ANALYSIS: Three Red-Hot Tech Stocks Primed For More Gains After Recent IPOs

(Investing.com) - 2020 has turned out to be a blockbuster year for initial public offerings (IPO). The Renaissance IPO Exchange Traded Fund (ETF)tracks a basket of recently listed U.S. companies—rallied a whopping 114.6% year-to-date to reach a series of new record highs in recent days. The S&P 500 for its part, is up just 14.6% over the same timeframe.

IPO Daily Chart

The busy year for new listings is on track to continue, with Airbnb, the vacation rental online marketplace that has disrupted the hotel industry, and on-demand food delivery service Doordash both set to go public this week right before 2020 comes to a close.

Below we’ll focus on a trio of newly listed tech unicorn IPOs that have more than doubled in valuation since going public this year. All three have the potential to become market leaders in their fields thanks to rapid growth and expanding demand for their products: 

Snowflake

• Trading Debut: Sept 16
• Initial Debut Price: $120.00 
• Gains Since Going Public: +225%

Snowflake whose data warehouse software helps companies manage and share vast amounts of information, made headlines earlier this year when it became the biggest software IPO in history.

The cloud-based data storage and analytics provider priced its shares at $120.00 Sept 15, however on their first day of trading on Sept 16, they ending up 112% from that IPO price, at $253.93.

Palantir Technologies

• Trading Debut: Sept 29
• Initial Debut Price: $10.00
• Gains Since Going Public: +185.9%

Palantir Technologies, which provides data-analytics software and services to government agencies and large companies, made its trading debut on Sept 29 via a direct listing, anticipating an opening price of $10.00 per share.

Unity Software

• Trading Debut: Sept 18
• Initial Debut Price: $52.00
• Gains Since Going Public: +221.6% 

Unity Software, which provides tools for creating videogames, made its trading debut on Sept 18. The San Francisco, California-based company saw its shares rally from its expected opening price of $52 a share by as much as 44% in their first day of trading, before ending up 31.4% at $68.35.

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