2019 Unicorns: Who’s Still Got the Magic?

July 11, 2019 4:47 pm Published by
According to Crunchbase News, around 50 unicorns appeared in 2019, their billion-dollar horns shining bright. From March to May, several companies galloped onto Wall Street. How did that work out for them?

Crunchbase News describes the mythical class of 2019 as being “richer, more autonomous, and more American.” Like their predecessors, they have a lot in common, says the site: “They’re heavily California-based, commonly but not exclusively consumer-focused, and capable of spending gobs of money with startling speed.”

Per news and analysis from Pitchbook, after the IPO frenzy, which made millions for companies and investors, the wildest days may be behind us. The debut dust has settled.

The ride-sharing company Uber has fared well. While it had a “gargantuan” offering, it wasn’t quite as gargantuan as expected, says Pitchbook. In May, the company priced its initial public offering at $45, resulting in a market cap of $75.5 billion, down significantly from the $120 billion estimate buzzed about in 2018. The price per share dropped to $36, then rose back up again. Currently, it’s around $43, with a market cap of $73.7 billion. Business Insider reported in May that the market cap put Uber’s worth at almost as much as Ford and General Motors’ combined, and at least five times as much as its competitor Lyft. Recently, MarketWatch reported that shares were up, due to a Needham analyst sharing with clients that his conviction for the company is on the rise.

According to Pitchbook, Lyft was among the first in the IPO field, hitting the market at the end of 1Q in 2019. The company priced its initial public offering at $72 toward an initial market cap of $20.6 billion. In the months after, Lyft began to slump — from below $70 per share down to below $50. Currently, it’s back up to around $61, with a market cap of $17.9 billion. Recently, Barron’s reported that a Stifel analyst “sees more upside in Lyft stock but more of the same for shares of Uber.”

From cars to conference calls, we move to Zoom Video Communications. In May, it was coming in loud and clear that this communications company was hot. After early excitement, Zoom raised its initial IPO offering to $36 per share. Per PitchBook, the stock “skyrocketed” in its first day, closing at $62 per share and a market cap of $9.2 billion. A volatile ascent followed. But this July, Zoom took a hit after a downgrade from Goldman Sachs. Currently, it’s still strong at around $92 per share, with a market cap of $25.1 billion.

Finally, let’s flip over to burgers. As we detailed in our recent blog, Taking Stock of Beyond Meat: Lasting Sizzle or Future Fizzle?, In May, Reuters and others reported that Beyond Meat had an impressive market debut. The stock opened at $46, which was a notable increase from its IPO price of $25. Shares rose by 160 percent and trading was up to $72, before closing at $65.75. The IPO raised $240 million. Beyond Meat closed with a market cap of around $3.8 billion. Currently, it’s around $171 per share, with a market cap of $10.5 billion. Recently, Entrepreneur profiled the plant-based company and its “stunning success.”

We’ll continue to keep an eye on these unicorns in 2019 to see if their magical ways continue.

Tags: ,