPOs in History, Visualized
Connect with us

Datastream

The 10 Largest U.S. Tech IPOs in History

Published

on

Largest Tech IPOs

Can I share this graphic?
Yes. Visualizations are free to share and post in their original form across the web—even for publishers. Please link back to this page and attribute Visual Capitalist.
When do I need a license?
Licenses are required for some commercial uses, translations, or layout modifications. You can even whitelabel our visualizations. Explore your options.
Interested in this piece?
Click here to license this visualization.

The Briefing

  • The IPOs of Airbnb, DoorDash, and Snowflake raised over $3 billion each
  • This secures their spot among the 10 largest U.S. tech IPOs in history

U.S. Tech IPOs: Three Stocks from 2020 Break into the Top Ten

2020 was an eventful year for IPOs despite the economic hardships caused by COVID-19. Over $300 billion was raised in U.S. equity markets, with companies from the tech sector generating a significant amount of hype.

Among these companies were Airbnb, DoorDash, and Snowflake, all of which raised over $3 billion. To put this into perspective, let’s look at the 10 biggest U.S. tech IPOs of all time.

The Top 10 U.S. Tech IPOs

Airbnb, DoorDash, and Snowflake muscled their way into the top 10, raising a combined $10.3 billion dollars in the second half of 2020.

RankCompanyIPO DateAmount Raised (USD billions)
1FacebookMay 2012$16.0
2UberMay 2019$8.1
3Agere SystemsMarch 2001$4.1
4SnapMarch 2017$3.9
5AirbnbDecember 2020$3.5
6SnowflakeSeptember 2020$3.4
7DoorDashDecember 2020$3.4
8LyftMarch 2019$2.6
9Altice USAJune 2017$2.2
10TwitterNovember 2013$2.1

Not adjusted for inflation.

More than eight years after going public, Facebook maintains a sizable lead over industry peers. The $16.0 billion IPO by the social networking company is also the second largest in U.S. business history, falling only shy of the $17.9 billion raised by Visa in March 2008.

The Airbnb IPO

Airbnb is an online vacation marketplace that connects vacationers with “hosts” who offer accommodations for short-term booking. Since its creation in 2008, Airbnb has grown in size and influence, disrupting the hotel industry in the process.

Airbnb’s IPO raised $3.5 billion by selling 51.5 million Class A shares at $68 each. Airbnb shares closed 112% higher after their first day of trading on December 10, a sign of strong investor optimism.

The Snowflake IPO

Snowflake is a data-warehousing company that provides its customers with cloud-based data storage services. Noteworthy clients of Snowflake include CapitalOne, Logitech, and the University of Notre Dame.

Snowflake’s IPO raised $3.4 billion by selling 28 million Class A shares at $120 each. Similar to Airbnb, shares of Snowflake made an impressive climb on their first day of trading, even surpassing the $300 mark. With this achievement, Snowflake became the largest company to double its market cap on opening day.

The DoorDash IPO

DoorDash is a food delivery platform similar in concept to Uber Eats and Grubhub. The business was well-positioned to take advantage of COVID-19 lockdowns which had led to a surge in food delivery orders.

DoorDash’s IPO raised $3.4 billion by selling roughly 33 million Class A shares at $102 each. Like its peers, DoorDash rose on its first day of trading, closing at $189.51 a share.

Investor Optimism Outweighs Traditional Thinking

A common factor among each of these tech IPOs is that none of the companies have turned a profit. This has drawn criticism from members of the investment industry, especially regarding DoorDash’s IPO.

This is Silicon Valley selling public markets an asset at a huge premium…and I think a lot of individual investors rushing into this are going to lose a lot of money.

—David Trainer, CEO, New Constructs

Regardless, DoorDash investors remain bullish. As of February 3, 2021, the company’s shares have climbed 27% year to date (YTD).

»If you found this article interesting, you might enjoy this post on the world’s largest IPOs.

Where does this data come from?

Source: FactSet, Nasdaq
Details: Retrieved on Jan. 26, 2020. Not adjusted for inflation.

Support the Future of Data Storytelling

Sorry to interrupt your reading, but we have a favor to ask. At Visual Capitalist we believe in a world where data can be understood by everyone. That’s why we want to build the VC App - the first app of its kind combining verifiable and transparent data with beautiful, memorable visuals. All available for free.

As a small, independent media company we don’t have the expertise in-house or the funds to build an app like this. So we’re asking our community to help us raise funds on Kickstarter.

If you believe in data-driven storytelling, join the movement and back us on Kickstarter!

Thank you.

Support the future of data storytelling, back us on Kickstarter
Click for Comments

Datastream

Ranked: These Are 10 of the World’s Least Affordable Housing Markets

An analysis of 90+ major cities reveals which ones are the least affordable housing markets based on their price-to-income ratio.

Published

on

The Briefing

  • For the 12th year in a row, Hong Kong is the world’s least affordable housing market, according to Demographia’s ranking of 92 cities in select countries
  • Sydney, Australia moves up one spot from last year’s ranking to take second place

These Are 10 of the World’s Least Affordable Housing Markets

It’s become increasingly difficult for middle-class families to purchase a home over the last few years—and the global pandemic has only made things worse.

According to Demographia’s 2022 Housing Affordability Report, the number of housing markets around the world deemed “severely unaffordable” increased by 60% compared to 2019 (prior to the pandemic).

This graphic looks at some of the least affordable housing markets across the globe, relative to median household income. The report covers 92 different cities in eight nations: Australia, Canada, China, Ireland, New Zealand, Singapore, the United Kingdom, and the United States.

