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3 new stocks to watch in 2023


It was a difficult year for initial public offerings (IPOs). With most major global indices mired in a bear market, new stock quotes have dried to a trickle in 2022. In the first half of this year (January to June), US-listed companies raised $4.8 billion through IPOs. That compares to $155 billion raised in 2021 when markets were still frothy and rising rather than plummeting. As of December 1 of this year, funds raised through U.S. IPOs were down 93% from 2021according to data from the New York Stock Exchange.

Understandably, many companies planning to go public hit the pause button until markets and investor sentiment improve. The good news is that several high-profile and highly anticipated IPOs are set to take place in the new year. global market conditions are improving. These companies have been planning to go public for years and are just waiting for the moment to turn in their favor. Here are three new stocks investors should watch in 2023.

Bandaged

Source: Michael Vi / Shutterstock.com

Many investors are eager to get their hands on Bandaged, the Irish e-commerce company considered the world’s most valuable private tech start-up. The company, headquartered in San Francisco and Dublin, Ireland, was valued at $95 billion in a funding round in March 2021. The company lowered its own valuation to $74 billion last summer as market and macroeconomic conditions deteriorated.

Regardless of the reduced valuation, investors big and small are eagerly awaiting Stripe’s IPO. The company develops software for payment processing on e-commerce websites and mobile applications.

Stripe has been consider going public for years, and there have been reports that the company has hired a law firm to help him in the process. Other reports indicated that Stripe was considering a direct listing rather than a traditional IPO.

However, it is structured and whenever that happens, Stripe is an IPO that investors should keep on their watch list in 2023.

instagram

Instacart logo on a phone screen on a yellow background with a timer, boxes and a shopping cart.  IPO of Instacart.

Source: Burdun Iliya/Shutterstock

The leader in online grocery delivery in the United States and Canada, Instacart’s Chief Executive Officer (CEO) Apoorva Mehta has been open about wanting to take the company public since 2019. Unfortunately, the pandemic and subsequent market rout forced Instacart to put projects on hold. But 2023 could be the year of Instacart’s long-awaited IPO if markets rebound and sentiment improves.

As a clear sign that Instacart is getting ready to hold its IPO, the company filed the documents to go public with the United States Securities and Exchange Commission (SEC) in May 2022. The company, which is based in San Francisco and operates a premier facility. online grocery delivery service, was recently valued at $14.7 billion. Like all tech companies, Instacart’s valuation is down due to the current market volatility. But it is likely that will rise again when conditions become more favourable.

Reddit

Phone showing Reddit logo on screen in front of blurry background with Reddit logo.  Reddit IPO.

Source: Inkdrop / Shutterstock

social media company Reddit is best known today for his WallStreetBets subreddit group, where retail traders gather to talk meme stocks and push their stock prices to unsustainable levels. The social news aggregation, content classification and discussion forum site saw its popularity (and notoriety) increases during the pandemic, as people staying in their homes used it to discuss everything from stocks and public health measures to food recipes.

Like Stripe and Instacart, Reddit is based in San Francisco. Also, like those two other companies, Reddit has been waiting for the right time to stage its IPO for years. The company filed a confidential IPO application in December 2021, but its the timing couldn’t have been worse, coming as it did just after the markets peaked and started turning south. But Reddit hasn’t backed down from plans to publicly list its shares, and 2023 could be the year it finally executes its IPO.

Today, Reddit has more than 50 million daily users and has a valuation of 10 to 15 billion dollars. Given investor interest in social media stocks, we can expect Reddit to be a new stock to watch in 2023.

Disclosure: At the date of publication, Joel Baglole had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a reporter for the Wall Street Journal and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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