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.
|Rank||Company||IPO Date||Amount Raised (USD billions)|
|3||Agere Systems||March 2001||$4.1|
|9||Altice USA||June 2017||$2.2|
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.
The Most Significant Cyber Attacks from 2006-2020, by Country
Cyber crime is expected to cost the global economy trillions per year by 2025. Here are the countries with the most severe cyber attacks from 2006-2020.
Significant Cyber Attacks from 2006-2020, by Country
Committing a cyber crime can have serious consequences. In the U.S., a cyber criminal can receive up to 20 years in prison for hacking into a government institution if it compromises national security.
Yet, despite the consequences, cyber criminals continue to wreak havoc across the globe. But some countries seem to be targeted more than others.
Using data from Specops Software, this graphic looks at the countries that have experienced the most significant cyber attacks over the last two decades.
|Rank||Country / Region||Number of Significant Cyber Attacks (2006-2020)|
|1||🇺🇸 United States||156|
|2||🇬🇧 United Kingdom||47|
|5||🇰🇷 South Korea||18|
|10||🇸🇦 Saudi Arabia||15|
|17||🇭🇰 Hong Kong||7|
|20||🇰🇵 North Korea||5|
The U.S. comes in first place, with 156 recorded cyber attacks. That’s an average of 11 significant attacks per year, which is more than Russia’s had in 14 years.
What are the Most Common Types?
While there are many different types of cyber attacks, Specops highlights the four most commonly used for significant cyber crimes:
- Structured Query Language (SQL) Injection Attack
SQL is the code used to communicate with a database. In an SQL injection attack, the hacker writes vindictive SQL code and inserts it into a victim’s database, in order to access private information.
- A man-in-the-middle (MitM)
This form of attack happens when a cyber criminal hacks into a communication channel between two people, and eavesdrops on their online exchanges.
- Phishing Attack
When a cyber criminal poses as a legitimate institution and emails a victim to gain personal details like login credentials, home address, credit card information.
- Denial of Service Attack (DoS)
This involves flooding a victim’s system with traffic, to the point where their network is inaccessible. The hacker doesn’t gain any valuable information from this style of attack.
»Like this? Here’s another article you might enjoy: The 15 Biggest Data Breaches in the Last 15 Years
How Does the Bill and Melinda Gates Foundation Invest Its Money?
The Bill and Melinda Gates Foundation is funded by a trust that has a portfolio value of over $25 billion. Here’s how it invests its assets.
How Does the Bill and Melinda Gates Foundation Invest Its Money?
Bill and Melinda Gates have announced they are ending their marriage, but will continue to work together at their foundation.
The Bill and Melinda Gates Foundation, launched in 2000, is the largest private philanthropic organization in the United States. It has spent over $50 billion on global public health over the last two decades, including $1.75 billion on COVID-19 relief.
Of course, the foundation’s assets are managed by a trust until they are ready to be distributed to grantees. Here’s a look at how the Bill and Melinda Gates Foundation Trust invests its assets.
The Portfolio Breakdown
The trust has invested 100% of its holdings in stocks. It holds almost half of its value in Berkshire Hathaway, the holding company run by Warren Buffett.
|Stock||Value||% of Portfolio|
|Canadian National Railway||$1.9B||7.2%|
|Liberty Latin America||$14M||0.1%|
However, the portfolio is more diversified than initially meets the eye—Berkshire Hathaway itself is invested in almost 50 stocks.
Shrodinger, a healthcare-focused software company that makes up 2% of the trust’s total portfolio, was one of the best performing stocks of 2020 by price returns. The portfolio has also been boosted by delivery companies UPS and FedEx, both of which saw their share prices more than double over the last year as online shopping took off.
While the trust is dominated by U.S.-domiciled companies, a few foreign names do make the list. For example, Canadian National Railway makes up over 7% of the portfolio, while the Latin American bottler Coca-Cola FEMSA makes up just over 1%.
The Future of the Foundation
The trust continues to be managed by a team of outside investment managers, whose decisions have a critical impact on the amount of money the Bill and Melinda Gates Foundation has to fund its initiatives. For example, if Berkshire Hathaway were to dip 10%, this would drop the portfolio value by more than $1 billion.
In addition, the foundation is funded in part by the Gates’ personal donations—more than $36 billion from 1994 to 2018. Should Bill and Melinda go on to create their own separate philanthropic efforts post-divorce, the foundation may have a smaller portfolio to pull from going forward.
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