The Least Affordable Housing Markets

Before diving in, it’s worth outlining the methodology used in this report, to help explain what’s classified as a severely unaffordable housing market.

To calculate affordability, a city’s median housing price and divided by its median household income. From there, a city is given a score:

  • A score of 5.1 or above is considered severely unaffordable
  • 4.1 to 5.0 is considered seriously unaffordable
  • 3.1 to 4.0 is considered moderately unaffordable

All the cities on this graphic are classified as severely unaffordable⁠—and, for the 12th year in a row, Hong Kong takes the top spot as the world’s most unaffordable housing market, with a score of 23.2.

Housing MarketNationScore
Hong Kong🇭🇰​ Hong Kong (SAR)23.2
Sydney, NSW🇦🇺​ Australia15.3
Vancouver, BC🇨🇦​ Canada13.3
San Jose, CA🇺🇸​ U.S.12.6
Melbourne, VIC🇦🇺​ Australia12.1
Honolulu, HI🇺🇸​ U.S.12.0
San Francisco, CA🇺🇸​ U.S.11.8
Auckland, AUK🇳🇿​ New Zealand11.2
Los Angeles, CA🇺🇸​ U.S.10.7
Toronto, ON🇨🇦​ Canada10.5

One reason for Hong Kong’s steep housing costs is its lack of supply, partly due to its lack of residential zoning—which only accounts for 7% of the region’s zoned land. For context, 75% of New York City’s land area is dedicated to residential housing.

Sydney moved up one spot this year, making it the second most expensive city to purchase a home on the list, with a score of 15.3. Besides Hong Kong, no other city has scored this high in the last 18 years this report has been released.

There are several theories for Sydney’s soaring housing rates, but industry expert Tom Forrest, CEO of Urban Taskforce Australia, boils it down to one fundamental issue in an interview with Australia Broker—supply isn’t keeping up with demand:

“Housing supply has been consistently not meeting demand in the Greater Sydney and across regional New South Wales…if you have supply consistently not meeting demand then the price will go up. That’s what happened and we’re seeing it in abundance.”Tom Forrest, CEO of Urban Taskforce Australia

The COVID-19 Impact

Middle-income earners were already feeling the squeeze prior to the global pandemic, but COVID-19 only exacerbated housing affordability issues.

As people began to work from home, high-income earners started to look for more spacious housing that wasn’t necessarily in the city center, driving up demand in suburban areas that were relatively affordable prior to the pandemic.

At the same time, supply chain issues and material costs impacted construction, which created a perfect storm that ultimately drove housing prices up.

But with interest rates rising and COVID-19 restrictions easing around the world, some experts are predicting a market cool down this year—at least in some parts of the world.

>>Like this? Then you might like this article: How Much Prime Real Estate Could You Buy for $1M?

Where does this data come from?

Source: Demographia
Details: The affordability score is calculated by taking a city’s median housing price and dividing it by the median household income. Anything over 5.1 is considered severely unaffordable
Notes: Data includes 92 metropolitan markets across eight countries; Australia, Canada, Ireland, Singapore, China, New Zealand, the U.K., and the U.S., as of the third quarter of 2021. Many European countries, along wth Japan, we excluded from the dataset, because information on median income was not readily available.

Continue Reading

Datastream

Poll: Inflation is the Top Financial Concern for Americans

Many Americans are feeling the sting of inflation as everyday items like food and fuel have seen big price increases.

Published

on

The Briefing

  • Inflation has quickly become the top financial concern for American families
  • Compared to 2021, far fewer Americans believe their financial situation is improving

Poll: Inflation is the Top Financial Concern for Americans

A recent survey by Gallup discovered that inflation has become the top financial concern for Americans, surpassing other issues like low wages and housing costs.

While this result may not be too surprising, it is interesting to see how today’s concerns compare to that of previous years. For reference, the Consumer Price Index (CPI) has grown 8.3% between April 2021 and April 2022, representing a near 40-year high.

Poll Results

Results were collected in April 2022 and are based on the responses of over 1,000 U.S. adults. In this case, the specific question was: What is the most important financial problem facing your family today?

TrendApril 2022April 2021April 2020April 2019
Inflation32%8%3%6%
Low wages11%10%11%11%
Gas prices10%1%----
Housing costs8%9%9%8%
Health care costs7%8%8%17%

Percentage of respondents. Includes the top five categories, based on April 2022 results.

Based on these results, we can see that inflation began to gain momentum in early 2021. Rising gas prices, which are a significant contributor to overall inflation, also popped up in 2021.

Implications

Significantly fewer Americans feel confident about their financial situation due to the rising cost of living. This was captured in the same Gallup survey referenced above.

Income Group20222021Percentage point decrease
Upper 50%28%-22
Middle48%39%-9
Lower63%45%-18

Percentage of respondents who say their personal financial situation is improving.

The largest decreases were seen among the upper and lower income groups.

Upper income families tend to own more financial assets like stocks and bonds. An inflationary environment, especially when combined with rising interest rates, can eat away at the returns generated by these assets, which could explain this cohort’s drop in optimism.

Lower income families, on the other hand, are more likely to be struggling already. In fact, a 2017 report found that six in 10 Americans don’t have $500 in savings. With this in mind, it’s easy to see how an increase in the price of food or gas could cause worry.

Where does this data come from?
Source: Gallup
Notes: Interviews conducted April 1-19, 2022, with a random sample of 1,018 adults, aged 18 and older, living in all 50 U.S. states and the District of Columbia. For results based on the total sample of national adults, the margin of sampling error is ±4 percentage points at the 95% confidence level.

Continue Reading

Subscribe

Popular