The 2019 IPOs have been some of the most anticipated public offerings ever. Just look at Uber Technologies Inc. (NYSE: UBER) and Lyft Inc. (NASDAQ: LYFT). Plus, we’ve had breakout stars like Beyond Meat Inc. (NASDAQ: BYND) absolutely dominate the market with over 200% gains.
With all the IPOs in 2019, it can be hard to find which one to jump on, which is why we’re giving you a backdoor play into the IPO market. This stock has its hands in some of the biggest IPOs, but you can own it right now…
The biggest reason behind the hot IPO market is simple: The stock market is rising.
It’s up 12% this year despite the trade war with China.
The U.S.-China trade war is doing little more than creating a temporary downturn before the market rebounds again.
So, despite the Dow and S&P 500’s 6% dip in May, the stock market is still hot.
And the IPOs keep rolling in. In fact, 54 companies have raised over $20 billion since their IPOs this year.
However, companies like Slack Technologies and Airbnb already have valuations of $17 billion and $38 billion respectively – with Airbnb having generated $1 billion in funding ahead of its IPO.
Despite all the panic and worry swirling around the market, 2019’s IPOs are raising billions of dollars.
However, there are a few 2019 IPOs that have crashed and burned as well. In fact, companies like Uber and Lyft have been two of 2019’s riskiest IPOs, as their shares have tumbled 10% and 30% respectively.
So, as you can see, picking the good IPOs from the train wreck IPOs can be a daunting task. That’s where our pick today comes in.
In fact, this backdoor play on the 2019 IPO market has consistently grown through the wild ups and downs of the IPO market. Beyond that, it soared 44% between January and now.
This is a company that invested in both Uber and Beyond Meat before it had even gone public. And it’s the perfect solution for playing into the 2019 IPO market.
Check out our top pick below.
The Best Backdoor Play on the 2019 IPO Market
The play is SoftBank Group Corp. (OTC: SFTBY).
This venture capital company, which was once known for helping dot-com firms back in the 1990s, has now grown into one of the biggest global investors.
In fact, it’s so successful at what it does, it now has a market cap of $88 billion. And while everyone else is just hoping to get in and survive in the IPO market, Softbank is already there at significantly lower prices.
Heck, not only did Softbank invest in Uber and its spin-off businesses, but it also sold off Uber shares right at the IPO. That’s a win-win for Softbank – and something retail investors can’t do.
This is because Softbank is fixated on the future – one that looks just fine with its over $100 billion in holdings in its “Vision Fund.”
Its Vision Fund includes companies like Nvidia Corp. (NASDAQ: NVDA) – which despite recent turbulence, has enjoyed a growth of 1,813% in the last 10 years alone. And Softbank has been reaping the benefits from this stock.
Owning Softbank shares is similar to owning an ETF in that regard. It means you’re getting the portfolio diversification you need to ride out short-term downturns. But it also offers a 44% upside for investors looking to get into IPOs without all of the early risks.
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Source: Money Morning