Hot IPOs! Would you follow after a 100% surge?
Last week's IPOs, the AI concept stocks, $Reddit(RDDT)$ - meme stock forum and $Astera Labs, Inc.(ALAB)$ , have surged by 75% and 136% respectively.
How to choose from the two stocks?
Reddit's options saw a maximum increase of 720% yesterday. Call options with strike prices between $50 and $75 are among the most actively traded contracts on Reddit.
Sam Altman, OpenAI’s CEO, is the largest shareholder in Reddit as well.
$Astera Labs, Inc.(ALAB)$ provides products that can integrate various data center components, securing deals with major AI chipmakers such as $NVIDIA Corp(NVDA)$ and $Advanced Micro Devices(AMD)$ .
Astera Labs' products are in high demand and currently partnered with $Amazon.com(AMZN)$’s AWS and $Microsoft(MSFT)$’s Azure.
Some investors called it as the substitute for $ARM Holdings Ltd(ARM)$ and Nvidia. It also has similar situation with Arm, when the chip company was backed by many big giants and then catched up AI heat.
However, it's worth noting that neither of these companies has achieved profitability and valuations are high. They are undoubtedly meme stocks of March.
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Without doubt, $Astera Labs, Inc.(ALAB)$ and $Reddit(RDDT)$ are the 2 extreme meme stocks in March. Both of them are new IPO released stocks which largely attract market attention.
It depends sometimes IPOs are beneficial and can make you quick money and sometimes or we can say most of the time IPOs are like traps for retail investors or beginners since shares of IPOs get dumped upon the retailers during the listing of the IPO.
IPOs become highly overvalued during the funding round and hence it becomes an opportunity for big players and institutions to dump the co. overvalued shares upon the retailers as they have already made huge profits in the funding round of the IPOs. If you are a beginner then you must stay away from IPOs, as to invest in IPOs one needs to check the overall valuation of an IPO whether it is reasonable or not, and then proceed to apply for it.
if you want to invest in IPOs then I think bull markets are the best time to invest in IPOs since recently I have seen many companies with unreasonable valuations and ask-size listing on gains on the stock exchange. And in this 2024 bull market, almost every IPO listed on gains on the exchange even if the valuations were undigestable.
However, do bear in mind that IPO will usually have a crazy valuation due to market FOMO behaviour especially when the stock keeps on flying. A bit IPO like $ARM Holdings Ltd(ARM)$ worth a collection but a bad IPO like $VinFast Auto(VFS)$ will make you to suffer a big loss if you chase high and never cut loss.
Well, how do you like IPO? Do you invest at the first few days of IPO or you prefer to wait for at least few months for the share price to stabilise before entry. Come and share with us your strategy!
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不过请注意，这两家公司都没有实现盈利，估值也很高。因此，它们成为三月的迷因股票。
也许，监控他们比跳进去更好...
@Aqa @Universe宇宙 @好生活99 @库尔加尔 @希恩 @rL @阳光 @海伦珍妮特 @迪安尔
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至于雷迪万亿美元（RDDT），在它再次飙升之前现在进入是很好的。
两者都是牛逼的买浪，市场火了。
所以，我选了哪一个？你觉得我买了多少？
给我留言吧。刁