It was a big week for initial public offerings as shares of 10 separate companies opened for trading. If you're thinking about investing in any of these recent IPOs it's important to first weigh the risks. It is easy to get caught up in the hype and buy the IPO rather than the company, which often ends in disappointment. After sifting through the facts and filings, here are my top picks from this week's stock debuts.
I think the company's lead position should help it grow in tandem with the booming mobile market. More than ever, people are buying products on their phones or using smartphones for price discovery. This mobile commerce trend will only get stronger as data plans and mobile platforms improve. Now consider that Millennial's mobile solutions already work across 7,000 different devices to deliver ads to more than 200 million global cell phone users.
However, there are significant risks. For one thing, players such as Vistaprint
Annie's brand has a strong following, despite having just four product categories to its name. And I wouldn't be surprised to see the company beef up its product lines as the year progresses. Annie's is riding the health food wave all the way to the bank. Last year, the company's revenue climbed 23% to more than $117 million. Consumers are willing to pay more for healthier products like Annie's, which improves profit margins. I think this stock will continue to surprise investors going forward.
With each of these stocks' respective industries slated for significant growth, I expect Millennial Media, CafePress, and Annie's to all be strong performers in the years ahead. To avoid missing out on a profitable opportunity, add these stocks to My Watchlist, so you can track and monitor their progress.