Sometimes high-profile initial public offerings (IPOs) don’t always happen. Throughout this year, a myriad of headwinds, ranging from monetary policy shifts to geopolitical instability, have contributed to an austere environment. Since public market debuts tend to be growth-oriented, ETFs have suffered badly. However, there are a few IPOs to buy.
Basically, all recent IPOs to buy have suffered a huge timing dilemma. In 2021, public market debuts across the globe grossed a record $594 billion, according to Reuters. Now, FactSet data reveals that US-based public debutantes have suffered a severe loss in demand.
Please make no mistake about it. Every idea among the IPOs to buy on this list carries risk. Frankly, you should only commit to these ideas with money you can comfortably afford to lose. Some of the best IPOs to buy include:
NuScale Power (SMR)
Related to the nuclear industry, NuScale Power (NYSE:SMR) specializes in small modular reactors or SMRs; hence the stock symbol. With a smaller physical footprint and therefore greater modularity in terms of geographic integration, NuScale’s SMRs can represent the future of clean, reliable power.
Science underpins the bullish speculative narrative for SMR stock. As I mentioned earlier, one uranium fuel pellet has the same energy potential as 149 gallons of crude oil. In addition, nuclear power plants have a capacity factor of almost 93%. Basically, this metric confirms that nuclear power represents the most reliable energy source – and it’s not even close.
To be fair, many on Wall Street are realizing the opportunity of SMR stocks. During the October 4 session, it was up 21% year-to-date. However, it was down 14% in the previous month, opening the door to contrarian speculation.
Warby Parker (WRBY)
Among the best speculative IPOs to buy, Warby Parker (NYSE:WRBY) provides eyewear products. Since the start of this year, WRBY has found itself down 66%. Although the frontline concept is intriguing. providing discount eyewear, reviewers pointed to the viability (or lack thereof). According to Gurufocus.com, WRBY is ranked in the top 10 for profitability. Due to extreme pessimism, Warby Parker closed the October 4 session at $15.52. However, Warby’s benchmark price was $40.
Nonetheless, die-hard contrarians may be cynical about why this is one of the IPOs to buy. Scientists predict that by 2050, almost half of the world’s population will have myopia. That’s what I call a huge total addressable market.
Handheld Devices (WLDS)
One of the IPOs I covered for Benzinga, Portable devices (NASDAQ:WLDS) represents a breakthrough technology company. Leveraging its Surface Nerve Conductance (SNC) platform, Wearable Devices enables users to interact with their smart devices in an organic and intuitive way. For example, rather than carefully navigating granular menu screens on a smartwatch, SNC technology essentially reads your intentions.
I encourage interested readers to research the company and see for themselves. In summary, wearable devices represent the next step in the continuum of human-machine connectivity. Unfortunately, Wall Street doesn’t quite see it that way. While analysts can respect the underlying innovation, WLDS has suffered a staggering 62% loss year-to-date.
To be fair, red ink isn’t all that unusual for other once-hyped recent IPOs to buy. Still, you’re taking big risks with this one, as the consumer discretionary economy may fade. However, one of the main positives is that the company boasts some remarkable strengths on its books. For example, Wearable Devices is debt-free, which could prove useful in the current deflationary environment.
Forza X1 (FRZA)
Another top speculative IPO to buy is Forza X1 (NASDAQ:FRZA) caught the eye early on because it’s sort of an electric vehicle company. However, the focus here is on electric boats. Immediately, the story also attracts criticism because boating is a very expensive practice. Only the most affluent needs apply, which reduces the total addressable market.
Still, the fundamentals may support Forza due to the implications of clean mobility. “According to data compiled by Statista.com, greenhouse gas emissions from ships and boats in the United States were 32.3 million metric tons of carbon dioxide equivalent (MtCO2e) in 2020.” Although emissions in this category have fallen by 31% since 1990, much remains to be done. So, Forza can play a role in this.
Of course, only seasoned speculators should consider FRZA as one of the IPOs to buy now. Since the beginning of this year, FRZA has fallen by 73%. The good news here is that wealth indicators have increased for the top 1%. I’ll let you decide if that’s reason enough to try.
Rocket Laboratory (RKLB)
As many sci-fi movies will tell you, space is the ultimate frontier. According to Wall Street, however, it is also a very lucrative frontier, thus establishing the bullish case for rocket lab (NASDAQ:RKLB). Aerospace specialist, Rocket Lab provides launch services. Not only that, analysts seem to be tuned in to the inherent opportunity in RKLB stock.
First, let’s set up some background data. According to UBS, the wider space economy will demand a valuation of $926 billion by 2040. Morgan Stanley upped the ante, projecting a valuation of $1.1 trillion over the same forecast period. Bank of America is perhaps the most optimistic, projecting $2.7 trillion by 2045.
Therefore, it is no surprise that Morgan Stanley and Stifel Nicolaus have set a price target for RKLB shares of $12 and $15, respectively. The problem? Shares have fallen 62% for the year so far, bringing the price down to $4.54.
On the speculative side, Rocket Lab is a really huge advantage if it can achieve the projected goals per action. Again, I’ll leave it to you to decide if the discount is enough to call RKLB one of the IPOs to buy.
It’s confession time. While the innovative dating app Bumblebee (NASDAQ:BMBL) may appeal to some investors because of its relevant social profile, I’m not one of them. For full disclosure, I’ve published my reasons why BMBL stocks pose significant risks in a TipRanks article. If you look at the publication date (August 18) versus Bumble’s stock price at the time of writing (October 4), you can see that I was right to be concerned.
However, given the recent steep discount, could BMBL stock be one of the speculative IPOs to buy? In my TipRanks article, I mentioned that pent-up demand for social connections can drive demand. After all, pent-up demand sparked the phenomenon of retail revenge and revenge travel.
My main concern is the deliberate limitation of the total addressable market. As you may know, Bumble encourages people who identify as women to take the first step. From a social point of view, I find it great that a company challenges social norms. On the other hand, it’s a risky move in a deflationary consumer market.
However, if BMBL aligns with your ideologies, it might be worth taking a look at the current discount.
Applied Blockchain (APLD)
On paper, Blockchain applied (NASDAQ:APLD) bills itself as a “builder and operator of next-generation data centers in North America.” Basically, the company specializes in cryptocurrency mining and that’s where the problems start. With the underlying digital asset sector undergoing a catastrophic collapse since around November 2021, APLD stock has suffered tremendously.
To be fair, Applied Blockchain represents a victim of unfortunate timing. When it made its public market debut last year, circumstances looked very favorable for APLD shares. Now, it is increasingly difficult to make APLD one of the IPOs to buy. Basically, if crypto sentiment is falling, the narrative of mining an asset base that is constantly losing value is not conducive to profitability. It’s really just a math problem.
It is therefore not surprising that the APLD stock has suffered a staggering loss of 93% since the beginning of the year. This is a warning for most investors to steer clear. However, if you have a long and patient view of the crypto industry, you can get discounted APLDs. Remember, however, that this is for gamers only. Don’t invest more than you can afford to lose.
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As of the date of publication, Josh Enomoto 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.